Dear Professional Members,
Honourable The Finance Minister Nirmala Sitharaman slashed the corporate tax rate for domestic companies to 22% from 30%, and even lower to 15% for new manufacturing companies that will be incorporated on or after 1st October 2019. The effective tax rate, including surcharge and education cess, will be 25.17% and 17.16%, respectively. This bold move by the government is aimed to spur investment, revive growth and boost job creation. With the debate raging over structural problems in the Indian economy, the direct tax reform will help companies improve their valuations the medium term. The government hopes that a lower tax rate shall encourage corporates to invest further into future capacities.
India is keen to attract manufacturing companies that are looking to diversify their production out of China. The latest scheme has made the country one of the lowest tax jurisdictions in Asia Pacific Region. A lower rate comparable with Asian peers and that too without any exemptions, will make large Indian companies far more competitive, leave them with more cash for investment. Allowing contract manufacturing under the framework will make it easier for foreign investors to set up a base in the country along with their component suppliers. The above two decision of Government has really paved way for domestic and foreign investors to invest in business market and in turn, let us all be hope full that there will be bountiful work for professionals.
It is September and we all are busy with the Audits and tax compliances and now with the addition GST we have one more dimension to keep ourselves abreast with. The new reforms in Tax Audit and GST keeps us on our toes to meet the various deadlines. The horizons have widened for us and so have the challenges, but we Chartered Accountants have been well trained to provide with the best practices and professional services on a continuous basis.
For CA Association this month was full of activities not only study related but Association has been active in brand building by attending close meeting along with other bodies with The Finance Minister and discussion various issues that are faced by the tax payers and professionals in compliances and procedural aspects, Joint Seminar with GCCI under Sabka Vikas Scheme 2019 where Shri Ajay Jain, Chief Commissioner, CGST, Ahmedabad deliberated on the scheme introduced by Government of Gujarat, Association also became a support partner with Young CII who organised "Enterprising Giants" delivered by one of the successful entrepreneur Dr. A Aelymani.
I am pleased to inform that for the first time in Association, Women's' Committee was formed and first ever women centric program was organised by the Committee. I sincerely congratulate and thank CA Diti Vashi, Chairperson, CA Krishna Khandwala, Convener and their team for successfully organising the program at one of the state of art Auditorium of KD Hospital. It is a start and I am hopeful in times and years to come this committee will definitely give lot of value addition to Women Members and spouse of Members of the Association.
I am also pleased to inform that CA Association is near to add 100 new members in a short span of six months. I request all members to kindly spread the word to young Chartered Accountants to become member of Association and take advantage of unique culture of study, entertainment and togetherness that Association possesses.
As rightly said by Chanakya "As soon as the fear approaches near, attack and destroy it". With so much of changes in the entire economy and compliances there is fear and anxiety but let this fear and anxiety be not allowed within us to destroy us. Let us hail positively and with clarity of mind let us attack and destroy fear and anxiety before it start taking possession over our inner self.
Jai Hind !!!
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