JOIN USCII has urged the government to raise service tax exemption limit for small units to Rs 25 lakh, from existing Rs 10 lakh, to maintain the growth momentum of the sector.
In its pre-budget recommendations to the Finance Ministry, CII has stated that creation of different kinds of funds are needed to promote the sector.
“A venture capital fund of Rs 10,000 crore, under public-private partnership mode, could promote first generation entrepreneurs and greenfield investments,” it said, adding technology fund could be instituted for incentivising climate-friendly technologies.
The chamber said that interest should be levied on delayed payments beyond 45 days. The sector faces this challenge not only from private firms but also from state-owned enterprises.The chamber favoured the implementation of 'public procurement policy' under which PSUs will give preference to (MSEs).