Gujarat govt demands major relaxations for MSME sector from GOI

Ahmedabad, DeshGujarat

Gujarat Government has demanded major relaxations for the Micro, Small and Medium Enterprises(MSME) sector from the Government of India(GOI) in a latest written representation.

Gujarat Government has written to the GOI that, “Gujarat has very strong base of MSME units in the manufacturing sector providing employment to large number of people. The MSME sector needs to be encouraged in order to generate employment. It is therefore suggested that the service tax should be reduced to 2.5%, 5% and 7.5% respectively for service availed by MSME enterprises.”

Gujarat Government also proposed that, “enterprises which are having acknowledgement under the MSMED Act 2006 and such units having EM II acknowledgement should be given such benefits. It also suggested that the services providers having EM-II under the MSMED Act-2006 for them exemption limit should be raised from Rs.10 lakh to Rs.25 lacs as the limit has not been raised since last 7 years.”

It is learnt that the Government of India is likely to announce several incentives in the upcoming budget for the year 2015-16 in this connection.

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