Budget Promises for MSMEs, Start-ups

The Union Budget 2020-21 tabled in the Parliament, allocated an all-time high amount of Rs. 7,572.20 crore for the Ministry of Micro, Small and Medium Enterprises. There are a number of initiatives for the sector. Several measures have been announced also for start-ups. All these sound encouraging. The MSME sector, often termed as the backbone of the Indian economy, is facing some major challenges. Budget measures are likely to bring some relief.One among the good steps is allocation of Rs. 2,500 crore for the flagship Prime Minister Employment Generation Program. Similarly, the Budget raised the turnover threshold for audit of MSME accounts to Rs. 5 crore. In another positive step, the Finance Minister announced that a scheme will be introduced to provide subordinate debt to MSME entrepreneurs. It is also encouraging that the Centre has asked the RBI to extend the debt restructuring window for MSMEs by a year. Some other measures proposed in the Budget include introduction of an app-based invoice financing loans product to address the problem of delayed payments, launch of a scheme of Rs. 1,000 crore to extend hand holding support to mid-sized companies in selected sectors, allocation of Rs. 472 crore to develop a sustainable model of Khadi based business enterprises, allocation of Rs. 805 crore under Credit Linked Capital Subsidy and Technology Up-gradation Scheme, etc.The Budget promises several positive steps also for start-ups, including early life funding, including a seed fund to support ideation and development of early stage start-ups and increase in the turnover limit for start-ups for getting deduction of 100% of their the profits. There is also an announcement to introduce a five-year tax holiday on employee stock ownership plans (ESOP) for start-ups. While all these proposals are welcome, the outcome will depend mainly on how effectively they are implemented in the coming days.

I invite your opinions.

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Budget Highlights

Life Easier

News Brief

Important Suggestions

Be Swadeshi

m|eh mM+ku lEesyu

04-06

07-10

11-12

13-15

16-16

17-18

Laghu Udyog Bharati has been in constant touch with

variety of business segments through our members

spread in 400 districts. Hence, we receive comments

related to economic & taxation policy issues &

diff icul t ies f rom ground contr ibutors of

microeconomic structure in the country. We take an

opportunity to submit our Suggestions as under and

details Annexed:

A. Direct Tax:

Ÿ Income Tax on Earnings from Business in case of

Proprietor, Partnership & LLP Firms

Ÿ Income Tax Audit Limit u/s 44AB to be increased

to Rs. 5 Cr.

Ÿ MAT/AMT rate for Special Category States which

are exempt from Income Tax

Ÿ Unrealistic approach of calculation of FMV of

shares in case of Unlisted Companies as per Rule

11UA of Income Tax Act

Ÿ TDS Compliances for Individual/ HUF/

Partnership Firms

Ÿ TDS Acknowledgement by beneficiary

B. Goods & Service Tax Law:

Ÿ Providing rebate credit of 25% of total paid GST to

MSME

Ÿ Composition Scheme

Ÿ Uniform Rate of GST on Job Work

Ÿ Withdrawal of RCM on Cotton Purchase from

Farmers

Ÿ GST Tariff rate anomaly between Bakery,

Confectionary products & Sweets sold at same

counter

Ÿ Tariff on Parts of Footwear under HSN 6406

Ÿ Regional Advisory Committee of GST to be

formed at District Level

C. Banking & Finance:

Ÿ NPA Norms

Ÿ Restructuring of Stressed Accounts

Ÿ Interest subvention to MSME

Ÿ CGTMSE Scheme

D. Delayed Payment Recovery from Debtors:

These suggestions if accepted & implemented will

extend confidence at the end of the Micro and Small

Manufacturing sector of all type of products and will

create EODB atmosphere to Indian MSME.

