‘Budget will lead to additional out flow of funds’

Source: The Hitavada      Date: 05 Feb 2019 11:05:18


 

Business Bureau,

The Taxation and Corporate Law Forum of Vidarbha Industries Association (VIA) conducted a session - ‘Analysis of Budget 2019 and Recent Development in GST’ here on Monday. The focus areas were industries, rural economy and taxation. Eminent panelists in the fields of economics, industry and taxations CA Dr Tejinder Singh Rawal, eminent Economist; CA Ashok Chandak, Past President of The Institute of Chartered Accountants of India (ICAI) and CA Anil Parakh, Industry Expert; conducted the sessions analyzing the Interim Budget 2019-20 presented in the Parliament by the Union Minister for Finance Piyush Goyal recently.


The panelists said that the Finance Minister had focused on development and security of farmers and middle class public by announcing major schemes i.e. pension, cash backup, interest subvention, etc. The Interim Budget also provided tax sops and the developmental agenda for the years to come, they said. In his presentation on ‘Budget Prospective for Rural Economy’, Rawal said that clear policy should be framed by Government to double the farmers income. “We need policies so that the farmers can focus on improving their production, improve storage facilities and create additional source of income which will in turn result in increase in their income,” he said.


Chandak gave presentation on ‘Taxation-Budget 2019 & Recent Development in GST’ wherein he tried to remove confusion prevailing over exemption of basic income up to Rs 5 lakh by stating that the benefit will be only to the tax payers whose total taxable income after availing all the permissible deduction does not exceed Rs 5 lakh. He welcomed the proposed allowance of deduction of capital gain arising on sale of residential house property on purchasing of two residential house properties. This will provide direct benefit to the assessees. He further added that the increase in threshold  limit for deduction of TDS on payment of interest and rent was practically needed.


Further, he discussed the amendments under GST, which are effective from 1st February 2019, which mainly consisted of increased limit of turnover of composition dealers, position of RCM u/s 9(4), clarification of allow-ability of credit under various provisions of GST.


Parakh made a presentation on ‘Budget Prospective for Industries’. He expressed that the Interim Budget focused mainly on three elements viz. farmers, urban middle class and reality sector. The limited amendments will increase the disposal income in the hands of the citizen of the country, which in turn will increase the purchasing power. This is positive for industry. The increase in the limit of gratuity, ESIC, bonus will lead to additional out flow of funds from industries. He said that as “good economics is bad politics”, therefore, freebies is the rule of the day.


Earlier, Atul Pande, President – VIA welcomed Chandak, Parakh and Rawal with floral bouquets. In his welcome address, Pande said that the Interim Budget has created positive environment among industries. The industries welcomed 2 per cent interest subvention on PSB loans.
CA Sachin Jajodia, Convener – VIA Taxation and Corporate Law Forum, conducted the proceedings and introduced the speakers. Q&A and concluding session was conducted by CA Naresh Jakhotia, former Joint Secretary – VIA. Prominently present were Prafull Doshi, Omprakash Bagdia, Shelendra Manawat, Amit Rajkotia, Hemant Lodha, Mahendra Jain, P C Sarda  and others.