Loan for MSMEs to Boost Economic Recovery

Smt. Nirmala Sitharaman, the Hon'ble Finance Minister, announced details of the 20 lakhs crore Financial Aid package on 13.05.2020 called Atmanirbhar Bharat to support MSMEs in India. 

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Collateral Free Loans

Collateral free loans amounting to INR 3 lakhs crore have been announced. The eligibility criteria for this is that the borrower should have less than INR 25 crore outstanding and turnover of INR 100 crore. The tenure of the loan would be 4-years with 12-months moratorium on Principal repayment. 100% credit guarantee cover will also be given to Banks and NBFCs on principal and interest. This scheme can be availed till October 31st,2020. It is expected around 45 lakh units will benefit from this.

Support for Stressed MSMEs

Subordinate debt amounting to INR 20,000 crore would be provided to MSMEs that are stressed or NPA. The debt will be given to promoters of MSMEs to infuse the debt amount as equity into the unit. A support of INR 4,000 crore will also be provided to CGTMSE, which will further provide partial Credit Guarantee Support to Banks. An estimated 2 lakh units will benefit from this.

Equity Infusion into MSMEs

This scheme is for MSMEs that have viability and growth potential but face shortage of equity. FoF will be set up with corpus of INR 10,000 crores. This shall be operated through a Mother Fund and few daughter funds. This is expected to leverage around INR 50,000 crore of funds at daughter fund level.

Revised MSME Classification

Changes have been made to MSME definition to benefit more enterprises. 

 Government of India presentation

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The Institute of Cost Accountants of India

On 28th May, 1959, the Institute was established by a special act of Parliament, namely, the Cost and Works Accountants Act, 1959 as a statutory professional body for the regulation of the profession of cost and management accountancy.

History of the Profession

It was during the early years of World War II, that the concept of cost as an independent entity made its beginning in the industrial circles of the world. Due to the prohibitive cost of defense operations, the then governments at war found it difficult to ascertain the price of defence purchases and thus evolved the concept of cost + contracts. This forced the contractors to submit the cost of the work to be undertaken by them, in order to be awarded the contract.

1945 brought the end of the war, and the nations ravaged by the effects of war began large-scale reconstruction of their economies through industrialisation. The end of colonialism meant that many nations gained their independence, and this process increased rapidly. The late forties and fifties can really be termed the golden era of industrialisation. The importance of cost accounting as being central to the formation of government policies provided the foundation of the rapid growth of the profession. What began as a mere exercise in estimating the cost later developed into a movement for efficiency and optimum utilisation of scarce resources.

The Institute of Cost Accountants of India (erstwhile The Institute of Cost and Works Accountants of India) was first established in 1944 as a registered company under the Companies Act with the objects of promoting, regulating and developing the profession of Cost Accountancy.

On 28th May, 1959, the Institute was established by a special act of Parliament, namely, the Cost and Works Accountants Act, 1959 as a statutory professional body for the regulation of the profession of cost and management accountancy.

It has since been continuously contributing to the growth of the industrial and economic climate of the country.

The Institute of Cost Accountants of India is the only recognised statutory professional organisation and licensing body in India specialising exclusively in Cost and Management Accountancy.

A Cost Accountant is a person who offers to perform or perform services involving the costing or pricing of goods and services or the preparation, verification or certification of cost accounting and related statements.

The head office is situated at 12, Sudder Street, Kolkata 700 016 and operates through four regional councils are Kolkata, Chennai, Delhi and Mumbai as well as through a number of important chapters situated elsewhere in India and abroad.

Objectives of the Institute

• To develop the Cost and Management Accountancy function as a powerful tool of management control in all spheres of economic activities.
• To promote and develop the adoption of scientific methods in cost and management accountancy.
• To develop the professional body of members and equip them fully to discharge their functions and fulfill the objectives of the Institute in the context of the developing economy.
• To keep abreast of the latest developments in the cost and management accounting principles and practices, to incorporate such changes are essential for sustained vitality of the industry and other economic activities.
• To exercise supervision for the entrants to the profession and to ensure strict adherence to the best ethical standards by the profession.
• To organise seminars and conferences on subjects of professional interest in different parts of the country for cross-fertilisation of ideas for professional growth.
• To carry out research and publication activities covering various economic spheres and the publishing of books and booklets for spreading information of professional interest to members in industrial, education and commercial units in India and abroad.

