Following are the Announcements:
MSME measures
2. Subordinate Debt for stressed MSMEs (which are NPA or are stressed) - 20k Cr (4k Cr contribution of Govt to CGTMSE)
3. Fund of funds to be created for equity infusion (those which are viable) - 50k Cr
4. Definition of MSMEs being changed in favor of MSMEs. Limits on investments to be revised upwards. Additional criteria based on turnover also will be introduced. Differentiation between manufacturing and service units to be removed
Micro units - Investments up to 1 Cr + Turnover up to 5 Cr
Small units - 10 Cr + 50 Cr
Medium units - 20 Cr + 100 Cr
5. Government tenders up to 200 Cr will no longer be on a global tender basis. Global tenders will be disallowed for up to 200 Cr. This will make MSMEs eligible to participate in Government purchases
6. Post COVID, e-market linkage to be provided for all MSMEs. Receivables by MSMEs from the Government will be cleared in the next 45 days
EPF Measures
7. Liquidity relief for all EPF establishments (less than 100 employees with 90% drawing less than 15k). 12% of employer contribution and 12% employee contribution was borne by Government for March April and May. 3 months extra support to be provided by contributing a total 24% for June July and August - 2.5k Cr
8. For other establishments, employers need to contribute 10% (vs 12% earlier) to EPF. Not applicable to Govt. and PSU enterprises - 6.75k Cr liquidity
NBFC Measures
9. 30k Cr liquidity scheme through Investment-grade debt papers of NBFC, HFC, and MFI fully guaranteed by GoI.
10. 45k Cr through partial credit guarantee scheme scope expansion. AA-rated papers and below including unrated papers will be included under the scheme. First 20% loss to be borne by GoI.
Discoms measures
11. One time Emergency liquidity infusion - 90k Cr to all discoms against all receivables. GenCos should give rebates to discoms for passing on to consumers
Contractors
12. Ongoing public works - Concessional period to be extended by 3-6m for contractors. Govt agencies will partially release bank guarantees for partially completed contracts
Real Estate
13. Urban Development Ministry to issue advisories for regulators to announce COVID 19 can be used 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 6m without specific applications for it
Tax Measures
14. TDS / TCS rates reduced by 25% on non-salaried payments effective tomorrow up to 31 March 2021. Will apply to all payments - 50k Cr additional liquidity
15. All pending refunds to charitable trusts and non-corporate taxpayers (but including LLP) will be issued immediately
16. Due date for all income tax returns to be 30 November 2020 and tax audit due date to be 31 October 2020
17. Assessments getting barred on 30 September 2020 will get barred on 31 December 2020.
Cases getting barred on 31 March 2021 will get barred on 30 September 2021
18. Vivaad se Vishwaas scheme extended up to 31 December 2020 without any extra payments.
1) The government announces Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs.
2) To provide stressed MSMEs with equity support, the Government will facilitate the provision of Rs. 20,000 cr as subordinate debt.
3) To provide stressed MSMEs with equity support, the Government will facilitate the provision of Rs. 20,000 cr as subordinate debt.
4) Definition of MSMEs gets a revision, Investment limit to be revised upwards, additional criteria of turnover also being introduced
The definition of MSMEs changed to help them continue to receive benefits. The investment limit that defines a MSME has been hiked significantly. Additional criteria based on turnover size being introduced. Differentiation between mg and service MSMEs being removed.
5) Unfair competition from foreign companies to become a thing of the past; Global tenders to be disallowed in Government procurement up to Rs 200 crores
Global tenders disallowed for tenders up to Rs 200 Cr for government procurement. Move is a booster shot for MSME business prospects and bid for government contracts. In effect, MSMEs get preference in all central govt businesses up to Rs 200 cr.
6)Govt of India and Central Public Sector Enterprises will honor every MSME receivable in the next 45 days.
Seamless e-market linkages across the board will be provided to MSMEs, considering their inability to participate in trade fairs due to #COVID19.
7) It has been decided to reduce the statutory PF contribution of both employer and employee to 10% each from existing 12% each for the next 3 months for all establishments covered by EPFO
8) To provide more take-home salary for employees and to give relief to employers in payment of PF, EPF contribution is being reduced for Businesses & Workers for 3 months, amounting to a liquidity support of Rs 6750 crores.
9) Government launches a Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs
10) Government announces Rs 45,000 crore liquidity infusion through a Partial Credit Guarantee Scheme 2.0 for NBFCs
11) To give a fillip to DISCOMs with plummeting revenue and facing an unprecedented cash flow problem, Government announces Rs. 90,000 Crore Liquidity Injection for DISCOMs
PFC/REC to infuse liquidity of Rs 90,000 cr to DISCOMs against receivables. Loans to be given against State guarantees for the exclusive purpose of discharging liabilities of Discoms to Gencos. Central Public Sector Generation Companies to give rebate to Discoms
12) In a major relief to contractors, all Central agencies to provide an extension of up to 6 months, without cost to contractor, to obligations like completion of work covering construction and goods and services contracts.
13) will advise States/UTs and their Regulatory Authorities to extend the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020 without individual applications
14) TDS reduces by 25% from tomorrow till March 31, 2021
15) Due date of income tax return filing is extended .. from 31st July to 30th Nov and Tax Audit filling from 30th Sept to 31st October
16) Other Tax Measures
2 Comments
Will the MSME benefits be available to the unit who wants to register now?
ReplyDeleteYes
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