The Hindu : Tamil Nadu / Madurai News : `Enhance excise exemption for SSI'

Online edition of India's National Newspaper
Saturday, Jun 12, 2004

Tamil Nadu

Tamil Nadu - Madurai

`Enhance excise exemption for SSI'

By Our Staff Reporter

MADURAI, JUNE 11. The Tamil Nadu Chamber of Commerce and Industry has urged the Union Finance Minister, P. Chidambaram, to enhance the central excise exemption/concession in duty for the small-scale industries (SSIs) to Rs. 3 crores and the clearance limit for concession from Rs. 3 crores to Rs. 6 crores.

This plea was made in a pre-budget memorandum submitted to the Minister by a delegation of the Chamber led by the president, S. Rethinavelu, in New Delhi on June 8.

The Dindigul MP, N.S.V. Chittan, accompanied the delegation.

The Chamber said the exemption limit for personal income tax should be increased to Rs.75, 000 from Rs.50, 000, and the rate should be, in the long run, fixed between 10 and 25 per cent.

The corporate tax should be further brought down to 30 per cent, and the maximum rate of firm tax should not exceed the maximum rate of an individual.

It said the high rate of tax for long-term capital gains would lead to evasion, and hence the tax should be reduced to 10 per cent from 20 per cent.

The turnover limit for compulsory tax audit for non-corporate entities should be raised from Rs. 40 lakhs to Rs. 2 crores.

The age limit for IT rebate for senior citizens should be reduced to 60 from 65.

Instead of reintroducing the voluntary disclosure scheme, the Chamber said.

The Government should include a provision in the Income Tax Act to enable assesses to declare their undisclosed income in previous years and file the tax separately through challans at rates higher by ten per cent of the maximum rate before the end of a financial year, the chamber said.

Such income should not be scrutinised.

It said service tax and the Centrally Value-Added Tax should be levied through the same enactment, and a basic exemption limit of Rs.10 lakhs in annual turnover should be provided for service tax to protect small-service providers.

The Value Added Tax should be implemented throughout the country to protect small traders.

The Chamber also sought the withdrawal of tax on refined edible oil, readymade garments, hank yarn and concentrated milk.

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