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Karnataka MSME Leaders Meet Minister Shobha Karandlaje

 The Central government is actively addressing the challenges faced by micro and small-scale industries through various initiatives to strengthen the sector, Union Minister of State for MSME and Labour & Employment, Shobha Karandlaje, said on Sunday. Speaking at an event organised by the Karnataka Small-Scale Industries Association (KASSIA), she outlined several steps the ministry has taken to promote MSMEs across India. KASSIA also submitted a detailed memorandum outlining key issues faced by MSMEs in the state.

Among the key announcements were plans to establish a Centre of Excellence for upskilling at the National Small Industries Corporation (NSIC) in Peenya, potential inclusion of KASSIA in the National Board for MSMEs, and the introduction of four wage codes to create a National Wage Board. KASSIA President MG Rajagopal emphasised the need for a holistic approach to ensure the survival of MSMEs amidst economic challenges. The memorandum called for affordable technology, solar power subsidies, reforms in ESIC and EPFO policies, lower interest rates on MSME loans, and broader credit guarantee coverage to stimulate business growth. The event saw participation from industry leaders, office-bearers, and MSME representatives.

Union Minister Shobha Karandlaje’s address to Karnataka MSME leaders reflects the government’s ongoing focus on supporting small-scale industries through initiatives like upskilling, wage code reforms, and technology access. These efforts aim to address critical challenges faced by MSMEs, including credit availability and policy reforms. For MSMEs navigating complex regulations, Vakilsearch  offers tailored legal and compliance solutions. From accessing government schemes to ensuring regulatory compliance with wage codes, EPFO, and ESIC, we simplify processes to help your business thrive.

Government Plans Tax Cut on Marine Diesel Oil

The Union government is considers tax cut on Marine Diesel Oil (MDO) by bringing it under the Goods and Services Tax (GST) to lower costs for coastal and inland shipping, making these sectors more competitive. The Ministry of Ports, Shipping and Waterways (MoPSW) will work with the Ministry of Finance and state governments to explore tax reductions and potential incentives for the shipping sector, according to sources. Despite minimal revenue impact, states could be compensated for any losses incurred under the GST framework.

Marine fuel only constitutes about 1% of India’s total fuel consumption, which is expected to reach 238.95 million tonnes this fiscal year. Queries sent to the finance ministry and MoPSW were not immediately answered.

Rakesh Singh, Secretary of the ICC Shipping Association, explained that fuel costs represent approximately 40% of operational expenses for coastal shipping, and lowering taxes on MDO could significantly benefit the sector. Most coastal vessels use MDO, unlike larger intercontinental ships that use heavier bunker fuel, which has had a reduced GST rate of 5% since 2017. This reduction was implemented to make Indian shipping more competitive and easier to manage.

A shipping ministry official confirmed that the proposal to bring MDO under GST is under review, with data being collected to assess fuel usage in the sector. Approval from the GST Council will be required, and discussions with oil marketing companies are ongoing for further clarifications.

Singh emphasised that international case studies, particularly from Europe, show that government incentives are crucial for developing coastal and inland waterways. The MoPSW has initiated several projects under the Sagarmala programme, focusing on boosting coastal shipping and shifting cargo transport from road to waterways. Additionally, the ministry is developing roll on-roll off (ROPAX) services to reduce travel time and vehicular emissions. Over ₹14,500 crore has been allocated for coastal shipping projects, with another ₹2,900 crore set aside for cargo handling infrastructure. The Sagarmala programme also includes 38 inland waterways projects, such as the NW16 project, connecting to the Indo-Bangladesh Protocol Route.

The government’s move for tax cut on Marine Diesel Oil (MDO) aims to reduce operational costs and boost competitiveness in coastal and inland shipping. This initiative could have a transformative impact on the shipping sector, promoting greener, more cost-efficient modes of transportation, aligning with India’s Sagarmala programme.

Navigating tax reforms in sectors like shipping can be complex. Vakilsearch’s GST advisory team offers expert support to help you adapt seamlessly. From assessing the impact of tax reductions on marine fuel to ensuring full compliance with new regulations, we provide tailored solutions to keep your business ahead in the changing tax landscape. Rely on Vakilsearch’s comprehensive GST services for strategic planning and smooth sailing!

 

IAS Officer Sreedevi Appointed to Lead Probe into ₹1,400 Crore GST Scam

The state government’s decision to appoint IAS official T.K. Sreedevi as chairperson of a high-level committee to investigate the ₹1,400-crore GST Scam, which involves former Chief Secretary Somesh Kumar, has raised eyebrows.

