MCC Chamber of Commerce and Industry Symposium on The Union Budget

mcciMCC Chamber of Commerce and Industry held a Symposium on The Union Budget, 2014-15 today at the Chamber Premises. Shri Sanjay Agarwal, President of the Chamber, Shri R.S. Agarwal, Trustee & Past President of the Chamber, Shri N.K. Poddar, Senior Advocate, Supreme Court of India and Shri Amitav Kothari, Past President of the Chamber and Shri Arvind Agarwal, Chairman, Standing Committee on Direct Taxes, were president in the discussion.

The Chamber recommended that personal taxation should be increased further. The expenditure on CSR activity could be allowed as a part of Business Expenditure and restrictive amendment has been incorporated to section 37(1) of the Act read with Sec 30 & 36. As suggested by Shri N.K. Poddar the Chamber would make proper representation in this regard. Investment limit could be increased for deduction under section 80C and there has already been a slight increase.

A suggestion was made for the limit for Investment in new Plant & Machinery to be reduced from Rs. 100 crores to Rs. 50 crores for investment allowance and the Hon’ble Finance Minister has generously pegged the limit to Rs. 25 crores and accordingly the amendment to section 32AC was proposed in the Bill.

The Chamber has requested for Interest to be allowed on loan for housing purpose to Rs. 2.5 lacs and the Hon’ble Finance Minister has considered the same and permitted Rs. 2 lacs of such interest. Hence suitable amendment has been made in section 24 read with section 23 of the Act. The Chamber’s proposal for doing away with retrospective legislation has been only partly considered.

Bringing in GST has been a suggestion from the Chamber and the Hon’ble Minister of Finance has indicated that the NDA Government would roll out the proposed GST next year whereby the concerns of the States will be addressed.

Chamber put forward the out-of-box suggestion to link MNREGA with agriculture and bring FDI in Defence as well as recommended for better governance. Such recommendations have been addressed in the budget speech.

Chamber suggested to reduce the pending appeals where big tax disputed amounts are locked in. Again, some schemes in this regard have been offered by Settlement Commission.

Thus around 40p.c. of the 23 proposals forwarded by the Chamber in the Pre-Budget Memorandum has been considered in the Budget.

DSC_0019 DSC_0031However, there is a mention about one time settlement Commission in his speech but that is not indicated in the Bill. Similarly regarding KVP investment people may have banked and unbanked savings to invest unit in KVP will need to wait and see what will be the scheme.

2014-15 today at the Chamber Premises. Shri Sanjay Agarwal, President of the Chamber, Shri R.S. Agarwal, Trustee & Past President of the Chamber, Shri N.K. Poddar, Senior Advocate, Supreme Court of India and Shri Amitav Kothari, Past President of the Chamber and Shri Arvind Agarwal, Chairman, Standing Committee on Direct Taxes, were president in the discussion.

The Chamber recommended that personal taxation should be increased further. The expenditure on CSR activity could be allowed as a part of Business Expenditure and restrictive amendment has been incorporated to section 37(1) of the Act read with Sec 30 & 36. As suggested by Shri N.K. Poddar the Chamber would make proper representation in this regard. Investment limit could be increased for deduction under section 80C and there has already been a slight increase.

A suggestion was made for the limit for Investment in new Plant & Machinery to be reduced from Rs. 100 crores to Rs. 50 crores for investment allowance and the Hon’ble Finance Minister has generously pegged the limit to Rs. 25 crores and accordingly the amendment to section 32AC was proposed in the Bill.

The Chamber has requested for Interest to be allowed on loan for housing purpose to Rs. 2.5 lacs and the Hon’ble Finance Minister has considered the same and permitted Rs. 2 lacs of such interest. Hence suitable amendment has been made in section 24 read with section 23 of the Act. The Chamber’s proposal for doing away with retrospective legislation has been only partly considered.

Bringing in GST has been a suggestion from the Chamber and the Hon’ble Minister of Finance has indicated that the NDA Government would roll out the proposed GST next year whereby the concerns of the States will be addressed.

Chamber put forward the out-of-box suggestion to link MNREGA with agriculture and bring FDI in Defence as well as recommended for better governance. Such recommendations have been addressed in the budget speech.

Chamber suggested to reduce the pending appeals where big tax disputed amounts are locked in. Again, some schemes in this regard have been offered by Settlement Commission.

Thus around 40p.c. of the 23 proposals forwarded by the Chamber in the Pre-Budget Memorandum has been considered in the Budget.

However, there is a mention about one time settlement Commission in his speech but that is not indicated in the Bill. Similarly regarding KVP investment people may have banked and unbanked savings to invest unit in KVP will need to wait and see what will be the scheme.