India's electric vehicle (EV) industry is also expected to be heavily impacted by corporate taxes on new manufacturing companies.
Most of the electric vehicle manufacturers and their components for India plan to invest. And they will be encouraged to accelerate the pace of their plans for local manufacturing with announcements made by Finance Minister Nirmala Sitharaman.
Also, some steps are expected to be taken to boost domestic production. Especially in the production of lithium-ion batteries, charging equipment, electrical and electronic parts . This will also benefit hybrids and even producers of conventional internal combustion vehicles.
For your information, the auto industry, with its huge auto ancillary supply chain, accounts for 49% of India's manufacturing GDP .
Sitharaman announced that the new manufacturing companies set up on or after October 1 would pay income tax at the rate of 15%. But this benefit will only be available to companies that do not receive any other incentives, and also start production on or before 31 March 2023 .
The effective tax rate for these companies will be 17.01% including surcharge and cess. In addition, such companies will not be required to pay the minimum alternative tax.
A multitude of new manufacturing companies connected to the EV sector are making efforts to be made by the Modi Administration by making EV Cells more profitable and reducing this high and high level of pollution in most big cities along with crude oil imports. Will increase.
For your information, even before this, the central government in India had made ₹ 10,000 crore allotment to accelerate the pace of manufacture of EV and Adoption in India under the FAME 2 scheme for manufacturing on the Faster Adoption of Hybrid and Electric Vehicles.
Also, some steps are expected to be taken to boost domestic production. Especially in the production of lithium-ion batteries, charging equipment, electrical and electronic parts . This will also benefit hybrids and even producers of conventional internal combustion vehicles.
For your information, the auto industry, with its huge auto ancillary supply chain, accounts for 49% of India's manufacturing GDP .
Sitharaman announced that the new manufacturing companies set up on or after October 1 would pay income tax at the rate of 15%. But this benefit will only be available to companies that do not receive any other incentives, and also start production on or before 31 March 2023 .
The effective tax rate for these companies will be 17.01% including surcharge and cess. In addition, such companies will not be required to pay the minimum alternative tax.
A multitude of new manufacturing companies connected to the EV sector are making efforts to be made by the Modi Administration by making EV Cells more profitable and reducing this high and high level of pollution in most big cities along with crude oil imports. Will increase.
For your information, even before this, the central government in India had made ₹ 10,000 crore allotment to accelerate the pace of manufacture of EV and Adoption in India under the FAME 2 scheme for manufacturing on the Faster Adoption of Hybrid and Electric Vehicles.
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