CL: Forfeiture of property of wife of detenue on her failure to show that property had been acquired from her own income
Tuesday 24 September 2013
Exp. disallowed under sec. 14A to be added back for computation of book profit under sec. 115JB
IT : Sum disallowed under section 14A be added while computing profit under section 115JB
India's new tax office to cost Rs 485 crore
The Indian government plans to develop a new building at a cost of Rs 485.16 crore that will house the head offices of the country's direct as well as indirect tax administration.
The federal Cabinet, at a meeting chaired by Prime Minister Manmohan Singh, on Tuesday approved the construction of the new building to be called Rajaswa Bhawan.
It will be located at Kasturba Gandhi Marg, in the central part of the national capital.
The estimated cost of the project is Rs 485.16 crore. The Cabinet has also given approval for Rs 15 crore as annual recurring expenditure after completion of the project.
The new building constructed at a 5.65 acre plot will be the headquarters of the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC). Both these boards are currently headquartered in North Block.
These boards, besides advising the government on tax policies, are responsible for the overall administration of field offices under them. The two boards are the largest revenue collectors for the Indian government.
“The growth in revenue collection over the years has led to expansion of the Directorates as well as staff under the Boards, and North Block does not have the capacity to accommodate all these offices,” the Finance Ministry said in a statement after the cabinet meeting here.
“Therefore, a composite building bringing together both the Boards and associated offices will improve efficiency immensely, as appropriate physical infrastructure and work environment are important contributors to overall efficiency in tax administration,” it said.
Adopt uniform procedures for non-filers of I-T returns: CBDT
With an aim to check tax evasion, the Central Board of Direct Taxes (CBDT) has tightened norms to deal with 'no-filers' of income tax returns and asked its officers to follow uniform procedure in handling such cases.
"The existing procedure for monitoring cases of 'non- filers of I-T Returns'...has been examined by the Board. It is felt that at present, cases of non-filers are not being uniformly monitored by the Assessing Officers due to lack of consistency in approach in dealing with such cases," the CBDT said in a communication to its top officers.
Therefore, in order to streamline the processing of such cases and to ensure consistency in monitoring 'Non-Filers Monitoring System' (NMS) cases by the Assessing Officers, the CBDT has issued "standard operating procedure".
As per the guidelines, the Assessing Officer has to issue letter to the assessee within 15 days of the case being assigned in NMS, seeking information about the return of income flagged in the system.
In cases where the assessee has been identified and no return has been filed within 30 days of the time given in the letter, the Assessing Officer should consider initiation of proceedings as prescribed.
The CBDT (Income Tax Department) has identified about 12 lakh non-filers and has been sending letters to them to file returns and pay taxes. As per the latest data, the tax department has issued letters in 2.45 lakh cases.
Following issuance of letters to non-filers, CBDT earlier said, about 3.44 lakh returns have been received from the target segment. Such persons, it said, have also paid self assessment tax amounting to Rs 577 crore and advance tax of Rs 408 crore.
The department has also made it clear that it will to go after recalcitrant taxpayers and the exercise will continue till all potential non-filers are covered.
RBI/2013-14/289 A.P. (DIR Series) Circular No. 52 dated 24-09-2013
RBI/2013-14/289
A.P. (DIR Series) Circular No. 52
September 24, 2013
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 22.50 million to the Government of Burkina Faso
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated January 18, 2013 with the Government of Burkina Faso, for making available to the latter, a Line of Credit (LOC) of USD 22.50 million (USD Twenty-Two million Five Hundred Thousand only) for financing eligible goods, services, machinery and equipment including consultancy services from India for the purpose of financing a low cost housing and economical buildings' project in Burkina Faso. The goods, services, machinery and equipment including consultancy services from India for exports under this Agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. Out of the total credit by Exim Bank under this Agreement, the goods and services including consultancy services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India and the remaining 25 per cent goods and services may be procured by the seller for the purpose of Eligible Contract from outside India.
- The Credit Agreement under the LOC is effective from September 13, 2013 and the date of execution of Agreement is January 18, 2013. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of contract(s) in the case of project exports and 72 months (January 17, 2019) from the execution date of the Credit Agreement in the case of supply contracts.
- Shipments under the LOC will have to be declared on GR / SDF Forms as per instructions issued by the Reserve Bank from time to time.
