Trivandrum: The key proposals of the Union Budget 2015 presented by the Union Finance Minister, Arun Jaitley on February 28, were decoded, simplified, and their repercussions explained by the financial and tax experts of KPMG at a series of Post Budget Analysis events conducted at Kochi and Trivandrum, earlier this week.
The detailed analysis and discussions of the proposals by KPMG tax partners and external speakers gave a detailed presentation on the economic aspects and the potential implications of the direct and indirect tax proposals in the Budget.
In Thiruvananthapuram, the team of Sachin Menon, Director, KPMG in India; Venkatesan R, Partner, BSR & Co; and S Srinath, Senior Advisor, KPMG explained the key features and proposals, and enabled the participants of these sessions to understand the implications of the budget on various sectors.
The events summed up that the Finance Minister’s speech was more focused on the need to revive growth, embrace change and further strengthen the ‘Make in India’ policy and the changes proposed in the indirect taxation front make the intentions more clear. Overall it is a positive budget with a focus on manufacturing and reducing litigation.
The increase in Service tax from 12.36 to 14% would be a precursor to introduction of GST and would avoid the feeling of steep increase of taxes on service, as on introduction of GST the proposed rate under GST is 16% or more. Also an enabling provision is being incorporated to empower the Central Government to impose a ‘Swachh Bharat Cess’ on all or any of the taxable services at 2% on the value of such taxable services.
In the Manufacturing sector, the board is all set to gear up the process of manufacture in India through the ‘Make in India’ policy, keeping in mind the limitations India is facing has at the present juncture. That is the main reason, as an initial step, the concentration is more IT products and on bringing ‘Assembly’ oriented jobs in India. The shift is clearly towards discouraging imports and encouraging ‘Make in India’.
Later, Dr. M I Sahadulla, CMD, KIMS; Thomas John Muthoot, CMD, Muthoot Pappachan Group; Nandakumar K, President & CEO, SunTec; Jeevandas Narayan, MD, SBT; and the KPMG team participated in an interactive panel discussion moderated by G Vijayaraghavan, Member, State Planning Board.
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