MM TAX CLUB

The Government is cognizant of the importance of supply chain and effective logistics for improved resilience in domestic production and trade.

In this regard, Government of India has taken several measures to strengthen supply chains including logistic ecosystem. PM Gati Shakti National Master Plan (NMP) was launched on 13th October 2021 for multimodal infrastructure planning, with a ‘whole of government approach’. PM Gati Shakti NMP is a GIS-enabled platform that integrates data layers of the infrastructure of roads, railways lines, ports, inland waterways, telecom lines, power lines, etc. onto a single platform and enables comprehensive planning for multimodal logistics.

To complement PM Gati Shakti NMP, the National Logistics Policy (NLP) was launched on 17th September 2022 for efficiency in services by streamlining processes in logistics sector through Comprehensive Logistics Action Plans (CLAP), including development of human resources, adoption of digital technologies such as Unified Logistics Interface Platform (ULIP) and Logistics Data Bank (LDB). ULIP integrates 33 logistics related digital systems across Ministries, while LDB is operational to track and trace EXIM containers.

In addition, a series of reforms have been taken to promote investments and manufacturing in the country, such as a liberalised FDI policy, introduction of PLI Schemes in key sectors, reduction in corporate tax, Foreign Trade Policy 2023 with focus on improving ease of doing business through measures for reduction in compliance burden, Make In India, One District One Product initiative, District As Export Hub initiative along with other business reforms. Further, the existing Free Trade Agreements (FTAs) are ensuring supplies and market access to the manufacturing sector on preferential terms.

Programmes like Bharatmala and Sagarmala, Trade Infrastructure for Exports Scheme (TIES), Setting up of Industrial Parks and development of Industrial Corridors etc. also have been taken up to facilitate holistic infrastructure planning and accelerated economic development of the country.

At the international front, amongst others, apart from taking initiatives such as the ‘G20 Generic Framework for Mapping GVCs’, which will help countries identify opportunities for sectors and products critical for building resilience within GVCs,  Government of India has also become signatory to the Indo-Pacific Economic Framework for Prosperity Agreement relating to Supply Chain (an initiative of 14 Member countries) and also part of the Supply Chain Resilience Initiative (SCRI) with Japan and Australia to build collective, long-term resilient supply chains based on international partnerships.

This information has been provided by the Union Minister of State for Commerce and Industry, Smt. Anupriya Patel in a written reply in the Lok Sabha today.

In exercise of the powers conferred by section 118 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby directs to make the following amendments in the notification of the Government of India in the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes number S.O.4156 (E) dated 2nd September, 2022 published in the Gazette of India, Extraordinary, Part II, section 3, subsection (ii) dated the 5 th September, 2022, namely:-

 In the said notification,-

 (i) in the clause (a), for the words “Schedule below”, the words “First Schedule” shall be substituted; (ii) in clause (b), for the brackets, figure and words “(4) of the said Schedule”, the brackets, figure and words “(4) of the First Schedule” shall be substituted;

(iii) after clause (b), the following clause shall be inserted, namely:-

 “(c) Commissioner of Income-tax (Appeals) Unit as specified in column (3) of the Second Schedule shall be subordinate to the Principal Chief Commissioner of Income-tax specified in column (2) of the said Schedule:

Provided that no order shall be issued so as to interfere with the discretion of the Commissioner of Income-tax (Appeals) in exercise of his appellate functions.”;

(iv) after clause (c) as so inserted, for the heading “SCHEDULE”, the heading “FIRST SCHEDULE” shall be substituted;

(v) in the First Schedule, serial numbers 100, 101, 107, 108, 109, 128, 134, 135, 136, 137, 138, 139, 143, 152, 153, 154, 247, 259 and 260 and the entries relating thereto in columns (2) to (4) shall be omitted;

(vi) after the FIRST SCHEDULE, the following Schedule shall be inserted, namely:-

“SECOND SCHEDULE”

2. This notification shall come into force from 22.01.2024

The Government has taken various measures including ongoing schemes to facilitate access to credit to MSMEs in the country. Some of these include the following:

•  
  • Prime Minister’s Employment Generation Programme (PMEGP) which is a major credit-linked subsidy program meaimed at generating self-employment;
•  
  • Pradhan Mantri Mudra Yojna (PMMY) for providing loans up to Rs. 10 lakh to the non- corporate, non-farm small/micro enterprises;
•  
  • PM Vishwa karma Scheme: A Central Sector Scheme with budget outlay of Rs. 13,000 crore for its implementation during the period of 2023-24 to 2027-28. The scheme envisages to provide end-to-end holistic support including credit support, to artisans and craftspeople who work with their hands, using tools, in the 18 trades covered.
•  
  • Strengthen credit delivery system and to facilitate the flow of credit to the Micro and Small Enterprise sector without the hassles of collateral and third party guarantee up to a maximum of Rs. 5 crore through Credit Guarantee Scheme for Micro and Small Enterprises;
•  
  • Launch of Udyam Assist Platform on 11.01.2023 to bring Informal Micro Enterprises (IMEs) under the formal ambit of MSME for availing the benefits under Priority Sector Lending;
•  
  • Inclusion of Retail and Wholesale traders as MSMEs for the purpose of availing Priority Sector Lending benefits, w.e.f. 02.07.2021;
•  
  • Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs;
•  
  • Trade Receivable Discounting System (TReDS) to facilitate the financing of trade receivables of MSMEs from corporate and other buyers including government departments and public-sector undertakings (PSUs) through multiple financiers electronically:
•  
  •  Rs. 50,000 crore equity infusion through Self Reliant India (SRI) Fund;
•  
  • Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), for businesses, including MSMEs was announced during the COVID-19 pandemic to fulfil the credit gap in MSMEs. The scheme was operational till 31.03.2023.

