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New Definition of Micro, Small and Medium Enterprises – Clarification (Press release 18th Feb 2022)

Posted on by Business So Simple in FEMA

RBI/2021-2022/161
FIDD.MSME & NFS.BC.No.16/06.02.31/2021-22

February 18, 2022

The Chairman/ Managing Director/Chief Executive Officer
All Commercial Banks
(including Small Finance Banks, Local Area Banks and Regional Rural Banks)
All Primary (Urban) Co-operative Banks/State Co-operative Banks/
District Central Co-operative Banks /All-India Financial Institutions/
All Non-Banking Financial Companies

Dear Sir/Madam,

New Definition of Micro, Small and Medium Enterprises – Clarification

Please refer to the circular FIDD.MSME & NFS.BC.No.12/06.02.31/2021-22 dated June 25, 2021 on ‘New Definition of Micro, Small and Medium Enterprises’.

2. In this connection, we inform that Government of India, vide their Gazette Notification S.O. 278(E) dated January 19, 2022, has notified amendments in the paragraph (7) sub-paragraph (3) in the notification of Government of India, Ministry of Micro, Small and Medium Enterprises number S.O. 2119 (E), dated June 26, 2020, published in the Gazette of India.

3. In view of the above amendment, paragraph 3 of the said circular would stand modified as under:

“The existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAMs) of the MSMEs obtained till June 30, 2020 shall remain valid till March 31, 2022.”

4. Further, it is clarified that the validity of documents obtained in terms of O.M. No.12(4)/ 2017-SME dated March 8, 2017 (RBI Circular FIDD.MSME & NFS.BC.No.10/06.02.31/2017-18 dated July 13, 2017), for classification of MSMEs upto June 30, 2020, are also valid upto March 31, 2022.

5. All other provisions of the circular remain unchanged.

Yours faithfully

(Sonali Sen Gupta)
Chief General Manager-in-Charge

Data Base of Companies and their Auditors under NFRA domain II Press release 18th Feb 2022

Posted on by Business So Simple in Company Law, ICSI, ICAI, ICMA
https://youtu.be/s0Oct01mlj0

To discharge its mandate, National Financial Reporting Authority (NFRA) created a data base of Companies and Auditors that come under the regulatory ambit of NFRA. NFRA has updated the said database as on 31.3.21. This comprises of 6,820 companies including 5,563 listed companies, 1,156 unlisted companies and 101 Insurance and Banking Companies. The details of 2,079 Auditors of such entities have also been included in the data base.

Creation of this data base involves steps like identification and verification of the primary data source and reconciliation of data (such as Corporate Identification Number (CIN) which is dynamic) from different sources. In this regard, the NFRA has been engaging with the Corporate Data Management (CDM) division of the Ministry of Corporate Affairs (MCA) and three recognised Stock Exchanges in India.

The data base is available at https://www.nfra.gov.in/nfra_domain

About NFRA

The National Financial Reporting Authority (NFRA) is a regulatory body set up under Section 132 of the Companies Act, 2013 to oversee compliance with Accounting and Auditing Standards by Public Interest Entities (PIEs) as defined in Rule 3 of NFRA Rules 2018 and their Statutory Auditors. Such PIEs includes all listed companies and large public unlisted companies.

Central Bureau of Narcotics busts illegal Drug manufacturing factory in Delhi (Press Release 18th Feb 2022)

Posted on by Business So Simple in Legal awareness

Preventive and Intelligence Cell, Central Bureau of Narcotics, New Delhi, developed specific information about a clandestine manufacturing plant of Tramadol in Bawana, Industrial Area, New Delhi and its forefront store at Sirsa (Haryana) in selling the manufactured Tramadol in disguise of Ayurvedic Medicines.

Acting on the said specific information joint Preventive team of Central Bureau of Narcotics New Delhi and Gwalior conducted raid at Plot No. 93, Pocket G, Sector 5, Bawana Industrial Area, New Delhi and at Sh. Balaji Ayurvedic Store, Janta Bhawan Road, Sirsa (Haryana) on 07.02.2022 and unearthed a clandestine Tramadol manufacturing unit at Bawana Industrial Area, New Delhi. The said manufacturing unit was running in disguise of Honey processing plant and manufactured Tramadol Tablets were branded as Ayurvedic medicine. The search of the said premises resulted into recovery of approx. 52.245 kg Tramadol pills and powder and 1.08 kg of substance suspected to be opium.

