In a strategic move to fortify its Micro, Small, and Medium Enterprises (MSME) sector, the Kerala government has unveiled a comprehensive insurance initiative. The pioneering scheme, facilitated through a Memorandum of Understanding (MoU) with four public sector insurance companies, aims to shield MSMEs from diverse risks, fostering a resilient business environment.
Reimbursement Reinforcement
Under the scheme, MSMEs stand to benefit from a substantial advantage—50% reimbursement of their annual premium. This financial safeguard is poised to enhance confidence within the sector and encourage its growth amid a competitive business landscape.
Digital Boost with Web Portal Launch
Industries Minister P. Rajeeve marked the occasion by launching a dedicated web portal for the scheme (http://msmeinsurance.industry.kerala.gov.in/). This online platform is designed to streamline the insurance process, making it more accessible for MSMEs.
Catalyzing Confidence and Coverage
With over three lakh MSMEs in Kerala, the government’s ambitious initiative seeks to address a critical gap, as only around 15,000 enterprises currently possess insurance coverage. The insurance scheme encompasses risks ranging from natural disasters and fire accidents to theft, accidents, and market fluctuations, providing a holistic protective umbrella.
Targeted Eligibility Criteria
MSMEs engaged in manufacturing, service, and trade sectors, holding UDYAM registration in Kerala and enrolled in the “Bharat Sookshma/Laghu Udyam scheme” with any of the four designated public sector insurance firms from April 1, 2023, onwards, are eligible for the scheme. The reimbursement extends to 50% of the annual premium, capped at ₹2,500.
Government Commitment to MSME Growth
The government’s proactive approach in fortifying MSMEs reflects its commitment to fostering a conducive business environment. By addressing the financial vulnerabilities that MSMEs face, the scheme is expected to catalyze their recovery from unforeseen risks, further fueling the state’s industrial and investment ecosystem.
The Life Insurance Corporation (LIC) has introduced a special revival campaign, providing policyholders with the opportunity to renew their lapsed policies. This campaign, which commenced on September 1, offers policyholders a window of opportunity until October 31, 2023, to revive their lapsed policies.
LIC’s Reminder to Policyholders: LIC is actively reaching out to its customers through messages, reminding them of the special revival campaign. Policyholders are encouraged to contact their nearest LIC branch or agent and take advantage of this opportunity to revive their policies, particularly Policy 102342937.
Concessions on Policy Revival: LIC is offering attractive concessions on policy revival to incentivize policyholders to renew their lapsed policies. The concessions are as follows:
1. For Premiums up to ₹1 Lakh:
Policyholders will enjoy a 30% rebate on late fee charges.
The maximum concession eligible is ₹3,000.
2. Premiums between ₹1 Lakh and ₹3 Lakh:
A 30% rebate on late fee charges is applicable.
The maximum concession allowable is ₹3,500.
3. Premiums exceeding ₹3 Lakh:
A 30% rebate on late fee charges is granted.
The maximum concession permitted is ₹4,000.
Conclusion: LIC’s special revival campaign is a golden opportunity for policyholders to reinstate their lapsed policies with attractive concessions. Whether the premium amount is modest or substantial, policyholders can benefit from this limited-time offer to secure the future and financial well-being of themselves and their loved ones. It’s a win-win opportunity to revive and protect your insurance coverage.
The Income Tax (I-T) department is expected to disburse tax refunds amounting to INR 2 trillion during the second half of the current financial year, contributing to a potential slowdown in the growth of personal income tax (PIT) collections. While PIT collections experienced an impressive 31% growth in the first half, the higher refunds will likely increase the total refunds for FY24 to over INR 3.5 trillion, compared to slightly over INR 3 trillion in the previous year.
Impact on PIT Collections: The surge in refunds will affect the growth of gross PIT collections, reducing it to an estimated 17-18% for FY24. Despite the slowdown, this remains significantly higher than the Budget Estimate (BE) of 11.4%. This suggests that the PIT collection for the fiscal year is expected to reach around INR 9.5 trillion, surpassing the BE of INR 9.01 trillion.
Yearly Progress: From April to September of the current year, PIT collections after refunds reached INR 4.52 trillion, constituting about 50% of the BE for FY24. In the first half of the previous fiscal year, only 43% of the annual target was met.
