Kolkata: The Indian Engineering Export Promotion Board (EEPC) has urged the center to extend the lower corporate tax benefits for limited liability partnerships (LLPS) and proprietary companies because it will make funds available with MSMEs and improve personal investment cycles.
A direct tax professional body also looks for a reduction in tax burden on individuals and asks the government to raise the limits of income tax exemption at Rs 2.5 lakh to 4 lakh rs per year in the upcoming budget for annual 2022-23 fiscal.
The Chairperson of EPC India Mahesh Desai claims around 84 percent of small businesses are rejected by lower corporate taxes aimed at providing industrial units with more invective surplus.
“If tax deductions will start the investment cycle by leaving more money in the hands of the business entity, then the proprietary and LLPS companies must also benefit because they are the majority of pies and this is needed for increasing upmes,” he said.
The export promotion agency technique has asked the government as part of its pre-budget recommendations that the benefits of lower corporate taxes must be extended to LLPs and proprietary companies because “will make funds available with a large number of MSMEs thus accelerating private investment cycles that play a role in increasing growth and work “.
To promote investment, new provisions are introduced from the 2019-20 TA, which provides domestic companies with options to pay income tax by 22 percent, and also allow new Indian entities incorporated on or after October 1, 2019 made fresh investment in manufacturing, to pay It is equal to 15 percent with subject to conditions that they will not excel in liberation or incentives.
“The effective tax rate for these companies is 25.17 percent and 17.01 percent including additional costs and CESS.
Also, the company will not be asked to pay minimum alternative taxes,” EPC said.
The Chairperson of the Representation Committee of the Narayan Jain Professional Direct Tax Association advocates the removal of minimum alternative taxes because complications arise from it.
“On the contrary the exception and reduction must be beaten,” he added.