Budget 2015 focuses on ease of doing business in India: Richard Rekhy, KPMG in India

NEW DELHI: The Finance Minister has come out with a pragmatic Budget which is directionally focused at achieving growth and keeping the fiscal prudence in mind, said Richard Rekhy, CEO of KPMG in India.

According to Rekhy, the focus is on Ease of Doing Business in India and increased infrastructure spend. "Measures like New Bankruptcy legislation, startup entrepreneur’s funds, GST rollout by FY 2016, deferral of GAAR will definitely support the cause of Ease of Doing Business in India," he said.

Girish Vanvari, National Head of Tax, KPMG in India called the Budget a fine balancing act. "Announced in the backdrop of strong domestic macroeconomic fundamentals and soaring expectations, budget 2015 is a fine inclusive balancing act," he said.

"The Budget boldly resorts to a higher fiscal deficit of 3.9% to enable provision for increased outlays on various rural initiatives, socio economic schemes, infrastructure needs and more so enhanced allocations to states as per the fourteenth Finance commission recommendations. As far as tax proposals are concerned, the Budget lays down a clear roadmap for implementation of GST and attempts to deal with Black money in a credible manner," he said.

"Deferral of GAAR by 2 years and its applicability to investments made thereafter, reduction of tax rates for royalties and technical services to 10%, non applicability of MAT to FIIs, clarity on taxation of REITs , invits and AIFS are welcome steps. A roadmap for a futuristic tax regime of lower corporate rates and phasing out of exemptions over the next four years heralds an era of a transparent tax regime of no surprises," he added.