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Telangana Introduces MSME Policy Supporting Women

Akash G Varadaraj
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Telangana Introduces MSME Policy Supporting Women

Telangana, India’s youngest state, launched its first dedicated MSME policy to bolster this crucial sector, often regarded as the backbone of the economy, but heavily impacted by the COVID-19 pandemic. The policy aims to tackle six major issues hindering MSME growth in the state: access to affordable land, finance, high-quality raw materials, skilled labor, markets, and new technology. 

The Telangana government has allocated ₹600 crore over five years to support various initiatives under the policy, with a special focus on women-led and SC/ST-run enterprises through dedicated industrial parks, reservations, and incentives. 

Additionally, 20% of plots in every industrial park built by the government will be reserved for MSMEs. The state plans to develop one industrial park per district over the next five years, with 10 industrial parks planned between the Outer Ring Road and Regional Ring Road. 

Of these, five will be exclusive to MSMEs, with one park each dedicated to women and SC/ST-owned MSMEs. The policy also emphasises the creation of social infrastructure like dormitories for workers and creches, using the public-private partnership model.

Telangana’s new MSME policy is a forward-thinking initiative designed to empower the state’s entrepreneurs, especially women and SC/ST communities. By addressing key challenges such as access to land, finance, and skilled labour, and by creating industrial parks with dedicated spaces for marginalised groups, the policy sets a foundation for inclusive economic growth.

With Telangana’s new MSME policy creating opportunities for women entrepreneurs and SC/ST-run enterprises, it’s essential to seize these benefits strategically. Vakilsearch  offers end-to-end solutions, from business registration to accessing government incentives, helping you leverage the ₹600 crore initiative. Partner with Vakilsearch  to ensure your business grows under this progressive policy framework. Let our experts guide you through the complexities of setting up, expanding, and accessing industrial parks and other MSME benefits.

Karnataka HC Allows Delay In ITR Filing Due To Genuine Hardship

Akash G Varadaraj
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Karnataka HC Allows Delay In ITR Filing Due To Genuine Hardship

The Karnataka High Court has condoned a delay in ITR filing due to ‘genuine hardship.’ The court highlighted that the Central Board of Direct Taxes (CBDT) has the authority to issue orders to other Income Tax Authorities in such cases. 

Vasudev Adigas Fast Food, a company involved in hotel, restaurant, and catering services, experienced a change in majority shareholding during the 2012-13 financial year, leading to disputes between the former and new management. 

In 2014, the promoters filed a petition before the Company Law Board (CLB) in Chennai, alleging oppression and mismanagement by the new management. During the proceedings, the CLB appointed an Administrator to oversee the company’s affairs, replacing its Board of Directors. 

The Single Judge quashed the CBDT’s order and allowed the delayed filing of the income tax return for the 2014-15 assessment year. Despite the Income Tax department’s contention that the delay did not meet the criteria under Section 119(2)(b) of the Income Tax Act, the division bench of Justice Satish Kumar Sharma and Justice Natarajan Rangaswamy found that the CBDT had ignored recommendations from jurisdictional authorities to condone the delay. 

The court upheld the Single Judge’s order, noting that the CBDT had sought but disregarded reports from the Principal Commissioner of Income Tax-II and the jurisdictional Additional Commissioner, both of whom recommended condoning the delay.

The Karnataka High Court’s ruling is a significant precedent in tax law, reinforcing that delays in filing Income Tax Returns (ITR) due to genuine hardships must be considered with empathy. By overturning the CBDT’s order, the court highlighted the importance of following recommendations from local tax authorities, especially when genuine hardship is evident.

Navigating complex tax regulations, especially when facing disputes or unforeseen hardships, can be challenging. Vakilsearch  offers specialised support in managing tax disputes, ensuring that your business remains compliant even in difficult situations. Our experts guide you through the intricacies of tax law, helping you file ITR returns.  

Bihar Sees an 18% Increase in GST Revenue

Akash G Varadaraj
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Bihar Sees an 18% Increase in GST Revenue

 Bihar has emerged as one of the top five states in India by achieving an 18% annual growth in GST Revenue for the fiscal year 2023-24, according to the Commercial Taxes Department (CTD) commissioner-cum-secretary, Sanjay Kumar Singh. 

