‘Govt should reduce rate of GST, Stamp Duty’
   Date :31-Dec-2020

CA Milind Kanade_1 &
 CA Milind Kanade handing over pre-Budget memorandum to Union Finance Minister Nirmala Sitharaman.
Business Bureau :
IN ORDER to encourage more citizens to avail insurance facilities, Union Government should reduce rate of GST and Stamp Duty. Corporate tax of insurance companies should be reduced at least to 6 per cent, so that more bonus can be distributed. Also, parity should be brought in for National Pension Scheme (NPS) and insurance companies, suggested CA Milind Kanade, Convener, Economic Cell of BJP, Maharashtra while making submissions to Union Finance Minister Nirmala Sitharaman.
Pre-Budget consultation for the year 2021-22 was concluded by Finance Ministry last week and taking this forward various party leaders met FM Sitharaman with their suggestions and inputs at BJP Central Office, New Delhi. CA Milind Kanade, has compiled a document incorporating the valuable suggestions from resource persons of various sectors of economy. This was done under the guidance of State BJP President Chandrakant Dada Patil and State General Secretary (Organisation) Vijayrao Puranik. Milind Kanade said, for Defense sector it is suggested to allocate at least 2 per cent of GDP, allocation for Defense is an investment and not an expenditure. This suggestion is based on studying the Shekatkar Committee recommendations on Defense Modernisation and Re Balancing the Defense Budget and Prediction of Chinese threat.
Presently nationalised banks offer around 8 per cent interest for 5 years upto a maximum of Rs 15 lakh deposit under Senior Citizen Savings Scheme. It is requested that this ceiling may be increased to Rs 30 lakh considering the pay revision recommended by 7th Pay Commission so that more long term funds remain with banking sector. Instead of passing on the premium amounts to MSMEs for covering loans under Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTSME), banks may bear the premium expenditure. This will give sizable relief for the MSM enterprises. Also, delayed payments by PSU to MSME need to be taken care to avoid mortality of MSMEs. Section 43B of Income Tax that allows certain deductions to be only on actual payment basis needs amendment to give relief to MSMEs. For corporate sector it is suggested to allow deduction for corporate social responsibility (CSR) expenditure under the Income Tax Act 1961 as presently, no deduction is available under the Income Tax Act 1961 towards the expenses incurred on CSR activities. The economic cell earnestly requested for upward revision of personal Income Tax slab and increased limit under Section 80C of Income Tax Act, said CA Milind Kanade. The Finance Minister listened to the above mentioned suggestions patiently and received the pre-Budget memorandum.