Hon. Finance Minister has presented first Full year budget of his Govt. on 28.02.15. The expectations were very high and everyone wish this budget as dream budget which have at least something for all say 125 crores of the Indian population.
In my opinion, the budget has a mix match. It is promising the child of bright future for the present troubles and expect the child to bear with the problems more troubles in present in anticipation of so called colorful and bright future.
The announcements which , I never know how the same is benefited me, but since everybody says will be goods one if comes true and properly and effectively implemented are listed as under.
• Economy Growth 7.4% Highest in the World.
•Current Account Deficient is less then 1%.
• GST w.e.f. 01.04.2016.
• Mudra Bank.
• 05 Mega Power Project.
• Debt Management Agency.
• Gold Mortization Scheme.
• Sovereign Gold Bonds.
• Indian Gold Coins, with Asoka Mark.
• Procumbent Law.
• Public contact Resolution of Disputes by Regulatory Reform Law.
• Establishment of IIT, AIIMS, at different states.
• Autonomous Bank Board Bureau.
• Gradual Reduction in Corporate Tax From 30% to 25% in four years.
• Harsh Laws & Provisions for Black Money Abroad.
• Abolition of Wealth Tax.
• Increase in Medical & Travel reimbursements and exempted allowance.
• Yoga considered as Charitable Activity/Org.
• Increase in Service Tax from 12.36% to 14%.
• & So On.
To my mind, to ease the business, establishment and running which was the promise of this Govt. has rarely reflected in the budget. The Small and Medium Enterprises, and business activity is considered only as manufacturing activity, and the service sector is not given a thought.
I am surprised for the increase in the service tax to 14%, when the maximum applicable rate of Excise duty and Vat is only 12.5%. This only reflects, the ill treatment for Service Sector who earns maximum revenue for the Govt in recent years. This will increase the cost at every stage and all the services used by the masses to the extent at least 100 Crores out of well talked 125 Crores.
There is no ease in my business activity of running a chartered accountant firm or any other professional having gross receipts say less than 20 lacs, and all such activities in the service sector as I am compared with the service providers like Vodafone, Telecommunication, Insurance Sector, Financial and Banking Services and so called Huge Service providers. I feel no proud to be compare with them, as I have no case involving Rs.32/- forget about Rs.3200/- Crs pending in the courts.
As no ease to small service providers I still have to,
1. PAN for filing the return.
2. Register for TAN and deduct the TDS and file the Returns.
3. My self be register and pay Profession Tax.
4. Obtained Employee P. Deduct the PT from their Salary and Pay the same & file Returns.
5. Obtained Service Tax Registration, collect for the Govt, Pay on Time, file Returns. Presently 14% as per the this budget.
6. Tax audit the Accounts.
7. Allow TDS to be deducted @10% from my fees and adjust the same or get the refund of the same after one year earliest.
This reflects, I am more involved in collecting agency of the Govt than doing my professional work.
Over and above the same, I have to suffer for the bad roads, adulteries water, high education cost, monitoring by the govt agencies as above.
With all this, the budget says you suffer today because the country has bright future later in 2022.
The only beneficial provision, I observe in this budget to me is YOGA is considered as charitable activity because I need the Most.
I am very much, thankful to the Hon. Finance Minister as he provides for YOGA who will teach how to be happy in present without dreaming for better future.
Hope for the Best. and My Best wishes to the Govt.