Budget 2019: Tell us how much depreciation to be charged on vehicles under NBFC financing, FICCI asks govt

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Published: June 4, 2019 5:10:42 PM

Union Budget 2019 India: An industry body has asked the government to provide clarity for higher depreciation rate on leasing or financing of all kinds of vehicles by the non-banking financial companies (NBFCs).

Budget 2019, Union Budget 2019 India, Budget 2019 India, Budget 2019-20Union Budget 2019 India: The disbursements by the NBFCs to the automobile sector have taken a hit as sales of new vehicles have dropped sharply.

Union Budget 2019 India: An industry body has asked the government to provide clarity for higher depreciation rate on leasing or financing of all kinds of vehicles by the non-banking financial companies (NBFCs). The Central Board of Direct Taxes (CBDT) should issue a clarification to provide that the higher rate of 30 per cent is admissable to the NBFCs in this business, Federation of Indian Chambers of Commerce & Industry (FICCI) told the government in a pre- union budget 2019 recommendation.

The disbursements by the NBFCs to the automobile sector have taken a hit as sales of new vehicles have dropped sharply last month. The leading auto firms including the largest car maker Maruti Suzuki, have seen nearly 20 per cent fall in sales in May 2019 as against the figure reported last year. The auto industry has been plagued by muted demand sentiments and high levels of inventory.

Also read: Union Budget 2019: Modi government spent Rs 69,000 crore in subsidies in April this year

Meanwhile, FICCI also raised other issues including reduction in corporate and individual taxes and expansion of program that promises to hand over Rs 6,000 annually to poor families with an aim to boost consumption demand. The industry body also discussed about tax concessions for export-oriented manufacturers in its pre-budget recommendations for export-oriented manufacturers. The industry body also raised serious concerns over slowdown in economy.

The major worry was that domestic consumption was not growing at a pace to offset a weakening global economic scenario, it also said in a statement suggesting various measures the government could adopt in the upcoming union budget 2019 expected in a month. Other than slowdown in investments and muted exports, weakening growth in consumption demand add up to recent signs of slowdown in the economy, it added.

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