India’s power equipment manufacturers have asked the government to extend infrastructure status to help the power sector counter the impact of economic downturn. Indian Electrical and Electronics Manufacturers’ Association (IEEMA) is also seeking exemption from income and service taxes available to power utilities along with excise tax cuts.
The industry body said that fiscal incentives available to projects in the 500 MW to 4,000 MW range, should be extended to all projects above 1 MW capacity. Similarly, income tax benefits, which are available only to owners of power generation, transmission and distribution projects should also be extended to the turnkey contractors who supply and operate the equipment.
The government is set to present its interim budget on Monday and the industry is hoping that it will certainly contain major policy measures aimed at halting the downside to Indian economy.
After the Central Board of Excise and Customs (CBEC) has asked banks to collect service tax at the rate of 0.25% on every forex transaction, banks and the CBEC are at loggerheads as the banks are refusing the move of the regulatory body. CBEC’s move was resisted the by banks contending that there is no service component in forex transactions and that the tax may make forex business unviable as it operates on very thin margins.
The Indian Banks Association (IBA), has already taken up the issue with the finance ministry, which has acknowledged by it and the finance ministry has given order to the revenue department to address the issue