Automotive Component Manufacturers Association of India or 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 also to the Ministry of Heavy Industries, the nodal ministry for 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 provision, 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 suggests an amnesty scheme for resolving legacy disputes under Customs laws.
ACMA is the apex body representing the interest of the Indian Auto Component Industry. Its membership of over 800 manufacturers contributes more than 90% of the auto component industry’s turnover in the organized sector. ACMA is an ISO 9001:2015 Certified Association.