Encl.-Annexure I-IV

Annexure-I

A. Direct Tax

1) Income Tax on Earnings from Business in case

of Proprietor, Partnership &LLP Firms:

The Income Tax Rate for Domestic Companies having

turnover up to Rs. 250 Cr. have been brought down to

25% & 15% for New Manufacturing Companies,

whereas the Proprietor, Partnership and LLP firms are

taxed @30% plus surcharge & cess. This

discrimination in Rate of Taxation is spreading a

'Feeling of Neglect' amongst all Micro, Small &

Medium size Proprietorship, Partnership/ LLP Firms.

Further, due to higher payable tax incidence, MSME'S

remain with very less fund to plough back in the

business to become financially strong.

We request you to extend the Income Tax rate at par

with Companies rate of 25% on the “income from

business activity” by Proprietorship, Partnership/ LLP

firms.

2) Income Tax Audit Limit u/s 44AB to be

Important Suggestions to Government for

Betterment of MSMEs

LUB Fraternity

Resolutions

increased to Rs. 5 Cr.:

In Order to reduce the Compliance Burden as well as

cost burden for MSMEs up to a turnover of Rs. 5 Cr. it

is requested to enhance the limit from Rs. 2 Crore to

Rs. 5 Crore. Accordingly coverage of Section 44 AD

must be increased to turnover of Rs. 5 Cr.

3) MAT/AMT rate for Special Category States

which are exempt from Income Tax:

Units of this region which are exempted from Income

Tax have to pay MAT / AMT @ 18.5% which should

be reduced and to be brought at par with normal rate of

13.5%.

4) Unrealistic approach of calculation of FMV of

shares in case of Unlisted Companies as per

Rule 11UA of Income Tax Act:

Normally in case of Private Limited companies the

share holders are from family & friends or business

associates of the promoters. After the initial years of

the operation they need an exit route to be opted out

with due appreciation of share value by some other

investor or promoter of the company. It is accepted

that Capital Gain Tax will be applicable on such sale of

shares. However, due to above mentioned Rule 11UA

provisions the calculation of FMV of shares for tax

purpose is becoming unrealistic as it is calculated on

the basis of “MARKET/STAMP DUTY INDEX

VALUE” of immovable properties. This value is

“VIRTUAL & NOT REALISTIC”. Due to this the

“Capital Gain Tax Payable” is becoming unrealistic &

undue burden on the share holder. Further, the

purchaser also is liable to pay the income tax on such

difference of value as “Notional Income”.

It is important to note that, normally such sale of shares

occurs either as an exit policy or succession to the

business.

We request & demand to extend relief from this rule to

all the Private Limited Companies which are having

history of Ongoing Concern as Tax Payer & the Value

based on “Net Worth” to be considered as FMV for the

purpose of sale of shares to calculate Capital Gain Tax.

5) TDS Compliances for Individual/ HUF/

Partnership Firms: thCurrently the TDS deposition is to be made by 7 of

every month and then TDS return is to be submitted on

Quarterly basis. In first week there are many works to

be done by MSMEs such as salary payment, stock

statement to be submitted to Banks, etc. It is requested

that Payment of TDS also to be made on Quarterly

basis by 15th of next month of every quarter.

6) TDS Acknowledgement by beneficiary:

It is noted that sometimes TDS is being deposited in

wrong PAN and hence is being shown as TDS

receivable in 26AS of the wrong person. As the

respective income does not pertain to him, he does not

show the income and does not claim the TDS. Even

then, due to Matching of transactions, the system

generates the notices which requires explanation and

results undue proceedings.

Hence, system of accepting the entries of 26AS by the

claimant should be introduced. He should have option

to deny the transactions not related to him.

