New Delhi, 24 June (KNN) Imposition of CGT (Capital Gain Tax) on purchase of Industrial Plot should be revoked to stimulate the growth of Micro Small and Medium Enterprises (MSMEs), suggested Manesar Industries Welfare Association (MIWA) to Finance Ministry.

In its pre-budget memorandum, the association submitted its demand to the Finance Ministry to get their expectations fulfilled in upcoming Union Budget 2019-20.

MIWA said, “In order to encourage Industrial growth in MSME sector, the entrepreneur should be encouraged to expand his Industry. A major discouraging factor fall in front of an entrepreneur is that if they want to put up a bigger industry by selling the existing smaller one, CGT (Capital Gain Tax) is applicable whereas under Section-54 of IT Act, this is not applicable in case of the Housing sector.”

If the same clause is made applicable for Industrial transactions also, the idea of our Prime Minister for growth of Industrial Sector could see the light of the day. This will boost the fledgling Industrial sector in a big way, and Make in India program will get a considerable boost, it added.

Since MSME units are facing big financial crunch, MIWA requested the Ministry that the delayed payment on these statutory dues may please be allowed as an expense at the time of payment or a tleast before filing Income Tax return.

It said that earlier the delayed payment of liabilities on account of ESIC, and PF were allowed in expense account on actual payment basis. However, according to the present law, delayed payment are now been disallowed in income tax and income tax consider this as the income of the company.

MIWA has more than 570 Industrial units as their members and the association is spearheading the movement for the betterment of industrial development and of the business scenario in Manesar. 

Published On : 24-06-2019

Source : Knn India