Gujarat Chamber of Commerce & Industry

Budget Event - Implications on Direct & Indirect Taxes

Date : 02-03-2013
Venue : GCCI Committee Room
Description :

The government has been trying to make the tax laws simpler every year, however, there are numerous amendments made in the tax laws, which adds to complexities. The Budget for the FY 2013-14 was presented before the Parliament on February 28, 2013. Gujarat Chamber of Commerce & Industry in association with The Institute of Company Secretaries of India organized a Budget Event: Implications on Direct and Indirect Taxes on March 2, 2013 from 5:00 PM onwards in the premises of Gujarat Chamber of Commerce & Industry, Ashram Road, Ahmedabad. In this event, esteemed team of professionals such as CA Dhinal Shah, CA Nilesh Suchak and Exim Consultant Shri S. V. Modi remained present and delivered a lecture on the subject. As the taxes implications were dealt by the speakers, Shri Prakash Bhagwati, President, dealt with Part A of the budget related to GDP, fiscal deficit, planned expenditure and allocations etc. CA Shri Dhinal dealt with Income Tax implications of Budget. He analysed that before some years, 9% of growth and 5% of inflation was prevailing. But now, the scenario is opposite, 5% of growth and 9% of inflation is prevailing. 90,000 crore of household saving and financial investment of economy has diverted in to physical assets investment. Therefore, returns on gold, real estate etc sources of physical assets investments are bound to increase. He highlighted the three important policy reforms: the status of Direct Tax Code as work in progress, distinction between FDI and FII as per International practices and the issuance of Rules on Safe Harbour after examining the reports of the Rangachary Committee. Highlighting, Customs and Excise impacts of Budget, Shri S. V. Modi told that samples of testing from consignment will not attract duty now. Board has now power to lend any foreigner or things at any airport even if it is not customs port in emergency cases. Dr. CA Shri N. V. Suchak, dealt with service tax portion. For Charitable trust, limit of Rs. 25 Lakh is withdrawn but in Income Tax, the limit is kept still, this anomaly may create many confusions and litigations. If stay is not granted within 365 days, stay will be vacated it was very unfair announcement according to Shri Suchak. He also added that the service tax revenue in last 2 years has increased with CAGR of 35.92%, in this scenario; such unfair announcements may prove to be a burden on genuine tax payers. CS Shri Chetan Patel, Chairman, ICSI, concluded the session with vote of thanks.