India Advocacy

The Indian government is gearing up to introduce a significant amendment bill in Parliament, with the aim of restructuring the Food Safety and Standards Authority of India (FSSAI). Health Secretary Sudhansh Pant announced this impending overhaul, signifying a comprehensive transformation of FSSAI’s functioning and jurisdiction.

Revamping the FSSAI: A Vital Initiative: The health ministry has put forth a series of proposed amendments to the Food Safety and Standards (FSS) Act of 2006, seeking to modernize and strengthen the existing framework. These amendments were initially opened for public comments in September 2020, reflecting a commitment to a more inclusive and collaborative approach.

The Path Ahead: Health Secretary Sudhansh Pant, who also serves as the chairperson of FSSAI, expressed optimism about the forthcoming journey. He anticipates the swift introduction of the “food safety and standards amendment) bill in Parliament, a move that carries significant implications for India’s food safety and regulatory landscape.

Enhancing Food Safety and Standards: The proposed amendments are expected to address various facets of food safety, quality, and standards in the country. With India’s diverse and growing food industry, the revamp aims to align FSSAI with evolving international best practices and emerging challenges.

Conclusion: The impending amendment bill for the Food Safety and Standards Authority of India (FSSAI) reflects the government’s commitment to ensuring the highest standards of food safety and regulation in India. This legislative effort will play a pivotal role in reshaping the food safety landscape and promoting public health and consumer confidence.

Payroll preparation is a critical aspect of managing a Small and Medium-sized Enterprise (SME). It involves numerous components that are vital for ensuring compliance and smooth operations. Accurate categorization of employees, adherence to wage regulations, and timely payments are essential for the well-being of an SME. In this article, we explore the key challenges and considerations that SMEs should promptly address in the realm of payroll preparation.

Challenges in the Dynamic SME Landscape: In India, the SME sector is expanding rapidly, encompassing diverse industries. With workforces typically ranging from 50 to 250 employees, SMEs operate within single cities or across a few. Payroll issues in this dynamic environment can significantly impact an SME’s ability to attract and retain talent, maintain compliance, and safeguard its reputation.

The Importance of Compliance: While SMEs may enjoy government incentives, non-compliance or delays in compliance are not tolerated, especially concerning employees. Effective payroll management involves multiple critical components, starting with accurate employee categorization based on industry and location, which directly influences compensation and benefits.

Ensuring Legal Compliance: Adhering to minimum wage regulations, proper compensation structuring, and timely distribution of statutory bonuses are crucial. Precise attendance tracking, efficient leave management, and registration of employees under statutory programs such as Provident Fund (PF) and Employee State Insurance Corporation (ESIC) are vital steps. Timely salary processing, employee access to financial details, and accurate accounting records are necessary for compliance and employee satisfaction.

Leveraging Technology: SMEs can streamline these processes by implementing software solutions, simplifying and automating tasks. These tools enhance transparency and efficiency in ongoing payroll management.

Education for Compliance: Understanding payroll compliance is equally essential. Government initiatives, labour authorities, and industry forums offer free training and seminars to educate SME participants. These programs emphasize structured payroll preparation, adherence to employee and social compliances, and government schemes and benefits.

The Consequences of Non-Compliance: Non-compliance can lead to heavy penalties, affecting the SME’s finances and reputation. It may also deter potential clients during due diligence processes.

Conclusion: Addressing immediate payroll concerns is paramount for SMEs. Compliance and efficient payroll preparation contribute to financial stability, legal adherence, and employee satisfaction. Leveraging technology and participating in educational programs can empower SMEs to thrive in a dynamic business landscape while avoiding the repercussions of non-compliance.

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of India’s economy, contributing over 26.83% to the GDP. Despite their critical role in local development and job creation, many MSMEs face challenges in accessing financial services, particularly credit. Traditional institutions often struggle to serve them due to remote locations and perceived lack of creditworthiness. A joint report by TransUnion CIBIL and SIDBI revealed that out of India’s 630 lakh MSMEs, only 250 lakh had obtained credit from formal sources.

Open Network Platforms: Transforming Financial Inclusion Open network platforms offer a transformative solution to this credit gap. They empower MSMEs to aggregate and manage their financial data efficiently, constructing a robust digital financial record. By securely sharing this data with lenders, MSMEs provide a comprehensive financial view, facilitating more informed credit assessments. These platforms bridge the gap between MSMEs and formal financial institutions, enabling access to once-distant credit and financial services. Initiatives like the Account Aggregator (AA) framework, Open Network for Digital Commerce (ONDC), and Open Credit Enablement Network (OCEN) drive the expansion of digital public infrastructure platforms in India.

