CREDIT GUARANTEE FUND FOR STARTUPS

CREDIT GUARANTEE FUND FOR STARTUPS

Government is formulating a Credit Guarantee Scheme for Startups (“CGSS”) with a corpus contribution of INR 2000 crores that will enable Startups to raise loans without any collateral for their business purposes. The proposed scheme will provide credit guarantee upto INR 500 lakhs per case inclusive of term loan, working capital or any other instrument of assistance extended by Member Lending Institutions (“MLIs”) to finance an eligible borrower i.e. a Startup recognized by Department of Industrial Policy and Promotion (DIPP).

The main norms and preconditions of the CGSS are as follows:

Scheme will provide benefit to a Startup recognized by DIPP as per Gazette Notifications issued from time to time;

For all resident Directors/Partners, Aadhaar shall be mandatory and for non-resident directors/partners, the passport number shall be a mandatory part of KYC norms;

Member Lending Institutions (“MLIs”) under the scheme can be Scheduled Commercial Banks and Financial Institutions, RBI registered Non-Banking Financial Companies (“NBFCs”), SEBI registered AIFs, etc;

The scheme will function under the trusteeship management of the National Credit Guarantee Trustee Company (“NCGTC”);

Scheme shall provide portfolio- based credit guarantee. Each portfolio shall comprise at least 10 eligible start up loans, during a particular Financial Year;

Coverage would be extended to the portfolio and the portfolio loss would be reckoned against the “net cash losses” during the portfolio life;

Instruments of assistance could be in the form of Venture debt, working capital, debentures, Optionally Convertible debt, etc;

MLIs may provide loans to up to any amount required by an eligible borrower. However, under the scheme the exposure for availing credit guarantee shall be limited to Rs.500 lakh per eligible borrower. 

Such loan will be extended by MLIs without any collateral security and/or third party guarantee;

The Management Committee shall be responsible for the overall supervision and monitoring of the Credit Guarantee Scheme for start-ups;

A Risk Evaluation Committee shall also be formed to address conflict of interest issues;

This information was given by the Commerce and Industry Minister  Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

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Profile of President Shri Ram Nath Kovind- In short

Profile of President Shri Ram Nath Kovind

A lawyer, veteran political representative and long-time advocate of egalitarianism and integrity in Indian public life and society, Shri Ram Nath Kovind was born on October 1, 1945, in Paraunkh, near Kanpur, Uttar Pradesh. His parents were Shri Maiku Lal and Smt Kalawati.

Before assuming charge of the office of the 14th President of India on July 25, 2017, Shri Kovind served as the 36th Governor of the state of Bihar from August 16, 2015, to June 20, 2017.

Educational and Professional Background

Shri Kovind completed his school education in Kanpur and obtained the degrees of B.Com and L.L.B. from Kanpur University. In 1971, he enrolled as an Advocate with the Bar Council of Delhi.

Shri Kovind was Union Government Advocate in the Delhi High Court from 1977 to 1979 and Union Government Standing Counsel in the Supreme Court from 1980 to 1993. He became Advocate-on-Record of the Supreme Court of India in 1978. He practised at the Delhi High Court and Supreme Court for 16 years till 1993.

Parliamentary and Public Life

Shri Kovind was elected as a member of the Rajya Sabha from Uttar Pradesh in April 1994. He served for two consecutive terms of six years each till March 2006. Shri Kovind served on various Parliamentary Committees like Parliamentary Committee on Welfare of Scheduled Castes/Tribes; Parliamentary Committee on Home Affairs; Parliamentary Committee on Petroleum and Natural Gas; Parliamentary Committee on Social Justice and Empowerment; and Parliamentary Committee on Law and Justice. He was Chairman of the Rajya Sabha House Committee.

Shri Kovind also served as Member of the Board of Management of the Dr B.R Ambedkar University, Lucknow, and Member of the Board of Governors of the Indian Institute of Management, Kolkata. He was part of the Indian delegation at the United Nations and addressed the United Nations General Assembly in October 2002.

