New Tax Relief for Indian Manufacturers
Make in India finally brings some tax relief for Indian manufacturers.
Economic slump is realised throughout the country. Economic growth percentage of 5% which is the lowest in the past 6 years triggered the government to take this generous step starting from the Manufacturing company.
The final rates are(inclusive of all cess and surcharge):
25.17% for existing companies and 17.01% for the new companies formed after October 1st.
The above steps by Nirmala Sitharaman aims to:
- Increase investment
- Increase employment
- Boost Make-in-India initiative
- Increase liquidity
More to Know
- No MAT to above companies who are not availing the other exemptions.
- For the companies, not opting the above tax relief and continues to avail exemptions and concessions, MAT has been reduced to 15% from 18%.
- No tax on buy-back of the shares for the companies already announced the buy-back.
- No enhanced surcharge on capital gain on selling of equity and other securities.
Here’s the press release for your reference:
Not only this, there has been some actions on CSR spending as well. 2% of CSR can now be also spent on incumbations, IIts, NITs and National labortieries funded by central or State government.
Surely, festive season came early for domestic manufacturers. We welcome these steps by Modi government.
Looking forward for more such actions by our Government.
What do you think of this bold move by the government? Please tell us in the comments below.