SME Times News Bureau | 21 Sep, 2019
Hailing the reduction in Corporate Tax Rate to 22% for
domestic companies and 15% for new companies, FIEO President Sharad Kumar Saraf
said that such reduction would attract much needed investment both through FDI
route and domestic investment.
The timely move would also help in attracting investment
from companies in China who are looking for new destinations for expansion or
starting a new venture with an eye on US market, he said.
It will encourage investment in the existing domestic
companies also giving them the scale to cater to the huge market of US &
China, he added.
The technology companies in small segment may migrate to
medium size companies with equity participation from overseas, the FIEO chief
The effective rate of 17.01% is very attractive as the
similar rate in US is about 21% and in China about 25%. The reduced rate has
given further stimulus to investors attracted to India as a market, he added.
Saraf said that the allocation of 2% CSR fund on incubators,
IITs, national laboratories and specified agencies engaged in conducting
research would not only establish industry academia relationship but would give
a push to R&D and product innovation which is need of the hour in exports
particularly as India is focusing now on sunrise sectors of exports.