Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: empanelment :: form 3cd :: due date for vat payment :: VAT Audit :: VAT RATES :: cpt :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: list of goods taxed at 4% :: TDS
Budget Extravaganza »
 Government should reinstate wealth tax in Budget 2017
 With demonetisation inducing tax compliance will PM Modi cut tax rates in Budget 2017?
 State plan budget utilisation in Odisha
 Maharashtra wants budget advanced to February
 Coastal economic zones may get 10-year tax exemption in next Budget
 Why advancing the Union Budget date may not make much difference
 Govt keen 2017-18 budget should not clash with polls: Arun Jaitley
 Finance Ministry seeks industry suggestions on taxation for Budget
 Budget should focus on fiscal firm up
 Finance ministry keen to present Budget on February 2 or earlier
 Poor railway performance may mar merged Budget

Budget 2013-14: India Inc looks for lower taxes; says perception paramount
February, 06th 2013

With the Union Budget around the corner, the industry is not very happy with the proposals regarding minimum alternate tax (MAT). Neither is it in favour of reports that Budget 2013 could see the revival of inheritance tax nor the delay in implementing goods and service tax.

In an interview to CNBC-TV18, Adi Godrej, president, CII and Sunil Munjal, joint managing director, Hero MotoCorp to find out what India Inc expects from Budget 2013

Below is the edited transcript of Godrej and Munjal’s interview to CNBC-TV18.

Q: What is your expectation from this year Budget?

Godrej: The finance minister needs to concentrate on growth orientation in the Budget. Anything that helps growth would be welcome. We should be very careful also to make sure that there is nothing in the Budget speech or in the Budget proposals that creates any kind of negative perception as the Budget last year did. It is very important to ensure that the perception both outside the country and within the country is positive. The reform agenda already laid out has been good. More of that should come both in the Budget speech and in the Budget. Anything he does in the Budget, any proposal should be oriented towards growth. That is the best way to create a fiscal balance.

Q: You said that P Chidambaram should avoid anything this Budget like the retrospective amendment in the last Budget or general anti-avoidance rule (GAAR) in the previous Budget which could send out a negative sentiment or a negative signal to both domestic as well as foreign investors. Let’s talk about what is being currently speculated, which may perhaps be seen as negative signals. The finance minister himself is saying there is an argument for a higher tax on the super rich.

Godrej: I don't think such a tax would be sensible. Anytime we have had high rates of taxes in India, whether direct or indirect, collections have been lower. Lower rates of taxes have always lead to higher collections. Any increase in direct taxes or indirect taxes at this stage will not be good for the economy. Gross domestic product (GDP) growth would be affected. What we really need is to accelerate GDP growth and collect higher taxes through the higher growth.

Q: You do believe that we are going to perhaps see him winding down the fiscal stimulus, specially the measures that were taken post 2008. If we read between the lines of what his trusted advisor Parthasarthy Shome has suggested, that the stimulus provided post 2008 was not really efficient or there is no definitive analysis to prove that it was particularly efficient. So, do you anticipate a winding down of the fiscal stimulus that we saw post 2008?

Godrej: That fiscal stimulus has already been wound down and the excise and service tax rates today are the ones that are expected in the goods and services tax (GST). So, I don’t think that it should be increased at all further.

Q: While the future of the direct taxes code (DTC), comprehensive DTC is still with a question mark at this point in time, maybe we could see some provisions of it being introduced in this Budget. Back to that controversial, dreaded issue of minimum alternate tax (MAT) and there seems to be the thinking within the finance ministry that maybe once again they could consider bringing in MAT on gross assets as oppose to booked profits. What is your own sense?

Munjal: We have always objected to MAT as a very matter of principle itself and overtime, it has not only stayed there, but the MAT rates have gone up until they are almost set power now with regular rates being paid by companies. So, if you change it now and make it even more stringent or higher, there is no point exempting any company at all. You may as well have the same tax regardless of what you do.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Bath SEO Company Birmingham SEO Company Bradford SEO Company Brighton and Hove SEO Company Bristol SEO Company Cambridge SEO Company Canterbury SEO Company Carlisle SEO Company Chester SEO Company Chichester SEO Company Coventry SEO Compan

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions