India’s renowned Tax and Legal Expert, V Lakshmikumaran, Managing Partner of Lakshmikumaran & Sridharan (L&S), New Delhi conducted the session along with other experts.
Suresh Rathi, President of Vidarbha Industries Associates (VIA), in his opening remark said that every year, VIA submits Budget Memorandum to the Hon’ble Union Finance Minister recommending the expectations of industries of Vidarbha region from the Budget. He said that our Hon’ble Finance Minister has told us about six pillars of budget as taxpayers, we also have to complete six steps which are putting before Ministry pre-budget expectations, listening to the budget, listening to budget reactions, budget analysis, understanding the impact of budget on our business and final step implementation of budgetary provisions. He further stated that this budget seems to be long term growth oriented budget and industry is happy with the kind of ease of doing business which the government wanted to create, however, there are few areas where the Government has complicated the procedural like TDS on purchases which are really disturbing. He thanked the FM that no new tax burden was levied and also that there’s no increase in tax rates.
Ashok Chandak, Chairman of VIA Taxation and Corporate Law Forum in his welcome address emphasised that when a Budget is prepared for 130 Cr population and presenting it which is watched nearly by 30 Cr people, thus it is not possible to explain the budget in detail, thus it is necessary to read in Budget in fine prints. To understand the fine print of Budget, there needs an expert thus Vidarbha is fortunate to have V Lakshmikumaran as an expert, who will be explaining taxation aspects in the budget.
Lakshmikumaran explained that majority of procedural amendments proposed in Income Tax Act 1961 are lacking on the principal of natural justice and are draconian in nature such as virtual hearing before ITAT, reducing the time of filing of revised return, TDS on purchase of goods, discontinuation of Income Tax Settlement Commission, etc. He added that though it seems that there are not many amendments proposed under Taxation Provisions, after going through the fine print of the budget there were numerous amendments proposed which will have a far reaching effect on trade and industry. He highlighted the points that in the case if Indirect Taxes the proposed amendment comes in to effect immediately when the finance bill is presented however in respect of Direct Tax say Income Tax the provisions are effective from succeeding assessment year because this will give time to assessees to plan their affairs and thus transaction can be execute in accordance with the proposed amendments.
This year, Finance Minister has deviated from the regular practise and made the finance bill effective from assessment year 2021-22 itself, that means the transactions taken place in last 10 months will be affected by the Budget 2021 presented on 01st of February 2021 i.e. Transaction taken place since 01st April 2020 will be affected. During the presentation, he discussed in detail various amendments proposed under Income Tax like reopening of assessment under Sec 147 to Sec 149, provision relating to Search Assessment, Slum Sale, Capital Gain in case of Partnership, Depreciation on Goodwill, TDS on Purchase of Goods, etc.
In the course of his deliberation on Indirect Taxes, V Lakshmikumaran discussed proposed amendments under Customs Act like timeline for completion of investigation under sec 28BB which is a welcome change, penalty provision proposed under section 114AC, etc. He also expressed his comments on the proposed changes in the Customs Tariff Act 1975 covering the provisions on anti – absorption provisions.
Lakshmikumaran also elaborated the proposed amendments under Central GST Act & Integrated GST Act. He took up the amendments proposed in the provisions of ITC, applicability of GST on Clubs, Self-assessment tax concept under GST, filing of reconciliation statement on self-declaration, interest payable on Net Cash Liability, Zero rated supplies under sec 16 of IGST Act, Confiscation of Goods and penalty, and more such provisions.
The programme was conducted by CA Sachin Jajodia, Convenor of VIA Taxation & Corporate Law Forum and also summed up and proposed a formal vote of thanks. Questions/Answers session was moderated by CA Naresh Jakhotia, Treasurer of VIA. Prominently presented were Atul Pande, IPP of VIA; Pravin Tapadia, Past President – VIA, Girdhari Mantri, Shelendra Manawat, CA Jethalal Rukhiyana.