Nagpur: Despite stimulus package of Central government, industries are in bad shape and have high hopes from the Union
Budget 2021-22.
Chandrashekhar Shegaonkar, president of MIDC Industries Association, Hingna, said the government had given collateral free loan up to 30% earlier. “However, the scheme lasted till September only. It should be renewed. Interest on loans should be waived off for one year as industry will need that much time to recover from Covid,” he said.
Shegaonkar added that prices of raw materials had shot up due to cartel formation. “This must be addressed in the budget or large number of factories will close down,” he added.
Shiv Kumar Rao, president of
Vidarbha Economic Development Council (VED), said that there was need to strengthen the railway infrastructure. “Allocation to railways should be increased. There should be adequate allocation for coastal shipping. At the same time, strengthening of highways network is also needed. Road side amenities for truck drivers should be created,” he added.
Rao further said that logistics industry was governed by different ministries. “Create a single ministry or authority. In 2017, government announced that a national logistics policy would be framed but there is no progress on it,” he added.
Vidarbha Industries Association (VIA) had submitted a memorandum to Union finance minister Nirmala Sitharaman in December. Their demands mostly deal with taxation.
The current rate of minimum alternate tax (MAT) of 18.5% is quite high and has impacted significantly cash flow of companies who otherwise have low taxable income or have incurred losses. Their demand is MAT rate be reduced to 10%.
Presently, no deduction is available under the Income Tax Act towards expenses incurred on corporate social responsibility (CSR) activities as referred in Section 135 of the Companies Act, 2013. VIA also wants CSR expenses to be deducted while computing IT.
Fair market value (FMV) of industrial property for levy of stamp duty is significantly higher as compared to actual rate prevailing. Present law provides for taxation of immovable property transactions on notional basis, where if the property is sold or purchased below its FMV the difference between actual sale consideration and stamp duty valuation is liable for income tax in the hands of buyers as well as seller.
There are various situations like sale of industrial property where it impossible to sell the property at FMV. Exclusions for such situation need to be provided in all above sections, said industry leaders.