- No agency commission is payable under the above LOC. However, if required, the exporter may use his own resources or utilize balances in his Exchange Earners’ Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- l (AD Category-l) banks may allow such remittance after realization of full payment of contract value subject to compliance with the prevailing instructions for payment of agency commission.
- AD Category-I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain full details of the Line of Credit from the Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 or log on to www.eximbankindia.in.
- The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(C. D. Srinivasan)
Chief General Manager
RBI/2013-14/290 A.P. (DIR Series) Circular No. 53 dated 24-09-2013
RBI/2013-14/290
A.P. (DIR Series) Circular No. 53
September 24, 2013
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Trade Credits for Import into India
Attention of Authorized Dealer Category - I (AD Category - I) banks is invited to A.P. (DIR Series) Circular No. 87 dated April 17, 2004 , A.P. (DIR Series) Circular No. 24 dated November 01, 2004 , A.P. (DIR Series) Circular No. 28 dated September 11, 2012 and A.P. (DIR Series) Circular No. 59 dated December 14, 2012 regarding Trade Credits for import into India.
- As per the extant guidelines, AD Category - I banks may approve availing of trade credit not exceeding USD 20 million up to a maximum period of five years (from the date of shipment) for companies in the infrastructure sector, subject to certain terms and conditions stipulated therein. It is also stipulated that AD Category - I banks are not permitted to issue Letters of Credit/guarantees/Letter of Undertaking (LoU) /Letter of Comfort (LoC) in favour of overseas supplier, bank and financial institution for the extended period beyond three years. No roll-over/extension is permitted beyond the permissible period.
- On a review, it has been decided to allow companies in all sectors to avail of trade credit not exceeding USD 20 million up to a maximum period of five years for import of capital goods as classified by Director General of Foreign Trade (DGFT). It has also been decided to relax the ab-initio contract period of 15 (fifteen) months for all trade credits to 6 (six) months.
- AD Category - I banks are, however, not permitted to issue Letters of Credit/guarantees/Letter of Undertaking (LoU) /Letter of Comfort (LoC) in favour of overseas supplier, bank and financial institution for the extended period beyond three years.
- All other aspects of Trade Credit policy will remain unchanged and should be complied with. The amended Trade Credit policy will come into force with immediate effect and is subject to review based on the experience gained in this regard.
- The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals required, if any, under any other law.
Yours faithfully
(Rudra Narayan Kar)
Chief General Manager-in-Charge
Corrigendum dated 23-09-2013
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF EXCISE AND CUSTOMS)
CORRIGENDUM
New Delhi, the 23rd September, 2013
1 Asvina, 1935 (SAKA)
S.O… (E). – In the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 100/2013- CUSTOMS (N.T.), dated the 19th September, 2013 , published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-Section (ii), vide number S.O. 2814 (E) dated the 19th September, 2013, in the SCHEDULE-I, against serial number 7, in column (3),-
(i) in sub-column (a) for “74.40” read “0.7440”;
(ii) in sub-column (b) for “70.25” read “0.7225”.
[F. No. 468/03/2013-Cus.V]
(M. SATISH KUMAR REDDY)
DIRECTOR (ICD)
Telephone No. 011-23093380
DGFT Public Notice No.27/(RE 2013)/2009-14 dated 24-09-2013
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Assessment concluded without hearing assessee was invalid even if he didn't comply with notice for f
IT: Where in response to notice issued under section 17(1) assessee did not file any return and Assessing Officer without giving proper notice affording opportunity of being heard proceeded to pass best judgment assessment order, assessment framed by Assessing Officer was null and void
Commission earned by agent causing auction sale is liable to service tax
ST/ECJ : Commission earned by an agent causing sale of imported goods in public auction in India is liable to service tax
Transfer takes place on handing over of possession of property by society to developer and not on ag
IT: Property can be held to be transferred under a Development Agreement only when possession is handed over to developer, and not on agreement date, when only a small portion of consideration is received
South Indian Cement Makers Explore Export Options
24-Sep-2013
At a time when the southern market for cement has slowed, the rupee’s depreciation has opened a door for companies in the region. Industry representatives have said the currency fall in recent months has pushed price realisation by around 15 per cent and many are looking at new markets.
