The Government has tried to keep a healthy balance between inclusive growth and fiscal consolidation amidst global volatility and additional burden on account of the 7th pay commission, OROP. With an important focus on digitation, the government has shown good intent in keeping up the momentum of the Make In India and Digital India Mission. The government has shifted its focus from large cities to rural areas showing a clear intent to uplift those who belong to the bottom of the pyramid, especially the agricultural sector and focus on creating skilled labor.
The effort to incentivize the Make In India program by way of domestic value adding in the Electronics Manufacturing Systems segment is a step in the positive direction as is the removing of custom duties. This augurs well for us as majority of the spending in our industry is on imported ESDM Electronic System Design & Manufacturing items. From a taxation standpoint, lowering of Corporate IT Tax for companies not exceeding Rs. 5 crore turnover to 25% plus surcharge is a positive move as it offers incentives to SMEs and SMBs in the country to focus on their growth. Another proposal that will benefit the country and stimulate start-ups on the growth trajectory is the amendments to the taxation for new manufacturing companies incorporated after is 1ST March 2016 as they will now have the option to be taxed at 25% plus surcharge and cess provided they do not claim profit linked to investment.
Technuter.com News Service