Post-Budget Reaction by Mr. Pankaj Jain, Director at ESET India
Opinion about ‘Post – Budget Reaction’—
- The announcement of GST from 01/04/2016 and look forward to itsimplementation.
- The increase in the time limit for taking CENVAT credit from 6 months to one year.
- Streamlining the tax categories as committed, removal of Wealth tax is a move towards it.
- The move towards Central Excise and Service Tax assesses to keep records of invoices in digital form will finally help clean the system of paper and make it greener.
- The rate of Income-Tax on royalty and fees for technical services reduced from 25% to 10% would help in the inflow of latest technology.
- Opening of the industry in the north eastern state of Arunachal Pradesh for Animation is a welcome step, this will create employment and talent both.
- Setting up of SETU (Self Employment and Talent Utilization) under NITI with a funding of 1000 crores is a welcome step for the promotion of IT Start-ups.
- AIM (Atal Innovation Mission) under NITI to help in growth of R&D is good step.
- Allocation of 1000 Crores given to start-up industries in the IT Sector for the benefit of the entrepreneur who is setting up a new business.
- The increase in Service tax though necessary for the GST implementation has been softened by a lower increase than the expected which would increase again in the next year.
- Reduction of Corporate tax over the next 4 years is a welcome step but the final impact will be net higher outflow due to rationalization and removal of tax benefits over the coming years.
- Requirement of PAN for any transaction over 1 Lakh will only increase in documentation for the seller and a step not very welcome there could be other methods to do that.
