Budget Expectations 2024: A top India-focused trade body in the US on Sunday said the Indian government should introduce a production-linked incentive (PLI) scheme for the media and entertainment industry in the upcoming budget. The trade body also advocated taking steps to provide a level playing field between Indian and foreign companies. Finance Minister Nirmala Sitharaman will present the general budget on July 23.
The US-India Business Council for the Telecom Sector (USIBC) recommended liberalizing the satellite communications industry and developing a long-term transformation plan to enable India’s commercialization of the Indian National Satellite System (INSAT) and space platforms and infrastructure. USIBC also urged the Indian government to promote sustainable growth of the energy sector while maintaining free market principles, which would attract investment and strengthen energy security.
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Apart from this, USIBC called for liberalizing the satellite communication industry and providing equal opportunities for Indian and foreign financial services companies and taking steps to reduce obstacles in capital flow between the two countries. USIBC has proposed to eliminate price curb restrictions on courier exports of more than Rs 5 lakh to simplify procedures and promote efficiency. USIBC, in its memorandum to the Finance Ministry, suggested that curbs on perishable goods sent through courier should be removed to ensure quick clearance, support the business of perishable products and integrate a single window system for sending couriers to ease operations and reduce administrative hurdles.
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USIBC said, “Firstly, we propose to issue clarification regarding input tax credit (ITC) on payments to overseas employees in the reverse charge mechanism (RCM) under the Goods and Services Tax (GST). Secondly, we request that the relevant authority may issue appropriate clarification on the eligibility of ITC on medical insurance to employees.” The body said, “Thirdly, we suggest issuing an appropriate interpretation clarifying the tax liability (GST) of Employee Stock Purchase Plan (ESPP) / Employee Stock Option Plan (ESOP) provided by a company to its employees through its overseas holding company.” USIBC has also recommended providing exemption through tax collected at source (TCS) for ESOPs and other similar employee benefit plans where remittance is made through the employer.