CHENNAI: Ahead of Union Finance Minister Nirmala Sitharaman’s Budget presentation on Saturday, Tamil Nadu Small and Tiny Industries’ Association (Tanstia), the apex body of all district associations, Industrial Estate Associations, and Product Manufacturers’ Associations of the state, has sought from the centre reduction of income tax for small and medium enterprises and low premium insurance to safeguard the industry.
Tanstia president CK Mohan told TNIE a provision could be introduced under I-T where industries could be compensated during natural disasters. Similarly, he rued that there is no exit policy for small and medium enterprises unlike large companies which have National Company Law Tribunal (NCLT) as the adjudicating authority under the Insolvency and Bankruptcy Code. So, the NCLT threshold limit for initiating insolvency process should be reduced to Rs 2 lakh instead of Rs 1 crore, he suggested.
Tanstia has also sought for increasing the rate of depreciation for plant and machinery to 40% so as to encourage small industries to undertake modernisation and simplication of forms and returns.