'It is a Budget for small-time businessmen'

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BUSINESS LINE

'It is a Budget for small-time businessmen'

2009-07-13 07:41:18

The Union Budget presented by Pranab Mukherjee benefits "aam businessman most", as the tax burden on the small businessman has been reduced greatly and all the attendant hassles have been removed, according to G.S.S.S. Gopinath, the Additional Commissioner of IT.

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He was speaking on the Union Budget-2009 at a seminar organised here, on Saturday, by Andhra Chamber of Commerce.

He said the income tax on small businesses (below Rs 40 lakh turnover) had been reduced to 8 per cent and "it offers great relief to small businessmen".

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It would mean tax saving of Rs 30,000 per annum and "they will not have the problem of maintaining books and no advance tax need be paid."

G. Prabhakara Sastry, tax consultant, said that for the first time lawyers and doctors had been brought into the service tax net, albeit in a small measure, but it marked a beginning.

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"Legal consultancy services provided by a business entity to another business entity have been brought into the tax net."

Any legal service provided by appearance before a court, or tribunal, or authority will be exempted from service. It offers a huge escape route and the effective levy may not amount to much. Ultimately, all services provided by advocates may be brought into the net," he opined.

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Similarly, he said, cosmetic and plastic surgery to enhance physical beauty would also attract tax and this was also a new beginning.

M.V.V.S. Murthi, the Chairman of Andhra Chamber of Commerce, said the budget had not addressed the issues raised by economic recession. The corporate tax had not been reduced and Minimum Alternate Tax (MAT) would certainly impede industrial growth. However, doing away with fringe benefit tax was welcome.