Where is GST in Budget 2016-17

Coming out with a strong surprise, Mr Jeenendra Bhandari, Partner, MGB & Co LLP said, “Before the start of the day, there were two major expected changes from the Budget, one, increase in Service Tax rates to 16 %or 18%, in line with GST and abolition of LTCG exemption from sale of listed securities, both of which were missing in the final proposals.”

Mr Bhandari also added, “Not a single word in the entire Budget Speech mentioned on the status of GST except that it is pending legislation. I guess the time has come to remove all cess, the Secondary and the Higher Secondary Cess have become more or less perpetual and now this Krishi Kalyan Cess…Doesn’t a surcharge and tax does in effect the work of a cess for the benefit of farmers and education? This budget tries hard to end the never ending monster of unending tax litigation by introducing a Voluntary Disclosure scheme, redressal of retro tax scheme, a scheme to end tax litigations, a new penalty regime and a new stay of demand mechanism.  Never has ever there been an effort so genuine.”

Mr. Sunil Khanna, President and Managing Director of Emerson Network Power India gave a positive feedback on Mr Jaitleys Budget and said, “The Government has tried to keep a healthy balance between inclusive growth and fiscal consolidation amidst global volatility and additional burden on account of the 7th pay commission, OROP. With an important focus on digitation, the government has shown good intent in keeping up the momentum of the Make In India and Digital India Mission. The government has shifted its focus from large cities to rural areas showing a clear intent to uplift those who belong to the bottom of the pyramid, especially the agricultural sector and focus on creating skilled labor."

"The effort to incentivize the Make In India program by way of  domestic value adding in the Electronics Manufacturing Systems segment is a step in the positive direction as is the removing of custom duties. This augurs well for us as majority of the spending in our industry is on imported ESDM Electronic System Design & Manufacturing items. From a taxation standpoint, lowering of Corporate IT Tax for companies not exceeding Rs. 5 crore turnover to 25% plus surcharge is a positive move as it offers incentives to SMEs and SMBs in the country to focus on their growth. Another proposal that will benefit the country and stimulate start-ups on the growth trajectory is the amendments to the taxation for new manufacturing companies incorporated after is 1ST March 2016 as they will now have the option to be taxed at 25% plus surcharge and cess provided they do not claim profit linked to investment.”

Sharing another perspective on the recent Union Budget 2016 Ms. Lakshmideepa A, Director, Yeldi Softcom Pvt. Ltd, a NFC based -technology company, based out of Chennai that was started in 2008, commented, “The 3 year tax holiday on all direct and indirect taxes applicable to start-up companies is a welcome move, as it will encourage the new set of entrepreneurs.  For FinTech Company like ours, reforms targeted towards cashless economy in the form of relaxation of tax in transactions will endorse the concept of digital payments, in our cash sensitive country, in the near future. Additionally, lowering the corporate tax of companies with a turnover of less than Rs. 5 Crores will help in promoting the industrial activity resulting in generating more job opportunities.”

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