Categories: Company Registration

Main point of announcements of Press Conference by FM Sitharaman

Key Point of announcements during all the Press Conference by FM Sitharaman

www.carajput.com; Sitharaman

1st Steps announced 13/5/2020 : FM Sitharaman Key Highlights:

Actions on the MSME

1. Collateral Free Car Loans. 4 year tenor with a dxatorium of 12 m mor. 100 % debt guarantee on principal and interest-3L Cr (60k Cr)

2. Subordinated loans for troubled small and medium-sized businesses (which are NPA or bankrupt)-20k Cr (4k Cr commitment of the State to CGTMSE)

3. Fund of funds to be set up for the injection of resources (which are viable)-50k Cr

4. The concept of small and medium-sized businesses is being modified in favour of small to medium-sized firms. Investment limits to be revised upwards. Additional requirements on the level of turnover may also be added. Difference between production and distribution units to be reduced

Micro Units-Investment up to 1 Cr + Turnover up to 5 Cr

Small Units – 10 Cr + 50 Cr

Medium Units – 20 Cr + 100 Cr

5. Government tenders worth up to 200 Cr will no doubt be on a regional tender basis. Global tenders will not be approved for up to 200 Cr. It will allow small and medium-sized businesses to engage in government purchases

6. Post Covid, e-market connection to be offered to all small and medium-sized enterprises. MSME receivables from the Government will be resolved over the next 45 days.

EPF Measures

7. Liquidity relief for all EPF establishments (less than 100 employees with 90% less than 15k employees). 12 per cent of the employer contribution and 12 per cent of the employee contribution is paid by the Government for March April and May. 3 months of additional funding to be received by a combined payment of 24 per cent for June July and August-2,5 k Cr.

8. Employers need to contribute 10% (compared to 12% earlier) to EPF and other institutions. Not available to the State. PSU Enterprises-6.75k Cr Liquidity

NBFC Conduct

9. 30k Cr Liquidity Scheme by NBFC, HFC and MFI Investment Grade Debt Papers completely backed by GoI.

10. 45k Cr by expansion of the framework of the Partial Credit Guarantee Scheme. AA-rated articles and below, like unrated documents, will be included in the program. The first 20% deficit to be suffered by GoI.

Discoms measures

11.-11. One time Immediate liquidity infusion-90k Cr to all decompositions against all receivables. Gen Cos will offer discounts on discom for moving on to customers

Builders

Twelve. Continuing public works-Concessional span to be extended by 3-6 m for contractors. Policy entities must partly issue bank guarantees for partly concluded contracts

Real Estate

13. The Ministry of Urban Development could use the advice of regulators to declare Covid 19 to invoke Force Majeure on contracts signed.

All registrations registered after 25 March 2020 and contracts expiring after 25 March 2020 can be extended by 6 m without unique requirements.

Taxation measures

14. TDS / TCS prices lowered by 25% on non-salary transfers from tomorrow to 31 March 2021. Will extend to all payments-50k Cr of extra liquidity

15. All outstanding refunds to charitable trusts and non-corporate taxpayers (including LLP) will be issued immediately.

The due date for all income tax returns shall be 30 November 2020 and the due date for the tax audit shall be 31 October 2020.

17. Assessments that will be barred on 30 September 2020 will be blocked on 31 December 2020.Cases that will be barred on March 31, 2021 will be delayed

18  Vivaad ka Vishwaas scheme continued until 31 December 2020 without any extra payments.

2nd Steps announced- which focus on 9 measures: 14/5/2020 : FM Sitharaman Key Highlights:

3 related to migrant workers;

• One Nation One Ration Card will be implemented-67 crore beneficiaries in 23 nations, representing 83% of the population of PDS, will be eligible for national portability by August 2020.

• Unlimited food grain deliveries to all migrants for the next 2 months. For non-card holders, 5 kg of wheat / rice per person and 1 kg of chana per family / month shall be granted for 2 months. 8 crore migrants would benefit – Rs 3500 crores to be spent on this.

It has already produced 14.62 crore working-days until 13 May, which is 40-50 per cent more enrolled than last May. Migrants returning to their states are actively enrolled.

• Policy has allowed state governments to use SDRF to set up shelter for migrants and provide them with food and water, etc.

1 was connected to Street Vendors

• Government to fund almost 50 Lakh Street Vendors with Rs 5000 Crore Special Credit Facility.

1 belonging to small merchants

• The Government of India will offer interest subsidies of 2 per cent to trigger MUDRA-Shishu Loans paid for a period of 12 months; Rs 1500 Crores to MUDRA-Shishu Loans paid.

Create employment opportunities for tribal / adivasis-plans worth Rs 6000 crores to be approved shortly under the Compensatory Afforestation Management & Planning Authority (CAMPA) Funds.

