Published On : Mon, Feb 2nd, 2015

NVCC gives suggestions to Arun Jaitley for Union Budget

Nagpur: Nag Vidarbha Chamber of Commerce, Finance Committee meeting was held for preparation of Pre-Budget suggestions, addressed to  Arun Jaitley, Hon’ble Union Finance Minister, New Delhi, for consideration before finalization of Union Budget for 2015-2016 :

Mayur Panchmatiya, President stated that NVCC is an apex body of trade, commerce & industry, established in 1944 and addressing their needs for redressed to concerned department in Vidarbha region. He also stated that the citizens of the country have high expectations from the new Government at Centre, having single party mandate. The Government is capable of taking decisions enabling India to move forward aggressively with major reforms on anvil, so that doing business in India should be ease generating  higher revenues & superb services. Hence, we would like to put forth following suggestions for your kind consideration and incorporation suitably in forthcoming Union Budget.

NVCC Finance Committee Meeting
Mayur Panchmatiya further suggested that the import dependence needs to change with a focus on “MAKE IN INDIA” it will save foreign exchange. Exports from the country should be given boosts the aim should be to make India self-sufficient. It is proposed an export hub for EOU units.

To achieve rising and shared prosperity, not a silver bullet but on package of policies deployed in systematic fashion is required. A new level of understanding of how these policies interact and how they play out in the working of Indian economy. This depends on the Extent and Efficiency of usage of resources available, re-allocation and the magic of confidence of ideas. Policies should be designed that support growth.

However, India’s high-profile internet ventures are striking a note of change flipkart’s purchase of fashion portal Myntra was an early indication of the buying power of an Indian venture, a perception that will be strengthened, we need more of this to happen. India requires a traveling market of start-ups to revitalise large enterprises and spur competition and consolidation. It must be one, which makes it worth their while for investors who bet their money and entrepreneurs who chase their dreams.

 Viren Chandak, Convener, Finance Committee suggested that :-

Indirect Taxes  :- GST Implementation – Biggest reform post Independent India-When VAT was implemented in 2005, VAT rates were more or less uniform in almost all states. But, immediately 2006 onwards State Government started increasing VAT rates from 4 % to 5 % & from 12.5 % to 14.5, 17.5 & Entry Tax additional. Higher Tax rates provide incentive for evasion, generation of black money & disincentive to Honest Tax payers.  Hence Indirect Tax rates, all put together prominently Excise Duty – VAT  should be amongst world average of 15 %.  GST Rates – Central GST & State GST be  8% Each  Education Cess & Higher Education Cess be removed.

Cess is put up in some emergency – may be for few months or maximum a year. If Cess is continued for 5-6 years – the cess becomes meaningless. As regards GST, a common man (small traders and SME sector /small industries ) is still not aware about operational mechanism and other intricacies of GST. Hence, it is desirable to first upload the tentative plans , further educate the masses by conducting sufficient educational programs for imparting the necessary working knowledge of GST before implementation.

CRUDE – Petroleum sector had been taxes very highly till date & all S.G. had VAT rates as high as 35 % – 40 %. Crude being very low – five year lowest prices worldwide – major boom for India – We suggest eg – Following breakup of money be specified  Rs 1.0 -for Road making, Rs 1.0 for Railways, Rs 1.0 for Education, Rs 0.50 – National Calamity, Rs 0.50 For Minorities, Rs 0.50 For Cities, Rs 0.50 For  Essential Price Stability  Fund, etc, Citizens would be proud to spend this allocated money for development& would be happy to pay to Govt, instead of asking for subsidies. Clear enmarking of funds will enable respective department to plan their working on yearly / five yearly basis.

 

 Nilesh Suchak, Past President of NVCC suggests that :-

Agricultural – Tourism, Food Processing, Manufacturing, Infrastructure, Trade, Share Market  are backbone of Economy. All these sectors require major Tax, Rules & Regulations Reforms :- Labour Reforms, which no Government in past many decades garner courage to come up, fearing vote bank loss  & thereby to employ more people will land up in problems – This mindset should go, one employing more & more should be rewarded instead put to convenience. This will help in generating employment & creation of skilled labour force.

 Nirav Panchmatiya, Financial Advisor suggests that: – Direct Taxes

Proposal for IT Limit, Up to 4 lacs – Nil, 4 to 10 lacs – 10 %, 10.01 to 20 lacs – 20 %, 20 lacs onwards – 30%, 80 CC – Limit be enhance from Rs 1.5 lacs to Rs 2 lacs, Bank FD ,TDS Deduction be raised from Rs  10000 to Rs 20000, Housing Interest Deduction be increased to Rs 3 lacs from earlier one of 1.5 lacs. 3 years bank FD’s must get tax exemption.

