With the new labor reforms being introduced in 2019-2020 & being implemented in 2021, which are about to bring a wave of changes into the Work Sector. ASC Group would hereby like to introduce you to a brief walkaround of the new labor codes that are being introduced by the Government of India.
RBI, made it mandatory to obtain the LEI (Legal Entity Identifier) for all the categories of entities (except individuals) prior to 30th September 2020 who are undertaking the following transactions-
NEW DELHI: The finance ministry on Friday said banks have sanctioned loans of about Rs 1,20,099 crore under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector reeling under economic slowdown caused by the COVID-19 pandemic. However, disbursements against this stood at Rs 61,987.90 crore till Thursday (July 9) under the 100 per cent ECLGS for micro, small and medium enterprises (MSMEs). T
NEW DELHI: The new process for registration of micro, small and medium enterprises will come into effect in the name of Udyam Registration from Wednesday, July 1, the government said on Tuesday. Last week, the MSME ministry said that an MSME in the country will now be known as ‘Udyam’ since the term comes closer to the meaning of an enterprise. Udyam Registration can be filed online based on self-declaration with no requirement for documents of proof, barring Aadhar, as per the notificatio
Claim Verification under IBC - As per IBC the Corporate Insolvency Resolution Process is for the protection of creditors from debtors through filing of an insolvency petition which is based on delayed and default of payments by the debtors even after various time buffers being provided but inability of the corporate debtor to repay the amount owed. A claim can be filed by any creditor, workmen, employees, and other corporate debtors, under Section 7, Section 9 & section 10 of the IBC, 2016 .The
State-level stamp duties on loan deeds are discouraging micro, small and medium enterprises (MSMEs) from tapping the Union government’s ?3 trillion liquidity programme, two people aware of the development said. In a meeting with finance minister Nirmala Sitharaman last week, lenders pointed out that many of these small firms were not using the facility as they could not afford to pay stamp duty, said a ba
Micro, small and medium (MSME) enterprises are perhaps facing their worst times in the last few years and the Covid-19 pandemic has exacerbated the situation, experts feel. They stress that there is an urgent need to bring such units on the government radar so that they are eligible for benefits. These units need to be trained to become competitive in the long run. At a webinar organised on Friday on handholding MSMEs
The Government is making it mandatory for large companies to disclose their dues to MSMEs to ensure timely payments. Some of its features are as follows: Union MSME Minister Nitin Gadkari said that despite various interventions, including MSME firms that payments will be made by the Central Government & its undertakings within 45 days of delivery of goods or services which is a satisfactory soluti
NEW DELHI: Eligible MSME borrowers will get an offer from their lending institutions for a pre-approved loan under the Rs 3 lakh crore scheme announced for micro, small and medium enterprises to help them deal with the impact of COVID-19. The Guaranteed Emergency Credit Line (GECL) of Rs 3 lakh crore was announced as part of Rs 21 lakh crore package by the government. As per a set of FAQs
Days after announcing a new set of criteria to define micro, small and medium enterprises (MSMEs) on which various official benefits will be extended, the government is considering a proposal to widen the definition again — a crucial move that will potentially benefit several thousands of firms. Days after announcing a new set of criteria to define micro, small and medium enterprises (MSMEs) on which various official benefits will be extended, the government is considering a proposal to widen
Q1: What is the revised rate of EPF contribution announced by the Central Govt. under the Atmanirbhar Bharat package? Ans: Under this package the statutory rate of EPF contribution of both employer and employee has been reduced to 10 percent of basic wages and dearness allowances from the existing rate of 12 percent for all class of establishments covered under the EPF & MP Act, 1952. Q2: What is the objective of a reduction in the rate of contributions?
