Amit Gupta, Director - Legal and Corporate Affairs, Vikram Solar shares view post Corporate Tax cut

We would like to congratulate Hon’ble Finance Minister for a bold and progressive reform of reducing the corporate tax rate to 22 percent, it was a much needed relief that is expected to boost private investment in the country.

In order to promote growth in manufacturing units the rate of Minimum Alternate Tax is reduced from existing 18.5 percent to 15 percent, it will certainly benefit the manufacturing units including those in solar manufacturing and will give them elbowroom to expand their existing capacities.

In addition, fresh investments in new manufacturing company incorporated on or after 1 October 2019 will have an option to pay income-tax at the rate of 15 percent. This benefit would be available to companies, which do not avail any exemption/incentive, and commences their production on or before 31 March, 2023. It will help India to attract fresh investment in manufacturing and thereby provide boost to ‘Make-in-India’.

We appreciate of the Government’s effort to give manufacturing and the economy a leg up.  However, we believe that solar industry still needs a comprehensive manufacturing policy to set out a clear direction to promote solar manufacturing in India.