WASME Organises Post-Budget discussion on the Union Budget, 2017
World Association of Small and medium Enterprises (WASME), organised a Panel Discussion on the Union Budget, 2017 – Impacts and Opportunities for the MSME Sector in India on 3rd February, 2017 at the WASME House, Noida.
In a highly interactive session the expert speakers from Taxation, Accounting, Tax Management, Corporate Consulting, MSME industry sector gave their analytical views and discussed the provisions provide to the Indian MSMEs in the Budget.
Mr I D Narayan, Vice President of WASME, in his welcome address said government of India has been working hard on strengthening the MSME sector and integrating them with the global chain. He said, there are several proposals in the Budget for the MSMEs. One that will immediately impact the MSMEs is that the small and medium companies with a turnover of up to Rs 50 crore will be taxed at 25% as against 30 % of now. Mr Narayan said that this is a major as this will make them more competitive. Over and above that it is estimated that 96 % of the companies will benefit from lower taxation. “This according to me, will give the MSMEs a level playing field with the foreign companies” he said.
With regard to Minimum Alternate Tax (MAT), Mr Narayan said that the proposal of extending the MAT will prove to be very useful for the slightly bigger companies. The companies can use the credit for MAT for 15 years instead of 10 years.
Mr. Gaurav Gupta (CA), Senior Advisor to WASME and an established Charted Accountant with experience of over 14 years in indirect taxation, extensive advocacy to multinational and domestic companies across a range of sectors has shared his views on “Impact on indirect taxes on MSMEs” He said, “with GST coming in place do we need any changes in indirect tax regime?” However, there were some changes were brought about according to Mr Gupta. He said one entry was deleted from the negative list—service tax on manufacturing. This will have an impact on a segment of SMEs. Secondly, he said “the authority for advance ruling merged the authority of indirect taxes with direct taxes”.
Mr Jaspal Sethi who is partner in PS Law Firm and specialises in the practice of Direct Tax Laws and has more than 10 years of practice talked on Impact of direct taxes, said that a major impact has been on capital gains tax and emphasised that there have been several amendments in the Budget, 2017 with regard to the housing companies. He also said that doing away with books of accounts for the small companies was a relief to them.
Corporate consultant and Vice President of Laghu Udyog Bharti, CA, Rajan Garg speaking on the futuristic aspects of the Budget said that despite global and domestic challenges, the Budget statement truly reflects the ‘5C’ approach which includes, conceptualise, calibrate, continued policy commitment and control. He said that the Budget will have an impact on almost all aspects of life including agriculture through larger and easier credit, infrastructure through roads, highways, internet and telecom and small enterprises. Mr Garg said that the Budget has successfully laid the framework that would promote growth with focus on job creation.
Also, WASME launched an Analysis Report on Union Budget 2017-17 and its Impact and Opportunities for MSMEs in India. The Analysis will highlight key aspects of the current budget vis-à-vis SME promotion in India.
This was followed by an open house discussion where all participants discussed the Budget proposals with regard to the MSMEs thread bare. The discussion was attended by about 30 participants.