Sreedevi, who had previously flagged the scam while serving as Commercial Taxes Commissioner, was transferred shortly after the city police filed a case against Somesh Kumar and others. Recently, Chief Secretary A. Shanti Kumari issued orders to form the committee and outlined its objectives, though the rationale for choosing Sreedevi, now Commissioner of Scheduled Castes Development, was not disclosed.

According to sources, after her transfer, Sreedevi reportedly lobbied with higher authorities to get an opportunity to substantiate her allegations against Somesh Kumar, which led to her appointment as head of the probe committee. Sreedevi had initially approached the police following internal departmental investigations, but her new role as chairperson has given the accused grounds to challenge the previous probe as incomplete.

This decision comes two months after the state government transferred the case from the city police to the Criminal Investigation Department (CID), with the Enforcement Directorate also launching its own investigation. A senior official commented that it is highly unusual for the government to appoint an officer who was transferred out of the department to investigate a fraud that occurred during their tenure, especially when another official now heads the department and the CID is already probing the case. The official suggested that, in such situations, the government would have been better off retaining Sreedevi as Commercial Taxes Commissioner and having her assist the investigating agencies.

Another controversy arose with the inclusion of R. Yedukondalu, a joint commissioner facing corruption allegations, on the probe committee. The government has asked the current Commercial Taxes Department Commissioner to investigate the allegations against Yedukondalu. Other members of the committee include Joint Commissioner E. Deepa Reddy and Nikhil Chakravarthy, Executive Director of the Telangana Industrial Infrastructure Corporation.

Sources indicated that the committee has already summoned officials and reviewed records. The committee’s mandate includes investigating the revenue losses identified in a forensic audit by C-DAC, reviewing the desk audit of cases involving masked GSTINs, and evaluating the preliminary inspection and audit findings. They are also tasked with identifying issues affecting tax revenues, tracking the audit process, and determining taxable demand. The probe will further examine the modus operandi, individuals involved, and the role of software developers. 

The core allegation is that certain taxpayers were deliberately excluded from routine checks by isolating them from the software analytics. This masking process, achieved through hard coding, removed several public sector undertakings (PSUs) and state-level enterprises—such as TG Beverages Corporation, GHMC, LIC, and Metro Rail—from scrutiny.

The appointment of IAS officer T.K. Sreedevi to lead the ₹1,400-crore GST scam investigation highlights the complexities of governance and internal accountability in large-scale fraud cases. The inclusion of an officer previously involved with the case adds layers of scrutiny, particularly in maintaining transparency and public trust.

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Tirupati Laddu Issue: Manufacturer Claims Their Ghee is Certified

A private dairy in Dindigul, which had supplied ghee for making Tirupati laddu, refuted claims that the ghee used was impure or substandard. The dairy stated that they had supplied ghee to the Tirupati Tirumala Devasthanam (TTD) as recently as June and July without any prior complaints. Speaking to the media, members of A.R. Dairy’s Quality Control team confirmed that while there were no issues raised by the Devasthanam, they had since halted supply. ‘In June and July, we dispatched four truckloads of ghee,’ they said, adding that they followed standard operating procedures, which included testing samples at government-recognised laboratories before dispatch.

When asked, the team confirmed they are no longer supplying to the Devasthanam but emphasised their 25-year history in the business, noting that their products are regularly tested at multiple levels in government-approved labs. The team also mentioned that the FSSAI officials periodically tested samples, and that their contribution to TTD’s ghee supply was only 0.1%.

On Friday, engineers from the Tamil Nadu Pollution Control Board (TNPCB) visited the dairy’s facility to collect water discharge samples. The officials confirmed that ghee samples would also be sent to a government-approved lab, and further actions would be based on the test results..

Quality assurance in food supply chains, especially for religious offerings like Tirupati laddu is crucial. Dairy manufacturers must maintain stringent compliance to ensure public trust and meet regulatory standards.

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Nokia Vs Amazon Patent Dispute: Court Ruling Favors Nokia

In a statement regarding a patent dispute, Nokia’s Chief Licensing Officer, Arvin Patel, announced that the Munich Regional Court ruled Amazon had been using Nokia’s patented video-related technologies in its streaming devices without a license. Nokia, a Finnish telecom company and patent holder, reported the German court’s decision on Friday.

Amazon, in response, disagreed with the ruling and expressed confidence that the issue would soon be resolved, without providing specific details. The company assured customers that the ruling would not impact existing users and that Fire TV devices would remain available on Amazon.

Amazon also noted it had licensed video patents from various companies but claimed Nokia demanded more than all other licensors combined and rejected what Amazon deemed a fair, market-rate offer.

