Financial Daily from THE HINDU group of publications
Friday, Jun 11, 2004
Industry & Economy
`Raise I-T limit to Rs 75,000'
Chennai , June 10
THE Tamil Nadu Chamber of Commerce & Industry has called for the implementation of Value Added Tax along with a range of concessions on excise duty and tax rates. It urged the implementation of VAT with an exemption limit of Rs 50 lakh on turnover to protect small traders.
The chamber, in a pre-budget memorandum to the Union Finance Minister, Mr P. Chidambaram, called for an increase on the personal income tax limit to Rs 75,000 from the present Rs 50,000 with rate of tax between 10 per cent and 25 per cent, reduction in corporate tax to 30 per cent, and firm tax not exceeding the individual rate.
The age limit for income tax rebate may be brought down to 60 from 65.
To bring unaccounted money out into the open, assessees should be given an opportunity to declare such income and pay tax at 10 per cent over the maximum rate. This will act as a permanent amnesty to encourage evaders to come under the tax net, the chamber said.
The rate of long-term capital gains should be reduced to 10 per cent from the existing 20 per cent.
To protect small-scale industries, the central excise exemption or concessional rate of duty limit for SSI units should be enhanced to Rs 3 crore and the clearance limit to avail of the concession in the following year raised to Rs 6 crore from the prevailing Rs 3 crore. Interest rates by banks and institutions should be brought down, the chamber said.
The trade body has called for an increase on the ceiling limit of compulsory tax audit for non-corporate entities to Rs 2 crore from the current limit of Rs 40 lakh.
Cenvat and service tax should be through a single enactment permitting set off with a basic exemption limit of Rs 10 lakh on annual turnover for levy of service tax to protect small players.
Levy of excise duty on concentrated milk, refined edible oil in unit containers for retail sale and readymade garments should be withdrawn.
The 12 per cent excise duty levied on hank yarn and cone yarn should be rolled back and SSI exemption limit to small power loom industries up to a turnover of Rs 1 crore should be reinstated. Iron and steel products should be brought under the compounding levy system rather than the present 16 per cent specific excise duty, it stated.
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