• 12,000 self-help groups (SHGs) produced more than 3 crore masks and 1.2 lakh liters of sanitizers during the period # COVID19. In the last two months, 7,200 new SHGs for urban poor have been created.

2 Local Farmers

• Rs 30,000 crores additional funding for emergency working capital by NABARD; 3 crore farmers to benefit.

• Rs 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards.

2 Small Farmers

• Rs 30,000 crores additional funding for emergency working capital by NABARD; 3 crore farmers to benefit.

• Rs 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards.

• NABARD to expand the additional re-financing funding of Rs 30,000 crores for the order for a crop loan from rural co-op banks and RRBs.

• Credit subsidy and early repayment incentive for farm loans due from 1st March to 31st May

1 for housing

• Government to initiate a scheme for affordable rental housing for migrant workers / urban poor to provide ease of living by transforming government-funded industrial housing into Affordable Rental Housing Complexes (ARHC) in the PPP mode by concessionaire. Government to extend the Credit Related Subsidy Scheme (CLSS) to the middle income community (Annual Revenue Rs 6-18 lakhs) by March 2021; 2.5 lakh middle income.

3rd days Announcement :  15/5/2020 : FM Sitharaman Key Highlights:

1. Fund of 1Lac Cr Generated for Agri Infra-Farm Gate Infra to be set up, New Warehouses will be set up, Cold Chain, Primary Agriculture Society, Aggregators in these industries, Start-up in this field.

2. Food Enterprise Micro in Nature-10000cr Micro Fund will be developed with a cluster-based approach. Will assist with infrastructure updates. Will be continuing with naming. Health & beauty products, Nutritional products, Vegan products. For eg, there’s Makhana Cluster in Bihar, Kashmir for Keshar Cluster, Kerela for Turmeric Cluster, Andhra Chilli Cluster.

3. Marine and Aqua Fund 20000Cr-Addition Fish Production 70lac Tonnes will be increased over the next 5 years. Current Lab should be set up, New Lab may be built, New Boats will be given, New Harbors will be made open. Easy Infra should be strengthened. 55 Lac Individual will gain additional jobs because of this and our exports will double because of this.

4. Animal Husbandry-Vaccination of all Livestock by Government-Various Livestock are suffering from Mouth and Foot Disease. 53Cr Patient should be vaccinated for a period of time. 13343cr is going to be invested on this. Owing to this, milk production would increase.

5. Dairy Farm – Cattle Feed Infra. For this reason, 15000cr Fund is established. Cheese, Milk Goods, Cattle Feed Plants for domestic and export consumption.

6. Promotion of Herbal Plantation-Medicinal Plants, Supplement of 4000cr for the development of an additional 10 Lake Hector of Land under Cultivation for the cultivation of herbal and medicinal plants. This will generate an extra 5000cr Income for Farmers in times to come.

7. Bees Sustaining Initiative-500cr For Bee Preserving Initiatives There is a shortage of bees in India. 2Lac Bee Keepers are going to get the advantage of it.

8. Potatoes, Onion and Tomatoes-50 per cent transport subsidies and 50 per cent storage subsidies. It is an existing scheme that is now being expanded to all vegetables. This is launched for 6 months on the basis of a 6-month pilot project.

9. Essential Goods Act should be amended-Amendment is provided by these Laws. No Limits will be imposed for the food processing industry, will not be limited and will not be punished for hoarding. This will not have an impact on the export of such items. Pulse, Onion, Potatoes, Oil Seeds and Cereals should be deregulated.

10. Farmers Get Options to market their product at an affordable price — Interstate obstacles should be eliminated. Farmers are currently allowed to market their goods to limited licensees. It is now planned to be updated.

11. Farmers do not have a common mechanism-we want to put about a regulatory system. Farmers when working with producers, aggregators, etc., we wilSingirbhar Economic Bundle

4th days Announcement :  16/5/2020 : FM Sitharaman Key Highlights:

1. Excess And Unused Land at Different 3376 Industrial Area, SEZ, etc-approximately 5Lac Hectors will be Geo Tagged and will be used for future requirements. It will help potential developers get the land soon

2. Sectors to be covered-Coal, Minerals, Defense Products, Air Storage, Power Supply Companies, Nuclear Industry, Atomic Fuel, Modern Solar Cell Manufacturing, Battery Manufacturing.

3. Reform of the Coal Sector-Government ownership will be ended. Commercial mining would be allowed on simple revenue sharing. India has the 3rd highest untapped deposits of coal.If Coal Turned to Gas, then opportunities would be given. 50000cr will be spent to build the Infra evacuation required by Ours. Today , India imports a lot of Coal, and now if the market is open to the private sector. It will now be available to everyone, and not just to the steel industry and the power industry. Partially mined mines must be re-assessed.