 Sanjay K. Agrawal, Executive Member, NVCC suggested that :-

From recent developments we understand that implementation of GST at our doorsteps, but stake holders at grass-root level (MSME Sector & small traders) are still not aware about operational mechanism and other intricacies of GST.

Hence, it is suggested to first put in public domain the proposed provisions, rules & regulations, to educate the masses by conducting educational programs imparting necessary working knowledge of GST, call for suggestions from all stake holders, before implementation. To support the key sectors and to achieve all inclusive growth, Labour Reforms is the need of hour. This area has not been touched by almost all past Governments fearing loss of vote bank loss which have lead to negative mindset of entrepreneurs in employing large workforce. We believe reforms in labour laws coupled with incentivizing labour intensive industries in potential sectors/areas will help generating employment for each hand in India.

We suggest tinkering with Rural Employment Guarantee Scheme to include Agricultural, Infrastructure (road & irrigation projects) in its ambit and incentive for tourism, agro-processing & textile industry.

M.S. Nishita Khandelwal suggested that :-

The TDS Notices received from tdscpc.gov.in in email do not show the justification report. Downloading the justification report is a tedious process at present. It takes too much of effort and time. Request – Attach a password protected justification report in a readable format to the mail. TDS Payment Challans at present incorporate TDS under only one section in one challan. This makes online payments cumbersome and more time consuming for deductors having to deposit TDS under various sections. Request – To allow payment of TDS under different sections in a single challah under different heads. PF Notices levying Interest and Penalty are being generated from Delhi. The proceedings are taken up at the PF Office in the respective Districts. However, the PF Officers (including Commissioners) deny holding any power to waive penalties and suggest that if the employer seeks waiver of penalty, he should prefer an appeal. The appeals at present are heard only at Delhi.

For orders levying penalties up to Rs.5 Lakh, it is not economically viable to the employer to go to Delhi for the Appeal. Request- To set up Appellate Tribunals at District Level for Appeals involving disputed demands up to Rs.5 Lakhs. When an assessed is providing services under more than one category of Services, and happens to pay excess tax under one service category, the benefit of that excess tax paid in one category of service is not allowed to be reduced from the payment required to be made under another Service Category. Request – The categorization of Services is done only for Statistical Review. As such if excess tax is paid under one category of service and is payable under another category of service, both should be nullified with each other.

 

 Ajay Madan, Vice President Suggests that :-

IT Appeal be taken up within two months & its judgment need to come within maximum two years. Normally it takes 2-3 years to have our appeal on board first & later on further more for outcome & thereby becomes harassment for Assesse. The appeal adjudicated in favour of Assesse, if three appeals of same Assessing ITO have gone against the judgment of ITO concerned ITO promotions be held up for at least two years. Education Loan– Interest Subsidy of 5 % from Government is given to aspiring candidates & they should be given Graduation Certificates under lien conditions, so that they remember to repay Government Loan. Education Cess:& Higher Education Cess should be abolished. We are on opinion that any kind of Cess should be charged only to address some emergency situation with sunset clause. Cess if charged for longer periods in continuation then it appears to be colorable tax. New Pension Scheme – Pension Receipts in the hands of retired peron through NPS should be tax free. This is tax free in entire world.

Separate section in 80 C be added to promote only Term Insurance so that majority of poor & working class be provided.

 Abhishek Jha, Executive Committee Member of NVCC suggests that:-

Amendment is needed in Section 50C :- With the introduction of section 43CA in Finance Bill 2013, the sale of immovable property by a person holding the property other than as capital asset has to be taxed at the fair market value / stamp duty value / valuation arrived at by the department valuer. However if the said property is sold by virtue of an agreement executed at an earlier date, the fair market value of the said property as on the date of such agreement is to be taken if some amount in respect of sale has been transacted in a mode other than by cash. This condition is missing in section 50C,  which is applicable for the immovable property held as capital asset. This is beneficial to the assessee and hence should also be included in section 50C.

Double taxation by Section 56(2)(vii):- In the above section the purchaser of the immovable property is taxed for the difference between the actual consideration and the fair market value. This is basically double taxation as the seller is already taxed for the same amount by section 43CA or section 50C, as the case may be. This clause needs to be removed. Section2 (ea) of Wealth Tax Act :- A specific mention regarding exclusion of Agricultural Land from the definition of Urban Land is required.

Manubahi Soni, Hon. Secretary suggested that :-

Import duty on Gold should be reduced from existing rate from 10% to 2%

The tradition of India, to purchase of ornaments during daughter’s marriage & it becomes a costly ceremony & it will discourage smuggling of gold. States in a press note issued by  Sachin Puniyani, Hon. Jt. Secretary of the Chamber.