VIA members react on Union Budget 2019

Suresh Rathi, President – VIA

The Budget suitably focuses on digital payment which is sure to result in Indian economy from Cash driven to less-cash economy. Replacement of e-invoice by scrapping of e-way bill is highly welcome steps and will provide ease of business. For encouraging “Make in India”, Government has rightly adopted the approach of increases in customs duty on raw materials and capital goods.

We welcome the announcement of legacy dispute resolution scheme which is sure to give an opportunity to the taxpayers to settle legacy litigations related to service tax and excise duty.

The Union Budget 2019-20 very promising, especially for the agriculture sector and not for industry as such. There appears to be no structural reforms to kick-start the slow economy. Capital provided to the bank appears to very small to set India for $3 trillion economy in this year.  This is the first budget without any talk on fiscal deficit and numbers of various revenue and expenditures.

MSMEs are battling to get loans and the infusion of capital in the bank does not appear to be satisfactory for providing impetus to the sector. Introduction of MEME loan up to Rs. 1 crore can provide some relief if implemented properly. It is necessary to provide the stability and growth of the sector

CA Dr. T. S. Rawal

It was expected that the budget would be in sync with the advice give by Chief Economic Advisor. They seem to be quite divergent. There is not much incentive for MSME’s to grow bigger and create better employment potentials. No word on increasing the savings rate which is crucial for taking the GDP to 8% and making India a 5Tn dollar economy. Budget silent on judicial reforms.

N. Deshpande,  Vidarbha Defence Industrial Hub Pvt Ltd

Import duty exemption on defence equipment not being manufactured in India, will facilitate MSME sector by bringing down capex.

Atul Pande, Immd Past President – VIA

100 lac Cr being projected to be invested in next 5 years in infrastructure would bring lots of optimism on opportunities available & multiplier effect to economy. Good to achieve  5Tn Dollar Economy only with sustenance. Building up with speed eco-system for startups with lots of measures initiated. There are also forms on “research oriented” entrepreneurship in the initiatives announced “National Research Fund”. Labour reforms with condensed 4 laws is a welcome step. Legacy dispute schemes.

CA Ashok Chandak, Past President – ICAI, Delhi

There appears to be no efforts for development of slow going economy. There was a need for increasing in disposable income – no efforts has been taken. The Tax deduction @ 2% on Bank withdrawal above 1 crore in a year is going to impact rural economy. Provision of TDS by individual as well as HUF for a contract above 50 Lakhs increases the compliance burden. Additional deduction of 1.5 Lakhs for Housing interest may not bring much to urban population, as it is limited to home property value of 45 Lakhs. Widening the scope of SFT will give all your information to Government. Settlement of Dispute Scheme is a welcome step. Similarly increasingly in Corporate Tax to 400 is also welcome step.

B. Goenka, Vice President – VIA

It was talk about reforms in power sector like reduction in cross subsidies in tariff and open access. But details were not given i.e. DISCOMS will be compensated. There is amendment proposed in E.A. room in which some details are provided. The speech might have indicated that only.

Dr. Suhas Buddhe, Vice President – VIA

Starting of exclusive channel for “Startups” is a good initiative by the government. Finance ministry proposes to streamline labour laws into a single wage code.

Pankaj Bakshi, Jt Secretary – VIA

Govt. is promoting MSME industries, in the budget nothing has been said about 1. Mineral based industries 2. Coal based industries. Expected friendly policy to help above noted industries. MSMEs are the industries who generate maximum employment.

Hemant Kalikar, President – Central India Electronics Association

MSME to benefit by

1. 2% cut in loan interest for GST registered companies.
2. Portal to registered pending invoices.

Ease of doing business

1. Streamlining of multiple labour laws into four labour codes.
2. Major reforms for startups to help in sustaining in critical time.

Sandeep Darwhekar, Secretary – Central India Electronics Association

1. Support to new technologies such as AI, IOT, Robotics, 3D printing & VR etc.
2. Skill development program
3. Road map for research for developing better technologies & products with support from IIT, IISC & tech industries.
4. Global academic network to raise education standard.
5. Hub for higher education in India.
6. Govt’s. great support for cluster development