Account Aggregators (AAs): Streamlining Credit Assessment Account Aggregators (AAs) play a pivotal role in empowering MSMEs to efficiently manage their financial data. They seamlessly combine data from various financial sources, expediting credit assessments and offering personalised financial solutions based on precise insights. AAs enable MSMEs to showcase their creditworthiness through consolidated transaction records, facilitating astute financial decisions.

Open Credit Enablement Network (OCEN): Democratizing Credit Access OCEN, introduced in June 2021, aims to democratize credit access and enhance financial inclusion. It reduces friction in financial processes, providing customised credit offerings and simplifying loans, ultimately accelerating MSME growth and economic expansion.

Open Network for Digital Commerce (ONDC): Revolutionizing Credit Access ONDC focuses on streamlining credit transactions for MSMEs, offering an integrated platform that simplifies credit-seeking processes through comprehensive creditworthiness assessment. It empowers MSMEs with seamless access to funds, enhancing service provision without requiring additional working capital.

Conclusion: Open network platforms are revolutionizing the financial landscape for MSMEs in India. They enable MSMEs to access credit and financial services with ease, ultimately driving economic growth, promoting financial inclusion, and empowering the last mile of economic development. These platforms are instrumental in unlocking the full potential of MSMEs and fostering inclusive economic success as India strives to reach a $5 trillion economy.

India has witnessed an unprecedented surge in income tax return (ITR) filings, with a record-breaking 76.5 million ITRs filed for the assessment year 2023-24 (FY23). This marks a remarkable 11.7% increase compared to the 68.5 million returns filed for the assessment year 2022-23 (FY22) by the respective due date of October 31. The tax department disclosed these impressive figures, highlighting the nation’s commitment to tax compliance.

All-Time High ITR Filings: The total number of ITRs filed during this fiscal year across all assessment years reached a staggering 78.5 million, setting yet another all-time high record. In the preceding fiscal year 2022-23, approximately 77.8 million ITRs were filed, emphasizing the consistent growth in tax compliance.

Efficient E-Filing Portal: During the peak filing days, the e-filing portal successfully managed the heavy traffic, ensuring a seamless experience for taxpayers and tax professionals. This robust online platform played a pivotal role in accommodating the surge in ITR submissions.

Exceptional Support and Assistance: The tax department went the extra mile in assisting taxpayers through various channels. Their helpdesk provided support through inbound calls, outbound calls, live chats, Webex sessions, and co-browsing sessions. Furthermore, the department proactively resolved queries received via their Twitter handle through Online Response Management (ORM). This real-time assistance helped taxpayers and stakeholders navigate various tax-related issues.

Conclusion: The surge in ITR filings in India, with a record 76.5 million returns for the assessment year 2023-24, underscores the nation’s dedication to tax compliance. The efficient e-filing portal and exceptional support from the tax department have played a significant role in this achievement, ensuring a seamless and hassle-free experience for taxpayers and tax professionals. This record-breaking trend in ITR submissions is indicative of India’s commitment to fiscal responsibility and transparency.

In a significant move to modernize the regulation of patent applications and streamline their processing, the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, unveiled the “Draft Patents (Amendment) Rules, 2023” on August 22, 2023. These rules are poised to bring about substantial changes to the existing framework, which has been governed by the Patents Rules of 2003 (2003 Rules) for nearly two decades. The inception of the 2003 Rules marked a pivotal transition, replacing the preceding Patents Rules of 1972.

DPIIT’s Vision for Patent Reform: The DPIIT’s introduction of the “Draft Patents (Amendment) Rules, 2023” is a crucial step towards patent reform in India. These rules are designed to adapt to the evolving landscape of innovation and intellectual property. As the technology and business landscape continue to transform rapidly, the DPIIT aims to ensure that India’s patent system remains efficient and conducive to innovation.

Key Objectives of the Amendment: The proposed amendments seek to enhance the efficiency and transparency of patent processes, aligning them with contemporary global standards. Furthermore, they are expected to simplify patent procedures and address potential bottlenecks that inventors and businesses may face during the patent application and approval stages.

