Ease of doing business – Minimum Government Maximum Governance
- Simplification of tax procedures.
· Penalty provision in indirect taxes are being rationalised to encourage compliance and early dispute resolution.
· Central excise/Service tax assesses to be allowed to use digitally signed invoices and maintain record electronically.
· Tax Administration Reform Commission (TARC) recommendations to be appropriately implemented during the course of the year.
· Online central excise and service tax registration to be done in two working days.
· Time limit for taking CENVAT credit on inputs and input services increased from 6 months to 1 year.
· Service-tax plus education cesses increased from 12.36% to 14% to facilitate transition to GST.
Tax Proposal
· Efforts on various fronts to implement GST from next year.
· Proposal to reduce corporate tax from 30% to 25% over the next four years, starting from next financial year.
· Rationalisation and removal of various tax exemptions and incentives to reduce tax disputes and improve administration.
Funding the Unfunded
· MUDRA Bank will be responsible for refinancing all Micro-finance Institutions which are in the business of lending to such small entities of business through a Pradhan Mantri Mudra Yojana.
· A Trade Receivables discounting System (TReDS) which will be an electronic platform for facilitating financing of trade receivables of MSMEs to be established.
· Comprehensive Bankruptcy Code of global standards to be brought in fiscal 2015-16 towards ease of doing business.
· Postal network with 1,54,000 points of presence spread across villages to be used for increasing access of the people to the formal financial system
Infrastructure
· Ports in public sector will be encouraged, to corporatize, and become companies under the Companies Act to attract investment and leverage the huge land resources.
· An expert committee to examine the possibility and prepare a draft legislation where the need for multiple prior permission can be replaced by a pre-existing regulatory mechanism. This will facilitate India becoming an investment destination.
Financial Market
- Forward Markets commission to be merged with SEBI
· Section-6 of FEMA to be amended through Finance Bill to provide control on capital flows as equity will be exercised by Government in consultation with RBI.
· India Financial Code to be introduced soon in Parliament for consideration.
· Vision of putting in place a direct tax regime, which is internationally competitive on rates, without exemptions.
· Government to bring enabling legislation to allow employee to opt for EPF or New Pension Scheme. For employee’s below a certain threshold of monthly income, contribution to EPF to be option, without affecting employer’s contribution.
Tourism
· Visas on arrival to be increased to 150 countries in stages.
Skill India
· Less than 5% of our potential work force gets formal skill training to be employable. A national skill mission to consolidate skill initiatives spread across several ministries to be launched.
· An autonomous Bank Board Bureau to be set up to improve the governance of public sector bank.
Broad themes:
Ø Job creation through revival of growth and investment and promotion of domestic manufacturing – “Make in India”.
Ø Improve ease of doing business - Minimum Government and maximum governance.
Make in India
· Revival of growth and investment and promotion of domestic manufacturing for job creation.
· Basic Custom duty on certain inputs, raw materials, inter mediates and components in 22 items, reduced to minimise the impact of duty inversion.
Swachh Bharat
· Services by common affluent treatment plant exempt from Service-tax.
Others
- Service-tax exemption:
Ø Transport of goods for export by road from factory to land customs station.
Ø Enabling provision made to exclude all services provided by the Government or local authority to a business entity from the negative list.
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