N Srinivasan, vice-chairman and managing director of India Cements Ltd, said the company used to export earlier. The opportunity came down because Indian firms could not compete with other countries offering cement at much lower prices. “With the rupee depreciation, there is a possibility of exports and we are looking at some to improve our capacity utilisation. Hopefully, exports will start again,” he told shareholders recently. Earlier, the company said it was looking at the Sri Lanka and South African markets.
B K Singh, senior executive director, group marketing & corporate communication, at Dalmia Bharat Enterprises, said the company exported around 30,000 tonnes from its southern plants between January and August 2012 and had increased this in the same period this year to 80,000 tonnes. Over the next one year, the plan was to double this to figure by entering new markets. “We will start exporting to Myanmar, followed by parts of Eastern Africa very soon, maybe before the end of this financial year,” said Singh.
The company was exporting till now to Sri Lanka and Maldives. It has three units in South India (two in Tamil Nadu and one in Andhra Pradesh), with a total annual capacity of nine million tonnes. With the rupee depreciation, he said, the company would be able to compete with local manufacturers in Sri Lanka, where the demand is around 4.5 mt yearly.
Annual demand for Bangladesh is around 15 mt, while the Myanmar cement market was estimated at around four mt during financial year 2012, according to reports. The Myanmar market is expected to grow at 10 per cent annually over the next five years.
While agreeing the export market looked attractive now, A V Dharmakrishna, chief executive officer of Madras Cements, said the rupee depreciation had also put pressure on imported coal. “Besides, if you look at the total installed capacity in the south, exports are still minimal,” he said.
G R K Reddy, chairman and managing director of MARG Ltd, which operates a private port at Karaikal which handles the major chunk of export cements, said in September 2012 the port handled a little less than 5,000 tonnes. It was now handling 30,000-35,000 tonnes and the monthly growth was 10 per cent.
“Till now the port has been handling cement in bulk. We are planning to start a container service, which will help companies to send in smaller quantities,” he said.
Source:- business-standard.com
India's Wheat-Export Plan Faces Threat From Cheaper Supplies
24-Sep-2013
India's latest program to export wheat from government stocks is likely to come a cropper, commodity traders said, because the grain's price in the international market has fallen way below the minimum price set for shipments from the country.
New Delhi is looking to export two million metric tons of wheat that would help it reduce the pressure on overflowing state granaries and raise about $600 million of revenue for the government, a target that now looks increasingly difficult to achieve.
The government's minimum target price for exports is $300 a ton, set a year and half ago. Wheat comparable to the Indian variety, from Eastern Europe countries such as Russia and Ukraine, is now available 20% cheaper, said a New Delhi-based trader at an international commodities trading firm.
"It is next to impossible to export at this [government-set] price level," said the trader.
Lowering the minimum price for exports could become politically risky—that would mean selling the grain at below the cost incurred on sourcing it, and could give another weapon for opposition parties to attack the government with elections just a few months away. Prime Minister Manmohan Singh's government is under pressure because of corruption allegations over the sale of state assets such as telecommunications bandwidth and coal blocks.
Some traders say India can afford to cut the price for exports because a fall in the value of the local currency will absorb part of the impact when the export earnings are converted into rupees. The Indian rupee has fallen about 12% against the dollar since Jan. 1.
Meanwhile, three state-run Indian trading agencies are looking to firm up deals by next week to ship out up to 160,000 tons of wheat out of the two million tons that the government recently cleared to export, according to governments officials.
India is likely to decide on future exports based on the response to this tender offer, an official at state-run grain-procurement agency Food Corporation of India said.
"If the price received is very good, then government may continue exports," he said. "If the response is below expectation, then they may review the policy."
India has emerged as one of the biggest wheat exporters over the past year and half following a global shortage because of a drought in Eastern Europe. During this period, it sold 4.2 million tons of the grain at an average price of $311 a ton, about $10 above the cost it incurred for procuring the grain from farmers.
The strong run that India has enjoyed is beginning to wear thin because of better climate conditions and output in major wheat-producing regions including Europe and Canada. World wheat production in 2013-14 is projected at a record 708.9 million tons, a report from the U.S. Department of Agriculture said.
India's state warehouses hold more than double of the grains required to supply through government-welfare programs. This stock position is expected to increase by a third with the harvest of the summer-sown rice crop in early October.