Modernizing India’s Patent Regime: The release of the “Draft Patents (Amendment) Rules, 2023” underscores India’s commitment to modernizing its patent regime. These amendments are anticipated to create a more robust intellectual property environment, fostering innovation and economic growth in the country.

Conclusion: The DPIIT’s notification of the “Draft Patents (Amendment) Rules, 2023” signals a promising transformation in India’s patent ecosystem. As the nation adapts to the demands of the 21st century, these proposed changes aim to facilitate a smoother and more efficient patent application and approval process while supporting innovation and economic development.

The News Media Industry plays a pivotal role in informing the public, but it also faces unique challenges such as the need to balance the expectations of readers and advertisers while adhering to governmental regulations. ISO Certification is becoming increasingly important for media organizations to uphold editorial independence and ensure high-quality content delivery. In this article, we explore the reasons behind ISO Certification for the News Media Industry and its numerous benefits.

ISO Certification for the News Media Industry: Meeting Unique Challenges Biased News and Threats: The industry often grapples with biased reporting and threats, making it essential to uphold journalistic integrity.

Overcoming Editorial Challenges: ISO Certification, such as ISAS MEDIA9001, enables media professionals to set standards for editorial independence and the public interest.

Benefits of ISO Certification in India for News Media: Quality News Production: ISO Certification ensures the production of quality news content, fostering the long-term viability of media while prioritizing public service.

Strategic Objectives: Media companies can showcase their commitment to quality at all levels, emphasizing their dedication to serving society.

Performance Evaluation: ISO Certification 9001:2015 facilitates continuous performance evaluation, enabling media organizations to enhance their operations.

Transparency in Content: ISO Certification helps maintain a clear separation between advertising and editorial content, ensuring transparency and editorial independence.

Distinguishing Opinion and Fact: ISO Standards assist in distinguishing between opinion and fact, crucial in the world of digital media.

Relevant ISO Certifications for News Media: ISO 9001:2015 Quality Management System: This widely-recognized certification reflects a commitment to excellence, fostering user satisfaction, team building, staff commitment, corporate learning, innovation, research, and informed decision-making.

ISO 27001 — Information Security Management: Given the digital age’s data vulnerabilities, this certification focuses on safeguarding information against privacy breaches, fraud, and malicious attacks.

In conclusion, ISO Certification is indispensable for the News Media Industry, enhancing credibility, transparency, and commitment to delivering unbiased, high-quality news while ensuring data security in an increasingly digital environment.

In a significant development for homebuyers in Tamil Nadu, the state government has introduced a flat 9% registration charge for property registrations. This is a substantial increase, resulting in buyers paying nearly 50% more compared to the previous system. Previously, property registrations were conducted in two phases – one for the Undivided Share of Land (UDS) at a 9% registration fee and another for construction agreements with a 4% fee.

The move to a uniform 9% registration charge will impact the overall cost of property transactions, affecting both individual buyers and the real estate sector in the state. The decision to discontinue the two-tiered system is part of the state government’s efforts to boost revenue generation.

This change in registration charges comes at a time when the real estate sector is already facing challenges due to the economic impact of the COVID-19 pandemic. Homebuyers and developers are expected to face increased financial burdens as a result of this decision.

The increase in registration charges in Tamil Nadu underscores the importance of staying informed about changing government policies and their potential financial implications, especially when it comes to significant financial transactions like property purchases.

The Employees’ Provident Fund Organization (EPFO) has taken significant steps to improve its operations and transparency. During EPFO’s 71st Foundation Day, the board approved a Communication Framework Document designed to facilitate the timely dissemination of information within the organization and to stakeholders. This framework will enhance communication and ensure that vital information is readily available.

In addition to this, the board also gave the green light to the Draft Audit Manual. This manual aims to standardize auditing procedures, offering a valuable resource for employee training, streamlining decision-making processes, and consolidating audit-related information. The approval of this manual will contribute to more consistent and effective auditing practices within the EPFO.

Union Minister for Labour & Employment, Bhupender Yadav, and Union Minister of State for Labour & Employment, Rameshwar Teli, inaugurated the Foundation Day event. Minister Yadav emphasized the need for EPFO to become a hassle-free and technology-driven organization, streamlining processes for both the EPFO and its members. He also expressed satisfaction with EPFO’s decision to offer an 8.15% interest rate this year, which has already been credited to over 24 crore accounts. These initiatives reflect EPFO’s commitment to serving its stakeholders more efficiently and transparently.

