F.No.334/8/2014-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
***
New Delhi, dated the 17th April, 2014
To
Industry and Trade Associations
Subject: Suggestions from the Industry and Trade Associations for General Budget 2014-15 regarding changes in direct and indirect taxes.
Sir/Madam,
In the context of formulating the proposals for the Union Budget 2014-15, the Ministry of Finance would like to be benefited by the suggestions and views of your Association. You may, therefore, like to send your suggestions for changes in the duty structure, rates and broadening of tax base on both direct and indirect taxes giving economic justification for the same. Suggestions may also be given for simplification and rationalization of duties and taxes.
2. Your suggestions and views may be supplemented and justified by relevant statistical information about production, prices, revenue implication of the changes suggested and any other information to support your proposal. The request for correction of inverted duty structure, if any for a commodity, should necessarily be supported by value addition at each stage of manufacturing of the commodity. It would not be feasible to examine suggestions that are either not clearly explained or which are not supported by adequate justification/ statistics. As regards direct taxes, the government’s policy is to phase out profit linked deductions and minimize exemptions; you may take this into consideration while forwarding proposals. The Synopsis of your suggestions could be given in the following format:
| S.No. | Issue | Justification |
2.1 Further, in respect of proposals relating to changes in Customs and Central excise duty rates, the following additional information may be provided.
S. No |
HS Code |
Description of the Product |
Quantum of Imports 2012-13 and 2013-14 |
CIF value of imports 2012-13 and 2013-14 |
Quantum of domestic production 2012-13 and 2013-14 |
Value of domestic production 2012-13 and 2013-14 |
Unit Price (CIF) |
Existing Duty |
Proposed Duty |
Revenue implication of the proposal |
Implications of the proposal for the domestic industry |
3. Your suggestions and views may be emailed, as word document in the form of separate attachments, in respect of Indirect Taxes (1. Customs and Central Excise, 2. Service Tax) to budget-cbec@nic.in. and 3. Direct Tax to ustpl3@nic.in. Hard copies of the Pre-Budget proposals/ suggestions relating to Customs & Central Excise may be sent to Shri P. K. Mohanty, Joint Secretary (TRU-I), and Service Tax to Shri M. Vinod Kumar, Joint Secretary (TRU-II), CBEC, while the suggestions relating to Direct Taxes may be sent to Ms Pragya S. Saksena, Joint Secretary, Tax Policy and Legislation (TPL-I), CBDT . It would be appreciated if your views and suggestions reach us by the 5th May 2014.
Yours sincerely,
(P.K. Mohanty)
Joint Secretary (TRU-I)
Tele/Fax: 2309 2687/2309 2031
Direct taxes:
Reqiurement for submission of 15H form incase of senior citizen may be appropriately exempted from present level of limit being very low i.e. rs.10000.
Income tax limit in respect of senior citizens having only pension income should be raised to Rs.500000 anually.
Your appropriate action in this behalf will definitely bring a great releif and blessings from senior citizen community, who is being highly financially inconvinient with respectuve low-limit inter-alia inflation.
Sir,
There are many business and personal laws in India. The country is in a transnational stage. Our laws should be such as to attract the foreign investors in our country and also to enable our citizens to do business smoothly.The business laws and direct tax laws of our nation should be simple so that the common man can understand and comply by them. In case the laws are few the compliance will also be much better. Instead of State and Central Business laws there must be only Central Laws and the Goverment should allocate the funds to the States for their expenditure and instead of Income Tax and Wealth Tax Returns there should be a combined Income Tax and Wealth Tax Return. People who come under the Wealth Tax will fill the Wealth Tax Return or else they will mention that the Wealth is below taxable limit.
Sir,
The business community in India faces many hardships as there are different state and central laws relating to business and and above all we have personal Income Tax and Wealth Tax laws. It is very difficult for people to comply with all the laws and do business in India. In recent times the Central Government is trying to directly collect income tax by way of TDS. It is the duty of the deductor to deduct TDS whenever applicable and also to file the quarterly TDS returns.The deductor has to pay interest when TDS is deducted/deposited late, late filing fees when the TDS return is filed late and also has to pay an amount to the authorised depository. In my opinion the Government should start collecting the tax as it was do earlier by way of advance tax as TDS is a very tedious job and it is causing harassment to the tax payers.
Suggestions
1. Encouragement to Long Term Savings: Long term savings (say 10 year period) should be encouraged by giving full exemption from Income Tax. If Savings in scheduled banks pose issues because of banking policies and rules, a new fiscal unit should be opened under the aegis of RBI to accept such long term deposits and RBI can use this money to allow borrowings by State Governments to tide over their short term fiscal deficits.
2. Fund Allocation for University-Corporate Collaboration for State-of-Art Training: Engineering education in the country is expensive and at the same time lacks quality. Authorities should device methodologies to take advantage of Academy / Proficiency Certificate Programs of Corporate like L&T, Microsoft, Cisco, IBM and others. Such Certificate Programs could be made part of University education as optional or compulsory. Funds could be allocated for Universities and Corporate to work together.
3. Allocation of Funds for enhancing NCC activities: Bringing back NCC in schools and Colleges in a big way will help the country building. NCC must be made compulsory for Plus 2 students for two years. Indian youth must be trained to make India more strong and disciplined.
4. Fund Allocation for New National Projects: New national level projects by Government/Public Sector undertakings and of course through Private-Public partnerships are required in order to enhance job opportunities.
Example: Why not consider building West Bengal – North East Cities/Towns through Bangladesh by entering into bilateral agreements between two Governments.
5. Fund Allocation for Research on Housing in Rural areas/small towns, Bringing back lost Agricultural lands for Cultivation and Development of new Business Model to make Agriculture attractive for people especially youth: This is a challenging task. Just rules and regulations do not help. What is needed – Discover and Develop so far unknown but viable new Profitable alternatives in agriculture and related areas to most familiar Real Estate Routes adopted by people for Profits/Business.
Please send me link of Government website where above notification is available.
F.No.334/8/2014-TRU
Government of India
Ministry of Finance
Department of Revenue
Dear Sir,
Please let us know on which website, this notification is available ??