This growth surpasses the national average of 13%, marking Bihar’s continued 18% annual growth since 2021-22. Over the past six years, the state’s GST collection has risen by 122%, from ₹17,236 crore in 2017-18 to ₹38,198 crore in 2023-24. The CTD aims to reach a GST collection target of ₹42,500 crore for the current financial year, with ₹15,465 crore already collected by August, an 8.4% increase from the previous year. 

The taxpayer base now stands at 6.54 lakh. This impressive performance is attributed to efficient tax administration and stakeholder cooperation. The department plans to introduce an ‘amnesty scheme,’ offering tax exemption on interest and penalties if taxpayers pay the principal for tax demands from the first three years of the GST regime in one go. Additionally, the one-time scheme for pre-GST tax disputes has been extended until March next year.

Bihar’s remarkable 18% growth in GST revenue demonstrates the state’s improving tax collection efficiency and strong economic performance. The introduction of an amnesty scheme to ease taxpayer compliance and the extension of pre-GST dispute resolution until March further highlights the state’s proactive measures to simplify tax-related issues and boost compliance among businesses.

With the rapidly evolving tax landscape and the introduction of schemes like the GST amnesty, businesses must stay updated and compliant. Vakilsearch  offers comprehensive tax compliance solutions, ensuring that you benefit from initiatives like the amnesty scheme while staying ahead of all tax regulations. Our team provides expert assistance in resolving pre-GST disputes and navigating complex tax compliance requirements. Reach out to Vakilsearch  for tailored tax solutions that help your business thrive in this dynamic regulatory environment.

EUV Patent Suggests Huawei’s Advancements In The Chip Industry

Akash G Varadaraj
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EUV Patent Suggests Huawei’s Advancements In The Chip Industry

A recent EUV patent suggests that Huawei and Chinese chip makers may soon advance in the chip sector despite U.S. restrictions. China could be nearing the production of advanced processors that would drive its economic and digital growth. SMEE (Shanghai Micro Electronics Equipment) has filed a new EUV patent titled ‘Extreme Ultraviolet [EUV] Radiation Generators and Lithography Equipment.’ Issued in March 2023, this patent is currently under review by the Chinese Intellectual Property Administration and may soon receive approval.

EUV (Extreme UltraViolet Lithography) machines use light with a wavelength of 13.5nm, significantly smaller than DUV’s 193nm. These machines are essential for manufacturing chips smaller than 7nm.

SMEE, among other Chinese companies, is on the U.S. blacklist, restricting its use of foreign goods and chip making tools. However, this new patent offers a glimmer of hope amid the ongoing chip war. While the patent details are not fully disclosed, it signals that SMEE is making gradual progress in developing new chipmaking tools. Currently reliant on DUV lithography machines, China aims to advance towards producing chips at the 28nm level or below using EUV technology.

This development is significant, especially as the U.S. has barred many foreign suppliers from shipping advanced chipset-making tools to China, including ASML, which has a substantial market share in lithography machines. With the Netherlands considering further restrictions on ASML’s supply to China, SMEE’s EUV patent appears as a breakthrough for China’s chip making efforts.

For Huawei, this patent could accelerate its chip-making processes. Huawei currently manufactures its Kirin chips at the SMIC foundry using DUV equipment and is exploring ways to enhance its 7nm chips before adopting newer technologies. Access to advanced chip-making equipment could enable Huawei to use high-end chips and AI processors in its devices. Further details are awaited for a clearer understanding of this impact.

The new EUV patent from SMEE indicates a significant leap for China in the chip-making sector, potentially mitigating the impact of U.S. restrictions. This advancement could enable Huawei and other Chinese companies to produce high-end processors, enhancing their technological capabilities and reducing reliance on foreign equipment. If SMEE’s EUV technology reaches production stages, it could transform China’s position in the global chip industry.

Vakilsearch provides expert support in navigating complex intellectual property landscapes, including patent filings and technological advancements. With the emergence of new technologies like SMEE’s EUV patent, it’s crucial to secure and protect your innovations. Our team offers tailored IP services to help you safeguard your technological advancements, manage global patent portfolios, and stay competitive in a rapidly evolving market. Trust Vakilsearch to assist with your IP strategy, ensuring robust protection for your breakthroughs and strategic growth.