Administrative Measures and Economic Activity: The I-T department’s administrative measures have led to robust PIT collections, promoting better tax compliance and detecting tax evasion. Additionally, economic buoyancy, especially in the services sector, has positively impacted tax revenues.
Enhanced Taxpayer Services: The I-T department has expedited the refund process in recent years to enhance taxpayer confidence. The efficient handling of the e-filing portal, coupled with record ITR filings, demonstrates the successful modernization of services. Moreover, helpdesk support has played a pivotal role in addressing taxpayer queries.
Advanced Technology for Tax Enforcement: The I-T department employs data analytics, artificial intelligence, and machine learning to identify tax evasion and mismatched income declarations. This technology-driven approach enables efficient detection of tax evasion, leading to improved tax compliance and timely payments.
Tata AIG General Insurance Company Limited has announced its collaboration with Air India to provide travel insurance to passengers on both domestic and international flights. The aim is to enhance the travel experience for Air India’s passengers, ensuring their journeys are safe and enjoyable.
Seamless Booking Process: This partnership enables passengers to easily purchase comprehensive travel insurance coverage while booking their flight tickets through Air India’s various booking platforms. Whether traveling within India or to international destinations, passengers can access tailored insurance options.
Statement from Tata AIG: Neelesh Garg, Managing Director and Chief Executive Officer of Tata AIG General Insurance Co. Ltd., expressed their commitment to offering simplified and customized travel insurance solutions. They emphasized the convenience of purchasing insurance during the flight booking process, making travel safer and more enjoyable for customers.
Statement from Air India: Nipun Aggarwal, Chief Commercial & Transformation Officer at Air India, highlighted the importance of this travel insurance initiative in protecting passengers against multiple risks. He emphasized the integration of insurance options into the booking flow on Air India’s website and contact centers, aiming to enhance the overall travel experience for passengers. The collaboration between Tata AIG and Air India reflects a shared commitment to safety and exceptional customer service.
The Income Tax Act, 1961, governs the rules for Advance Tax payment in the financial year when the corresponding income is earned, in contrast to the assessment year when the income is assessed for tax. Dr. Suresh Surana, Founder of RSM India, provides valuable insights into the Advance Tax rules for 2023-24.
Understanding Advance Tax: Advance Tax is a payment made by taxpayers during the financial year in which they earn income from various sources, such as salary, rent, and interest, among others. This tax is calculated based on the projected consolidated income for the financial year, considering applicable deductions, exemptions, TDS/TCS credits, and more.
Criteria for Advance Tax Payment: As per Section 208 of the Income Tax Act, individuals with an estimated tax liability of Rs. 10,000 or more for the year are required to pay Advance Tax. However, resident senior citizens aged 60 years or older, with no income from business or profession, are exempt from this requirement.
Quarterly Instalments: In general, taxpayers are expected to make Advance Tax payments in specified quarterly instalments, adhering to specified due dates. Failure to meet these deadlines may result in interest penalties.
Exception for Specified Professionals: Certain professionals, including doctors, lawyers, and architects who have opted for the presumptive scheme under Section 44AD or 44ADA of the Income Tax Act, have a distinct rule. They must pay their entire Advance Tax liability in a single instalment by the 15th of March in the relevant financial year, instead of following the quarterly instalment schedule.
These rules and exemptions under the Income Tax Act aim to streamline the process of Advance Tax payment, ensuring that taxpayers fulfill their tax obligations promptly and efficiently.
Businesses intending to establish commercial establishments or shops in India must adhere to the Shops and Establishments Act. This regulation is enacted at the state level, and therefore, its specifics can vary from one state to another. Nevertheless, the core principles are consistent across states, focusing on aspects such as employee working hours, annual leaves with wages, compensation, and the employment of women and children.
Varied Names, Common Objectives
Although the nomenclature may differ from state to state, the purpose remains the same. For example, in Bihar, it’s known as the Trade License; in Maharashtra, the Gumasta License; and in Delhi, UP, and Haryana, it’s referred to as the Shop and Establishment License.
Eligible Businesses Under the Act
The Shops and Establishments Act requires the proprietor or owner of commercial establishments and shops to register. Eligible entities include:
Charitable trusts, including unregistered ones.
Societies registered under the Societies Registration Act, 1860.