*Annexure-II*

B) Goods & Service Tax Law

1) Providing of credit of 25% of total GST:

Para 62 of the above said Report of Advisory Group of

Law Review Committee deals with the Special

concessional GST Scheme for Micro, Small and

Medium Scale (MSME) Sector. Small Scale

Exemption Scheme of excise duty in a comprehensive

form for most commodities was introduced for

MSMEs in 1978. Units were allowed exemption up

to Rs. 1.50 crore beyond which normal duty was

payable without losing the exemption in the next

financial year

The current GST law has created a massive advantage

in favour of large players and Micro and Small Scale

Industries have suffered with their competitiveness

being eroded. Therefore, concessional GST scheme

may be made applicable for Micro and Small Scale

manufacturers. The Committee has recommended for

giving credit of 25% of the total GST charged (or 50 %

of the CGST charged) on the outward supplies made

by Micro and Small Scale Industries up to a turnover

of Rs. 3 crore. This scheme is only recommended for

manufacturers, which will also strengthen the Make in

India vision of Hon. Prime Minister.

2) Composition Scheme:

(a) In Para 11 of the above said Report dealing

with Composition Scheme stressed the need

to incorporate Inter-State sale also in the

scheme as presently it defeats the concept of

GST i.e. 'one nation one tax'. Micro and Small

Scale traders/manufacturers engaged in Inter-

State sale would not be able to pass the benefit

of composition scheme. Hence, may kindly

consider allowing Inter State outward supply

to a composite dealer deleting Section 10(2)

(e) of the CGST Act, 2017 as recommended

by the Committee.

(b) A manufacturer opting for composition

scheme is not allowed to provide Job Work

Services. As stated in the Report that many

Micro and Small Scale manufacturers who

possess plant & machinery also provide job

work services thereby utilizing their idle

capacity. In view of their engagement in

taxable service, they become ineligible for

composition scheme. This restriction needs

to be removed for overall benefit of the Micro

and Small Scale manufacturers. Therefore, as

recommended by the Committee, an entity

engaged in manufacture as well as in job work

should be eligible for composition scheme for

both goods and services within overall

turnover limit.

3) Uniform Rate of GST on Job Work:

Varying rates have been imposed on job work ranging

from 5% to 18% (except Gem & Jewellery Sector).

Job workers are in small scale sectors and varying

rates create problem in compliance and managing

challans etc. as they are illiterate or semi-literate. In

job work, credit flows between principal and job

worker which is revenue neutral. Keeping these facts

in view, job work need to be exempted from GST

altogether. If nil rate is not possible, all kind of job

works may be charged at a uniform rate of 5% as

recommended by the Committee in Para 55 relating to

Uniform rate of GST on Job Work of the Report.

Lower rates applicable for other sectors may continue

at the existing rates.

4. Withdrawal of RCM on Cotton Purchase from

Farmers:

As per Section 9(3) GST ACT currently RCM is

required to be paid by the purchasing traders &

Ginning Firms & further avail ITC in the prescribed

ratio and utilize while invoicing for ginning & bailing

processed cotton. The cotton being the “Agriculture

Farm Produce” needs to be exempted from the

provision of RCM.

5. GST Tariff rate anomaly between Bakery,

Confectionary products & Sweets sold at same

counter:

It is a practice for many shops to sale Bakery Products

produced by them and sweets at the same retail

counters. Currently these two items have different

tariff rate of 18% & 5% on Bakery products like Cake,

Nankatai, Biscuits & Sweets freshly produced &

served at the same counter respectively. It is creating

confusion as well as anger at the customer end at the

counters. We request & suggest rationalizing rate of

tariff to both the items at 5% for sale or service at the

counter.

6. Tariff on Parts of Footwear under HSN 6406:

In the footwear industry the manufacturers of footwear

outsource different parts & the final product is

produced at their facility. The final product of

Footwear with Value below Rs. 1000 attracts 5% tariff

of GST. However, the spares & parts of footwear

attract 18% GST. This has resulted into

discontinuation of sourcing by footwear

manufacturers from small vendors who work for them.

Due to it very large number of unskilled employment

is under threat of unemployment due to closure of

footwear parts manufacturers.

We request and suggest bringing down the GST tariff

on the Footwear Parts under HSN 6406 to 5% and

saving the small scale industry and the employment

with them.

