Engineering Export Promotion Council (EEPC) of India ask the union government to extend lower corporate tax advantage to the limited Liability Partnerships (LLPs) and proprietary firms, from executing the action this makes the funds available with MSMEs and enhance the private investment cycle. Direct tax professional council seeks towards the diminishing of the tax upon the people and urges the government to surge the privilege on the income tax limit at Rs 2.5 lakh to Rs 4 lakh per annum in the subsequent financial budget 2022-23.
EEPC India Chairman Mahesh Desai said that nearly 84% of small businesses are not been furnished with the advantage of the lower corporate tax whose aimed to furnish industrial units with extending investable supplies.
“If the tax cut is to kick start an investment cycle by leaving more money at the hands of business entities, then proprietary firms and LLPs should also get the benefit as they constitute the majority of the pie and this is required for the upliftment of MSMEs, he stated.”
Engineering export promotion body has asked the government that furnishing of the benefit of lower corporate tax to Limited Liability Partnership (LLP) and proprietary firms are part of its pre-budget because this “will make funds available with a large number of MSMEs thus speeding up private investment cycle which is instrumental to boost growth and jobs”.
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To enhance the investment the updated provision was made from FY 2019-20 that furnishes any domestic business through the choice to furnish the income tax with a 22% rate and indeed permits the new Indian entities to start on or post 1st October 2019 performing the new investment towards manufacturing to furnish that with 15% rate as per the situation that they shall not claim any privilege.
“The effective tax rate for these companies is 25.17 per cent and 17.01 per cent inclusive of surcharge and cess. Also, such companies shall not be required to pay Minimum Alternate Tax, the EEPC expressed.”
Direct Taxes Professionals’ Association representation committee chairman Narayan Jain supported the repeal of Minimum Alternate Tax as difficulties commence from it. He also specified that “Instead exemptions and deductions should be clubbed,”