Businesses offering services or office work.
Establishments related to professionals such as medical practitioners, legal practitioners, architects, accountants, and more.
Journalistic and printing establishments.
Profit-oriented educational institutes.
Quarries and mines not governed by the Mines Act, 1952.
Premises where insurance, banking, brokerage, stocks, and shares business is conducted.
Cinemas and theatres.
Restaurants, hotels, cafes, clubs, and other eating establishments.
Public entertainment or amusement places.
Additionally, state governments can designate more establishments as eligible for registration under the Act.
Shops Defined
The Act categorizes shops as premises where:
Goods are sold, either wholesale or retail.
Services are rendered to customers.
Offices, godowns, store-rooms, workplaces, or warehouses, used in connection with trade or business.
Exemptions and Variances
Certain establishments and shops may be exempt from registering under the Shops and Establishments Act, depending on state-specific regulations. Exempted entities typically include government offices, transportation services, establishments caring for the infirm, and more.
The Act may also provide exceptions regarding opening and closing hours and weekly holidays for certain businesses such as medical shops, educational institutions, and food-related establishments.
It’s essential for businesses to understand the specific requirements of their state’s Shops and Establishments Act to ensure compliance. The Act aims to regulate and facilitate the smooth operation of commercial establishments and shops while safeguarding employee rights and working conditions.
The MSME Sustainable Certification Scheme is a transformative initiative that empowers Micro, Small, and Medium Enterprises (MSMEs) in India to embrace Zero Defect Zero Effect (ZED) practices. This scheme serves as a catalyst, motivating MSMEs to pursue ZED certification and excel as champions in their field.
Unlocking Productivity and Environmental Consciousness
Participation in the ZED certification journey offers MSMEs a multitude of benefits. These include heightened productivity, reduced wastage, improved environmental awareness, efficient resource utilization, energy savings, and expanded market reach.
Enhancing Competitiveness through Certification
ZED certification enhances the competitiveness of MSMEs by providing essential support, assessments, managerial guidance, and technological interventions. It motivates MSMEs to embrace best practices, standardize products, streamline systems, and foster a culture of excellence to bolster global sustainability.
Objectives of the Scheme
Promote the manufacturing of quality products using advanced tools and technology, emphasizing high productivity and minimal environmental impact.
Encourage the adoption of ZED practices and acknowledge successful MSMEs.
Foster higher ZED certification levels through graded incentives.
Create an ecosystem for ZED manufacturing, enabling exports and global competitiveness.
Raise public awareness of the demand for ZED products, driving market growth.
Identify areas for improvement, aiding government investment prioritization and policy decisions.
Incentives to Drive ZED Certification
Under the scheme, MSMEs receive substantial subsidies for ZED certification:
Micro-enterprises: 80% subsidy
Small enterprises: 60% subsidy
Medium enterprises: 50% subsidy
Additional subsidies of 10% are offered for SC, ST, and women entrepreneurs, as well as for MSMEs in specific regions and under development programs. A joining reward of Rs. 10,000 is provided upon taking the ZED pledge.
Certification Levels and the ZED Pledge
MSMEs can attain ZED certification at three levels: Bronze, Silver, and Gold. Upon taking the ZED pledge, MSMEs can proceed to achieve the certification level when they fulfill the specified requirements.
Application and Certification Process
The process involves registration on the MSME Sustainable (ZED) Certification website, fulfilling regulatory norms, uploading required documents, self-declaration, and remote or on-site assessments. Certification is valid for three years, after which MSMEs can reapply.
The MSME Sustainable Certification Scheme is a transformative platform that encourages sustainable practices, enhances competitiveness, and provides valuable incentives to MSMEs, driving their growth and contributing to a more sustainable future.
One of the most crucial decisions for any business in India is selecting the right company structure. Your choice not only influences operational efficiency but also ensures that you meet the necessary legal requirements. To start the registration process, it’s vital to understand the various business structures available in India.
Proprietorship Firm: Solo Operation
A proprietorship firm is a business run by a single individual. This structure suits small business owners with limited investments. The sole proprietor enjoys all the profits but is also personally liable for all business losses.
Partnership Firm: Shared Ventures
In a partnership firm, two or more individuals come together to establish and operate the business. Profits and losses are shared equally among the partners. This structure is regulated by the Partnership Act of 1932, making it ideal for small businesses with multiple owners.
