No new tax, no new schemes in Tamilnadu budget
Updated: Mar 26, 2015 12:23:51pm
New Delhi March 26 (KNN) The Tamilnadu State Budget 2015-16 has received a mixed response from the industry associations of the state.
Despite increased financial burden and the slow growth in the states own revenues, Tamil Nadu Chief Minister O Panneerselvam announced no new tax in the state budget 2015-16 presented on 25 March 2015.
Though it is a welcome Budget given its overall welfare objective, it is disappointing that there is no announcement on new projects or schemes for the benefit of the industry.
The chief minister has announced to provide certain critical concessions to boost the Manufacturing Sector. Some of them being:-
· Input Tax Credit reversal imposed at the rate of 3% on the inter-state sale of goods which was introduced with effect from Nov 2013 will be withdrawn henceforth to make the manufacturing industries in Tamil Nadu more competitive with their counterparts in the neighbouring States.
· Clause (c) under Section 19(5) of TNVAT Act, 2006 will henceforth be withdrawn to enable the dealers to claim Input Tax Credit on the inter-State sale of goods without 'C' form. This measure will eliminate additional burden on the dealers effecting inter-State sale of goods without 'C' form.
· VAT on air compressors, pump sets up to 10 hp and their parts thereof will be reduced from the present levy of 14.5% to 5% to encourage MSME Sector and to benefit the agriculturists in the State.
· VAT on cellular telephones (mobile phones) will be reduced from the present levy of 14.5% to 5%.
Presenting the Budget, Panneerselvam said the state has to rely more on its own strength, besides slow growth in States’ Own Tax Revenue (SOTR), even as devolution and grants in aid of the Centre are expected to go down.
“Notwithstanding this increased financial burden and the slow growth in SOTR, our government has decided not to impose any new tax,” he said.
Coimbatore District Small Industries Association (CODISSIA) has said that the MSME-friendly measures announced in the Tamil Nadu budget would help the sector establish its market share nationally.
EK Ponnuswamy, President of CODISSIA said other MSME-friendly steps like starting of an online portal for single window clearance for MSME investors would make the process of doing business easy and support their growth, paving way for employment generation and higher GDP growth. (KNN/VV)
Despite increased financial burden and the slow growth in the states own revenues, Tamil Nadu Chief Minister O Panneerselvam announced no new tax in the state budget 2015-16 presented on 25 March 2015.
Though it is a welcome Budget given its overall welfare objective, it is disappointing that there is no announcement on new projects or schemes for the benefit of the industry.
The chief minister has announced to provide certain critical concessions to boost the Manufacturing Sector. Some of them being:-
· Input Tax Credit reversal imposed at the rate of 3% on the inter-state sale of goods which was introduced with effect from Nov 2013 will be withdrawn henceforth to make the manufacturing industries in Tamil Nadu more competitive with their counterparts in the neighbouring States.
· Clause (c) under Section 19(5) of TNVAT Act, 2006 will henceforth be withdrawn to enable the dealers to claim Input Tax Credit on the inter-State sale of goods without 'C' form. This measure will eliminate additional burden on the dealers effecting inter-State sale of goods without 'C' form.
· VAT on air compressors, pump sets up to 10 hp and their parts thereof will be reduced from the present levy of 14.5% to 5% to encourage MSME Sector and to benefit the agriculturists in the State.
· VAT on cellular telephones (mobile phones) will be reduced from the present levy of 14.5% to 5%.
Presenting the Budget, Panneerselvam said the state has to rely more on its own strength, besides slow growth in States’ Own Tax Revenue (SOTR), even as devolution and grants in aid of the Centre are expected to go down.
“Notwithstanding this increased financial burden and the slow growth in SOTR, our government has decided not to impose any new tax,” he said.
Coimbatore District Small Industries Association (CODISSIA) has said that the MSME-friendly measures announced in the Tamil Nadu budget would help the sector establish its market share nationally.
EK Ponnuswamy, President of CODISSIA said other MSME-friendly steps like starting of an online portal for single window clearance for MSME investors would make the process of doing business easy and support their growth, paving way for employment generation and higher GDP growth. (KNN/VV)
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