In July, Amazon filed a lawsuit against Nokia in a Delaware federal court, accusing Nokia of infringing a dozen of its cloud-computing technology patents. Nokia had initiated legal action against Amazon in 2023, targeting the unauthorized use of its multimedia patents in Germany, India, the UK, the US, and the European Unified Patent Court.

Nokia stated it hoped Amazon would eventually comply and agree to a fair licensing deal. The German court declined to comment when contacted by Reuters. Patent dispute  like Nokia’s with Amazon are common in the tech world. Businesses relying on proprietary technologies should stay vigilant about licensing agreements to avoid legal battles that can disrupt operations.

Navigating complex patent dispute  requires expert legal counsel. Vakilsearch offers comprehensive intellectual property advisory services, ensuring your business is protected from potential patent infringements. Whether you’re a tech giant or a startup, our legal team helps you secure the licenses you need and defend your IP rights. Let Vakilsearch safeguard your innovations today!

GST Rate Review: Goa Panel To Assess 70-100 Products Individually

The Fitment Committee under the GST Council has suggested three new options for a potential three-rate GST structure, which will be evaluated by the Group of Ministers (GoM). A panel of state ministers is set to meet on September 24 and 25 in Goa to discuss possible changes to GST Rate Review, focusing on 70 to 100 items. The GoM will review feedback from the recent 54th GST Council meeting held in early September.

Sources indicate that while the panel may consider minor adjustments to GST rates across various categories, it is unlikely to finalise a broader restructuring of GST slabs at this time. Bihar Deputy Chief Minister Samrat Chaudhary leads the GoM on rate rationalisation. The GoM previously submitted two status reports to the GST Council on September 9 and will now focus on reviewing rates on an item-by-item basis.

The current GST framework consists of four slabs: 5%, 12%, 18%, and 28%, with essentials taxed at the lowest rates and luxury items subject to the highest rates, including an additional cess. The panel’s review will determine if further adjustments are necessary to optimise the structure without negatively affecting essential goods.

In its September 9 meeting, the GST Council postponed a proposal to exempt life and health insurance from GST. This proposal has been referred to the expanded GoM on rate rationalisation, which will thoroughly examine it and present findings to the GST Council in the next session. 

The GoM’s GST Rate Review of 70-100 products is a strategic move to fine-tune GST rates without overhauling the entire structure. Businesses should stay alert for changes, particularly if they deal in items under scrutiny.

Navigating GST rate changes can be complex, especially with the GoM reviewing up to 100 products. Vakilsearch offers expert tax advisory services to help businesses understand and adapt to evolving GST regulations. Our team of specialists ensures compliance, minimising tax liabilities while keeping you updated on crucial changes. Stay ahead with Vakilsearch —your partner in tax strategy and compliance!

West Bengal Imposes ₹17.7 Crore GST Demand On Zomato

Zomato has received a substantial GST demand order from the West Bengal government. The Assistant Commissioner of Revenue issued a notice demanding ₹17.7 crore in GST, interest, and penalties, covering the period from April 2021 to March 2022. The breakdown includes a GST demand of ₹11,12,79,712, interest of ₹5,46,81,021, and a penalty of ₹1,11,27,971. This demand arises from allegations of non-payment of GST on delivery charges. Zomato, however, asserts its innocence and plans to appeal the order.

‘We believe we have a strong case and will challenge this demand before the appropriate authority,’ the company stated in a regulatory filing. Zomato emphasised that it had provided clarifications and relevant documentation in response to the show cause notice, which it feels were not properly considered by the authorities. The company believes it can effectively defend its position before the appellate authority and does not anticipate any financial repercussions.

This is not Zomato’s first encounter with tax-related issues; the company has faced similar demands from other authorities in the past. Zomato’s recent GST demand highlights the complexities of tax compliance in the food delivery industry. Disputes over the application of GST on delivery charges emphasise the need for clear regulatory guidance. 

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Amul Files FIR For Spreading Rumours In Tirupati Laddu Issue

Amid escalating controversy regarding Tirupati Laddu, Amul has filed an FIR against several social media users for spreading misinformation about the brand. The FIR, submitted on Saturday, accuses users on platform ‘X’ (formerly Twitter) of falsely associating Amul with supplying adulterated ghee used in the temple’s renowned Laddus.

Amul, based in Gujarat, has dismissed these allegations, asserting that it has never sold ghee to the Tirupati temple. The company acted swiftly after social media posts targeted it for allegedly selling substandard ghee claimed to be used in making prasadam Laddu. Amul stated that these claims are baseless and appear aimed at damaging the brand’s reputation.

What is Tirupati Laddu?

