Chennai: The lowering of corporate tax for micro, small and medium industries (MSMEs) with turnover less than Rs 50 crore and reduction in tax on presumed profit of those with turnover up to Rs 2 crore to 6% will bring hope for many industries which remained dampened since the floods of 2015.
B. Kumar, the owner of a precision tooling and spare parts company, lost a chunk of his business following the floods and had not recovered due to unavailability of loans and lack of business with clients. Many like him, who were waiting for loans or the insurance to come through, have not found respite. “There is less business happening even now. The low value of money and lack of investment is the main. While lowering the taxes will help partly, we expect better access to loans as well,” he told DC.
"Benefits to MSMEs have been two - the lowering of presumptive tax from 8% to 6% for those individuals making less turnover than Rs. 2 crores, being one," said S Sundar Raman, a chartered accountant. "And also lowering the corporate tax for enterprises with turnover less than Rs. 50 crore to 25% and disincentivising cash transactions will reap benefit too," he added.
KE Reghunathan, the national president, All India Manufacturers Association said: "As there is a dire need of funding to make many industries thrive, there should have been a mandatory condition to offer 40% finance to MSME sector.’