CGST Notification No-43/2020- Central Tax ,dt. 16.05.2020:- Seeks to bring into force Section 128 of Finance Act, 2020 in order to bring amendment in Section 140 of CGST Act w.e.f. 01.07.2017.

16th May 2020, GST Department announced :- 

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

Government of India

Ministry of Finance

(Department of Revenue)

Central Board of Indirect Taxes and Customs

Notification No. 43/2020 – Central Tax

New Delhi, the 16th May, 2020

G.S.R. ….(E).— In exercise of the powers conferred by sub-section (2) of section 1 of the Finance

Act, 2020 (12 of 2020) (hereafter in this notification referred to as the said Act), the Central

Government hereby appoints the 18th day of May, 2020, as the date on which the provisions of

section 128 of the said Act, shall come into force.

[F. No. CBEC-20/06/09/2019-GST]

(Pramod Kumar)

Director, Government of India

For Complete Notification please follow the ling below :-

CGST Notification No-43/2020- Central Tax ,dt. 16.05.2020:- Seeks to bring into force Section 128 of Finance Act, 2020 in order to bring amendment in Section 140 of CGST Act w.e.f. 01.07.2017.

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Press Release dated 13 May 2020 – Income tax Date Extended, Audit date extended, Collateral Free loan to MSME, MSME definition is revised, TDS/TCS rate is reduced by 25% on all sections and many more

*Important points of the Press conference of Honorable FM:*

 

 *Six major steps for MSME*

1. Collateral Free Automatic Loan to MSME. No guarantee required. Period 4 Years. No principal repayment for 1 year.
2. Stressed MSME: Subordinate Debt 20,000 crore

3. MSME doing viable business: 50,000 cr. equity infusion for expansion
4.     Definition of MSME changed: 

a. Micro: Limit revised upward Investment  upto 1 cr. or  Turnover upto 5 cr.

b. Small: Limit revised upward Investment  upto 10 cr. or  Turnover upto 50 cr.

c. Medium: Limit revised upward Investment  upto 20 cr. or  Turnover upto 100 cr.

d. No difference in manufacturing and service sector for Micro Enterprises

5. Government Tenders: Global tenders will be disallowed upto 200 cr.

6. E market linkage for MSME. Within next 45 days all payments will be made to MSME.

 EPF: For June, July and August will be paid by Government (72,22,000 employees will be benefitted). Total Rs. 2500 benefit cr.

 EPF: Statutory PF deposit limit reduced from 12% to 10% for next 3 months. (6,750 cr.) (except CG and PSU’s)

*NBFC, HFC & MFI*; Rs. 30,000 cr. Special liquidity scheme

Partial credit guarantee scheme for NBFC: Rs. 45,000 cr scheme. Govt. of India will be guarantor. 20% will be borne by GOI.

 *Discom:* Liquidity crisis. Rs. 90,000 cr. infused for improving Liquidity crises. This amount will be paid by PFC and REC.

 *Contractors:* Extension upto 6 months to comply with contract conditions.

 *Real Estate:* Coviid 19, an event of ‘Force Majeure’. Registration and Completion extended for 6 months for all projects expiring o or after 25.03.2020

 *Direct tax:* 

– TDS rates reduced by 25% of existing rates from tomorrow to 31.03.2021(Non salaried to residents and TCS) Payment for – VSVS extending upto 31.12.2020. pay without any additional amount.

– Pending refunds of charitable trusts, non corporate business, proprietorship, partnership, LLP and society will be issued immediately.

– *Due dates of IT return for FY 2019-20*

Earlier 31.07.2020 & 31.10.2020 Now 30.11.2020

Tax Audit due date: Earlier 30.09.2020  Now 31.10.2020

– *Date of assessment extended*

From those barring on 30.09.2020 to 31.12.2020

From those barring on 31.12.2021 to 30.09.2021

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Seeks to make fifth amendment (2020) to CGST Rules

Good News for Companies during covid-19, GST Department announced :-
“A registered person registered under the provisions of the Companies Act, 2013 (18 of 2013) shall, during the period from the 21st day of April, 2020 to the 30th day of June, 2020, also be allowed to furnish the return under section 39 in FORM GSTR3B verified through electronic verification code (EVC).”.

CGST Notification No- 38/2020- Central Tax ,dt. 05-05-2020, Relating to Seeks to make fifth amendment (2020) to CGST Rules 


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