Tamil Nadu Chamber of Commerce and Industry senior president S. Rethinavelu has welcomed Finance Minister Nirmala Sitharaman’s move to withdraw angel tax for startups.
In a release, he said startups registered with the Department for Promotion of Industry and Internal Trade would be exempt from angel tax, an anti-evasion provision in the Income Tax Act. Startups would henceforth get infused with funds for investments. The decision taken to issue all notices, summons and orders through a centralised computer system with respect to Document Identification Number (DIN), an eight digit number allotted by the Central government to any person intending to be a Director, was a proactive measure to curtail corruption. “Such a procedure should also be introduced in the GST system,” he said.
The decision to fast-track Goods and Service Tax (GST) refunds within 30 days would aid micro, small and medium industries that faced fund crunch due to payment of GST on raw materials.
The move to increase depreciation on old vehicles from 15% to 30% for tax benefit was a welcome step and it would arrest the slump in the automobile sector. For permanent mitigation, GST on automobile units should be reduced and the bar on taking input tax credit (ITC) by car buyers removed.
Mr. Rethinavelu expressed his disappointment that no major step had been taken to ease filing of GST returns. “Taxpayers face problems while uploading Forms 9 and 9C. Taxpayers and consultants are not able to understand the procedures. The last date for filing should be extended to October 31 and the problems sorted out,” he said.
To ensure inclusive growth, the Centre must constitute a high-level committee of Finance Ministry officials and representatives of all leading trade bodies to hear their views and suggestions to be taken to the GST Council.
The Finance Minister should announce that in the next GST Council Meeting on September 20, decisions on tax rate reductions, withdrawal of the perplexing circulars and simplification of tax would be taken, he said.