7. Regional Advisory Committee of GST to be

formed at District Level:

In the Pre GST regime of Excise Regional Advisory

Committees were functioning to resolve the issues

related to Law & implementation of Act.

Representatives from Industry & Trade Associations

were deputed on the committees with Tax Authorities

as statutory members. Such committee meetings were

very much supportive to resolve many practical issues

of implementation. We request & suggest forming

such committees for the GST and giving an opening to

Industry & Trade to put their issues to the Authorities.

Annexure-III

C. Banking & Finance

1. NPA Norms:

Currently the average period of credit enjoyed by the

buyers from the suppliers is 120 days. Which is

extraordinary and is pain full and root cause of the

difficulties of MSE's resulting into financial crisis for

the MSE's?

We request & demand that the NPA norm for the

MSE's finance from the Banks to be revised to 180

days from 90 days. It is also important that the NPA

classification is done annually and not quarterly as the

“Business Cycle of MSE's are totally dependent on the

buyers and market scenario.

2. Restructuring of Stressed Accounts:

We observe that the Banks are reluctant or rather

refusing to restructure of stressed MSME's accounts

due to the changed IRAC (Income Recognition &

Asset Classification) norms as per RBI notification

issued for NPA provisioning mandatory for all st

restructured accounts after 31 Mar 2015. This is a

major shock to MSME as the PSB's are reluctant to

restructure the viable MSME loans as they are de

motivated due the changed IRAC norms and the

increased burden of provisioning of NPA's. It is also

observed that the Bankers are having fear psychosis to

judge & differentiate between viable & unviable

stressed accounts to restructure. They are rather more

enthusiast to recover such stressed accounts by

auctioning collateral securities typically of MSME's

which are counterproductive and have no dearth of

buyers in the market. This is resulting into closure of

MSME units & de employment at the micro level of

economy.

We suggest & request to withdraw the change in the

IRAC norms & support the restructuring of viable

MSME units by Banks.

3. Interest Subventions to MSME:

We are happy that the 2% unit interest subvention is

available to MSME's on their loans. However, it is

observed that the interest subvention is denied to

MSME units who have opted with CGTMSE scheme

which is creating the discrimination amongst the

MSME loans. We request to extend the “interest

subvention” to all MSME's.

4. CGTMSE Scheme:

It is observed that this scheme is extended selectively

to those who seek it while taking loan from the banks.

It is not promoted by the banks to the loan seeking

MSME's. It is observed that the fund for the scheme is

also insufficient & get exhausted and not available to

all who seek it. As a result Banks continue to seek the

collateral security from the MSME's.

We request & demand to make CGTMSE SCHEME

mandatory & automatically applicable to all MSME

loans which will avoid requirement of collateral

security. This will promote & build confidence &

create good atmosphere for MSME's.

Annexure-IV

D. Delayed Payment Recovery from Debtors:

We appreciate, that Government has enforced

provision of penalty on the delayed payments beyond

45 days. However, the MSME's are yet finding it

difficult to receive the timely payments from their

customers as the implementation of the provision is

under MSMED act which is not directly of concern to

large corporate companies. We take an opportunity to

suggest one “out of box” proposition to improve the

overall “credit culture & practices” to achieve realistic

& transparent commercial activity of the country.

We suggest that “all credits payable & overdue above

45 days against supplies of goods & services

appearing in the Balance Sheet accounts at the end of

the financial year to be disallowed as expenses & to be

added to Taxable Income under the section 43 B of IT

Act”. This will clean the credit scenario across all

commercial activity & will evolve healthy atmosphere

of commerce. Further it will also improve the Banking

& Finance NPA provisioning.

th(Addressing the 6 National Standards Conclave on

the subject of Standards for Trade Facilitation

at Delhi on 15-16 January, 2020.

This conclave was organized by Department of

Commerce, Ministry of Commerce and Industry,

Confederation of Indian Industry (CII), Bureau of

Indian Standards (BIS), Export Inspection Council of

India (EIC), National Accreditation Board for

Certification Bodies (NABCB) and the Centre for

Research on International Trade.