According to traders, most of the bids for the tenders to export 160,000 tons of wheat would likely be in the range of $260-$270 a ton. Buyers would also have to pay for freight.
"There is no demand for Indian wheat" at the government-set minimum price of $300, said a Mumbai-based trader at an international commodities trading company.
Source:- online.wsj.com
6/8 Laning Of Jnpt Road Gets Centre's Nod
In a move that will help improve reduce road congestion in Navi Mumbai, the Cabinet Committee on Economic Affairs of Government of India has given its approval for 6/8 laning of the Jawahar Lal Nehru Port Trust (JNPT) Port Road.
The project is being executed by Mumbai JNPT Port Road Company ( MJPRCL) on Build, Operate and Transfer (BOT-Annuity) in Design, Build, Finance, Operate and Transfer (DBFOT) pattern.
A senior government official said, "The project will expedite improvement of infrastructure in Maharashtra and also reduce the time and cost of travel for traffic, particularly heavy traffic, going towards JNPT."
The official added, "The total length of the road will be approximately 43.912km, of which 20.95km will be of 6-laning and 22.962km will be of 8-laning."
The estimated cost of the project is Rs1,943.37 crore including the cost of land acquisition, resettlement and rehabilitation and other pre-construction activities. The project corridor highway consists of NH-4B and NH-348 and it connects the JNPT including its proposed international airport.
Source:- timesofindia.indiatimes.com
Oilmin Unveils Mega Fuel Conservation Drive To Cut Import Bill
24-Sep-2013
Staggered office timings for government employees to decongest traffic and staffers taking public transport to workplace once a week are part of a mega fuel conservation drive unveiled by Oil Minister M Veerappa Moily today to save $5 billion in oil imports.
Battling a record current account deficit (CAD) that is a result of mounting oil import bill, Moily is hoping these measures together with a Rs 52 crore nationwide six week mega campaign to propagate conservation of oil and gas will help taper demand, thereby cutting oil import bill by $5 billion.
India spent $144.29 billion last fiscal on importing its oil needs, which is the single biggest item impacting the CAD.
"I have written to Minister of State for Personnel, Public Grievances and Pensions, asking him to consider 'staggered office timings' for Government offices, which will help in decongesting road traffic during peak hours," he told a press conference here.
He also asked Chief Ministers, central ministries and PSU heads to declare one day of the week as 'bus day' during which staffers be encouraged to utilise only public transport for their daily commute.
While there is no evidence of his Ministry's fortnightly fuel conservation drive every year actually denting demand, Moily did not say his Ministry and PSUs under it would lead by example and declare 'Bus Day'.
"Every year the Petroleum Conservation Research Association (under Oil Ministry) does an awareness campaign for a fortnight at a cost of Rs 20 crore. This year we will do a mega campaign at more than double the cost," he said.
He also asked Urban Development Minister to introduce "Free Cycle Scheme" in select cities for saving fuel and offered funding support from oil sector companies.
Moily said India imported more than 75% of its crude oil needs and projected oil consumption rising to 160.04 million tonnes this fiscal from 155.417 million tonnes last year.
The recent move to supply diesel at market price to bulk consumers like railways and defence and ca[pping the number of cooking gas cylinders to 9 refils in a year had resulted in negative growth of 1.6% in diesel sales and 1% in cooking gas consumption.
"We need to do more to conserve fuel or face tougher choices such as steep price increase or even quantitative restrictions," he said.
The Mega Campaign will involve youth icons like Virat Kohli and Saina Nehwal propagating the message of fuel conservation. Fuel saving tips will be communicated through smart phone applications and new media tools.
The campaign would encourage proper driving habits, better maintenance of vehicles, use of carpooling for going to offices and schools, switching off engines at traffic lights and driver training to minimise the wastage of fuel.
"The objective will be to motivate the consumers in cities and towns to minimise their fuel bills, thereby helping our Nation in reducing oil imports," he said.
The activities planned in the campaign include direct interaction with consumers to encourage them in adopting conservation measures while using TV, print and electronic media to generate awareness on the issue.
Moily said oil firms sell petrol and diesel doped with special additives that enhance fuel efficiency, reduce maintenance cost and cut pollution.
"However, these fuels are more costly due to higher statutory duties, my Ministry will take up the issue with Ministry of Finance so that the duty structure is rationalised which will promote their mass consumption," he said.
