Finance Minister Proposes 15% Concessional Tax To Promote New Manufacturing Co-Operative Society
In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman proposed 15% concessional tax to promote new manufacturing co-operative society. In order to promote the growth of manufacturing in co-operative sector, a new co-operative society formed on or after 01.04.2023, which commences manufacturing or production by 31.03.2024 and do not avail of any specified incentive...
In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman proposed 15% concessional tax to promote new manufacturing co-operative society.
In order to promote the growth of manufacturing in co-operative sector, a new co-operative society formed on or after 01.04.2023, which commences manufacturing or production by 31.03.2024 and do not avail of any specified incentive or deduction, is proposed to be allowed an option to pay tax at a concessional rate of 15 per cent similar to what is available to new manufacturing companies.
Representation has been received for providing a level playing field between new manufacturing co-operative societies and new manufacturing companies by providing for the concessional tax regime of 15% to new manufacturing co-operative societies as well.
It is proposed to insert a new section 115 BAE in which concessional tax regime is being provided for the new manufacturing cooperative societies as well.
The amendments are proposed to take effect from the 1st day of April, 2024 and shall accordingly, apply in relation to the assessment year 2024-25 and subsequent assessment years.
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