PHD Chamber has submitted its pre-budget recommendations on direct and indirect taxes to the Revenue & Finance Secretary, R S Gujral. Salil Bhandari, President, PHD Chamber along with other senior industry representatives briefed the Revenue & Finance Secretary on Chamber’s recommendations, a press release issued by PHD Chamber said here on Friday.
Following are the highlights of some the major recommendations in direct and indirect taxes:-
Indirect Taxes
J K Mittal, Chairman, Indirect Taxes Committee, PHD Chamber has urged the Government to introduce Goods & Service Tax (GST) at the earliest, so that taxation of services based on the negative list can undergo a significant change accordingly.
Unregulated Service Tax Audits by the Department is a hindrance for smooth functioning of business activities. He stressed on the urgent need of administrative reforms to create a healthy work environment and increased revenue generation for the Government.
The Chamber urged the Government to introduce Goods & Service Tax (GST) at the earliest, so that taxation of services based on the negative list can undergo a significant change accordingly.
Raise, customs duty on capital goods, paper and paperboards as low rate of customs duty will hit the domestic industry, the Chamber recommendation said.
Abolish excise duty on branded garments as it has an adverse impact on the industry and common men, the pre-budget paper said,
Government should not introduce the TDS method of collection of Tax in Service Tax as it will lead to complications and increased litigations, the Chamber release said,
The Chamber also urged the Government for a review of Point of Taxation Rules which are impractical and acts as a bottleneck in tax compliance.
Direct Taxes
The Chamber has urged the Government to eliminate the cascading effect of Dividend Distribution Tax, enhancing the limit in respect of the long term capital gains tax saving bond under section 54EC from the present Rs 50 lakh to Rs 2 crore; suitably enhancing the limit of medical reimbursements under section 17 of Income Tax Act.
The Chamber is in favour of introduction of a weighted deduction to the corporates incurring expenditure on community / social development (both capital and revenue).
Other issues such as timely refund of taxes, reducing the rate of Minimum Alternate Tax, deduction for capital raising expenses under section 35D; amendment in Rule 8D for the purpose of determining disallowance under section 14A of the Act were also recommended.
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