In Order To discourage the practice of avoiding Dividend Distribution Tax (DDT) by the listed companies, additional tax of 20 per cent is proposed in case of buyback of share in listed companies, said CA Julfesh Shah. He was delivering a presentation on ‘Budget Analysis’ organised by Chamber of Small Industry Associations (COSIA), Nagpur Chapter. He said, “In order to ensure that a trust or institution does not comply with local laws that are material for achieving its objects, it is proposed in the Budget to cancel the registration of such trust for violation of any provision of any other law.”
Shah detailed out the various other amendments proposed in the direct taxes such as additional incentives of Rs 1.5 lakh on interest on loan taken to purchase electric vehicle , additional deduction of interest to the extent of Rs 1.50 lakh on loan taken to purchase residential house under affordable housing scheme. He also elaborated on the amendments made under National Pension Scheme, Corporate Taxation, increase in surcharge on the rich and ultra rich assesses, provisions on TDS etc.
“Union Budget aims at prevention of tax abuse,” he said. CA Preetam Batra who expressed views on indirect taxes, said, the Government has proposed scheme of composition for suppliers of services or mixed supplies having an annual turnover up to Rs 50 lakh and tax rate at @ 6 per cent. Finance Minister has also proposed fund transfer facility to registered person under GST by GST PMT 09 from one head (major or minor) of tax payment to another in electronic cash ledger. It is also proposed to form National Appellate Authority for advance ruling.
For small taxpayers under composition to furnish annual return along with quarterly payment of taxes by form GST CMP 08 under the proposed new return system. The higher threshold exemption from Rs 20 lakh to an amount not exceeding Rs 40 lakh in case of supplier engaged in exclusive supply of goods is proposed. It is proposed so as to charge interest only on the net cash tax liability except for the returns filed subsequent to initiation of proceeding under section 73 & 74 under the Act.
At the outset, Mayank Shukla, Chairman of COSIA Vidarbha Chapter made the introductory remarks and welcomed the speaker. Pranav Ambaselkar proposed the vote of thanks. Prominently present were Amar Vazalwar, Sandeep Darwhekar, Anand Kamthikar, Siddhartha Khosla, Anil Vazalwar, Vnay Morey and others. COSIA, Nagpur Chapter continously organises various programmes and workshops for the benefit of trade and industry in the region.