What does the auto-components industry want the FM to announce? What are the expectations of companies engaged in renewable energy? Over the past 10 days or so, we have been flooded with Budget wishlists from across industrial associations and companies.
We now present a compilation of expectations from companies that have not been covered in the past, in our endeavour to provide a platform for every sector of industry.
Need for Transferable Tax Credit-mechanism
Tulsi Tanti, CMD, Suzlon Energy
• Need to attract FDI in wind energy sector to stimulate growth in the sector, and in order to do that should prepare a Transferable Tax Credit-mechanism, linked to actual performance as an option in lieu of Accelerated Depreciation.
• There is a strong case for raising the ECB limits for the infrastructure sector in the ideal scenario, and if not feasible at that level - then for the power sector, and as a very minimum for the renewables industry.
• On SEZs, we recommend that sales of services and products between different companies within the same SEZ or between different SEZs should also be treated as exports and be eligible for Income Tax benefits in the cases when the end-product is exported.
Accelerated depreciation benefit for sunshine industry
Key Recommendations
Deepak Puri, CMD, Moser Baer
• To provide greater stimulus to economic growth, the surcharge should be waived and the corporate tax should be lowered by 5% at least.
• There should be reduction in customs duty on raw materials, intermediates and components wherever possible and reduction in excise rate from 16% to 14%.
• The Finance Minister should reintroduce investment allowance to allow 25% deduction on investment in plant and machinery.
• 100% depreciation on energy saving and water conservation devices would be a welcome step in ensuring environmental protection.
• There should be an accelerated depreciation benefit of 120% to Solar installations.
• As a company which invests heavily into R&D, we would also call for extension of 150% weighted R&D deduction to all sectors.
Duty concessions for vehicles using alternate fuels
Key Recommendations
Nirmal K Minda, MD, Minda Industries
• Steps to decrease interest rates as this is hurting the auto sales growth particularly the two-wheeler growth.
• Reduction in import duties of raw materials and review of duty structure to provide a level playing field for the Indian Auto Component Manufacturers vis a vis the manufacturers from FTA countries.
• Provide fiscal incentives like extension of duty drawbacks for the exports from auto component sector.
• Duty Concessions should be extended to vehicles using alternate fuels like CNG and LPG which are not only cheaper but are also cleaner.
Infrastructure development to be key for India’s growth