CII - KPMG Organize Analysis Session on Union Budget 2014-15

By 1 2 1 News Reporter

Chandigarh 15^th July:- CII in association with KPMG organised a session on 'Union Budget 2014-15: Insights & Analysis' at the Northern Region Headquarter at Chandigarh today. The focus of the session was to provide in depth analysis of the recently announced Union Budget vis -a- vis the policy initiatives, taxation aspects and the industry perspective on the budget.

Addressing the session Karan Avtar Singh, Principal Secretary – Investment Promotion, Government of Punjab highlighted key macro trends in the Union Budget which would take the economy in the right direction. He welcomed the Finance Minister's announcement of curtailing the fiscal deficit to 3.6 per cent for FY16 which he felt would in turn help reducing the inflationary pressure in the economy. He expressed hope that GST may get implemented by FY15. Introduction of GST will add additional one per cent growth in the GDP and also facilitate integration of national market and easing of doing business in the country.

Parminder Singh Sodhi, Commissioner, Central Excise, Customs & Service Tax, Commissionerate Chandigarh – I, Government of India, said that increasing the assesse base and pruning the negative list of Service Tax are some of the key steps taken by the Government in the Union Budget. Also, making a pre-deposit of 7.5% in case of court appeals is a good move since this will certainly help in bringing down the filing of stay applications and number of litigations. This initiative will lead to appeals being heard and as a result cases can be decided early.

Richard Rekhy, Chairman, CII NR Committee on Economic Affairs & Taxation & CEO, KPMG India shared that the Union Budget 2014-15 has been a comprehensive one, outlining the roadmap for reviving growth to 7 – 8 per cent. On the key policy announcements, he appreciated the government's commitment for a stable and predictable tax regime with a slew of measures to reduce tax litigation and improve administration. He welcomed the provision for setting up a High Level Committee to be constituted by CBDT for scrutinizing fresh cases arising out of the retrospective amendments in respect of indirect transfers. Further, policy announcements like proposed AAR extended to all residents (subject to a threshold), complete revamp of the IDR regime & liberalization of ADR/GDR and comprehensive approach to SMEs, socio economic plans, financial services and infrastructure development would provide necessary impetus, he added. He also shared that the liberalization of Transfer pricing and roll back of APAs would go long way in reducing the litigation.

Pratik Jain, Partner, KPMG India said that there have been no big-bang tax reforms in the budget. However, there has been impetus given to domestic manufacturing units through bouquet of duty incentives. Apart from this, there have been efforts to reduce trust deficit between Tax payer and Government. On Cenvat Credit, Mr Jain added that with effect from 1 September 2014, the Cenvat credit will be claimed within 6 months from the date of invoice else the credit will lapse. This will have a big impact on the industry, along with the provisions regarding mandatory pre- deposit before filling an appeal against tax demands.