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 206/18/2023-GST dated October 31, 2023, providing essential clarifications concerning the applicability of Goods and Services Tax (GST) on specific services. These clarifications are in response to recommendations made during the 52nd meeting of the GST Council on October 07, 2023.

Clarification 1: Same Line of Business

The first issue addressed in the circular pertains to whether ‘same line of business’ in the context of passenger transport service and renting of motor vehicles includes leasing of motor vehicles without operators. The circular clarifies that GST at a rate of 5% with input tax credit applies to transport of passengers and renting of motor vehicles with operators in the ‘same line of business.’ However, leasing of motor vehicles without operators, categorized differently, attracts GST and/or compensation cess at the rate applicable to the sale of motor vehicles.

Clarification 2: GST on Electricity Charges

Doubts were raised concerning the GST applicability on reimbursement of electricity charges received by real estate companies, malls, airport operators, etc., from their lessees or occupants. The circular clarifies that when electricity supply is bundled with renting immovable property or maintenance of premises, it is considered a composite supply. In such cases, the GST rate applicable is based on the principal supply, which is the renting of immovable property and/or maintenance of premises.

Clarification 3: GST on Job Work for “Malted Barley”

The third clarification pertains to job work for the conversion of barley into malt and whether it attracts GST at 5% as applicable to food products or 18% as applicable to alcoholic liquor production. The circular explains that irrespective of the end use, converting barley into malt falls under “job work in relation to all food and food products” and attracts 5% GST.

Clarification 4: District Mineral Foundations Trusts (DMFTs)

The circular addresses whether District Mineral Foundations Trusts (DMFTs) set up by State Governments are considered Governmental Authorities, making them eligible for GST exemptions. It is clarified that DMFTs work for the welfare of individuals, families, and communities affected by mining operations, similar to functions entrusted to Panchayats and Municipalities. Therefore, DMFTs are eligible for the same GST exemptions as other Governmental Authorities.

Clarification 5: Exemption for Services to CPWD

The final clarification pertains to the exemption from GST for services and composite supplies related to horticulture works when the value of goods constitutes less than 25% of the total supply value, provided to the Central Public Works Department (CPWD). Such services and supplies are eligible for exemption as they relate to functions entrusted to Panchayats and Municipalities under the Constitution.

These clarifications provide guidance on the GST treatment of various services and aim to reduce ambiguity and ensure uniform compliance within the tax framework.

The stock price of Gas Authority of India (GAIL) experienced fluctuations in the recent past. Over the last five days, it dropped by 0.42%, while in the last month, it decreased by 4.80%. However, the stock exhibited a positive trend in the last six months, gaining 9%, and impressively, over the last year, it surged by 29.10%.

Q2 FY24 Results

GAIL recently reported robust financial performance for the second quarter of FY24, with a profit of Rs 2,442.18 crore. This figure marks a substantial increase of 35.3% compared to the same period in the previous year when the profit stood at Rs 1,804.61 crore. Although the company posted lower revenue from operations at Rs 33,049.68 crore, down by 14.7% from the second quarter of FY23, the profit beat expectations.

Analyst Recommendations

Market analysts and experts are offering optimistic views on GAIL’s future. The company’s EBITDA exceeded estimates, reaching Rs 3,490 crore, indicating a 44% increase quarter-on-quarter. GAIL’s PAT (Profit After Tax) also showed strong growth, with a 70% increase quarter-on-quarter, reaching Rs 2,400 crore.

Future Outlook

GAIL’s pipeline utilization increased to 52%, driven by growing domestic demand, and the company foresees a further increase in transmission volumes, with a target of 132 mmscmd by FY25. Analysts anticipate a 4.8% to 4.5% compound annual growth rate (CAGR) in volume growth over FY24-26 in both the transmission and trading segments.

Investment Recommendations

Given GAIL’s promising performance and the potential for growth, experts are recommending buying the stock. It is anticipated that high oil prices will benefit GAIL’s LPG and trading segments in the second half of FY24.

The recommended target price for GAIL is Rs 139, implying a 15% upside potential after the recent corrections. However, it’s essential for investors to consult with their investment advisors, as capital market investments are subject to regulatory rules and regulations.

(Disclaimer: The investment recommendations provided in this report are made by respective research analysts and brokerage firms. FinancialExpress.com assumes no responsibility for their investment advice, and investors are advised to consult with their investment advisors before making any investment decisions.)