With just a month to go for Budget, Auto Component manufacturer's association has asked for an early implementation of GST in its recommendations to the Government for the forthcoming Union Budget for the year 2016-17.
ACMA said that the auto component sector is looking for support from the government to achieve USD 200 billion in turnover from existing USD 38.5 billion, with exports ranging between USD 80 -100 billion from current USD 11.2 billion, as stated in the Automotive Mission Plan 2026 - a collective vision of the Government of India and the Indian Automotive Industry.
"This year ACMA has adopted 'Make Quality & Technology in India' as it's theme, which is in tune with 'Make in India' campaign of the Government of India," said Arvind Balaji, President ACMA. "We expect the forthcoming budget to lead to creation of a favourable and stable policy environment to enable growth and development of the domestic auto sector."
Among other recommendation, ACMA has asked for duty drawback should be reverted to FOB value basis from weight basis as focus of the industry is to manufacture lightweight and fuel efficient products, which involves heavy investments in R&D.
It has also asked for permit 100 percent CENVAT credit on capital goods in year of purchase, Allowing Input Credit on Diesel, credit on various Services should be provided Services like canteen, transportation of employees, repair and maintenance of commercial vehicles; enhancing depreciation rate on capital goods to 25 percent.