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Tune in on 17th July for the Small Business Virtual Summit with Cisco. Register now!
Last Updated : Jun 11, 2020 09:30 AM IST | Source: Moneycontrol.com

Centre may consider extending deadline to avail 15% corporate tax benefit: Report

FM Sitharaman was speaking to representatives at an industry chamber webinar on June 8.

Finance Minister Nirmala Sitharaman said the government may consider extending the deadline of 15 percent corporate tax benefit for companies that make new investments in manufacturing.

“I will see what can be done… and I take your point for considering an extension in the deadline of March, 31, 2023,” Sitharaman told industry representatives.

The finance minister further clarified that the Emergency Credit Facility for COVID-19 covers “all companies, not just micro, small and medium enterprises” (MSMEs). She added that liquidity issues have been “fairly, clearly addressed”.

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Sitharaman also said that all government departments have been asked to clear dues, failure of which can be brought to the Centre’s notice for further action: “If there is any issue with any department, the government will look into it. We are committed to support/intervene.”

She directed the industry to submit their recommendations related to the Ministry of Corporate Affairs (MCA) or Securities and Exchange Board of India (SEBI) deadlines so that necessary steps can be taken.

Speaking about goods and services tax rate reduction impacting sectors, Sitharaman said the rate will “go to the Council”. She was speaking to representatives at an industry chamber webinar on June 8, as per a Hindu BusinessLine report.

Meanwhile, companies’ income tax (I-T) refunds amounting to Rs 35,000 crore have been completed over the past few weeks, Finance and Revenue Secretary Ajay Bhushan Pandey said.

As part of its boost for the Make in India initiative, the Centre in September 2019 announced that companies incorporated on or after October 1, 2019, making fresh investment in manufacturing will be allowed to pay I-T at rate of 15 percent in FY19-20.

Effective tax rate after this decision has come down to 17.01 percent inclusive of cess and surcharge and exempts companies from Minimum Alternate Tax (MAT) requirements.

The industry wanted this to be extended beyond the March 31, 2023 timeline.
First Published on Jun 9, 2020 01:15 pm
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