What methinks

Harsh Goenka
Chairman, RPG

The FM has achieved the difficult task of undertaking huge expenditure for implementing programmes under the CMP while ensuring impetus for growth. The Budget gives practical expression to rural development with emphasis on employment generation. The FM also needs to be complimented for finding ingenious ways to reduce subsidies without reducing benefits to the consumers. The financial sector will be able to function efficiently with the provision of a legal framework of trading in securitized debt. The step to make Mumbai a financial centre is a good one. A significant measure is the reduction in corporate tax.

Adi Godrej
Chairman, Godrej Group

It’s an excellent Budget directed towards both economic growth as well as social development. Highlights incude the clear indication to move towards a national goods and service tax and the proposal to allow the tax payer to choose a savings mechanism in a neutral manner. The peak customs duty rate cut and the emphasis on Mumbai are welcome , as is the decision to permit minimum alternate tax as credit towards corporate tax in future years. However, the fringe benefits tax is laid out unfairly. The increase in surcharge on corporate tax will increase the rates of minimum alternate tax and the dividend distribution tax.

TV Mohandas Pai
CFO, Infosys Technologies

Industry got many things it asked for. A lower corporate tax rate but with lower depreciation rates, reduced custom duties and greater infrastructure spending is a big plus. I had expected an overall excise duty cut to 12%. Some of the IT demands have been met. Withholding fees on technical services should be extended to the double taxation treaties also.

Nil custom duties on ITA items will cut costs, though restricting the countervailing duty set off only to excise duty is restrictive. The fringe benefits tax is worrisome. If the intent is only to tax some fringe benefits not currently taxed, it is reasonable. But the definitions look very wide right now.