PHD Chamber of Commerce today asked the government to reduce corporate tax rate to 25 per cent and cut minimum alternate tax rate to 10 per cent in Budget 2013-14.
"...government should consider reintroducing Investment Allowance to spur investments in industrial development and aid in employment generation...reduction in the corporate tax rate to 25 per cent progressively over a period of two years, reduction in the rate of Minimum Alternate Tax (MAT) to 10 per cent," PHD said in its wishlist to the Finance Ministry.
The industry body also called for enhancement of various threshold limits operating under the Income Tax Act as the existing limits have become redundant in the context of rising inflation.
Further, it asked for expenses on corporate social responsibility as tax deductible expenditure.
On indirect tax it said there should be no tinkering with the central excise, customs duty and service tax rates.
It said Goods and Services Tax (GST) should be introduced immediately to spur economic growth.
It also demanded for removal of provisions of repetitive service tax and excise audit, streamlining provisions regarding the stay validity, simplification of procedures for claiming refund of SAD (special additional duty).
It said litigation in indirect taxes should be reduced and rate of interest for delayed payment of tax/refund should be linked with the RBI repo and reverse repo rates.
"...similar provisions that exist under Income tax and VAT Laws should be provided for the small service provider (having turnover upto Rs One crore) to pay tax at a concessional rate of 2 per cent," it added further.
Also, the list of services under reverse charge mechanism may be restricted and partial reverse charge provision may be rolled back, it said.
The industry body also suggested that the due date for payment of central excise duty and service tax may be extended to the 15th of each month or quarter.