ILLUMINATION

Sourcing/Logistic/Marketing
Serving the Industry with Integrity
ISSUE XXXII
VOLUME 32
25.03.2017
BUDGET 2017 REDUCED TAX RATE FOR MSMES TO BENEFIT 96% OF INDIA'S COMPANIES

The government steered clear of a bold reform step of cutting the corporate tax rate and removing a range of exemptions. Instead, it proposed to reduce the income-tax rate for micro, small and medium enterprises to 25% from 30% previously. It also allowed credit for minimum alternate tax to be carried forward for up to 15 years instead of 10 years.

With the reduced rate for the MSME sector, 96% of India's companies will benefit from lower taxation. "25% rate for 96% of the companies. Excellent. Top 4% pay lower effective tax anyway. Loss carryover of 15 years under MAT is correct. However, no mention made on the GAAR preparation despite the tax administration challenge being immense."

India's corporate tax rate, at 34.6% with cess and surcharge, is steep compared with the global average. The CII's suggestion to lower the tax rate to a flat 18% without exemptions would have put all business on the same level.

Mr. Kaushik Mukerjee, a partner at PwC. said "Without factoring in exemptions, the reduction in the tax rate of MSMEs provides them a level playing field with foreign companies." He also said that the outgo for an MSME will now be about 43.32% including the dividend distribution tax, compared with 43.26% for a foreign company, which doesn't pay DDT, he said. Limited liability partnerships, which are taxed at the lowest rate of 34.6%, could be the route for MSMEs to take.

Bigger companies have been provided some relief, with the Budget extending the time period to carry over MAT credit. However, India would need to speed up direct tax reforms to attract investors. Most countries have chipped away at corporate tax rates to woo investments.

BRAIN STORMING SESSION HELD AT SUNCITYCLUB & RESORT, VADODARA ON 24TH & 25TH FEBRUARY 2017
WOMENS DAY CELEBRATION HELD AT ‘PRAKASH HOUSE, 39/40 KRISHNA ESTATE, GORWAVADODARA ON 8TH MARCH 2017
NEW BRIDGE - NEW BEGINNINGS Barodians Now Eye A Hassle Free drive till Mumbai View of Mr. Dilip Shah published in "Times of India"
MARKET UPDATES - CHEMICALS
  • The chemicals, petrochemicals and plastics industry has grown around 12% this year, defying all claims of a slowdown in the economy post the demonetization drive. Over the next three years, this sector is likely to achieve 15% growth

  • Kem One and Chemplast Sanmar have signed an agreement to establish Kem One Chemplast, a 50:50 joint venture to manufacture chlorinated polyvinyl chloride. The new facility, for which approvals are in the process of being obtained, will come up at a coastal location at Karaikal, Puducherry.

  • The Ministry of Chemicals and Fertilizers has proposed slashing potash subsidies by 17% in the next financial year to reduce the fiscal deficit, a move that would hit demand in one of the world’s largest importers of the fertilizer.

  • Japanese Flavors and Fragrances Firm Takasago, recently opened a new manufacturing and R & D facility at Chennai with a manufacturing capacity in excess of 10,000 tones per annum, is part of the company’s aggressive expansion plans in India.

  • ONGC Petro Additions Ltd.(OPAL) a Joint Venture promoted by ONGC, GAIL & GSPC has begun exports to Singapore and intends to float a tender soon for exporting more products to other countries.

  • Indian Textile & Clothing industry to set to grow substantially in the coming years. The growth will be driven by strong expansion of the domestic market as well as higher exports, aided by Government incentives and support policies.

  • There are opportunities for Commodity and Specialty Chemicals in the Paints & Coatings Industry. While petroleum-based products and chemistry will continue to be a mainstay for paints & coatings, there are niche opportunities opening up for use of ‘greener’ options in several ways the Indian paints and coatings industries will continue to be an important driver of growth for the Chemical Industry.

  • The Global Sulphuric Acid market to grow at CAGR of 2.6% between 2015 and 2023

Shri Amitabh Kant, CEO, NITI Aayog said that the living tradition of diverse and healthy Indian food has a huge economic potential and will attract large scale investments as well as create more job opportunities.

Management Tips

Get through your To-Do List..

Self-discipline is hard. Try these three tips to make your work more efficient every day:

Get three things done before Noon : Statistics show that the team ahead at halftime is more likely to win the game. Enjoy your lunch knowing that you accompanied at least three tasks in the morning.

Sequence of Speed : Break projects into parts, Take on the longer pieces at the beginning and make sure each subsequent part is shorter, If you leave the longest parts for last, you are more likely to run out of steam before the end of the day.

Tackle similar tasks at the same time : The mind thrives on repetition. You can build momentum by taking on similar projects at the same time.

TAX YOUR BRAIN - PRIZE WINNING PUZZLES
Q.1 'A' decided to start a business. He bought books to sell them at a profit of 18.5%. At the end of the week, he sold books worth Rs.711/-.After paying the price to the wholesale Trader, how much money remind with him as profit ?

Q.2 Some words commonly associated with environment are abbreviated below.
Kindly expand: IUCN, CFC WWF

Q.3 In India wild life sanctuaries have been set up to protect the wildlife. Match the protested forests with name of main animals as given below :
A B Gir (Gujarat) - Birds
Kanha(Madhyapradesh) - Indian Rhinoceros
Periyar (Kerala) - Asiatic Lions
Gahirmata (Orissa) - Tigers
Manas (Assam) - Elephants
Keoladeo Ghana(Bharatpur)- Giant Oilive Ridley Turtles

(Answers to be given by email to : secretary@prakashchemicals.com)

Winners of the Puzzle competition of December 2017 : Ms. Anusha Mishra - !! Congratulations !!
Answer to the Puzzles of February Edition
Puzzle No.1) Ans : FLAG,
Puzle No.2) Ans : TWIG Puzzle No.
3) Ans : RELIABLE , Puzzle No. 4) Ans: QUEUE
Puzzle No.5) Ans : FIRE
Puzzle No.6) Ans : WATERFALL
Puzzle No.7) Ans : HOLE
Puzzle No.8) Ans: RAIN
Puzzle No. 9) Ans: STAIRS
Puzzle No.10) Ans : TIME
Head Office
Prakash Chemicals Agencies Pvt. Ltd.
Prakash House --39/40 Krishna Industrial Estate, Opp. BIDC Gorwa, Gorwa Road,
Vadodara - 390 016, Gujarat, India
Ph: +91-265-3926000 Fax: -91-265-3926122
Branch Offices
MUMBAI
:Mr. Chetan Solanki - (M) +91 9998034403, E-mail: chetan@prakashchemicals.com
AHMEDABAD
:Mr. Dhaval Desai - (M) +91 9825013436, E-mail: dhavaldesai@prakashchemicals.com
SURAT
:Mr.Manoj Patil - (M) +91 8511126719, E-mail: manoj@prakashchemicals.com