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The red tape challenge for SMEs
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Bikky Khosla | 21 Nov, 2012
How much small businesses suffer from red tape and government bureaucracy? Fat bundles of paperwork, countless certificates, long hours of waiting, irritating haggling with unresponsive officials . . . whenever our small entrepreneurs talk about public bureaucracy involved in owning and running a small business, they spew venom. There are a myriad of inconceivable obstacles at every step -- right from registering a business or getting an electricity connection to paying taxes and getting loans.
A recent report on "Doing Business 2013, Smarter Regulations for Small and Medium-Size Enterprises" published by the World Bank and the International Finance Corporation (IFC), gives the same picture. In the list, India ranks very low at 132 th position out of 185 economies surveyed, faring particularly poorly on some of the sub-indices such as starting a business (173), dealing with construction permits (182), getting electricity (105), paying taxes (152), trading across borders (127), enforcing contracts (184), resolving insolvency (116).
The report adds that Indian SMEs have to comply with 12 procedures that take on average 27 days to start a business. Similarly, dealing with construction permits involves 34 procedures and a 196-day waiting period, getting electricity involves 7 procedures and a 67-day waiting period, registering property requires 5 procedures and a 44-day waiting period. For exports, an SME needs to collect 7 types of document, including Bill of Lading, Certificate of Origin, Commercial invoice, Foreign exchange control form, Inspection report, Packing list, Shipping Bill, Technical standard certificate, and Terminal handling receipts -- all these requiring a total of 16 days on average.
Beyond doubt, such a level of bureaucracy and red tape is a real headache for our SMEs. Small business owners, with their weak financial muscles and limited hiring power, have to keep themselves busy as a bee in handling a lot of daily chores at office and keeping a close eye on every single aspects of their business. It is therefore of crucial importance that regulatory burden on them is cut as much as possible to free up their time and money. But unfortunately we never see the government doing much in this direction.
In addition, I fear that the time, costs and difficulties in fitting in with all the aforesaid rules and regulations usually go much higher than the figures as reflected by the World Bank report. Here, I would like to invite feedback from our readers on how government bureaucracy creates unnecessary barriers for SMEs. Do you think that most of the norms and paperwork do not serve any public interest and they are unnecessary? And what are the ground realities? What steps are need to be taken by the government to help the SME sector get out of this labyrinth of red tape?
Note: Recently, in one of our editorials we covered the issue whether or not the government schemes are benefiting the SME sector, and considering huge response on the story, with majority of feedback giving a very grim picture, we have written to the Ministry of MSME regarding it. We hope that soon we would have the opportunity to discuss the issue further with the ministry.
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Subsidy should be directly credited
Vijay Goyal | Wed Jun 12 07:45:40 2013
Subsidy should be directly credited in beneficiary bank account on submission of claim immediately . In case of delay concerned officer /department is liable to pay interest on claim amount to the bank from the date of submission of claim.
How True!
Shakil Warsi, Dream Crafts | Tue Feb 5 10:23:07 2013
This is unfortunate for those who want to do clean, legal business. they are bound to be stuck in unnecessary bureaucratic high handedness and corruption. For a simple registration under shop and establishment act by Mumbai BMC,one has to go through hurdles purposely created by officials or else bribe the touts. We will remain backward in world's productivity if our Governments remain callous shamelessly and do not simplify bureaucratic hassles to boosts trade in our country.
MSME schemes - 50% amount goes to corrupts
Prajesh | Thu Nov 29 07:24:03 2012
If one claims for any govt scheme or subsidy- 50% from the amount claimed or received(?) goes in corruption to get that claim and remaining goes in paper work, man power loss, mental harassment, loss of production and many more from bureaucracy.
Please raise your vocie against CORRUPTION . . . SMEs are suffering
Shitansh Patel | Wed Nov 28 09:21:19 2012
Sir, its very much true.Why don't you discuss about "BRIBE" that we have to give the govt. official for any of registration and submission of document . Though the govt. has implemented online procedure for everything, we have to submit all documents in hard copy along with cash cover to concerned govt. officer.
like: for excise registration : Rs. 25000 with application and Rs. 20000 for issuing of certificate,
monthly return submission Rs. 1000,
yearly audit of excise and sales tax: Rs. 50000 or above as per turnover. Sometime I wonder whether we are working for them or for our family and ourselves. I suggest you to raise your voice for this also.
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Re: Please raise your vocie against CORRUPTION . . . SMEs are suffering
Atam Parkash Gulati | Sat Dec 1 19:45:11 2012
Very well said perhaps we are only working for corrupt officials only. Let SME Times raise the genuine concerns, I hope it can effectively do something. Keep it up
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Re: Please raise your vocie against CORRUPTION . . . SMEs are suffering
Vijay Goyal | Wed Jun 12 07:54:09 2013
This is universal Fact in our India I agree with this is the fact. What is need of submitting Hard copy if it is already submitted electronically. What is the use of Digital signature to file IT return .When all banking transaction are based on passwords why digital signature are needed - this is done only interest of corruption & directly benefit to digital signature device manufacturers. You know digital signature are mailed and pasted what is its authenticity.
