Interviews
Forthcoming Budget - Industry players optimistic
16 Feb '08
6 min read
“I strongly feel that instead of coming with Jawahar Rozgar Yojana and other freebies Government should consider refunding of Taxes as textile sector is facing hard time due to rupee appreciation, ultimately leading to high attrition rate.”
Mr R Rajendran, Chief Financial Officer of Lakshmi Machine Works, manufacturers of textile machinery, shared his view as “Elimination of Cess and SHE Cess is essential for rationalization of Central Excise duty. Exports benefits should be liberalized i.e. Duty Drawback, and further, interest rebate on Export and Finance Income tax exemption on Export Profits is also required.
“Introduction of Development Rebate on New Plant & Machinery at 25 percent is necessary. Depreciation rate needs to be restored to 25 percent on Plant & Machinery. Approved Research & Development Laboratory Expenditures needs to be allowed at 150 percent. Central Excise Duty on Plant and Machinery to be allowed at 100 percent in the year of installation. For registered firms having Excise/VAT/Permanent Account Number the C Declaration Form for Inter State Sales needs to be eliminated.
“TUFs should be extended to capital sector, Corporate tax rate needs to be pegged at 25 percent, Fringe Benefit Taxation should be abolished, Basic exemption limit should be increased to Rs.2,00,000.”
Thus we can say, the whole of textile industry is looking forward to the upcoming Union Budget, and major players are planning to deal with the expected outcomes and are praying for some positive decisions.
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Mr R Rajendran, Chief Financial Officer of Lakshmi Machine Works, manufacturers of textile machinery, shared his view as “Elimination of Cess and SHE Cess is essential for rationalization of Central Excise duty. Exports benefits should be liberalized i.e. Duty Drawback, and further, interest rebate on Export and Finance Income tax exemption on Export Profits is also required.
“Introduction of Development Rebate on New Plant & Machinery at 25 percent is necessary. Depreciation rate needs to be restored to 25 percent on Plant & Machinery. Approved Research & Development Laboratory Expenditures needs to be allowed at 150 percent. Central Excise Duty on Plant and Machinery to be allowed at 100 percent in the year of installation. For registered firms having Excise/VAT/Permanent Account Number the C Declaration Form for Inter State Sales needs to be eliminated.
“TUFs should be extended to capital sector, Corporate tax rate needs to be pegged at 25 percent, Fringe Benefit Taxation should be abolished, Basic exemption limit should be increased to Rs.2,00,000.”
Thus we can say, the whole of textile industry is looking forward to the upcoming Union Budget, and major players are planning to deal with the expected outcomes and are praying for some positive decisions.
Related news
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