INTERIM BUDGET; A MIXED BAG FOR ALL
VIA Taxation & Corporate Law Forum organized a Session today on “Analysis of Budget 2019 & Recent Development in GST” with focused areas on Industries, Rural Economy & Taxation.
Eminent panelists in the fields of economics, industry and taxations CA Dr. Tejinder Singh Rawal, eminent economist; CA Ashok Chandak, Past President of The Institute of Chartered Accountants of India (ICAI) & CA Anil Parakh, Industry expert conducted the sessions analyzing the Interim Budget 2019-20 presented in the Parliament by the Union Minister for Finance, Shri Piyush Goyal.
The Hon’ble Minister focused on development and security of farmers and middle class public by announcing major schemes i.e. pension, cash backup, interest subvention, etc. The interim budget also provided tax sops and the Developmental Agenda for the years to come.
CA Dr T S Rawal, gave presentation on “Budget Prospective for Rural Economy”. He advised that to double the farmers income clear policy should be framed by Government. They can focus on improving the production process, storage facilities, selling procedure and create additional source of income for farmers which will in turn result in increase in their income. He also opined to revisit subsidies provided to farmers, which is in fact beneficial to farmers, as it reduces the in hand cost of inputs to agriculturists.
CA Ashok Chandak, Past President of The Institute of Chartered Accountants of India (ICAI) gave presentation on “Taxation-Budget 2019 & Recent Development in GST”. He clarified on the confusion prevailing over exemption of basic income upto Rs. 5 Lac by stating that the benefit will be only to the tax payers, whose total taxable income after availing all the permissible deduction does not exceed Rs.5 Lacs. He welcomed the proposed allowance of deduction of capital gain arising on sale of residential house property on purchasing of two residential house properties. This will provide direct benefit to the assessees. He further added that the increase in threshold limit for deduction of TDS on payment of interest and rent was practically needed. Further, he discussed the amendments under GST, which are effective from 1stFebruary 2019, which mainly consisted of increased limit of turnover of composition dealers, position of RCM u/s 9(4), clarification of allow-ability of credit under various provisions of GST.
CA Anil Parakh made a presentation on “Budget Prospective for Industries”. He expressed that the interim budget focused mainly on three elements viz. farmers, urban middle class and reality sector. The limited amendments will increase the disposal income in the hands of the citizen of the country, which in turn will increase the purchasing power. This is positive for industry. The increase in the limit of gratuity, ESIC, Bonus will lead to additional out flow of funds from industries. The amendment in Indian Stamp Act will make the transaction of merger and acquisition and share transfer slightly costly. The GST registered under SME sector will get interest subvention of 2% of interest which is a welcome move. He said that as “good economics is bad politics”, therefore, freebies is the rule of the day.
Earlier, Atul Pande, President – VIA welcomed CA Ashok Chandak, CA Anil Parakh and CA Dr T. S. Rawal with floral bouquets. In his welcome address, he said the interim budget has created positive environment among industries. The industries welcomed 2% interest subvention on PSB loans and the vision of the Government to achieve 10 trillion USD in next 8 years. CA Sachin Jajodia, Convener – VIA Taxation & Corporate Law Forum conducted the proceedings and introduced the speakers. Q&A and concluding session was conducted by CA Naresh Jakhotia, former Jt Secretary – VIA. Prominently present were Prafull Doshi, Omprakash Bagdia, Shelendra Manawat, Amit Rajkotia, Hemant Lodha, Mahendra Jain, P C Sarda.