Budget ‘directionless’,Pune Inc disappointed

Industry was hoping for sops from the government after the Centre had hiked service tax and excise duty. They were also banking on Pawar to simplify the payment of sales tax. That was backed by optimism that the Centre s creating a climate for the uniform application of tax regime through the introduction of GST. However,industry representatives said those hopes were dashed.

Nitin Shah,president of the Western Maharashtra Tax Practitioners’ Association,said the “budget is not sound.” “The industry has a difficulty in adjustment of the payment in sales tax paid by the vendors. The dealers are facing the problem in claiming the input tax credit on the payment of tax by the sellers. We were expecting that the Finance Minister would simplify the procedure for claims,but it is a big disappointment. Huge amount of sales tax refunds are pending.”

Govind Patwardan,chairman of State Taxation Committee of Maharshtra Chamber of Commerce Industries and Agriculture (MCCIA),said that there was no requirement for the Octroi to continue when the Centre has committed on implementation of GST. “Instead of announcing any reforms,he has made life tougher. “The five per cent tax on the sale of LPG will make things difficult for the common man,” said Patwardan.

MCCIA director-general Anant Sardeshmukh said that owning cars will become more expensive now after the Finance Minister announced the increase of 2 per cent in tax rate on petrol cars and jeeps.

“Given the slowdown we were expecting that the Finance Minister will announce measures which will provide a momentum to growth. Also,he said that computerisation has helped the industry in getting the VAT refunds. We don’t see the benefit of computerisation reaching the industry,” he added.