Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessEconomy

Centre may consider extending deadline to avail 15% corporate tax benefit: Report

FM Sitharaman was speaking to representatives at an industry chamber webinar on June 8.

June 11, 2020 / 09:30 AM IST
X

Finance Minister Nirmala Sitharaman said the government may consider extending the deadline of 15 percent corporate tax benefit for companies that make new investments in manufacturing.

“I will see what can be done… and I take your point for considering an extension in the deadline of March, 31, 2023,” Sitharaman told industry representatives.

The finance minister further clarified that the Emergency Credit Facility for COVID-19 covers “all companies, not just micro, small and medium enterprises” (MSMEs). She added that liquidity issues have been “fairly, clearly addressed”.

Sitharaman also said that all government departments have been asked to clear dues, failure of which can be brought to the Centre’s notice for further action: “If there is any issue with any department, the government will look into it. We are committed to support/intervene.”

She directed the industry to submit their recommendations related to the Ministry of Corporate Affairs (MCA) or Securities and Exchange Board of India (SEBI) deadlines so that necessary steps can be taken.

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

Speaking about goods and services tax rate reduction impacting sectors, Sitharaman said the rate will “go to the Council”. She was speaking to representatives at an industry chamber webinar on June 8, as per a Hindu BusinessLine report.

Meanwhile, companies’ income tax (I-T) refunds amounting to Rs 35,000 crore have been completed over the past few weeks, Finance and Revenue Secretary Ajay Bhushan Pandey said.

As part of its boost for the Make in India initiative, the Centre in September 2019 announced that companies incorporated on or after October 1, 2019, making fresh investment in manufacturing will be allowed to pay I-T at rate of 15 percent in FY19-20.

Effective tax rate after this decision has come down to 17.01 percent inclusive of cess and surcharge and exempts companies from Minimum Alternate Tax (MAT) requirements.

The industry wanted this to be extended beyond the March 31, 2023 timeline.

Moneycontrol News
first published: Jun 9, 2020 01:15 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347