One Person Company (OPC): Solo Entrepreneurship
Introduced in 2013, an OPC allows a single promoter to establish a company. This structure combines the benefits of corporate identity with sole proprietorship. It’s a favorable choice for small businesses seeking capital.
An LLP offers partners limited liability, meaning their personal assets are protected. It combines aspects of partnership firms and companies. It is suitable for businesses where partners want to limit their liability.
Private Limited Company (PLC): Corporate Entity
A PLC is a distinct legal entity, separate from its founders. Directors manage the company, and shareholders invest in it. It’s an ideal choice for medium to large businesses aiming to raise capital. PLCs are registered under the Companies Act of 2013.
Public Limited Company: Capital Raising
Established by seven or more members under the Companies Act of 2013, a Public Limited Company has a separate legal existence. Member liabilities are limited to their shareholdings, making it suitable for medium to large businesses looking to raise capital from the public.
Select the business structure that aligns with your business needs and proceed with the registration process to ensure legal compliance and operational efficiency.
For every business, staying up-to-date with the latest developments in the Goods and Services Tax (GST) landscape is crucial. The GST Council, Central Board of Indirect Taxes and Customs (CBIC), and the GST Network/portal frequently release updates that can impact your GST returns and compliance.
Timely Compliance: Your Key to Success
Ensuring 100% compliance with GST regulations is not just a good practice; it’s a necessity. To achieve this, businesses need to closely monitor the evolving GST guidelines. Compliance helps avoid penalties, audits, and other legal hassles.
E-Way Bills: Simplifying Transportation
E-way bills are an integral part of GST compliance, especially for businesses involved in transportation. Staying informed about the latest e-way bill requirements and regulations is essential to keep your supply chain running smoothly.
E-Invoicing Systems: Embracing Digital Efficiency
The adoption of e-invoicing has transformed the way businesses generate and manage invoices. Being well-informed about updates in the e-invoicing system is crucial for efficiency, accuracy, and compliance.
In conclusion, businesses that proactively track and adapt to GST updates issued by the CBIC, GST Council, and GST Network/portal are better positioned to navigate the complex world of GST compliance. Stay tuned to remain compliant and seize opportunities in the ever-evolving GST landscape.
The Government e-Market (GeM), an online platform for government procurement, is witnessing a substantial surge in the procurement of services, with expectations of reaching Rs 1.5 lakh crore in the fiscal year 2023-24. This impressive increase, as noted by GeM CEO P K Singh, reflects a significant expansion from the Rs 65,957 crore spent in 2022-23.
Top Buyers and Contributors: Various prominent entities, including Coal India, NTPC Ltd, ONGC, states like Gujarat, Uttar Pradesh, Delhi, Uttarakhand, Punjab, Nagaland, and ministries such as coal, power, defence, and finance, have emerged as leading buyers of services through GeM.
Historical Growth: Services procurement through GeM has shown remarkable growth in recent years. Starting at just Rs 3,069 crore in 2019-20, it surged to Rs 65,957 crore in FY23. The current fiscal year is anticipated to see services procurement skyrocket to Rs 1.5 lakh crore.
Key Service Categories: The services in high demand encompass a range of sectors such as manpower outsourcing, vehicle hiring, mine development and operations, handling, transport, insurance, IT, and medical services. Notably, GeM offers about 10 types of insurance services, including group mediclaim, assets, liability, motor, livestock, crop, and medical. The platform has facilitated direct engagement with insurance companies, eliminating the need for intermediaries.
Unique Services and Contributions: In addition to conventional services, GeM also witnesses growing interest in unique offerings such as leasing high-value medical equipment, market research/surveys, hiring chartered aircraft, examination services, and international logistics services.
Procurement Overview: Overall, GeM’s procurement statistics are impressive, with goods procurement reaching Rs 1.10 lakh crore and services procurement at Rs 90,000 crore. GeM caters to a vast network of government buyer organizations and sellers, encompassing over 63,000 government buyer organizations and more than 62 lakh sellers and service providers offering a diverse array of products and services.
GeM continues to play a pivotal role in enhancing transparency and efficiency in government procurement processes, ultimately benefiting both buyers and suppliers across the nation.