Source:- business-standard.com
Cotton Yarn Export Boom Likely After Chinese Policy Shift
24-Sep-2013
Cotton yarn exports could double to hit a new milestone of 2,000 million kg this year due to a dramatic shift in Chinese policy on textile raw material import, which promotes purchase of yarn over cotton. Indicating high demand from abroad, the registration for yarn exporters with the Directorate General of Foreign Trade (DGFT) jumped 50 per cent to 593 million kg in the first five months of the financial year from 397.2 million kg a year ago.
The increase in yarn export will not only raise traders’ realisations but help domestic textile mills that have created a massive spinning capacity over several years. Also, shipping of more value-added products than plain fibre will support the government’s objective to process the raw material locally for employment generation and higher earnings.
“If the current trend of demand continues, we would be able to achieve 2,000 million kg of yarn export this financial year,” said Manikam Ramaswami, chairman of the Cotton Textiles Export Promotion Council (Texprocil).
China has levied an import duty between one per cent and 40 per cent on cotton depending on the quantity of purchase. The major objective of the Chinese government is to discourage processing of cotton. Instead, the government promote purchase of cotton yarn for direct use in textile mills.
“It is possible to achieve this milestone,” said M B Lal, ex-chairman of the Cotton Corporation of India, and managing director of Shail Exports, a Mumbai-based exporter.
The government of China is sitting on a huge quantity of cotton it does not intend to release for users. Consequently, Indian textile mills are receiving more orders for yarn than cotton.
Reflecting the trend, the Cotton Association of India (CAI) has forecast ‘nil’ exports of cotton this year as compared to 9.5 million bales (170 kg each) the last financial year. “Cotton yarn exports will beat all previous expectations, if the current trend in demand continues. Rising exports, however, will not affect supply to domestic mills,” said D K Nair, secretary general, Confederation of Indian Textile Industry.
According to reports, the Cotton Yarn Advisory Board (CYAB) has projected a marginal 14.2 per cent increase to 1,150 million kg in cotton yarn exports from India this financial year. But actual exports could be even higher. Total cotton yarn production this year is estimated at 4,000 million kg.
Arun Sakseria, a Mumbai-based cotton trader and exporter, believes the government of China has levied around 40 per cent accumulative import taxes and local levies to encourage local power loom and textile sectors. Hence, importing cotton does not make sense for Chinese textile mills, he added.
China constitutes a major portion of India’s cotton yarn exports. Hence, Chinese demand assumes significance from export point of view.
China produces around 6.7-7 million tonnes (mt) of cotton annually against the country’s consumption of 9.5 mt. China has framed a policy under which the shortfall should be bridged through “zero” import, while the additional purchase from overseas would attract huge duty.
Lal said the realisation from yarn exports was much higher today than last year.
Source:- business-standard.com
Case remanded to DRP as he didn't consider the objections raised by assessee
IT/ILT: Where DRP did not considered objections raised by assessee in respect of transfer pricing adjustments, matter was remitted back to file of DRP for reconsideration
Indian Rupee Weakens Further To 62.75 Against Us Dollar
24-Sep-2013
The Indian rupee remained weak for the third straight trading session on Tuesday, moving down further by 15 paise against the US dollar to close at 62.75, on sustained month-end dollar demand from importers amid firm dollar overseas.
In straight three trading sessions, the domestic currency has tumbled by 98 paise or 1.59 per cent, against the Greenback.
At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed lower at 62.80 a dollar from Monday's close of 62.60 and later moved in a range of 62.45 and 62.90 before concluding at 62.75.
Month-end dollar requirements from importers, mainly oil refiners, affected the rupee sentiment. Fresh capital outflows and some hesistancy in local stocks also weighed on the rupee.
The BSE Sensex closed up by a mere 19.25 points, or 0.10 per cent, on Tuesday while FIIs, after recent inflows, withdrew $4.15 million from stocks on Monday.
"Resistance for USDINR (Spot) pair is at 63.00 - 63.10 levels... If these levels are breached convincingly, then expect the rupee to depreciate further. The trading range for the USD/INR pair is expected to be within 62.20 to 63.20," said Pramit Brahmbhatt, CEO, Alpari Financial Services, (India).
The US dollar was trading higher by 0.13 per cent against its major rivals, but gains appeared limited due to the prospects of extended monetary stimulus by the Federal Reserve.