MUMBAI: MSMEs received a fresh boost in terms of credit support from the Reserve Bank of India. While SIDBI's credit facility was rolled over, Exim Bank received a fresh line of credit line. In additions exporters and importers too got some added sops The RBI had in its March statement announced a special refinance facility of Rs 15,000 crore to SIDBI at RBI’s policy repo rate for a period of 90 days for on-lending and refinancing which has been rolled over by another 90 days. "In order to
NEW DELHI: Many small businesses are wary of taking fresh loans even if they are backed by government guarantee, as they are not sure how much demand will be there for their products when they resume business activity. Micro, small and medium enterprises (MSMEs) expected a direct relief from the government in terms of waiving of electricity bills, payment of salaries, among others that would have helped t
Startups will be eligible to avail relief measures announced for micro, small, and medium enterprises (MSME) under the Aatmanirbhar Bharat Scheme but will have to register as MSMEs on the Udyog Aadhaar portal, government officials told CNBC-TV18. Finance Minister Nirmala Sitharaman also clarified on Saturday that startups were eligible for the measures announced for MSME, such as the collateral-free loan with credit guarantee, subordinate debt and equity infusion through the MSME fund of fund
Key Highlights According to the earlier definition, MSMEs engaged in manufacturing based on their investment in plant and machinery FM Sitharaman has declared that there will be no difference between manufacturing and service enterprises. The investment limit for MSMEs has been revised upwards and an additional criterion of turnover has been introduced While enumerating the details
Uttar Pradesh CM Yogi Adityanath organised an online loan fair to hand over cheques to over 56,000 MSME business persons, a day after Centre's package A day after Finance Minister Nirmala Sitharaman announced an array of measures to strengthen the (Micro, Small & Medium Enterprises) MSME sector, Uttar Pradesh Chief Minister Yogi Adityanath organised an online loan fair to hand over cheques to over 56,000
In a nation with an estimated population of 1.37 billion people, an extensive range of social enterprises can make an impact. From public services to financial services, to technology, social enterprises can play a key role in a diverse economy like India. Ridley-Duff and Bull (2011) defined a social enterprise as an organization that applies commercial strategies to maximize improvements in human and environmental well-being, rather than maximizing shareholder profits. The development of thi
On 04th May 2020, the Lt. Governor of Government of National Capital Territory of Delhi in the exercise of the powers conferred by subsection (1) of section 81 of the Delhi Excise Act, 2009 gave the ruling as an amendment on Rule 154 of Delhi Excise Rules, 2010 that a “Special Corona Fee” will be levied on the sale of Liquor through Retail Licenses. The “Special Corona Fees” will be 70% of Maximum Retail Price on all categories of liquor. The ruling came afte
Relaxation by MCA - The Ministry of Corporate Affairs vide circular dated 8th April, 2020 has relaxed provisions related to passing Ordinary and Special Resolution in its meeting of members in view of the current extraordinary circumstances prevailing in the country due to the pandemic caused by Noval Coronavius, COVID-19, which requires social distancing. The companies are requested to take all decisions of urgent nature which requires the approval of the members, other than items of ordinar
Summarized features of the scheme - The Ministry has issued a general circular no 12/2020 dated. 30th March 2020 to revive the non -compliant companies. Under this scheme, the government has given one time opportunity to non – compliant companies to make a fresh start on a clean slate. This scheme enables the companies to complete the pending compliance by filing necessary documents including annual return without any additional late fees on account of delay. Only t
1. As per Circular to clarify by CBEC-20/16/12/2020- GST in FAQ, it has been provided that: Once a business entity defaults certain threshold amount under the IBC, 2016, corporate Insolvency Resolution Process (CIRP) gets triggered and the management of such business entity or Corporate Debtor and its assets vests with an Interim Resolution Professional (“IR
The Union Finance & Corporate Affairs Minister Smt. Niramla Sitharaman today announced several important relief measures taken by the Government of India in view of COVID-19 outbreak, especially on statutory and regulatory compliance matters related to several sectors. Highlights of press conference are: INCOME TAX Date of filing ITR for FY 2018-19 is extended from 31st March, 2020 to 30th June 2020 Aadhar PAN linking date exte
India reported its first novel Coronavirus case on January 30, 2020. Ever since, India, being the second most populated country of the world, has reported 415 cases of Coronavirus and seven reported deaths, as per the reports of Ministry of Health and Family Welfare. Considering the globally vast spread of Covid 19 virus, India has channelized strict restrictions on public gatherings in order to combat the blow-out of coronavirus. Indian Railways have taken to cancelling more than 100 trains
NEW DELHI : Union Finance Minister Nirmala Sitharaman today announced various statutory and regulatory compliance relief measures amid a complete shutdown almost all over the country to control the spread of the highly contagious coronavirus or Covid-19 infection. The last date for filing belated income tax return (ITR) for the FY 2018-19 has been extended from March 31 to June 30, 2020. The deadline for filing returns of
New Delhi: The Union government is tracking prices of household staples in nearly 600 centres across the country and has advised all states, especially those with transport restrictions such as Maharashtra, to allow interstate movement of trucks carrying essential supplies , a senior official in the consumer affairs ministry said. Amid reports of a broad-based demand surge for household essentials in the wake of the coronavirus pandemic, the Union government has set up teams to coordinate wit
