Much more to be done for rationalising corporate taxes

Posted by: Sumita on July 8, 2019

The Budget 2019 moved to expand the tax rate of 25% from companies with turnover less than 250 crores to companies with turnover less than 400 crore. 4000 companies are expected to benefit, while 6000 companies are left in the higher tax bracket. The tax liabilities are quite lop-sided, with 3.8 lakh companies, making up 45%, now paying zero or hardly any tax; services sector pays higher effective tax than manufacturing and there is a huge gap between the sectors with the highest and lowest effective tax burden - R&D pays effectively 41.2% while non-ferrous metal ores mining pays 15.7%.

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Budget 2019-20 is high on intent

Posted by: Sumita on July 8, 2019

Nasscom President, Debjani Ghosh, notes that Budget 2019 has the potential to take the nation on a path of high growth. "However, a few parameters fall short on details, and we will have to work with the government to ensure that we stay on course and not get carried away by the optics." While appreciating the moves made for easing the compliance burden for startups, she says that lots more needs to be done to give "adequate legroom for innovation-led growth"

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Ease of doing business policy to explore scrapping of licence raj

Posted by: Sumita on June 28, 2019

The government will soon come up with an overarching National Ease of Doing Business policy, aiming to phase out the licensing requirement for businesses. Department for Promotion of Industry and Internal Trade (DPIIT) has circulated a draft Cabinet note on the proposed policy for inter-ministerial consultation.

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Uttar Pradesh Labour Department automates business registration and renewals

Posted by: Sumita on June 24, 2019

The Uttar Pradesh government has removed all interaction of entrepreneurs with officials and fully automated the process of registration, issuance of fresh licenses and renewals for business units. Licenses are now being issued on the same day as filing of application. Modifications have been made in the procedure for licence and registration under Contract Labour Act, (regulation and abolition 1970), Uttar Pradesh Shops and Commercial Establishment Act (1970) and Factories Act 1948. 664 applications for licences under Contract Labour Act were received in last four months and all were disposed within 24 hours. 44,720 applications were received for new licence and renewals for shops and commercial establishments and all were disposed off same day.

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Slashing compliance burden on kirana stores and eateries

Posted by: Sumita on June 21, 2019

The Government has decided to slash the compliance burden on kirana stores (currently 28 clearances needed) and eateries (17 approvals needed currently). A long overdue move, Just 4 approvals needed to open a restaurant in China and Singapore. A Subway restaurant in Delhi has to submit 24 documents to the police, while license for a firearm needs only 13 documents!

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Reduction in Compliance burden critical to attracting global investors

Posted by: Sumita on June 18, 2019

Attracting global investment through FDI and FII is a key component to making India a USD 5 Trillion economy by 2024. For this, reducing the compliance burden is critical. Read more at "Hardselling India to investors: This three-point agenda should help" (MoneyControl, June 17, 2019)

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ESIC Reform: Contribution Burden Reduced

Posted by: Sumita on June 17, 2019

The government's move to reduce the burden of contribution from the employers (4.75% to 3.25%) and employees (1.75% to 0.75%) (See Press Release dated 13th June 2019 available at http://pib.nic.in/newsite/pmreleases.aspx?mincode=21) has helped formalisation of jobs by reducing the gap between gross wages and take-home wages and saved the industry INR 5000 crores annually. However, from a compliance perspective, this move has not changed the fundamentals of filings and returns.

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Meeting India's aspirations through EoDB 3.0

Posted by: Sumita on June 3, 2019

In an ET blog post, Sumita Kale connects the jobs challenge to EoDB 3.0, concluding with "Rationalise, Digitise, Simplify” has to be the mantra to unclog the compliance pipeline. The process of GST has to be extended across the board to other departments. We have to make it easier for formal enterprise and employment to grow and meet the aspirations of young Indians."

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Maharashtra pilots digitisation of land records

Posted by: Sumita on June 3, 2019

Maharashtra is the first state to get going with a pilot on digitising land records, and single window system, making land transactions much simpler and transparent, and significantly reducing potential for litigation. (Source: Business Standard, May 20, 2019)

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