Finance Minister Arun Jaitley started his speech by saying that global economy is in serious crisis at present. “The global economic growth has slowed down from 3.4% in 2014 to 3.1% in 2015. However, Indian economy has held its ground firmly due government’s policies”, he said. Here are some general points from the union budget 2016-17 that every businessman must know!
Key General Points for A Business :-
-> With effect from 1st March 2016, Input Tax Credit is proposed in Union Budget 2016-17. It is allowed on services provided by Indian Shipping lines by way of transportation of goods by a vessel to outside India being zero rated. There is no credit at present.
-> 14% service tax is proposed on services provided by Indian Shipping lines by way of transportation of goods by a vessel from outside India up to the customs station in India being imposed, with effect from 1st June 2016. There is no service tax at present.
-> Goods and Services Tax (GST) is likely to be implemented from 1st April 2016 – Expected to provide seamless flow of credits across the supply chain for businesses.
-> GST is likely to give some GDP push to the India’s economy.
-> CENVAT Credit Rules, 2004 would be amended – to boost credit flow, reduce the compliance cost & litigation. It is likely to come into effect from 01.04.2016
-> Government is planning to amend the Companies Act, 2013 – To remove the hurdles for the ‘ease of doing business’ plan and to enable favourable environment for start-ups.
-> Assist propagation of start-ups through 100% deduction of profits for 3 out of 5 years during April 2016 to March 2019.
-> 12% to 15% surcharge purposed on persons other than companies, firms and cooperative societies having income above Rs1 crore
-> 100% FDI in Asset Reconstruction Companies (ARCs)
-> 2,000 model retail outlets of fertilizer companies will be provided with soil and seed testing facilities during the next three years.
-> Period of long term capital gain regime for unlisted companies is proposed to be reduced to 2 years from 3 years.
For more updates on India union budget 2016-17, keep following the blog section!