Source:- businesstoday.intoday.in
A manufacturer-exporter is not comparable with an entity engaged in trading and export to its AE
IT/ILT: Companies engaged in manufacturing as well as sale/export were not comparable to assessee-company functioning only as a trader to effect export to its AE
Cenvat credit to be reversed if goods were used for private purpose
ST/ECJ : In case of private use of goods in respect of which input credit was taken, department may seek reversal of credit
RBI dispenses with requirement of filing statement in Form ORA for banks
FEMA/ILT : Opening of Trading Office/Non-Trading Office/Branch Office/Representative Office Abroad
CBDT lays down standard operating procedure for monitoring of cases of non-filers of I-T returns
IT : Section 142 of The Income-Tax Act, 1961 - Procedure for Assessment - Inquiry Before Assessment - Standard Operating Procedure for Cases Under Non-Filers Monitoring System (NMS)
SC: Recovery of sum without an evidence of bribery don't prove IT-inspector guilty
IT : Mere receipt of amount by accused as bribe is not sufficient to fasten guilt, in absence of any evidence with regard to demand and acceptance of amount as illegal gratification
Application for registration as 'Valuer' can't be dismissed without considering qualification of pet
WT : Where application for registration as valuer was dismissed without considering qualification certificate, matter was to be decided afresh
Loss on sale of shares can't be set off against capital gains exempted under sec. 10(38)
IT: Loss on sale of shares cannot be set off against income from sale of shares which are exempted under section 10(38)
Service provider can't ask recipient to reimburse service tax more than that specified in agreement
ST: In case an agreement between service provider and recipient provides quantum of service tax reimbursable by recipient on production of evidence, service provider cannot seek reimbursement of service tax more than that amount even if service tax was calculated wrongly by service provider
DCIT (LTU), Vs. M/s International Tractors Ltd., New Delhi. Sonalika House, 283 AGCR Enclave, Karkardooma, Delhi.
|
No disallowance of interest unless diversion of borrowed funds to affiliates as interest free loans
IT : Where there was nothing on record that assessee had diverted its interest bearing funds to its sister concern without charging interest, interest could not be disallowed on borrowed capital
SC: No violation of Rule 9 of SIER if sale certificate was issued when borrower conceded to acceptan
SARFAESI: Where borrower gave written consent for acceptance of balance purchase price by auction purchaser after expiry of period prescribed under rule 9, there was no violation of rule 9 in issuing sale certificate to auction purchaser
Planning Commission Prefers India Inclusive Innovation Fund Under Science Department
The Rs 5,500-crore India Inclusive Innovation Fund, proposed under the Ministry of Micro, Small and Medium Enterprises (MSME), may face resistance from the Planning Commission. The plan panel wants it to be under the department of science and technology instead of the MSME ministry as it would encourage greater research and development activities in the country, even in hightechnology areas.
"Planning Commission is a strong proponent of an innovation fund but it would have been appropriate to give it to the department of science instead of the MSME ministry," a senior Planning Commission official told ET on condition of anonymity.
According to another official, who also did not wish to be identified, the panel will send its comments to the MSME ministry during the process of inter-ministerial consultations before the proposal is finally put before the Cabinet for approval.
According to the proposal, the fund would be released in two tranches of Rs 500 crore each. Of the total fund amount, 20% funding would come from the government and the remaining from banks, financial institutions and multi-lateral agencies.
The fund, which is expected to be in place by November, will help generate employment and support livelihoods across the country through innovative enterprises. The idea is to promote innovation that will improve competitiveness and efficiency of small and medium enterprises.
Sam Pitroda-led National Innovation Council and the MSME ministry had set up the fund for this sector, considering the higher exposure of MSME in key manufacturing sectors like textile, leather, handicrafts and automobiles.
MSMEs across sectors have been facing challenges such as lack of access to finance, non-availability of collaterals and delayed realisation of receivables. There are over 26 million MSMEs in the country that provide employment to around 60 million people.
Source:- economictimes.indiatimes.com
Sales tax subsidy received for setting-up a new industrial unit or for its expansion is a 'capital r
IT: Where assessee received subsidy under scheme framed by Government of Haryana under Chapter IV-C of Haryana General Sales Tax Rules, 1975, subsidy in hands of assessee was a capital receipt
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