Telangana & AP Inc seek tax sops
Telangana Andra Pradesh Inc Seek Tax Sops.Industry bodies and industrialists are of the strong view that the two incentives will not be able to bring new investments into the Telugu states. “The incentives are not attractive enough to get investments into the two states.
Say mere depreciation, investment subsidy benefits can’t bring in investors
Hyderabad: The industrial sector in Andhra Pradesh and Telangana which waited with bated breath for special category status from the Centre for both the states is a disappointed lot now with the Modi government washing its hands off by announcing twin incentives of 15 per cent depreciation and investment allowance for new industries on Wednesday.
Industry bodies and industrialists are of the strong view that the two incentives will not be able to bring new investments into the Telugu states. “The incentives are not attractive enough to get investments into the two states.
There is not much that investors will get from the depreciation benefit. Investors, particularly those from overseas, don’t need investment incentives under which the depreciation and investment allowance fall. They need tax incentives that provide a level-playing field for them,” Ravindra Sannareddy, Managing Director, Sri City and Chairman, Southern Regional Council of Assocham, told The Hans India.
The Union Finance Ministry announced that manufacturing industries set up in the backward regions of AP and TS would be given 15 per cent additional depreciation on the new plant and machinery in the first year of installation.
An additional investment allowance of 15 per cent would be given to such industries for investments made in new plant and machinery in any of the 5 years for which additional concession would be notified, it added, citing tax benefits provision in the AP Reorganisation Act, 2014.
Concurring with his views, J A Chowdary, Co-Chairman, AP & TS, FICCI, said the two incentives would only benefit those companies that make huge capital expenditure. “For service sectors such as information technology, these incentives will be of no use. They need tax benefits,” he explained.
By P Madhusudhan Reddy