Positions Held

2015-17: Governor of Bihar

1994-2006: Member of the Rajya Sabha, representing the state of Uttar Pradesh

1971-75 and 1981: General Secretary, Akhil Bharatiya Koli Samaj

1977-79: Union Government Advocate at the Delhi High Court

1982-84: Union Government Junior Counsel in the Supreme Court

Personal Details

Shri Kovind married Smt Savita Kovind on May 30, 1974. They have a son, Shri Prashant Kumar, and a daughter, Miss Swati. An avid reader, the President has keen interest in reading books on politics and social change, law and history, and religion.

During his long public career, Shri Kovind has travelled widely across the country. He has also visited Thailand, Nepal, Pakistan, Singapore, Germany, Switzerland, France, the United Kingdom and the United States in his capacity as a Member of Parliament.

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GST ACT WILL BE APPLICABLE IN DECEMBER, 2017 FOR CS STUDENTS

GST ACT WILL BE APPLICABLE IN DECEMBER, 2017 FOR STUDENTS (WHETHER EXECUTIVE OR PROFESSIONAL PROGRAMME) APPEARING IN DECEMBER  

BE READY THIS TIME, USE TIME WISELY

READ FOLLOWING ACT BEFORE APPEARING IN YOUR EXAMINATION:

a.) The Central GST Act,2017

b.) The Integrated GST Act,2017

c.) The Union Territory GST Act,2017

d.) The GST(Compensation to States) Act,2017

RULES WILL NOT BE APPLICABLE

https://www.icsi.edu/WebModules/Notification_GST_CS_Professional_Programme.pdf

I WILL SHARE WITH YOU VARIOUS BOOKS ON GST OF VARIOUS AUTHORS SOON.

HAPPPPYYYY HAOOOOLLLIIIIII TO YOU ALLL

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I WISH FOR YOUR SUCCESS AND HAPPYNESS IN LIFE,

PLAY SAVE, COLOURFUL AND BRIGHT HOLI,

ITS YOUR FESTIVAL MAKE IT LARGE,

LIKE, SHARE, SUBSCRIBE!! 

INSOLVENCY AND BANKRUPTCY CODE, 2016 - A welcome step and opportunities for practicing professionals

INSOLVENCY AND BANKRUPTCY CODE, 2016 

A welcome step and opportunities for practicing professionals

CLICK HERE TO DOWNLOAD 

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A BRIEF NOTE ON COMPARISON BETWEEN REBATE AND REFUND OF DUTY

A BRIEF NOTE ON COMPARISON BETWEEN REBATE AND REFUND OF DUTY UNDER THE INDIRECT TAXATION

Rule 18 of the Central Excise Rules, 2002 provides for Rebate of duty, it states that Central Government may by notification in the official gazette grant rebate of Duty paid on excisable goods (Final goods), or duty paid on material (input) used in manufacturing process or manufacture of goods.

However the same is subject to some conditions or limitations and procedure. Government has issued a notification in which it has specified the conditions and procedure to be followed to claim rebate of duty. (Please refer Notification No. 19/2004 and 42/2001 for condition and procedure)

For instance: In case, an item has been manufactured in India and excise duty on the same has been paid by the manufacturer and in case this item is exported then exporter can claim rebate of duty. Therefore, it can said that person who bear the burden of duty (i.e., manufacturer) and the person (i.e., 

Exporter) who actually claim the rebate may be different. Rebate is a synonym of refund.

All provision regard rebate of duty has been articulated as under:

On the other hand, Refund of duty has been prescribed under Section 11B of the Central Excise Act, 1944. The definition of refund includes rebate of duty on excisable goods which are exported outside India.

Refund of duty can be claimed on import as well as export of goods, there are certain circumstances like duty paid in excess of what was actually leviable, when duty is provisionally assessed and in case of pilferage (petty theft) of goods.

The Application of refund shall be filed within 1 year in specified Form to AC/DC from the relevant date.

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BUDGET 2017-18 HIGHLIGHTS: TAX CUTS, LIMITS ON POLITICAL FUNDING IN ARUN JAITLEY’S BUDGET

BUDGET 2017-18 HIGHLIGHTS: TAX CUTS, LIMITS ON POLITICAL FUNDING IN ARUN JAITLEY’S BUDGET

This year, the Finance Minister presented a budget of Rs 21,47,000 crore which is 8.6% higher than Rs 19,78,060, the last year’s financial roll out.

