Indore : The state Budget, presented by Finance Minister Jayant Malaiya on Friday, evoked mixed feeling among businessmen, tax consultants and industry people.
They expressed their concern when submission of Form-49 is made compulsory and said this would hamper business.
During the pre-budget meeting, Malaiya had faced the traders’ opposition to Form-49 and the even demanded scraping of the provisions of Form-49 on certain goods. They were also hopeful that the FM scrap the rule. They said the measure will act against the sentiment of ease of doing business.
The good part of the budget is that the FM had allocated Rs 300 crore for water supply project of Pithampur.
– Sushil Sureka, Secretary, Ahilya Chamber of Commerce and Industry and former member of state VAT Act draft committee.
FM did A good job at Challenging time
Mallaiya did a commendable job at a time when things are not favorable. He did not impose too much tax on public. Pithampur is put under the jurisdiction of Indore division of Commercial Tax from the Ratlam Division. The slab of ITR (Input Tax Rebate) on interstate trade is kept at 2% which is equivalent to the CST. This will hamper inter-state trade. Stamp duty is increased by 2%, this will clearly increase the loan lending cost of the industries. However, Rs. 300 cr is being sanctioned for water supply of Pithampur, which is welcome.
-Goutam Kothari, President Pithampur Audhyogic Sangathan.
Small traders would be affected
Withdrawing or reducing VAT on goods used in promotion of environment is appreciable. But keep Input Tax Rebate equal to CST i.e. 2% will hamper the interest of small traders who are engaged in state trade. However, increase in limit of filing annual returns from Rs 20 to 40 lakh, imposition of tax on e-Commerce, shifting of CT purview of Pithampur from Ratlam to Indore are commendable measures.
-CA RS Goya, eminent Commercial Tax Consultant.
SOPA welcomes removal of VAT on soy meal/doc
SOPA welcomes the tax exemption and other measures given in the State budget. Overall thrust in the Budget is given on agriculture, which is a good sign and the schemes like better Irrigation, use of rainwater harvesting, tax concession on agricultural implements will give a boost to farm sector in the State. The removal of VAT on Soy meal/DOC and Soy Milk and several other developmental schemes for agri sector are welcome steps.
-Dr. Davish Jain, Chairman, the Soybean Processors Association of India (SOPA).
