Bihar industries suggest special category status state & financial package
Updated: Feb 26, 2015 01:25:04pm
Patna, Feb 26 (KNN) For the Union Budget 2015-16, the Bihar Industries Association has suggested the central government to declare Bihar a special category status state and also special financial package for the state.
The industry body asked for renovation and repairing of Gandhi Setu Bridge at Patna and Rajendra Bridge over river Ganga near Mokamah on top priority basis.
It also suggested a dedicated seaport with expressway connectivity and also fund for accelerating the pace of urbanization in the state.
Regarding direct tax, BIA laid some suggestions including re-introduction of deduction in respect of subscription to long-term infrastructure bonds, deduction for Investment in IPO’s/ FPO’s of all sectors which are covered in “Make in India” programme and advance ruling for resident application.
It also said that an instruction should be given that; there should not be any disclosure to media about any findings at the time of search. This leads to unnecessary inconvenience to assesee as media highlights it and un-social element starts bullying.
The association mentioned other tax related issues like introduction of penal provisions for wrong assessment done by assessing officer, purchases for the purpose of business, whether proprietorship or partnership, increasing the payment of expenditure exceeding Rs 20000, enhancing the threshold limit for making payment in cash to Rs 50000 for transporters, amendment of capital asset to include land situated within the jurisdiction of a municipality having population not exceeding 100,000 etc.
Tax related issues in other sectors like children education allowances, standard deduction to salaried employees, transport allowance, reimbursement of medical expenses and extension of time limit for filing of TDS return were also mentioned in the wish list.
In case of indirect tax, BIA suggested that the existing limit of Rs 1.50 crores in the current financial year should be raised to Rs 3 Crores and the turnover of previous year should be raised to Rs 8 crores.
It also said that to promote investment in Indian economy, Cenvat credit should be allowed on all goods and services used during construction of factory/plant whether used in supporting structure or other ways.
The industry body also said that there should be a bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Patna.
“There should be expressed provision that credit should be available on all goods used in the factory even for repair and maintenance of plant and machinery,” it said.
Regarding to service tax, BIA suggested the central government to extend the time for payment of 20 per cent of the service tax amount payable for March from March 31 to 5th - 6th of next month and 80 per cent by March 31 itself.
As tax base of service tax has been widened due to introduction of negative list regime, it would be advisable to reduce the rate of service tax from 12 per cent to 8 per cent.
Threshold limit for service tax exemption should be raised to Rs 25 lacs of gross receipts from existing Rs10 lacs, or as per MSME definition, it said.
The association also suggested that service tax on reverse charge mechanism as well as man power services should be done away with. (KNN/ST)
The industry body asked for renovation and repairing of Gandhi Setu Bridge at Patna and Rajendra Bridge over river Ganga near Mokamah on top priority basis.
It also suggested a dedicated seaport with expressway connectivity and also fund for accelerating the pace of urbanization in the state.
Regarding direct tax, BIA laid some suggestions including re-introduction of deduction in respect of subscription to long-term infrastructure bonds, deduction for Investment in IPO’s/ FPO’s of all sectors which are covered in “Make in India” programme and advance ruling for resident application.
It also said that an instruction should be given that; there should not be any disclosure to media about any findings at the time of search. This leads to unnecessary inconvenience to assesee as media highlights it and un-social element starts bullying.
The association mentioned other tax related issues like introduction of penal provisions for wrong assessment done by assessing officer, purchases for the purpose of business, whether proprietorship or partnership, increasing the payment of expenditure exceeding Rs 20000, enhancing the threshold limit for making payment in cash to Rs 50000 for transporters, amendment of capital asset to include land situated within the jurisdiction of a municipality having population not exceeding 100,000 etc.
Tax related issues in other sectors like children education allowances, standard deduction to salaried employees, transport allowance, reimbursement of medical expenses and extension of time limit for filing of TDS return were also mentioned in the wish list.
In case of indirect tax, BIA suggested that the existing limit of Rs 1.50 crores in the current financial year should be raised to Rs 3 Crores and the turnover of previous year should be raised to Rs 8 crores.
It also said that to promote investment in Indian economy, Cenvat credit should be allowed on all goods and services used during construction of factory/plant whether used in supporting structure or other ways.
The industry body also said that there should be a bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Patna.
“There should be expressed provision that credit should be available on all goods used in the factory even for repair and maintenance of plant and machinery,” it said.
Regarding to service tax, BIA suggested the central government to extend the time for payment of 20 per cent of the service tax amount payable for March from March 31 to 5th - 6th of next month and 80 per cent by March 31 itself.
As tax base of service tax has been widened due to introduction of negative list regime, it would be advisable to reduce the rate of service tax from 12 per cent to 8 per cent.
Threshold limit for service tax exemption should be raised to Rs 25 lacs of gross receipts from existing Rs10 lacs, or as per MSME definition, it said.
The association also suggested that service tax on reverse charge mechanism as well as man power services should be done away with. (KNN/ST)
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