The fiscal road-map Budget 2017 for the year 2017-18 was presented by Finance Minister Arun Jaitley on Feb 1st in Parliament. This year, the Finance Minister presented a budget of Rs 21,47,000 crore which is 8.6% higher than Rs 19,78,060, the last year’s financial roll out. Last year, the allocation of budget for the economic year 2016-17 was 10.8% higher than Rs 17,65,436 crore which was presented for the fiscal year 2015-16.

The Budget is based on 10 themes. These are:

1.      Double farm income in five years;

2.      Rural infrastructure;

3.      Youth skills and jobs;

4.      Social security, health, housing;

5.      Efficient and better living standards;

6.      Growth and stability;

7.      Digital economy;

8.      Public service through people’s participation;

9.      Prudent fiscal management;

10.  Tax Administration: Honouring the honest

The budget was prepared while keeping a focus on rural areas, infrastructure and poverty alleviation, yet maintain best standards of fiscal prudence. As per the budget 2017, the government will spend more on these sectors.

Let’s look at the highlights of the Budget 2017:

• Total allocation: Rs 21,47,000 crore;
•  Rs 2.74 lakh crore to Defence excluding pension;
• Rs 8,000 crore to be allocated to dairy processing infrastructure fund which will be set up under NABARD;
• Setup of mini labs by qualified local entrepreneurs in all 648 Krishi Vigyan Kendras Mini;
• Rs 10 lakh crore set as agricultural loans to farmers in 2017-18;
• Rs 48,000 crore to MNREGA which is 23% higher than Rs 37,000 which was allocated to MNREGA last year;
• 1 crore house by 2019;
• Rs 23,000 crore allocation to PM Ayas Yojana which is was Rs 15,000 crore in last budget;
• 100% village electrification by May 1, 2018;
• Pipe to water supply to open-defecation villages;
• Initial corpus of Rs 5,000 crore to micro-irrigation fund which will b set up by NABARD to achieve goal of ‘Per Drop More Crop’;
• Rs 187,223 crore to Rural, Agricultural and allied sectors which is 24% higher than last year’s allocation to the sector;
• Colleges will be given autonomous status;
• Science will be given focus;
• For Youth, introduction of a system of measuring annual learning;
• 5,000 PG seats for medical sciences;
• 2 Medical sciences centres in Jharkhand and Gujarat;
• Rs 38,800 to Rs 52,000 allocation to Scheduled Castes;
• For senior citizens, Aadhaar cards to have healt condition;
• Rs 64,000 crore to highways which is 9.8% increase from last year’s Rs 57,676 crore;
• Rs 2.41 lakh crore to Transport; Rs 10,000 crore to Bharat Net Project;
• Rs 10,000 crore to re-capitalisation of banks;
• Capital gains tax to be exempted for persons holding land from which land was pooled for creation of state capital of Andhra Pradesh;
• Rs 37,435 crore to scientific ministry;
• Advance tax on personal Income tax increased by 34.8%;
• 5% reduction on Income tax for small companies with an annual turn over of Rs 50 crore;
• Basic customs reduced from 5% to 2.5% on LNG terminals;
• Minimum Alternative Tax removed;
• 2.5% reduction on basic customs duty on LNG;
• Rs 2000 limit on cash donations to charities;
• No cash transaction above Rs 3 lakh;
• Reduction on rate of taxation to those with income between 2.5 lakh to 5 lakh from 10% to 5%;
• 15% surcharge on incomes above Rs 1 crore to continue;
• 10% surcharge for those with annual income of Rs 50 lakh to 1 crore;

Railways:

• Rs 100,000 crore to rail safety fund which will be created in next five years;
• Bio-toilets in Indian Railway coaches; 3,500 railway lines will be commissioned;
• No service charges on railway e-tickets;
• More jobs for youth.

Apart from this, Foreign Investment Promotion Board will be out in 2017 for an easier FDI regime. Arun Jaitley also said that Mission Antyodaya will be launched to bring one crore households out of poverty and to make 50,000 Gram Panchayats poverty-free. 20 lakh Aadhaar-based swipe machines will be put up by the year 2020.

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