FSSAI’s Removal of ‘Best Before’ Labels Creates Confusion For Consumers

Akash G Varadaraj
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FSSAI’s Removal of ‘Best Before’ Labels Creates Confusion For Consumers

The Food Safety and Standards Authority of India (FSSAI) has recently decided to remove the mandatory ‘Best Before Date’ requirement for non-packaged sweets, raising concerns among consumers. Although FSSAI’s decision is backed by technical reasons, its implications for public health and consumer trust are significant.

Without the ‘Best Before Date,’ consumers are left uncertain about the freshness and safety of loose sweets, particularly during festive seasons when demand is high. This decision effectively places the responsibility for food safety on consumers, who might unknowingly purchase and eat stale or contaminated sweets.

FSSAI’s reliance on periodic Food and Drug Administration (FDA) inspections during festivals is insufficient. Despite the FDA’s annual directives on hygiene and worker health, many sweet shops frequently ignore these guidelines. Inspections are often sporadic and lack the thoroughness needed to enforce food safety norms.

This lack of accountability increases the risk of health hazards. Consumers face the danger of foodborne illnesses, allergic reactions, and other health issues from consuming stale or adulterated sweets. Vulnerable groups such as the elderly, children, and those with weakened immune systems are particularly at risk.

The FSSAI’s decision seems to favor the convenience of food business operators (FBOs) over consumer well-being. Although the agency states that FBOs can voluntarily display the ‘Best Before Date,’ the lack of a mandatory requirement may lead to widespread non-compliance. This move raises doubts about FSSAI’s commitment to public health. Its pattern of shifting responsibility onto consumers and relying on inadequate enforcement mechanisms is troubling.

Consumers have the right to make informed choices about the food they consume, and the ‘Best Before Date’ is a key reference point for determining the freshness and safety of non-packaged sweets. Removing it is a setback in the effort to ensure food safety and protect consumers.

FSSAI should reconsider its decision and reinstate the mandatory ‘Best Before Date’ for non-packaged sweets. This would not only empower consumers but also increase accountability among FBOs. Until then, consumers need to stay vigilant and cautious when buying loose sweets, especially during festive seasons. 

FSSAI’s recent decision to eliminate the mandatory ‘Best Before Date’ for non-packaged sweets introduces significant concerns regarding food safety. By removing this requirement, the agency places the burden of ensuring freshness and safety on consumers, which may lead to increased health risks, especially during peak festive times. The move potentially undermines public trust and highlights the need for more rigorous enforcement of food safety regulations.

In light of the recent changes by FSSAI, Vakilsearch offers comprehensive compliance and regulatory support to help food businesses navigate evolving standards and ensure consumer safety. Our services include expert consultation on food labeling, adherence to FSSAI guidelines, and development of robust quality control measures. With Vakilsearch’s support, you can maintain high safety standards, enhance consumer trust, and stay compliant with the latest regulatory changes. Secure your business’s reputation and protect public health with our tailored solutions.

Online Gaming Faces Record GST Evasion of ₹81,875 Crore in FY24

Akash G Varadaraj
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Online Gaming Faces Record GST Evasion of ₹81,875 Crore in FY24

The Directorate General of GST Intelligence (DGGI), the central investigation and anti-evasion arm under the finance ministry, has uncovered the highest-ever goods and services tax (GST) evasion by the online money gaming industry, amounting to ₹81,875 crore in FY24 across 78 cases.

In its latest annual report, the DGGI reported detecting a record 6,084 cases of tax evasion in 2023-24, involving ₹2.01 trillion in GST. This is double the ₹1.01 trillion identified in FY23 across 4,872 cases.

According to the report, 46% of the evasion cases were related to non-payment of taxes through clandestine supply and undervaluation, 20% involved fraudulent Input Tax Credit (ITC) claims, and 19% pertained to improper ITC claims or failure to reverse them.

Following online money gaming, the BFSI sector ranked second, with ₹18,961 crore evaded across 171 cases. Other sectors included works contract services (343 cases, ₹2,846 crore) and pharmaceuticals (22 cases, ₹40 crore).

1,976 cases of GST evasion were detected in the iron, copper, scrap, and alloys sectors, involving ₹16,806 crore in FY24. The pan masala, tobacco, cigarettes, and bidi industries ranked second in evasion, with 212 cases amounting to ₹5,794 crore. Other sectors included plywood, timber, and paper (238 cases, ₹1,196 crore), electronic items (23 cases, ₹1,165 crore), and marble, granite, and tiles (235 cases, ₹315 crore).

