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KPMG Statement from Pratik Jain, Partner – Indirect Tax, KPMG in India

Feb 28, 2015   13:27 IST 
India

Statement from Pratik Jain, Partner – Indirect tax, KPMG in India

 

This time the industry was expecting a ‘transformational’ budget, with a significant revamp of existing taxation framework to make it more manufacture-friendly and conducive to business. Against the backdrop of these expectations, overall, the budget proposals on indirect taxes appear to be steps in the right direction, with a clear focus on transition to GST from April 2016. While measures such as increase in service tax rate by around 2%, pruning of service tax exemptions, etc. may not be populist, but are essential for ensuring a smooth transition to the new GST regime. Similarly, focus on promoting the ease of doing business through e-invoicing, speedy registrations, etc. is a welcome move, though the industry was expecting a lot more on this front. Rationalization of duties to address the inverted duty structure and promote indigenous manufacturing is also a positive development, though the industry would have preferred more radical proposals. However, option to levy a new ‘Swachh Bharat Cess’ on services could turn out to be a dampener.   

 

Of course, one would need to read the fine prints to assess the overall effectiveness (or otherwise) of the budget proposals, as in past some of the most critical proposals impacting taxpayers remained buried in the details.


 
 
Mr. Pratik Jain
Mr. Pratik Jain
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