The key figures on the performance of Prime Minister's Employment Generation Programme(PMEGP) and Credit Guarantee Scheme for Micro and Small Enterprises during the last five years and the current year are

Given below:

Towards achieving the ‘Viksit Bharat’ objective, the Ministry of Micro, Small and Medium Enterprises implements various schemes for the benefit of MSME sector across the country in the areas of formalization, technological assistance, infrastructure development, credit support, sustainable practices, skill development and training and market assistance to MSMEs. The schemes/programmes inter alia include Prime Minister’s Employment Generation Programme (PMEGP), MSME Champions Scheme, Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE), Entrepreneurship Skill Development Programme (ESDP), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Procurement and Marketing Support Scheme (PMS) and National SC/ST Hub (NSSH).

In the recent past, Government has taken a number of initiatives to promote the MSME sector in the country, which inter alia include the following.

1. Revised criteria for classification of MSMEs to promote investment.
2. “Udyam Registration” for MSMEs, for Ease of Doing Business w.e.f. 01.07.2020.
3. Launch of Udyam Assist Platform (UAP) on 11.01.2023 to bring the Informal Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).
4. Roll out of Raising and Accelerating MSME Performance (RAMP) programme with an outlay of Rs. 6,000 crore over 5 years.
5. Launch of MSME Champions scheme with the objective to modernize MSMEs’ manufacturing processes, reduce wastages, encourage innovativeness, sharpen business competitiveness and facilitate their National and Global reach and excellence. Components under the MSME Champions scheme are MSME-Sustainable (ZED), MSME-Competitive (Lean) and MSME-Innovative. MSME Sustainable (ZED) Certification Scheme encourages MSMEs to improve their processes and systems to enhance quality and also move towards sustainability.
6. Expanding the network of Technology Centres across the country through ‘Technology Centre Systems Programme’ and ‘Establishment of new Technology Centres / Extension Centres’ to provide technology support to MSMEs, support import substitution and imparting high-end skilling.
7. Launching of an online Portal “Champions” in June, 2020 to cover many aspects of e-governance including redressing grievances and handholding of MSMEs.
8. Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme for business, including MSMEs.
9. Rs. 50,000 crore equity infusion through Self Reliant India Fund.
10. No global tenders for procurement up to Rs. 200 crores.
11. Inclusion of Retail and Wholesale traders as MSMEs on 02.07.2021.
12. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
13. As announced in Budget 2023-24, Rs. 9,000 crore has been infused in the corpus of CGTMSE to enable additional credit of Rs. 2 lakh crore with a reduced cost of credit.

As per the information received from Ministry of Statistics and Programme Implementation, the share of MSME Gross Value Added (GVA) in All India Gross Domestic Product (GDP) are as follows:

As per the information culled out from the Data Dissemination Portal of Directorate General of Commercial Intelligence and Statistics (DGCIS), the share of MSME related product exports in All India Exports during the last five years are as follows:

As per Udyam Registration portal (since inception on 01.07.2020 upto 30.01.2024), number of MSMEs registered under the National Industrial Classification (NIC) code 26305, ‘Manufacture of pagers, cellular phones and other mobile communication equipment’ is given below.

The Department of Commerce, Ministry of Commerce and Industry has informed that mobile phone manufacturing is predominantly characterized by large-scale operations. However, companies potentially classifiable as MSMEs are engaging in manufacturing feature phones in India. These companies primarily serve the lower end of the feature phone market. From a scenario where about 78% of the domestic demand by value was dependent on imports, the country has progressed to a stage where approximately 96% of mobile phones consumed domestically by value are now produced locally. This shift highlights the substantial growth in indigenous manufacturing capabilities.

The Department of Commerce, Ministry of Commerce and Industry has informed that currently, the core components of mobile phones, specifically active and passive components, are primarily being imported into India. Active components include semiconductors, diodes, and transistors and passive components include inductors, resistors, and capacitors. The import value of these core components is estimated to be approximately USD 15-18 billion per year.

This information was given by the Minister of State for Micro Small and Medium Enterprises, Shri Bhanu Pratap Singh Verma in a written reply to the Rajya Sabha today.

In exercise of the powers conferred by sub-section (3) of section 8 of the Recovery of Debts and Bankruptcy Act, 1993 (51 of 1993), the Central Government hereby authorises the Chairperson of the Debts Recovery Appellate Tribunal, Mumbai to discharge also the functions of the Chairperson of the Debts Recovery Appellate Tribunal, Delhi for deciding the appeal in the matter of ‘M/s Standard Chartered Bank & Anr. Vs M/s SCK Infratech Pvt. Ltd. & Anr. (Appeal No. 233 of 2022 arising out of S.A. No. 450 of 2022 (DRT-I, Delhi) and its connected proceedings) in addition to his being the Chairperson of the Debts Recovery Appellate Tribunal, Mumbai. 

[F. No. 09/22/2023-DRT]