Bengaluru 17 Jul: Indo Italian Chambers of Commerce & Industry (IICCI) Bangalore in association with World Trade Centre (WTC) bengaluru today organized a session on “Post Budget Analysis” to discuss the budget and its impact on the Direct (Income) Tax and Indirect Taxes. The session was held by Mr. Madhukar Dhakappa, Partner, PWC India and Mr. Feneel Shah, Director, PWC India. The event was presided by Mr. Giuliano Bonato, President of IICCI and Mr. Bose K Nair, CEO, WTC Bengaluru delivered the Vote of Thanks
On Direct Taxes Mr. Madhukar mentioned that a lot of focus has been identified in the areas of Infrastructure, Manufacturing and Rural Economy. There has been a push towards Shri Suresh Prabhu’s (Former Minister for Industries and Commerce) target of a US$ 5 Trillion Economy by 2025. Also good tax breaks given to startups, angel taxes and other taxes in the areas of Solar, Electronics and Mobile Manufacturing towards Make in India initiative has been welcomed by the industry.
However he cautioned that Individuals and Hindu Undivided Families (HUFs), with effect from 1 September 2019, will have to deduct tax at the rate of 5 percent for payments made to contractors (194C) and other professionals (194J) if it exceeds Rs 50 lakh in a year.
In the Indirect Taxes space Mr. Feneel Shah pointed that the Budget has been favourable in the areas of Customs, Ease of Doing business and Make in India activities. The GST complaince for traders (in commodities) has been increased from 20L to 40L and E Invoicing system will replace the e-way bill to handle GST Frauds.
He also discussed on the dispute resolution scheme (Sabka Vikas) that has been brought by the government to handle all cases of the Pre-GST regime where people could just payoff 30% of the resolution amount and close all pending notices, audits, enquiries, etc.,