MUMBAI: Water house non-audit service- Price Waterhouse Network of Firms in India (PW India), which is part of the PwC India, on Thursday, said that they would no longer provide non audit services to their audit clients in India which are governed by National Financial Reporting Authority (NFRA). This would essentially mean that none of the network firms under the PwC umbrella would offer any other service like consulting or tax advisory to any company they audit, said people in the know. Most
Vide circular FMRD.FMID.No.10/11.01.007/2018-19, RBI has introduced mandatory obtaining of Legal Entity Identifier (“LEI”) registration for eligible entities participating in non-derivative market transactions. As a specimen, non-derivative forex transactions shall entail share capital remittance, amounts received on sale of purchase of goods or services, any kind of income or expense in foreign exchange etc. RBI has mandated that eligible participants are required to obtain Legal E
Quality issue on steel - The BIS shall be the certifying and enforcing authority for the goods,” the department said in the orders. NEW DELHI: In a move to curb imports of certain substandard steel items and cables, the government has issued quality control orders for these products. The Department for Promotion of Industry and Internal Trade (DPIIT) has come out with two separate orders as per which these products will have to conform to the specified standards and bear the standard mark un
The Indian stock market is set to see billions of dollars of inflows after a policy tweak comes into effect on April 1, analysts predict. The nation will increase the foreign portfolio investment limit in a company from the current 24% to a higher threshold set for its sector. In addition to the expected inflows from active asset managers, the move could trigger net investments of between $2 billion and $2.5 billion to Indian equities from passive funds, according to estimates from Target Invest
In a step to save costs and time, the RBI decided to permit videobased KYC (Know Your Customer) which will be a huge relief to map remote customer authentication, as opposed to physically onboarding customers. The provision allows an officer of the institution to remotely vet a customer’s identity through PAN or Aadhaar and a few questions. Mumbai: The Reserve Bank of India has decided to permit videobased KYC (Know Your Customer) as an option to establish a customer’s identity. For ba
pump and dump - Zerodha, India's biggest stock broker, has warned investors against investing or trading based on anonymous and fraudulent stock tips. "In the past few years, the scourge of stock tip messages, calls, and websites has become a dangerous nuisance. We’ve been seeing queries from unwitting investors who have invested based on these messages and calls," the stock broker said, referring to schemes that are are commonly known as “pump and dump" scams. Zerodha also explained how
NEW DELHI : Finance Minister Nirmala Sitharaman today unveiled a ?102 lakh crore national infrastructure pipeline, in accordance with the Narendra Modi government's vision to make India a $5 trillion economy by 2024-25. The finance ministry had set up a task force headed by Economic Affairs Secretary to prepare a road map for the "national infrastructure pipeline" from 2019-20 to 2024-25 under the ?100 lakh crore infra plan. The task force was planning a list 10 major infrastructure projects
Decriminalisation of Compoundable - The Company Law Committee, constituted by the Ministry of Corporate Affairs (MCA) vide order dated 18.09.2019, has submitted the first phase report to the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman on 18th November, 2019, proposing amendments in the Companies Act, 2013 for further decriminalising the offences under the said Act and to facilitate ease of doing business and ease of living. This was stated by Shri Anurag Singh Thaku
Secretarial Audit offers a broad check on compliances of Company under applicable acts including SEBI Act, Companies Act, Depositors Act, FEMA, and other industry-specific laws. Secretarial Compliance Report consists of the SEBI Act, its regulations and circulars issued thereunder. Secretarial audit guides you in dealing with the changes brought in to managerial burden and management
Private Companies with debts - The secretarial audit is right now restricted to listed firms that have outstanding debt beyond a threshold. Experts have welcomed the developments as the move will help improve compliance and corporate governance standards in the county. The government may soon mandate private companies with outstanding debts above a certain threshold undergo a mandatory secretarial audit, a senior government official said Saturday.
MCA has filed the petition in Mumbai bench of NCLT under section 140(5) of Companies Act. NCLT Mumbai today heard the petition of the MCA and directed for issuing notices to the auditor and directors of the company. Continuing its actions against auditors who fail to perform their duty, Ministry of Corporate Affairs (MCA) has sought disqualification and 5 year ban on statutory auditor of a Pune-based Chit fund company Netwealth Agrotech India. MCA has filed the petition in Mumbai bench of
In a statement, Institute of Chartered Accountants of India (ICAI) said it has sought requisite details of their findings as well as that of any "member/firm alleged to be involved in the alleged financial irregularities at the lender. New Delhi: Chartered accountants' apex body ICAI has sought information from the RBI and other authorities on the PMC Bank crisis to check whether any auditor was involved in the alleged financial irregularities at the lender. Taking note of the "enormity of the
The Ministry of New and Renewable Energy has started drafting plans to set up mega capacities and ease investment in renewables to meet the new target set by Prime Minister (PM) Narendra Modi. At the United Nations Climate Action Summit in New York on Monday, Modi vowed to double India’s renewable energy target to 450 gigawatt (GW) by 2030. This comes at a time when commissioning of projects has slowed and states are raising red flags. In 2019-20, of the 3 GW target for wind power, 1.1 G
