Budget 2010 proposals for MSMEs
Dinsha J. Patel, Minister (Independent Charge) for the Micro, Small & Medium Enterprises (MSME) said that the budget initiatives for the MSME sector will boost growth and development of MSMEs.
The Budget provision for the MSME sector has been made bigger by 33.78 percent from Rs.1794 crore to Rs. 2400 crore.
1. Interest subvention of 2 percent extended for a year for exports including handicrafts, carpets, handlooms and small and medium enterprises.
2. High Level Council on Micro and Small Enterprises will be set up to supervise the execution of the proposals of High-Level Task Force formed by Prime Minister.
3. The corpus meant for Micro-Finance Development and Equity Fund doubled to Rs. 400 crore in 2010-11.
4. National Social Security Fund for unorganized sector workers to be put in place with an initial provision of Rs.1000 crore. This fund will apparently support schemes designed especially for weavers, toddy tappers, rickshaw pullers, bidi workers etc.
5. Businesses having a turnover of Rs. 60 lakh are exempted of audits and Rs. 15 lakh for professionals.
6. The upper limit of turnover for the purse of presumptive taxation of small businesses increased to Rs. 60 lakh.
7. To help the conversion of small companies into Limited Liability Partnerships, transfer of assets would not to be considered under capital gains tax.
8. To ease the cash flow of small-scale manufacturers, they could take full credit of Central Excise duty paid on capital goods in a single installment in the year of their receipt. Further, they would be permitted to pay Central Excise duty on a quarterly, as opposed to the monthly basis.
9. Central excise duty on corrugated boxes and cartons brought down from 8 percent to 4 percent.
10. Increase in weighted deduction on payments offered to research associations, national Laboratories, universities, colleges and other institutions, for scientific research from 125 percent to 175 percent.
The Budget provision for the MSME sector has been made bigger by 33.78 percent from Rs.1794 crore to Rs. 2400 crore.
1. Interest subvention of 2 percent extended for a year for exports including handicrafts, carpets, handlooms and small and medium enterprises.
2. High Level Council on Micro and Small Enterprises will be set up to supervise the execution of the proposals of High-Level Task Force formed by Prime Minister.
3. The corpus meant for Micro-Finance Development and Equity Fund doubled to Rs. 400 crore in 2010-11.
4. National Social Security Fund for unorganized sector workers to be put in place with an initial provision of Rs.1000 crore. This fund will apparently support schemes designed especially for weavers, toddy tappers, rickshaw pullers, bidi workers etc.
5. Businesses having a turnover of Rs. 60 lakh are exempted of audits and Rs. 15 lakh for professionals.
6. The upper limit of turnover for the purse of presumptive taxation of small businesses increased to Rs. 60 lakh.
7. To help the conversion of small companies into Limited Liability Partnerships, transfer of assets would not to be considered under capital gains tax.
8. To ease the cash flow of small-scale manufacturers, they could take full credit of Central Excise duty paid on capital goods in a single installment in the year of their receipt. Further, they would be permitted to pay Central Excise duty on a quarterly, as opposed to the monthly basis.
9. Central excise duty on corrugated boxes and cartons brought down from 8 percent to 4 percent.
10. Increase in weighted deduction on payments offered to research associations, national Laboratories, universities, colleges and other institutions, for scientific research from 125 percent to 175 percent.
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