Post-Budget reaction by KPIT Technologies
Post-Budget quote from Mr. Anil Patwardhan, Sr. VP, Corporate Finance and Governance at KPIT Technologies:
The first Union Budget of our newly elected government was focused on creating inclusive and sustained growth.
As a Pune based company that takes great pride in the city’s progress, it is welcome news that the National Industrial Corridor Authority will be headquartered in Pune to coordinate the development of industrial corridors with Smart Cities linked to transport connectivity.
We applaud the Government’s focus on the development of infrastructure in India, particularly with regard to Smart Cities, especially with India’s urban population estimated to reach 590 million by 2030. The Government’s directive to allocate Rs. 7060 crore to the development of Smart Cities is a powerful move, as it will enable development of digital technology to provide efficient solutions for requirements such as urban transportation, traffic management and even electricity and water supply. We hope to see a great future in this front. We are also pleased that the government is focusing on the progress of technology with the Technology Development Fund as this will pave the way for research, development and innovation from which our country will greatly benefit.
With respect to our businesses, while we are pleased by the Government’s announcement that effective steps will taken to revive SEZs, particularly with regard to operationalise the use of unutilized land, it would have been a greater boost if MAT (Minimal Alternate Tax) provisions under the Income Tax Act ceased to be applicable to SEZ units. We are yet to see if the Government will include procedures such as renewal of SEZ unit approval and the granting of 100% credit for which the assesse is eligible for TDS to be simplified through an online system, which would give SEZs further impetus. Hon. Finance Minister has indicated to seek consensus on the long awaited GST regime which will simplify the tax administration and help the industry comply with tax regulations more efficiently. Broadband connectivity pan India will help the digitization movement for the rural India. That the Government will refrain from doing retrospective amendments to the tax laws is a positive statement made by the Hon. Finance Minister. Continuing the tax holiday for power Sector new units will give momentum to investments in the Power sector and the significant budgetary allocation of Rs.37850 Cr to National Highway Authorities of India to build roads pan India about 8000 KMs is a very positive step for the economy.