The DGGI report also recommended the formation of an inter-departmental committee, including representatives from the Enforcement Directorate, Reserve Bank of India, tax authorities, and consumer affairs departments, to combat the proliferation of online gaming platforms and ensure regulatory compliance.

‘Therefore, a multi-pronged approach to deal with this sector is the need of the hour. An inter-department committee may be set up to develop comprehensive strategies and regulations to combat the proliferation of such platforms, ensuring regulatory compliance, consumer protection, and national security,’ the DGGI stated in its report released on Saturday.

Furthermore, 658 offshore entities have been identified as non-registered or non-compliant and are currently under investigation by the DGGI. Additionally, 167 websites have been recommended for blocking. The DGGI annual report for FY24 flagged the online gaming industry as a ‘high-risk’ sector for tax evasion, money laundering, cyber fraud, juvenile delinquency, and socio-economic issues.

Despite legal clarity from 1 October 2023, which subjects gaming entities to a 28% tax on the total sum deposited by players, enforcement remains a challenging task. Many such firms are set up in offshore tax havens (i.e., Malta, Curacao Islands, British Virgin Islands, Cyprus, etc.), known for their opacity, making it difficult to ascertain their ultimate ownership.

‘The online gaming industry has grown exponentially in the past few years, at a compound annual growth rate (CAGR) of 28%, reaching ₹16,428 crore in FY24, according to an estimate. This growth is largely attributed to factors like widespread smartphone penetration, improved internet connectivity, a growing youth population, and the development of local gaming content.

The record ₹81,875 crore GST evasion detected in the online gaming industry for FY24 highlights a critical issue of non-compliance and financial misconduct. The DGGI’s findings underscore the urgent need for a robust regulatory framework to address tax evasion, cyber fraud, and other financial irregularities. With the gaming industry’s rapid growth and significant impact on the economy, implementing comprehensive measures and enhancing inter-departmental collaboration will be essential to curb these challenges and ensure fair taxation.

In light of the unprecedented GST evasion cases revealed in the online gaming sector, Vakilsearch offers specialised compliance and regulatory support to help businesses navigate complex tax laws and avoid pitfalls. Our expert team provides thorough audits, ensures adherence to GST regulations, and aids in resolving compliance issues swiftly. With Vakilsearch’s tailored solutions, your business can achieve greater transparency, avoid legal complications, and remain aligned with evolving regulatory standards.

Government Announces Relief Package for MSMEs Affected By Floods in Vadodara

Akash G Varadaraj
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Government Announces Relief Package for MSMEs Affected By Floods in Vadodara

On Thursday, the Gujarat government announced a relief package for rehabilitating the micro, small, and medium enterprises (MSMEs) of Vadodara city and district, which suffered losses due to the recent floods.

State government spokesperson Rushikesh Patel informed the media that Chief Minister Bhupendra Patel approved the relief package during a state cabinet meeting. The funds will be provided from the Chief Minister’s Relief Fund.

As per the package, lorry owners will receive a lump sum of ₹5,000. Owners of permanent small cabins up to 40 square feet will be given ₹20,000, while those with cabins larger than 40 square feet will get ₹40,000. Traders with small and medium-sized permanent shops will receive ₹85,000 in relief.

Shop owners with a monthly turnover exceeding ₹5 lakh will be eligible for a loan of ₹20 lakh to cover their losses. Additionally, they can avail a ₹5 lakh loan at a 7% interest rate for up to three years. To apply for the relief, Patel said, ‘Applications must be submitted to the municipal commissioner, Mamlatdar, or chief officer by October 31.’

Patel did not disclose the total amount of the relief package, explaining that all applications will be funded through the CM’s Relief Fund. He also withheld details on the total damage caused by the floods, noting that a central government team is conducting a survey to assess the damage. Additionally, all ministers and members of the legislative assembly (MLAs) have pledged to donate one month’s salary to the CM Relief Fund to support those impacted by the disaster.