Under this scheme, the government will give partial credit guarantee for purchases of such assets up to Rs 1 lakh crore this fiscal. The guarantee will cover up to 10% of their first loss. Finance minister Nirmala Sitharaman on Thursday met chiefs of state-run banks and asked them to ensure that no stressed loan of MSME that is still standard is declared non-performing asset by March 31, 2020, taking advantage of an existing RBI scheme. Keeping with the Budget announcements to help address stre
MUMBAI: After forcing banks to link retail loans to an external benchmark, the RBI is looking at the way non-banking finance companies (NBFCs) and mortgage companies price their products. While an external benchmark might not be mandated for housing finance companies (HFCs), banking regulator wants to bring more transparency in their pricing. Meanwhile, the RBI is also not in favour of a combined fixed and floating home loan product which SBI chairman Rajnish Kumar had recently spoken about. A
The government measures to provide partial credit guarantee to public sector bank on their asset purchases from NBFCs can ease funding pressure only for the short-term, says a report. In the budget, the government had said for purchase of high-rated pooled assets of financially-sound NBFCs, amounting to Rs 1 trillion during the current financial year, it will provide a one-time six months' partial credit guarantee to public sector banks for their first loss of up to 10 percent. The step, h
Finance Minister Nirmala Sitharaman announced a number of measures on Friday to lift market sentiment and boost growth But weak global backdrop could cap the upside for Indian equities in near term: Analysts Indian stock market index had its best day in three months as a number of government measures to revive economic growth and hopes of progress in China-US trade talks helped boost sentiment. After volatile trading through most of the ses
Clearing the air around the slowing economy, Finance Minister Nirmala Sitharaman said despite weak global demand, the Indian economy was growing faster than the global average and all other major economies. She also announced steps to boost the auto sector and immediate release of ?70,000 crore for capitalization of public sector PSU banks. In this year's Budget, the government had announced higher surcharge on individuals earning more than ?2 crore. It was also applicable for foreign portfol
Finance Minister Nirmala Sitharaman will be addressing a press conference on August 23 at 5 pm in New Delhi. The briefing is likely to discuss the state of the economy. Foremost among the things that the Finance Minister could address is the issue of surcharge on foreign portfolio investors (FPIs). In her maiden Budget proposal, the Finance Minister had proposed to impose a higher tax surcharge on the super-rich. Following the announcement, there were concerns raised that FPIs also would have
Major market benchmarks were boosted by some strong earnings reports from retail companies Wednesday, indicating that the U.S. consumer remains healthy and helping to ease recession worries. The Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) both gained nearly 1%. All sectors rose, with consumer staples and technology leading the way. As for individual stocks, report
The beginning of April brings with it a number of changes that every tax payer needs to be aware of to better understand their tax liabilities as well as the benefits that the Government is offering them. Let’s take a look at some of the major changes 1. Income tax Imagine if your social media profiles contributed to building your profile for the Government. This profile would be used only for tax purposes and would take into account your behavior on Facebook, Twitter and Instagram.
The real estate industry has always been shrouded in controversies considering many factors including bad loans, stay on construction, illegal constructions and grief for home buyer due to late payment. The Real Estate Regulatory Act was introduced in the hope of putting an end to a number of stagnant processes as well as to streamline the real estate sector holistically. In an effort to enhance transparency and protect the interest of home buyers, the Act brought with amendments and changes.
All practising chartered accountants (CA) would need to provide an Unique Document Identification Number (UDIN) while auditing GST and Tax documents, Tax Scan has reported. This decision would come into effect from 1 April 2019. As per a decision taken by the Institute of Chartered Accountants of India (ICAI) in a meeting on 17-18 December 2018, all certificates issued by the CAs would require a UDIN from 1 February. In part two of the decision, it was mandated that all the audited GST and Tax
Recently, the Indian Government proposed changes in tax rules for investments made in start-up and entrepreneurial ventures. A 30.9% tax levied on investments, however it is important to mention that the entire investment is not taxed, only the amount that is considered to be above ‘fair value’ valuations of a start-up; also classified as ‘income from other sources’ in Section 56 (ii) of the Income Tax Act. Why the sudden uproar? Typically start
A recent tax ruling is changing the way companies in India operated for years. Converting a company to Limited Liability Partnership was a means to scale up, attract foreign investors as well as to distribute profits to partners without the fear of dividend distribution tax. This new ruling however puts things in perspective and makes the task difficult for companies. In the middle of November, a Mumbai bench of the Income Tax Appellate Tribunal stated that conversion of a company into LLP wi
Here’s why your organization needs Compliance Risk Assessment Compliance has become a very critical part of every organization's strategic plan whether its Financial services, banking or healthcare — all companies, beyond a certain volume, face a large number of compliance rules. Penalties for violating such compliance requirements can be massive, and non-compliance is practically an invitation to authorities, resulting in not only financial loss but also a reputational loss to
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