'I ask the traders to promote swadeshi by selling and

consuming local products, it will help in boosting

economic growth to double digits. I exhort domestic

traders to pay heed to the call given by Prime Minister

Narendra Modi to promote swadeshi products.

If traders start using swadeshi (indigenous) goods, sell

swadeshi products and promote those items, the

economic growth will boom...no one can stop us from

growing at 7, 8, and 9 per cent and double digits. Our

Prime Minister in one of his 'Mann Ki Baat' program

has called upon people to promote indigenous

products.

When I asked CAIT to prepare a database of a number

of shops and people employed in those establishments

in the country as that data will help the government

implement demands made by the traders community

effectively, I was assured that it will start the work

soon and will prepare the database in the next six

months.

The Data is essential for the government to prepare

schemes and programmes for welfare of people but

regretted that some people are opposing National

Population Register. As far as export is concerned, the

ministry is working on a scheme to enhance credit for

exporters.

I do emphasise on using quality and standard products.

The US has over 800 SPS (sanitary and phytosanitary)

and TBT (technical barriers to trade) protocols, but

India has less than 500. No imports to be allowed

without HSN code.

No imports will be allowed without HSN code into the

country. There must be zero tolerance for substandard

products and services from industry and consumers.

The Government will support industry in every way to

establish standards for Indian goods and services to

meet international requirements so that brand India is

recognized in the world as a provider of quality

products and services.

Unless Indian business and industry make standards

its calling card, India will not be able to reach the target

of a USD 5 trillion economy.

The Government is committed to establishing

standards of Indian products and services to world

class levels which will enable our exports to be

accepted globally due to the quality of goods and

services. Made in India should carry the commitment

of 130 crore people towards quality, sincerity,

customer satisfaction and not be second best.

Piyush Goyal

Appeal

Union Minister for Commerce and Industry Govt. of India

Be Swadeshi by Selling,

Consuming Local Goods

It is an unfortunate reality for India that the Free Trade

Agreements (FTAs) entered into with other countries

has not led to the growth of India's trade and business

because the poor quality of the products and services

that get restricted with non-tariff barriers when

exported.

The number of Technical Barriers to Trade (TBT) in

countries like US (8000), Brazil (3879), China (2872)

and India with only 439 TBTs. This illustrates the fact

as to the manner in which India and rest of the world

are looking at the concept of quality in products and

services.

The time has come to get out of the mind set of

subsiding exports and adopt the mantra of zero defect

zero effect in order to ensure that emerging India will

be the destination for quality products and services.

The need of the hour is to get cracking towards a zero

defect policy, that PM Narendra Modi has articulated a

number of times. The quality standards must be

accepted as the reality of an emerging India, an India

that wishes to be recognized as a country

manufacturing quality products.

The new Bureau of Indian Standards (BIS) Act is

relooking at all standards for goods and services in

order to balance the interest of consumers with that of

the industry which will enable the culture of quality to

take root in the country and production or import of

substandard products and services will not be tolerated

any longer.

I urge BIS, FSSAI and other departments of the

Government, that are mandated to set up and establish

standards, to work in mission mode so that goods and

services produced and imported in India meet

international quality requirements.

This will help India to engage with the world on equal

and reciprocal terms.

I hope that this will see a new era of quality production

of goods and services in the country and quality will be

the buzzword and the collaborative approach of

Government, industry and consumer will help in

setting up and upgrading standards to give the best

products and services to the consumers and also ensure

the protection of the environment.'

LUB’s Behrod Branch of Rajasthan State organized an Awereness Program on IPR in the presence of Anchal President Shri Himanshu Mahawar.

LUB Chittor Branch of Rajasthan State

organized a Painting Competition for Children.

LUB Himachal Pradesh Team organized a Workshop on Mahila Jagarukata in presence of Former National President Shri Jitendra Gupt.