Tramadol is an opioid analgesic of the same family of drugs as medications like oxycodone and hydrocodone, considering its misuse for addiction purpose Government has declared it as Psychotropic Substance in April, 2018.

Huge quantity of packing and labelling materials has also been seized. The machinery used in the manufacture of the said pills has also been seized under the provisions of NDPS Act, 1985. Parallel raid was conducted at Sh. Balaji Ayurvedic Store, Janta Bhawan Road, Sirsa (Haryana), which was being used as forefront for diversion of manufactured Tramadol pills in disguise of Ayurvedic Medicines. The search of the said store resulted into recovery of pills containing 1.420 kg of Medicinal Opium and pills suspected to be containing 0.495 kg of Tramadol. The case under section 8/18, 21, 22, 25, 28 and 29 of the NDPS Act, 1985 has been registered and two persons are arrested. Further investigation is under progress.

Narcotics Commissioner Shri Rajesh Fattesing Dhabre reiterated that crack down operation shall be intensified further.

During this year, till date, Central Bureau of Narcotics has booked 7 cases and has seized 25.130 kgs Opium, 1.420 kg Medicinal Opium, 1738 kg Poppy Straw, 290 gram Heroin, 52.740 kg Tramadol, whereas during the year 2021 CBN has seized 62.550 kg Opium, 17557 kg black poppy seed, 9.830 kg Heroin, 29,454 kg Poppy Straw, 698.250 kg Ganja, 37,800 sq. Meters of illicit opium cultivation, 24,050 kg Acetic Anhydride, 13.390 kg MD powder and 3,29,642 Injection/Tablets of Psychotropic Substances.

Changes in NGOs, Educational & Hospital Institutions (Finance Bill 2022) II Budget changes in NGOs

Posted on by Business So Simple in Income Tax, NGOs

Changes in NGOs, Educational & Hospital Institutions (Finance Bill 2022) II Budget changes in NGOs

1. Ensuring effective monitoring and implementation of two exemption regimes

🖋️Books of account to be maintained by the trusts or institutions under both the regimes

🖋️Penalty for passing on unreasonable benefits to trustee or specified persons

🖋️Reference to the Principal Commissioner or Commissioner (PCIT/CIT) for the cancellation of registration/approval

2. Bringing consistency in the provisions of two exemption the regimes

🖋️Accumulation provisions

🖋️Bringing consistency in the provisions relating to payment to specified person

🖋️The provisions of section 115TD to apply to any trust or institution under the first regime.

🖋️Filing of return by person claiming exemption under clause (23C) of section 10 of the Act

3. Providing clarity on taxation in certain circumstances

🖋️Allowing certain expenditure in case of denial of exemption

🖋️Taxation of certain income of the trusts or institutions under both the regimes at special rate

🖋️Voluntary Contributions for the renovation and repair of temples, mosques, gurudwaras, churches etc notified under clause (b) of sub-section (2) of section 80G

🖋️Clarifying that application will be allowed only when its actually paid

🖋️Consequential Amendments (i) Reference to prescribed authority under clause (23C) of section 10 (ii) Amendment to sub-section (1A) of section 35

MIGRATION OF FOREIGN COMPANIES TO INDIA

Posted on by Business So Simple in Business Consultancy, Foreign Trade, Startups

Ministry of Commerce & Industry Press Release dated 11th Feb 2022

Various initiatives/schemes have been launched by Government for promoting growth and attracting investment in India. The Make in India programme was launched on 25th September, 2014 with aim of facilitating enhanced investment, foster innovation, build best in class infrastructure, and make India a hub for manufacturing, design, and innovation. Continuous efforts are made under Investment Facilitation and Outreach for implementation of Make in India action plans to identify potential investors, support Indian Missions abroad and State Governments for organizing events, summits, road-shows and other promotional activities to attract investments in the country.

