Vidarbha Industries Association along with the Nagpur Chapter of Institute of Chartered Accountants of India had organized a webinar on “Analysis of Tax Proposals of Union Budget 2022-2023. The session was taken up by V. Lakshmikumaran, Managing Partner of Lakshmikumaran & Sridharan Attorneys and his team T. Viswanathan, Saurabh Malpani and S. Sriram.
Lakshmikumaran and his team explained the amendments proposed in the Finance Bill 2022 presented by Hon’ble Finance Minister of Government of India on 1st Feb 2022 in parliament. The proposed amendments in the areas of Income Tax, GST and Customs laws were discussed in. He said that the Government has finally introduced much-awaited crypto tax regime where a blanket tax rate of 30% is applicable on transfer of “virtual digital assets” was proposed. The entire scheme appears to remove ambiguity and at the same time discourage people from investing in crypto assets. Further, the Finance Minister stated that a blockchain based RBI backed digital currency (Central Bank Digital Currency (CBDC) – digital rupee) will be issued by RBI starting 2022-23 to encourage efficient and cheaper currency management system.
Under GST laws, he said that the Government has omitted the two-way matching provisions which were there in the original GST Act but where never implemented. He was of the view that this is a welcome step as these provisions were only creating confusion and litigations. He further added that this Budget has casted an additional responsibility on the recipient taking input tax credit to ensure that the tax has indeed been deposited by the supplier. Furthermore for various defaults done by the supplier, the input tax credit of the recipient has been proposed to be restricted. Though such restrictions ensure that the tax is correctly paid by the supplier, though they run contrary to idea of “Ease of Doing Business” for the recipient.
Under customs, he said that retrospective amendments were introduced to the Customs Act, 1962 to make officers of departments like the Directorate of Revenue Intelligence, Customs (Preventive), and Customs (Audit) as proper officers for issuing notices demanding recovery of duty. This was perhaps to over-come a decision of the Supreme Court. Further, he said that several exemptions now available for import of capital goods would be gradually phased out by the government to boost manufacturing of such capital goods in India and further the objective of ‘Make In India’.
He said that there were indications in the Budget Speech suggesting changes in the SEZ laws. Proposal to replace SEZ Act with a new legislation that will enable the states to become partners in ‘Development of Enterprise and Service Hubs’.
Earlier, CA Naresh Jakhotia, Treasurer – VIA conducted the proceedings and introduced the guest speaker, Lakshmikumaran, who advises companies in all areas of taxation, including International Taxation and Transfer Pricing, GST, Customs, Excise, Service Tax, VAT, Foreign Trade Policy, SEZ, offering consulting, advisory, litigation and compliance services. He has interpreted and applied various multi-lateral agreements at both national and international levels. He regularly delivers talks on diverse topics in international tax, transfer pricing, international trade, customs, excise, service tax, intellectual property, and corporate laws. He also moderated Q&A session.
Suresh Rathi, President – VIA in his welcome address informed about VIA Taxation & Corporate Law Forum and its activities. He further said 1st February and all eyes on India’s fiscal future, as the budget Impacts our Economy and our industries. Budget has lots of impact on our economy and also on our industries. Budget 22 was expected to lay road map for our economic revival, to bring it out, amid Covid19 Phase III, so we can say that this is a growth oriented budget for MSME of our country. This being our annual feature event with Lakshmikumaran & Sridharan Attorneys conducted analysis of tax proposals after post budget.
CA Saket Bagdia, Chairman – ICAI Nagpur Chapter in his address said it was a great privilege to work along VIA as well as privilege to witness and listen to Tax and legal expert on post budget analysis.
CA Ashok Chandak, Chairman – VIA Taxation & Corporate Law Forum in his opening remarks said total budget speech, gives a total economic picture, what FM intends to do and we have seen that picture, but we need to study the financial act in detail and the fine prints are required to be seen. In order to get proper interpretation of the finance bill, we have today Senior Advocate of Supreme Court Lakshmikumaran along with his team will guide us on the post budget.
CA Sachin Jajodia, Convener – VIA Taxation & Corporate Law Forum summed up the session and proposed a formal vote of thanks.
Atul Pande, IPP VIA, Pravin Tapadia, Past President of VIA; Shelendra Manawat, Mukesh Gupta & Shreyash Agrawal from L&S; Chandrashekhar Padgilwar; Vinod Kalantri, President – Amravati Chamber of Commerce & Industry, members of associations of Vidarbha region, professionals joined the session in large numbers.