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Budget reaction from the SMEs sector

 

ANCHIT GUPTA | New Delhi, March 16, 2012 20:41
Tags : budget | reaction | SMEs | business | budget | union budget |
 

 

The small and medium enterprises (SMEs) of India found themselves engulfed in mixed emotions by the Budget 2012-13. A slew of offerings came towards them in the budget, the most crucial of them being the proposal to raise the turnover limit for compulsory tax audit of accounts as well as for presumptive taxation from Rs. 60 lacs to Rs. 1 crore. The measure found the industry delighted and satisfied.
 
Further to this, Finance Minister, Pranab Mukherjee announced the allotment of Rs 5,000 crores to Small Industries Development Bank of India (SIDBI). This was an increase of 25 percent from the previous budget's allocation of Rs 4,000 crore. However, the deciding factor on how fruitful this move has been, shall depend on at what cost shall the SME industry get these funds. Reciprocating the same, Saurabh Srivasatava, co-founder and ex-president NASSCOM said, "While the setting up of the fund of Rs 5,000 crore to cater to the SME sector is a good move, it is in the details of how the funds is administered that shall decide how good the move really is". 
 
Further adding to the SMEs kitty, Finance Minister announced that in order to augment funds for SMEs, sale of residential property will be exempt from capital gains tax, if the proceeds of the sale are used for purchase of plant and machinery, etc. In an interaction with B&E on the budget allocation for the SME sector, Sanjay Bhatia, Chairman, FICCI SME committee said, "There has been some addressing the needs of the sector particularly in terms of the financing and through the creation of clusters in Andhra Pradesh and Jharkhand for handloom and leather products, which is surely a welcome move. 
 
However, our request for an appropriate revision of excise exemption limit has not been met with. To sum up, while we are happy that the MSME sector got the attention of the Finance minister and some concessions have been made, our expectations were a lot more". 
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Issue Dated: Feb 5, 2017