ACMA, the apex body representing India’s auto component sector, has recently submitted its recommendations for the forthcoming Union Budget 2024-25 to the Ministry of Finance as well as to the Ministry of Heavy Industries, the nodal ministry for the automotive industry.
In its recommendations to the government, ACMA has proposed several key measures to further bolster the sector. These include incentivizing capex expenditure by reintroducing additional investment allowance provisions, increasing depreciation rates on plant and machinery in the auto component industry from 15% to 25%, and rationalising GST rates on EVs and its components. The industry body has also requested the Government for clarification of tax deductions on business benefits and perquisites under Section 194R and has also suggested an amnesty scheme for resolving legacy disputes under Customs laws.
Commenting on ACMA’s recommendations for the forthcoming Union Budget, Shradha Suri Marwah, President of ACMA & CMD Subros Ltd, said, “ACMA is looking forward to a growth-oriented budget with continued thrust on reforms and infrastructure development. Schemes such as the PLI have been of great support to the automotive industry, and we are hopeful that such measures will be continued.”
