New Delhi: The apparel and retail sector are witnessing a boom in India. A plethora of international brands are invading the commercial space to woo Indian customers by tieing up with companies that can allow them to make better choices and provide exciting value propositions to an expanding customer base.
J Suresh, CEO, Arvind Brands & Retail
Real estate prices and rentals are on an increasing trend which is turning detrimental to the retail industry. Service tax on rentals is further adding to costs making the entire retail boom seem like an improbable dream.
* Abolish service tax completely
* Remove apparel category from preview of Weight and Measures Act since these are not sold as packaged commodities. Currently, the industry is struggling with respect to interpretation of tags/labels attached to the product
* CST to be abolished or reduced to 1% which is currently an additional cost over and above local VAT
*Increase cap on FDI in retail to allow smooth flow of foreign investment in the country
* Preview of Fringe Benefit Tax to be reduced as it currently covers certain expenses incurred on employees for official use. This defeats the purpose of FBT which is meant to tax only perquisites enjoyed by employees in lieu of their remuneration
* Protect local player’s interest by introducing additional incentives in the form of reduced corporate tax
J Suersh is CEO, Arvind Brands & Retail