LUB Events

Govt to Reduce Time Taken for Starting Business-Introduced New e-Form.

Govt to reduce time taken for starting business, to introduce new e-form, The 10 services offered in SPICe+ will significantly save time and cost for opening a new company in India.Continuing efforts to further improve ease of doing business, the government will introduce an integrated electronic form for incorporating new companies from February 15, wherein EPFO and ESIC registration numbers will also be allotted at the same time.The corporate affairs ministry would introduce the form -- SPICe+ -- to offer 10 services.Currently, the ministry has the electronic form SPICe (Simplified Proforma for Incorporating Company Electronically) and that would be replaced with SPICe+.The 10 services offered through the new form would help in "saving as many procedures, time and cost for starting a business in India," the ministry said in a public notice.The labour ministry, Department of Revenue in the finance ministry and the Maharashtra government would also be offering certain services through the form. Registration for EPFO (Employees' Provident Fund Organisation) and ESIC (Employees' State Insurance Corporation) would be mandatory for all new companies incorporated from February 15.EPFO and ESIC registration numbers would not be separately issued by the respective agencies, the notice said. Further, registration for profession tax would be compulsory for companies incorporated in Maharashtra from February 15.Besides name reservation and incorporation of a company, EPFO and ESIC registration numbers would be issued.Mandatory issuance of PAN (Permanent Account Number), TAN (Tax Deduction and Collection Account Number), Profession Tax Registration (Maharashtra) and opening of bank account for the company concerned would be done through the form.Director Identification Number (DIN) and GSTIN, if applied, would also be allotted.GSTIN is the Goods and Services Tax Identification Number. The corporate affairs ministry is implementing the Companies Act and all required filings under the law as well as incorporation of companies are made through its portal MCA21.The new form would be available on this portal."All new companies incorporated through SPICe+... would also be mandatory required to apply for opening the company's bank account through the AGILE-PRO linked web form," the notice said.There are more than 11.5 lakh active registered companies in the country and thousands of companies are getting incorporated every month. Generally, active companies are those which comply with all regulatory requirements, including timely submission of filings

Ease of Doing Business for MSMEs: In an effort to enhance the ease of doing business for small companies, the government has taken multiple steps on an ongoing basis. The aim is to reduce the cost of compliance and increase the feasibility to carry on businesses. “The registration fee for incorporation of companies with an authorized capital of up to Rs 15 lakh has been reduced to zero by the Companies (Incorporation) Second Amendment Rules, 2019,” Anurag Singh Thakur, MoS, Ministry of Finance and Corporate Affairs, said in a reply to a question in Rajya Sabha. However, MCA has increased the requirement of paid-up capital from Rs 5 crore to Rs 10 crore for the appointment of Whole Time Company Secretary vide Companies Amendment Rules, 2020. The Ministry of Corporate Affairs has also reduced the cost of compliance for small companies and startups from complying with various provisions of the Companies Act. Since smaller companies are more vulnerable to market risks and changing policies, a relief on compliance costs helps to provide cushion to the companies' financials. CDP (Cluster Development Program).Central government is making all efforts to uplift the MSMEs, through various schemes, but due to lack of knowledge, MSMEs are not getting the desired benefits. When a group of organisations work within a similar area, produce similar products using similar production technologies, they are said to be a part of a cluster. Being part of a cluster they enjoy economies of scale, easier financing through lenders/ agencies & could form a common front to face business related challenges.Moreover, since the industries are engaged in similar activities, a cluster fosters healthy competition and helps businesses to grow. Keeping this sentiment in mind, the Government of India, through the Ministry of MSMEs (MSME) is promoting the cluster development programme for MSMEs, so that, they could grow, increase their productivity and contribute better towards increasing the GDP of the country.The scheme was adopted with the following objectives in mind:i). To support MSMEs and promote growth by

helping them solve their technical issues,

improving their skill and quality of products, providing better access to capital as well as market, etc.;

ii). To increase the capacity of MSMEs through the creation of self-help groups, consortium, associations, etc.;

iii). To create or upgrade facilities of infrastructure in new or existing industrial areas or MSME clusters and creation of Flatted Factory Complexes;

iv). To establish Common Facility Centers (CFCs) for the purpose of training, testing products, as a depot for raw materials, for conducting complementary production processes, etc.