The Gujarat government’s relief package for MSMEs in Vadodara underscores a significant commitment to supporting local businesses affected by recent floods. The comprehensive aid, including cash assistance and low-interest loans, is designed to address immediate recovery needs and facilitate longer-term rebuilding efforts. By providing financial support tailored to different types of businesses, the state aims to stabilise the local economy and assist in the swift recovery of essential commercial activities.

In the wake of Gujarat’s relief efforts, Vakilsearch is dedicated to helping businesses navigate the complexities of applying for and utilising relief funds. Our services ensure that MSMEs efficiently manage compliance with relief requirements, from application assistance to regulatory adherence. With expertise in managing financial documentation and navigating government processes, Vakilsearch provides the support needed to maximise the benefits of relief packages and facilitate a smooth recovery for your business.

CM Chandrababu Naidu Highlights The Vast Potential for MSME Parks in Andhra Pradesh

Akash G Varadaraj
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CM Chandrababu Naidu Highlights The Vast Potential for MSME Parks in Andhra Pradesh

Andhra Pradesh Chief Minister N. Chandrababu Naidu emphasised the government’s top priority of promoting Micro, Small, and Medium Enterprises (MSME), particularly in the food processing sector, which has significant potential in the state. During a review meeting on MSMEs and the Department of Food Processing at the Secretariat on 12 September 2024, Mr. Naidu stated that the government is committed to reviving MSMEs, which have faced severe challenges in recent years.

He noted that MSME parks had seen little progress over the past five years, but the current government would provide the necessary support to help them recover. Priority would be given to releasing pending incentives, he added. Mr. Naidu proposed that farmers should have a stake in MSME parks to directly benefit from the business and recommended that officials study a similar model in Pune. He also stressed the need for a simple, compliance-friendly policy, suggesting that automatic permissions be granted in case of delays, and instructed officials to connect DWCRA groups with MSMEs.

Additionally, Mr. Naidu called for the modernisation of Auto Nagars to accommodate electric vehicles and announced a ₹100 crore allocation as a credit guarantee for MSMEs. He highlighted the potential for growth in the food processing industry and urged officials to promote organic farming on a large scale. Ministers T.G. Bharat (Industries & Commerce) and Kondapalli Srinivas (MSMEs) were also in attendance.

Chief Minister N. Chandrababu Naidu’s focus on revitalising MSMEs, especially in the food processing sector, highlights a strategic approach to harnessing the sector’s potential for economic growth. His initiatives, including the modernisation of Auto Nagars and the provision of credit guarantees, reflect a commitment to creating a supportive environment for small and medium enterprises. By integrating farmers into MSME parks and promoting organic farming, Naidu aims to enhance local production and sustainability, addressing both economic and environmental concerns.

In light of Andhra Pradesh’s ambitious plans to boost MSMEs, Vakilsearch offers essential compliance and advisory services tailored to support businesses navigating regulatory changes and opportunities. Our team specialises in ensuring your business aligns with new policies, secures necessary incentives, and optimises operations for growth. Whether you’re involved in food processing or any other sector, Vakilsearch provides expert guidance to help you take full advantage of government initiatives and achieve sustainable success.

Four Officials Arrested For Staging a Fake GST Raid

Akash G Varadaraj
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Four Officials Arrested For Staging a Fake GST Raid

Four officials from the Goods and Services Tax (GST) department were arrested on Wednesday for allegedly assaulting and extorting ₹1.5 crore from a businessman in Bengaluru. The Central Crime Branch (CCB) identified the arrested individuals as Abhishek, Superintendent of Central Tax (South Commissionerate, Bengaluru Zone), Manoj Saini and Nagesh Babu, senior intelligence officers, and Sonali Sahay, intelligence officer of Bengaluru.

According to the CCB, all the accused are part of the Director General of GST Intelligence, Bengaluru zonal unit. The arrest follows a complaint by Keshav Tak, owner of Mexo Solutions Private Limited in Jeevan Bhimanagar, who alleged that the officials confined and extorted him between August 30 and September 1.

In his complaint, Tak stated that the accused posed as officials from the Enforcement Directorate (ED) and GST, conducting a fake ‘raid’ on his residence. They then took him and his associates, Pavan Tak, Mukesh Jain, and Rakesh Chandani, to the office of Mexo Solutions, where they seized their mobile phones and assaulted them.

