Budget expectations: Galaxy Surfactants and Indian Specialty Chemical Industry

27 Jan 2022 , 08:17 PM

1. New TDS & TCS on Purchase and Sale of Goods-

TCS on sale of goods / TDS on purchase of Goods (Sec 206C (1H) & 194Q of Income Tax, 1961) has been introduced in phases i.e., on 01st October 2020 & 01st July 2021. We understand the stance of the Government in gathering independent third-party information on purchases & sales of assesses for multiple reasons, however, alternatively, the Government could think of options such as mandating to furnish details of purchases and sales under an AIR by specific assesses to achieve the desired results.

2. Incentive for Promotion of Exports-

PLI benefits have been announced for certain sectors and additional investments by new companies have also been provided with a lower taxation regime. On the other hand, existing benefits for exports like MEIS have been substantially reduced under RoDTEP and the interest subvention scheme has been discontinued. The Government should also look at incentivizing additional investments and additional exports by existing companies.

3. Ease of doing business-

The Government has signified its intention of improving the investor sentiment by taking corrective actions in case of the Cairn matter. Likewise, the Government could also look into other ongoing issues and improve the ease of doing business by clarifying the interpretation of the question of law. Further, measures such as dispassionate positions on interpretational aspects of the law would bring in more transparency.

The author of this article is K Ganesh Kamath, Chief Financial Officer, Galaxy Surfactants.

The views and opinions expressed are not of IIFL Capital Services, indiainfoline.com