The scheme would help in creating and monitoring clusters through the following activities:

I). Diagnostic studies which would help in mapping of the business activities to find out the strengths, weaknesses, opportunities and threats to the business. The study would also create an action plan which would help clusters in meeting their problems themselves;

ii). Soft intervention in the form of awareness programs, counselling, creation of seminars and workshops, etc.;

iii). Detailed Project Report (DPR) would be prepared to assess the technical feasibility and economic viability of the cluster;

iv). The DPR would include detailed financial statements and would be scrutinized by a bank or technical consultancy setting up CFCs for various business activities;

v). Creation of Infrastructure Development Centers (IDCs)

NSIC, in association with Small and Medium Business Corporation (SBC), South Korea has set-up an India-Korea Technology Exchange Centre (IKTEC) at NSIC's Technical Service Centre at Okhla, New Delhi. NSIC has also signed a Memorandum of Understanding with SBC (Now known as KOSME), South Korea for enhancing cooperation between MSMEs of both the countries. The said India-Korea Technology Exchange Centre (IKTEC) is a platform for Micro, Small and Medium enterprises of India and Korea where they will be

Startup India (Ease of Doing Business for MSMEs )

How Modi Govt. is Making Life Easier for Small Companies

News in Brief assisted to identify & exchange latest technologies, Machineries, Product development, Technology applications for productive development and share management expertise etc. amongst themselves. The objective is to facilitate technology exchange between MSMEs of India and South Korea, thus, enhancing their competitiveness in the global market by synergizing their competitive advantages.The IKTEC will focus on the following:Ÿ Business Matching to encourage Technology

transfers, Joint ventures and sustainable alliances between Indian and Korean SMEs.

Ÿ Create Technology Data Bank of Potential technology seekers and technology providers from each country.

Ÿ Conduct Technology Demand Analysis of each country and identify promising sectors for technology exchange.

Ÿ Conduct a diagnosis of technology level problems, enterprise's capability of absorbing advanced technology and commercial feasibility on demand on chargeable basis.

Ÿ Encourage production of high quality products which are globally competitive.

Ÿ Identify and initiate various cooperative MSME projects complimenting each other's strengths in MSME sector.

RBI Notifies Extension of MSME Debt Recast Window

thThe Reserve Bank of India (RBI) on 11 Feb. notified extension of the deadline for a one-time restructuring scheme of small business loans by another nine months to 31 December.The central bank said that the aggregate exposure, including non-fund based facilities, of banks and NBFCs to the borrower should not exceed Rs25 crore

as on 1 January, 2020. This recast, RBI said, will be applicable if the borrower's account was in default but was a standard asset as on 1 January and continues to be classified as standard till the recast.However, loans that have already been restructured in accordance with the last year's provisions will not be eligible for restructuring under the current circular.“The micro, small and medium enterprises (MSMEs) sector plays an important role in the growth of the Indian economy, contributing over 28% of the gross domestic product (GDP), more than 40% of exports, while creating employment for about 110 million people," RBI had said last week while announcing the extension of the restructuring window.

Govt. Offers Settlement Scheme, Eyes on ?9.32 Trillion in Disputed Tax Dues

Govt offers chance to pay disputed tax arrears without interest or penaltyIf the scheme is successful, it

will offer relief to the govt, which has estimated that FY20 fiscal deficit will slip to 3.8%The finance

ministry unveiled details of a new scheme that could fetch the exchequer part of the ?9.32 trillion direct

taxes under dispute and free up courts and tribunals crippled by prolonged litigation.