Tak further alleged, ‘We were kept in separate rooms and asked to pay money. I called my associate Rakesh Jain to arrange ₹3 crore. By September 1, he managed to gather ₹1.5 crore, and we were released to collect the money for the officials, who later left the documents in our office’

Upon checking the background of the officials, Tak discovered the raid was unauthorised, prompting him to file a police complaint. The Byappanahalli police investigation confirmed that the officials were indeed from GST but had conducted the raid illegally, holding the victims for two days.

The CCB produced the accused before a magistrate and secured their custody for 10 days. ‘We haven’t recovered the money yet but are reviewing suspicious transactions’ said a CCB officer, adding that 32 phones, two laptops, and 50 cheque books were seized from the suspects.

The arrest of four GST officials in Bengaluru for staging a fake raid and extorting ₹1.5 crore from a businessman represents a severe breach of trust and an abuse of authority. This incident underscores the critical need for transparency and accountability within regulatory agencies. The actions of these officials not only harm the reputation of the GST department but also disrupt the business environment by fostering fear and mistrust among entrepreneurs.

In light of recent incidents highlighting the need for vigilant legal and compliance oversight, Vakilsearch offers robust solutions to safeguard your business from potential legal and regulatory pitfalls. Our services include comprehensive compliance checks, legal audits, and expert guidance to ensure your operations remain within legal boundaries. With our dedicated team, you can protect your business from unethical practices and ensure adherence to regulatory standards. Trust Vakilsearch to provide the legal support you need to navigate complex regulatory environments with confidence.

CM Stalin in Discussions With Ford Motor to Revive Partnership

Akash G Varadaraj
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CM Stalin in Discussions With Ford Motor to Revive Partnership

Tamil Nadu Chief Minister M K Stalin announced on Wednesday that he held significant talks with Ford Motor to explore the possibility of producing vehicles for export. In a post on X (formerly Twitter), Stalin stated, ‘We explored the feasibility of renewing Ford’s three-decade partnership with Tamil Nadu, aiming once again to ‘Make in Tamil Nadu for the world’

The U.S. automaker had exited India in 2021 after struggling to gain market share, which was dominated by Asian competitors. Ford is still considering options for its Chennai plant, the company confirmed in a statement.

Ford ceased production in India after more than two decades of unprofitability, holding less than 2% of the passenger vehicle market. In 2022, the company explored using its Indian plant to export electric vehicles, but the plan fell through after Ford and Mahindra & Mahindra couldn’t finalize a joint venture. In December 2023, Business Standard reported that Ford was reassessing its return to the Indian market while reviewing the future of its Chennai facility.

Ford’s Maraimalai Nagar plant in Chennai, which spans 350 acres, had an annual production capacity of 200,000 vehicles and 340,000 engines. Its proximity to the Chennai port (50 km away) and Ennore port (74 km away), along with easy access to Bengaluru, made it a strategically favorable location.

On Monday, Stalin signed investment deals worth over ₹2,600 crore with Jabil, a leading electronics manufacturing service provider, and Rockwell Automation, expected to generate 5,365 jobs. Additional agreements worth ₹850 crore were signed with three U.S. companies. These investment initiatives are part of Tamil Nadu’s larger goal to become a $1 trillion economy by 2030.

Tamil Nadu Chief Minister M K Stalin’s discussions with Ford Motor represent a strategic move to revive and potentially expand the state’s automotive manufacturing capabilities. The potential return of Ford to Tamil Nadu for export vehicle production would not only leverage the existing infrastructure but also contribute significantly to the local economy. This is part of a broader vision to bolster Tamil Nadu’s industrial landscape and make it a global manufacturing hub.

In addition to these discussions, Stalin’s successful signing of deals worth ₹2,600 crore with Jabil and Rockwell Automation highlights Tamil Nadu’s commitment to attracting major investments and creating thousands of jobs. This aligns with the state’s ambitious goal of reaching a $1 trillion economy by 2030, demonstrating its proactive approach to economic development.

As Tamil Nadu works to attract and retain global investors like Ford, ensuring regulatory compliance and smooth business operations is crucial. Vakilsearch offers specialized services to support businesses in navigating local regulations, managing company registrations, and ensuring adherence to legal requirements. With our expert assistance, companies can focus on their core operations while we handle the complexities of compliance and legal documentation. Partner with Vakilsearch to streamline your business processes and make the most of Tamil Nadu’s growing investment opportunities.

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