Measures have been taken to improve the country’s investment climate, as a result of which India jumped to 63rd place in World Bank’s Ease of Doing Business [EODB] ranking as per World Bank’s Doing Business Report (DBR) 2020 from a rank of 142 in 2014. Department for Promotion of Industry and Internal Trade (DPIIT), in consultation with the State Governments, has also started a comprehensive reform exercise in States and UTs under Business Reforms Action Plan (BRAP). All States/UTs in the country are ranked on the basis of reforms implemented by them on designated parameters. This exercise has helped in improving business environment across States.

An Empowered Group of Secretaries has been constituted to fast track investments in the country. Similarly Project Development Cells (PDCs) have been set up across Central Government Ministries/Departments to handhold investors and spur sectoral and economic growth. Further, a GIS-enabled India Industrial Land Bank has been launched to help investors identify their preferred location for investment. National Single Window System (NSWS) has also been soft launched in September, 2021 to facilitate clearances for investors.

Keeping in view India’s vision of becoming ‘Atmanirbhar’ and to enhance India’s manufacturing capabilities and exports, an outlay of INR 1.97 lakh crore (over US$ 26 billion) has been announced in Union Budget 2021-22 for Production Linked Incentives (PLI) schemes for 14 key sectors of manufacturing starting from fiscal year (FY) 2021-22. With the announcement of PLI Schemes, significant creation of production, employment, and economic growth is expected over the next 5 years and more.

Measures taken by the Government including on FDI Policy reforms have resulted in increased FDI inflows in the country year after year. India registered its highest ever annual FDI inflow of US$ 81.97 billion (provisional figures) in the financial year 2020-21 despite the COVID related disruptions. These trends in India’s FDI are an endorsement of its status as a preferred investment destination amongst global investors. In the last seven financial years  (2014-21), India has received FDI inflow worth US$ 440.27 billion which is nearly 58 percent of the FDI reported in the last 21 years (US$ 763.83 billion). This indicates increasing inclination of global companies to set up their business in India.

Government has taken various other steps in addition to ongoing schemes to boost domestic and foreign investments in India. These include measures to reduce compliance burden for industry, opportunities under National Infrastructure Pipeline, Reduction in Corporate Tax, Easing liquidity problems of NBFCs and Banks, Policy measures to boost domestic manufacturing through Public Procurement Orders, Phased Manufacturing Programme (PMP), etc.

Besides the above, activities are also undertaken through schemes/ programmes, by several Central Government Ministries / Departments and various State Governments from time to time. The details of these measures are not centrally maintained by Department for Promotion of Industry and Internal Trade.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Rajya Sabha today.

***

More than 29.8 lakh major Tax Audit Reports (TARs) filed on the e-Filing portal of the Income Tax Department (Press Release 16th Feb 2022)

Posted on by Business So Simple in Income Tax

More than 29.8 lakh major Tax Audit Reports (TARs) have been filed on the e-Filing portal of the Income Tax Department as on 15th February, 2022. On the last day, over 4.14 lakh major Tax Audit Reports/forms have been filed.

Out of 29.8 lakh of the major statutory forms, over 2.65 lakh Form 3CA-3CD and around 24.5 lakh Form 3CB-3CD have been filed in FY 21-22. More than 2.71 lakh other Tax Audit Reports (Form 10B, 29B, 29C, 3CEB, 10CCB, 10 BB) have been filed till 15.02.2022.

On 15.02.2022, 34,842 Form 3CA-3CD (out of total of 2,65,153), 3,36,842 Form 3CB-3CD (out of total of 24,48,950), 18,644 Form 10B (out of total of 1,50,950), 11,852 Form 29B (out of total of 74,923), 478 Form 29C (out of total of 2,820), 10,542 Form 3CEB (out of total of 33,345), 873 of Form 10CCB (out of total of 4,904) and 570 of Form 10BB (out of total of 3851) have been filed. On the last date i.e. the extended due date of 15.02.2022, 14% of these statutory forms and in the last 5 days from 11.02.2022 to 15.02.2022, 30% of these statutory forms were filed.

Further, more than 5.41 crore Income Tax Returns (ITRs) filed have been verified out of 6.26 crore ITRs filed for AY 2021-22. Of the verified ITRs, more than 4.50 crore ITRs have been processed and 1.58 crore refunds for AY 2021-22 have been issued.

The Department expresses gratitude to all tax professionals and taxpayers for the support in compliances and requests the attention of taxpayers who are yet to accept the Tax Audit Report submitted by their CA to complete the process of submission.