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Income tax holiday sought for MSEs

Special Correspondent

Puducherry: The Association of Small Industries of the Union Territory of Puducherry (ASIUTOP) has appealed to the Union Finance Minister P. Chidambaram to grant a three-year income tax holiday for all micro and small enterprises (MSEs) and a five-year holiday for the enterprises in backward areas.

K. Parthasarathy, secretary of the association, said that the memorandum pleaded for abolition of the Central Sales Tax (CST) in a Value Added Tax (VAT) regime in the upcoming budget. He had already sent in a pre-budget (2007-2008) memorandum to Mr. Chidambaram in this regard. He also urged the abolition of four per cent VAT on stock transfers from one State to another by principals to their branches or to their main distributors which was equivalent to retaining CST. He requested the Union Minister to abolish the C-form for inter-State supplies made to actual users and for ST exempted dealers. The Entry Tax, Octroi and inter-State levies should be done away with under VAT. Yet another plea was exemption of MSEs from "fringe benefit taxes".

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