Budget 2019 expectations: MSMEs demand corporate tax relief for the proprietor, partnership firm from Modi-Jaitley
Arun Jaitley had promised in his budget 2015 to cut down the corporate taxes to 25 per cent in coming four years, which he did in last year's budget. But, he restricted this relief to registered firms only
The Micro, Small and Medium Entreprises (MSMEs) have demanded an extension of the corporate tax relief to proprietor and partnership firms, which is till date restricted to registered firms only. Since around 90 per cent of the MSMEs are either a partnership firm or a proprietor firm, Modi government's decision to cut down the corporate tax to 25 per cent in the last budget has failed to serve the MSMEs.
Rajeev Chawla, Chairman, IamSMEofIndia told Zee Business online, "The Finance Minister Arun Jaitley had promised in his budget 2015 to cut down the corporate taxes to 25 per cent in coming four years, which he did in last year's budget. But, he restricted this relief to registered firms only. Because of that partnership firms and proprietorship firms in the MSME segment are unable to avail this facility being given by the government of India." When asked about the percentage of such firms in the MSME segment Rajeev Chawla — who is an executive member on the expert panel board of SMEs and MSMEs ar FICCI — told, "In MSME segment; proprietor firms and partnership firms constitute around 90 per cent of the total number of MSMEs operating in India."
Agreeing with the view expressed by Rajeev Chawla; Kailash Baheti, CFO, Magma Fincorp told in a written statement, "The Finance Minister had promised reduction of corporate tax rate to 25 per cent over a 4 year period in the budget 2015, industry expects him to deliver a Corporate Tax rate to 25 per cent this year for all kinds of companies."
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