Budget to create enablers for Make-in-India focus
Kolkata: This year’s Union budget contains policy directions which are favourbale for the Centre’s Make-In-India initiave.
“The Union budget has a few policy directions which will have positive impact on the Make-in-India target,” KPMG head management consulting (east) & Bengal Chamber president designate Ambarish Dasgupta said on the sidelines of budget analysis session.
He said that among them are GAAR applicability deferment by two years, reduction of tax for royalty/fees for technical services (FTS) and amendments in indirect transfer pricing of assets.
Explaining the benefits, a global senior tax consultant Aditya Hans said, “the basic rate of taxing income of non-residents in the nature of royalty and FTS from 25 per cent to 10 per cent on a gross basis will encourage foreign companies to go in for technology transfer to India.
The proposed amendments in indirect transfer of assets to bring clarity will in turn have a positive influence on the Make-in-India roadmap, Hans said.
Speaking about REITs, this budget has taken some measures, but to attract global funds through this route, more needed to be done.
“Still it is not a seamless structure,” he said.