Chamber of Small Industry Associations ( COSIA), Vidarbha Chapter had a very extensive discussion on Expectations from the forthcoming Union Budget for F.Y.2021-22.It was opined by the participants that Hon’ble Finance Minister has assured the citizens and in particular people from Industrial sector under MSME category to be ready with a unique proposals to take care of their prevailing issues and provide them a Road Map to make all around progress to achieve ATMANIRBHAR a Dream mission of our most dynamic Prime Minister.
Accordingly the enthusiastic team of COSIA Vidarbha Chapter comprising of its Chairman Shri Mayank Shukla, Vice Chairman CA Julfesh Shah,& Core Committee member Shri Pranav Ambaselkar forwarded a pre budget memorandum to Hon’ble Finance Minister for her due consideration while making a Budget proposals Chairman Shri Mayank Shukla said that.
Start Ups are very useful tool to achieve ATMANIRBHAR MISSION which need a leverage to establish, thus they should be supported with intrest free loan upto 50 lacs for Term and Working Capitol at least for five years.Similarly Micro, Small and Medium category Industries must be charged susidised interest rates of 5%,6%,& 7% on loan respectively as they are the major job creators,while their requirement is very limited 10,20,&75% of the total funding under this category.Their volume in percentage is 90, 7,& 3% in respective category.
CA Julfesh Shah said that another major issue faced by industries under MSME sector is the steep rise in Raw Material prices which is as high as to the tune of 50 to 60% in last three months. This issue has brought many of the Industries on the brink of closure.Mr.Mayank Shukla added that most of the units have rate contract with the PSU buyers and if this committment is not fulfilled they are either blacklisted or their old outstandings are withheld.MSMEs should be facilitated through Central or State Industrial Development Corporations to procure Raw Materials on Ex Factory/ Preferential pricing basis.Core Committee Member Pranav Ambaselkar said.
CA Julfesh Shah suggested that some special tax concessions need to be given to MSME sector & to facilitate them, they should be burdened with lesser number of simplified compliances and those having turnover below 25 Crs and work force below 20 employees should have only annual return in respect to GST,PF,ESIC etc. There should be a total abolishment of Professional Tax which still exists in some of the states.
It was suggested that Productwise Cluster promotion with 100% financial support to CFC will help MSME to become competitive and match their standard of quality to imported material. This will also enhance the Export volume in International market.State level Public Tenders upto 100 Crores of procurement should be restricted to local bidders to encourage local Entrepreneurship and Job opportunities.
It was also suggested that CSR expenses incurred should be treated as expenditure under IT act 1961.Shri Sudarshan Shende said that Direct Tax Exemptions & Relief can be as under:
Total Tax Exemption limit to be raised to 5.0 lacs.
Tax @ 10% for earnings from 5 to 10 lacs
@20% 11 to 20 lacs
@30% above 20 lacs
Senior Citizens total exemption upto 10 lacs.
Deposits upto 1.5 lacs under National Pension Scheme(NPS) should be treated under section 80 & 80 C limit should be raised to 2.5 lacs at least,he added.
Shri. Sahaj Patel,Shri Ashutosh Das, Shri.Shekhar Bendre & Shri Manish Shende also participated in the pre-budget discussion meeting and contributed with their valued suggestions in this memorandum.