CII for reduction in CST rate in forthcoming BudgetNew Delhi: Industry body CII has said the government should announce measures like removal of anomalies in customs duty, reduction in CST rate, rationalisation of CENVAT credit scheme, among others in the forthcoming Budget.In its
New Delhi: Industry body CII has said the government should announce measures like removal of anomalies in customs duty, reduction in CST rate, rationalisation of CENVAT credit scheme, among others in the forthcoming Budget.
In its pre-Budget consultation with Revenue Secretary Shaktikanta Das here, the CII delegation, led by its past President Arun Bharat Ram, said the Finance Ministry should continue with its efforts to bring in simplicity, clarity and stability in the tax policy regime.
The chamber also suggested putting in place technology based e-governance initiatives for procedural simplification to help boost investor sentiment and take the 'Make in India' initiative to a new level to galvanize the economy to a higher and inclusive growth path.
During the meeting, CII suggested removal of anomalies in customs duty and reducing the CST rate from 2 per cent to 1 per cent due to the delay in implementation of GST.
It also emphasised continuation of short-term stimulus package involving reduction of excise duty on certain goods up to March 2015.
In Budget 2014-15, this reduction in the range of 2-6 per cent was provided up to December 31, 2014.
The industry body further suggested for rationalisation of CENVAT credit scheme by doing away with the negative list. It also advocated that investment allowance be extended to the infrastructure sector in order to further spur investment activity in the economy, besides exempting infrastructure companies from paying Minimum Alternate Tax (MAT).
CII also recommended the promotion of manufacturing activity as one of the priorities to augment growth. During the meeting, it stressed on the need for incentivising R&D to give a thrust to the 'Make in India' initiative.
Besides, the chamber sought revamping of dispute resolution by strengthening the authority on Advance Ruling (AAR) and Advance Pricing Authority (APA).
The provisions of advance ruling should include private companies and branches of AAR and APA should be strengthened.
Similarly, the benches of CESTAT should be increased to resolve indirect tax litigation where there is a huge pendency on excise and service tax cases which would unlock funds stuck in tax disputes, the chamber added.