Tirupati laddu is the sacred prasadam offered to devotees at the Sri Venkateswara temple, made from ghee, rice flour, besan, cashews, almonds, and milk.

How did it start?

The situation escalated after former Andhra Pradesh Chief Minister Chandrababu Naidu ordered a laboratory test of the ghee used in preparing Tirupati Laddu, which revealed the presence of foreign fats like lard, tallow, fish oil, and various seed oils.

Tirumala Temple Trust Confirms Animal Fat in Ghee

The controversy intensified when the Tirumala Tirupati Devasthanams (TTD), the temple trust, supported Naidu’s claims. A lab report based on ghee samples from the trust has circulated among Naidu’s Telugu Desam Party (TDP) members. However, the Andhra Pradesh government has yet to publicly address the findings.

According to reports, the temple board plans to blacklist a contractor supplying adulterated ghee, emphasising that it will not tolerate violations of standards, particularly concerning prasadam, which is vital to religious practices.

Union Health Ministry steps in 

The Union Health Ministry has intervened, requesting a full report from Naidu regarding the allegations of adulterated ghee in the Tirupati Laddu. As the controversy gains national attention, many are awaiting an official statement from the Andhra Pradesh government regarding the validity of the lab report and its next steps.

The Amul FIR and the Tirupati Laddu controversy highlight the importance of brand reputation management, especially amid misinformation on social media platforms. Legal and regulatory steps, including lab tests and government interventions, are crucial in cases involving religious practices and public health.

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Miley Cyrus Faces Copyright Infringement Lawsuit For ‘Flowers,’

Miley Cyrus faces a copyright infringement lawsuit, accused of copying elements from Bruno Mars’ song for her hit ‘Flowers.’ Tempo Music Investments, which owns part of the copyright for Mars’ 2012 track ‘When I Was Your Man,’ claims Cyrus’ 2023 song bears ‘many musical similarities’ to Mars’ track, including the chorus, harmony, melody, chord progressions, and lyrics. Bruno Mars is not named as a plaintiff in the lawsuit. Representatives for both artists have not yet responded to requests for comment.

Earlier this year, Miley Cyrus won her first Grammys with ‘Flowers,’ earning Record of the Year and Best Pop Solo Performance, beating artists like Taylor Swift and Billie Eilish. In her acceptance speech, she stated that while the award was significant, she hoped it wouldn’t change her life, emphasising that every individual is remarkable in their own way.

‘Flowers’ is rumoured to be about Cyrus’ ex-husband, Liam Hemsworth. Despite her long-standing music career, she questioned why it took so long for her to receive recognition from the Recording Academy, highlighting her success in both numbers and cultural impact. However, she clarified that her remarks were not about arrogance but self-pride. Cyrus started her career at 12 on Disney Channel’s ‘Hannah Montana’ and later found chart-topping success with hits like ‘Party in the U.S.A.’ and ‘Wrecking Ball.’

The lawsuit against Miley Cyrus over ‘Flowers’ highlights ongoing concerns in the music industry regarding creative overlap and copyright infringement, especially when songs exhibit noticeable similarities in melody and harmony.

If you’re facing copyright concerns, Vakilsearch  provides comprehensive legal support for artists and creators. Whether you’re defending your intellectual property or navigating infringement claims, our expert copyright lawyers are here to ensure your creative rights are protected. Don’t let disputes hinder your artistic journey—partner with Vakilsearch  for tailored legal advice!

Caution Advised: FSSAI Guidelines to Oversee Sweets

Sweets and dairy products are a festive staple in India, especially during Dussehra and Diwali. However, there is a risk of adulteration in sweets, paneer, and other dairy products during this season. FSSAI Guidelines are released to monitor the sale and production of these products closely. 

With festivals like Durga Puja and Diwali approaching, after grand celebrations of Onam and Ganesh Chaturthi, FSSAI emphasised the need for vigilance against adulteration in items such as ghee, khoya, paneer, and other milk-based products. 

The increased demand for traditional sweets and dairy snacks during the festive season raises the risk of manufacturers using substandard or adulterated ingredients to meet the economic pressures.

As the festive season approaches, the FSSAI guidelines for monitoring adulteration in sweets and dairy products are crucial to ensure public safety. With heightened demand for traditional delicacies, it’s essential to be cautious and informed about potential risks.

For businesses involved in the production and sale of sweets and dairy products, Vakilsearch  offers comprehensive FSSAI services to help ensure your products meet safety standards during the festive rush. Protect your business reputation and customer trust by partnering with us for regular audits, product testing, and regulatory updates. Stay compliant and safeguard your brand this Dussehra and Diwali!