4. Mining of Minerals-Seamless Composite Discovery, Extraction and Development will take place from now on. There will be 500 new blocks under this scheme. The joint sale will also take place , for example Aluminum and Coal will now be auctioned together. Will eliminate the disparity between Captive and Non-Captive Mines. Now the individual may move the lease to the mine.Rationalization of stamp duties would also take place. Private corporations will now now be permitted to engage in the mining industry. The Mineral Index is also to be established.

5. Defence Production-1-The defense sector will also be introduced to make India self-reliant in India. Notify List of arms and systems that would be banned from being imported. Different products will be included in this list every year. Even the spare parts will be manufactured in India. And these weapons and systems will not be permitted to be imported. The additional allocation will be made in the form of capital for Indian companies.

6. Defence Production-Corporateization of the Ordinance Factory Boards and not privatization.They will also be listed in the stock exchanges.

7. Defense Production-FDI cap of 49 per cent will be raised to 74 per cent for the defense manufacturing sector under the automated path.

8. Civil Aviation — Air Space Management. Just 60% of Indian Airspace is publicly accessible. Optimum use of Airspace can now be done by rationalization. This will help to save commuting time as well as fuel bills.

9. Civil Aviation—6 More Airport will be auctioned on a PPP basis. The Airport Authority will receive 2300cr for this reason.

10. Civil Aviation-Create the India MRO Centre. Maintenance and maintenance of aircraft is done outside India. It’s scheduled to take place in India already. Both the Private and the Security Aircraft are going to be finished here

11. Farmers Get Options to market their product at an affordable price — Interstate obstacles should be eliminated. Farmers are currently allowed to market their goods to limited licensees. It is now planned to be updated.

12. Farmers do not have a common mechanism-we want to put about a regulatory system. Farmers when working with producers, aggregators, etc., we wilSingirbhar Economic Bundle

5th days ANNOUNCEMENTS FOCUS ON 8 SECTORS:  17/5/2020 : FM Sitharaman Key Highlights:

FIFTH AND LAST TRANCHE OF ANNOUNCEMENTS FOCUS ON 8 SECTORS:

1.  MNGERA

•           Budget estimate was Rs 61,000 crores

•           Additional Rs 40,000 crores allotted

2.  HEALTH

•           Ramping up the health infrastructure

•           All districts to have infectious diseases block

•           Public health labs to be set up in all districts at the block level

3.  Tech-driven EDUCATION

           PM e-Vidya programme for multi-mode access

•           One nation one digital facility under DIKSHA for school education

•           One year-marked TV channel for every class

•           Extensive use of radio

•           Special e-content for Divyang children

•           Top 100 universities will automatically be allowed to start online courses by May 30, 2020

 4.  Big boost for struggling businesses

•           Debts related to Covid will be excluded from default under IBC

•           No fresh insolvency case will be initiated for up to a year

•           For MSMEs, a special insolvency framework will be notified

•           Minimum threshold for insolvency raised from Rs 1 lakh to Rs 1 crore

 5.  Government moves to decriminalise Companies Act defaults

•           Majority of compoundable offences sections to be shifted to internal adjudication mechanism (IAM) and powers of RD for compounding enhanced.

•           7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework.

 6.  Ease of doing business for corporates

•           Direct listing of securities by Indian public companies in permissible foreign jurisdictions. Pvt companies that list non-convertible debentures (NCDs) on stock exchanges not to be regarded as listed companies.

All sectors to be now open for private players

 7.  New Public Sector Enterprise Policy introduced

 •           pvt sector will be allowed to participate in all sectors while public sector enterprises will continue to play an important role.

•           new policy which will broadly categorise strategic sectors and others.

•           List of strategic sectors requiring the presence of PSEs in public interest will be notified.

•           In such strategic sectors, at least one PSE will be there but pvt sector will also be allowed.

•           In other sectors, PSEs will be privatised.

•           TO minimise wasteful administrative costs, number of enterprises in strategic sectors will ordinarily be only one to four, others will be privatised/merged/brought under holding companies.

8.  State govt and resources

•           Centre has decided to increase borowing limit of states from 3% to 5% for FY21. This will give extra resources of Rs 4.28 lakh crore to states.

•           Part of the borrowing will be linked to specific reforms. Reform linkage will be in four areas:

1. One Nation One Ration Card,

2. Ease of Doing Business,

3. Power distribution,

4. Urban local body revenues.

A specific scheme will be notified by the Department of Expenditures

•           Unconditional increase of 0.50%

•           1% in 4 tranches of 0.25% with each tranche linked to clearly specified, measurable and feasible reform actions

•           0.5% of milestones are achieved in at least three out of four reform areas

More updates: Key Highlights of Companies amendment Bill,

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