ENA Sectors 2024-01-23 14:41:44 <p><span style="font-size:14px"><strong>New Delhi, Jan 23 (KNN)</strong> The government is anticipated to prolong the concessional corporate tax rate of 15 per cent for companies initiating new manufacturing units until March 31, 2025, as per sources.</span></p> <p><span style="font-size:14px">This potential announcement is expected during the upcoming Interim Budget on February 1, with the primary objective of revitalising the manufacturing sector through increased investment and simplified compliance procedures, reported Indian Express.</span></p> <p><span style="font-size:14px">India offers a tempting tax rate of 15 per cent for new manufacturing units. An essential condition requires operations to have started before March 31, 2023, a top government source said.</span></p> <p><span style="font-size:14px">The establishment of manufacturing hubs by industry giants such as Apple and Foxconn in India underscores the advantages of this provision, prompting the recommendation for an extension to further invigorate the sector, the source added.</span></p> <p><span style="font-size:14px">The source acknowledged the global trend of companies viewing India as a viable alternative to China, making it logical to extend these benefits to manufacturing enterprises.</span></p> <p><span style="font-size:14px">In 2019, the government introduced a scheme allowing new domestic companies incorporated on or after October 1, 2019, and making fresh investments in the sector to pay income tax at a reduced rate of 15 per cent, provided production commenced on or before March 31, 2023.</span></p> <p><span style="font-size:14px">In the February 1, 2023 Budget, the government granted a one-year extension of the concessional 15 per cent corporate tax rate for new manufacturing units, valid until March 2024.</span></p> <p><span style="font-size:14px">Industry insiders are optimistic about the government's potential extension of the deadline.</span></p> <p><span style="font-size:14px">An industry representative, speaking anonymously, emphasised that the key question is not whether the government will extend the deadline, but rather the duration of the extension. The industry's preference is for a three-year extension instead of just one, reflecting the sector's desire for sustained support and stability.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 36396 https://knnindia.co.in/news/newsdetails/sectors/govt-may-extend-lower-corporate-tax-for-new-manufacturing-units-till-march-2025 2024-01-23 14:41:44 knnindia.co.in