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
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.
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.
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
Gir (Gujarat) - Birds
Kanha(Madhyapradesh) - Indian Rhinoceros
Periyar (Kerala) - Asiatic Lions
Gahirmata (Orissa) - Tigers
Manas (Assam) - Elephants
Keoladeo Ghana(Bharatpur)- Giant Oilive Ridley Turtles