1.

The Government decides to give budgetary incentives to investors for making investments in backward regions . Explain these incentives and the reasons for the same .

Answer»

Solution :Budgetary incentives refer to CONCESSION in taxation and GRANTING subsidies to those production units which set up their unitsin economically backward areas. Taxconcessions , like lower Goods and SERVICES Tax (GST) AIM at reducing cost and thus raising profits .
Subsidies aim at reducing prices of products to encourage sales and earning more profits . Thus , both aim at raising profits.


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