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Bribe of Rs. 25,000 to Sales tax officer for getting yearly assessment
S. K. Butta | Tue Nov 27 12:17:18 2012
I have a small manufacturing unit in NOIDA (U.P.)running since 1993. It is so irritating to see the Govt.increasing the paperwork in ESI, EPF, SALES TAX, Excise, etc. while changing manual to internet working. Getting " C "forms & "38 forms for getting purchase from other states, is controlled by 'babus' asking bribes openly. Officers in charge are deaf and dumb. No complaint is possible against naked "CORRUPTION". One has to pay bribe of Rs. 25,000 to Sales tax officer for getting the yearly assessment of case.This bribe is when everything is in order. If there is small mistake then the bribe rates rise to any extent. Number of inspectors making you to shell out hard earned money is on the increase. All this is due to lack of transparency in procedures. I think the working system during British rule was much better. I wish that corrupt politicians should be asked to keep a daily work diary during their tenure and should be put on internet to let the people know the work done by them.
S.K.Butta
Mo, Ph. No. 9810111995
Hard core realities
Y. Raghu | Mon Nov 26 11:25:52 2012
Unfortunately those mentioned in this article are hard core realities which I experienced myself as an SME entrepreneur. Lending institutions should have a positive attitude towards SMEs while processing loan request.Online accessability of Govt procedures is very low and many of the things are done manually.Govt should monitor efficiently in execution of their policy's so that the actual needy will be benefitted thus helping in growing our economy.
Future of Chemical Industry in MSME sector
Ashwani Jindal | Mon Nov 26 11:18:48 2012
No doubt there is not any office in Indian administration dealing with industry is positive catalyst in growth of Industry. Babus in office delay files or create obstacles, threaten the entrepreneur just to pick the pocket of newly to be born baby. However these babus who are son- in law of this country are cleaver to manipulate the figures and compare them with that of China. In fact we Indian must not think to compete with China or any other developing country, we stand nowhere as compared to them and can not touch them even in 500 years.Babus please donot mislead the public by false figures, Mera Bharat Mahan will remain MAHAN.To add . to demoralize the SSI sector MOEF has issued a amended the EIA notification 2006 removing the exemption cap for SSI unit involved in Chemcal manufacturing (5f Of schedule) According to this notification a unit which has even non polluting process has to get EC spending even 15 lakh to get EC and then wait for 2 years to hear yes from MEOF. Is it feasible doe SSI. Accordingly our nest generation have to depend upon MNC's for washing power to tooth paste.Babus are big problem of this country.
The red tape challenge for SMEs
J Chandrasekaran | Mon Nov 26 10:55:41 2012
I happened to be one of the speakers on a open forum discussion conducted involving many big corporate leaders, as the representative from UNIDO. I talked for the well being of the SME.
1. Do all buyers including the MNCs and biggies pay the SME on time?
2. Do the fast track loans without frills by SIDBI is known to all SMEs.
3. Do banks act proactive.
4. IS there at least a technical cell toevaluate a new proposal for a loan or VC or angel investment in a bank?
A big sorry picture. If the above things are fine tuned, we can see the light in the tunnel.
p rathi | Mon Nov 26 10:28:12 2012
As I see and talk to many entrepreneurs today if you are corrupt or accept corrupt practices, then you can do work faster.presently all govt post are up for sale and a govt officer pays more to get a plum posting.hence he recovers the money he paid as bribe becomes his capital investment and then he starts recovering the money.this is a very common practice i believe happens.hence the delay for a normal good citizen .
Red tape challenges for SMEs
nassar.i | Mon Nov 26 06:28:29 2012
sir,editorial reflect our pain its not red tape it is the hanging rope for SMEs
VAT in Tamil Nadu
Sundar | Sun Nov 25 18:11:29 2012
While VAT returns are made online, obtaining VAT number in TN is seems to be deliberately kept manual. The online link never works. One has no other choice but to file it manually through a middle man - and you can never obtain the number without paying bribe. Anna Hazare's movement has had absolutely no impact in Tamil Nadu - least of all the sales Tax officers. If corruption in sales tax department is removed, prices of all commodities from Tamil Nadu would fall by around 30%.
SME being avoided surreptiously
SURRENDER K SINGAL | Sun Nov 25 16:45:35 2012
Latest to circumvent The MSMED Act, 2006 is MM Power Generating Co Ltd - State PSU to add Financial criteria in the latest Tender T-909 for Conveyor Belts that would avoid / debar many SMEs otherwise qualified and duly registered with NSIC for requisite quality and quantity of the tendered Conveyor Belts so as to rob State exchequer of crores of Rupees which could be saved if such capable SMEs with annual turnover below Rs. 19 Crores are allowed to participate as had been doing since decades with this very PSU till last annual tender for the same procurement being satisfactorily supplied by SME of Haryana resulting in savings of over 22 percent in just one Order worth Rs. 5.6 Crores vis-a-vis the next tenderer
HOW CAN SUCH ARBITRARY DISCOURAGING CONDITIONS IN TENDERS BE ALLOWED AGAINST THE PROVISIONS OF THE MSMED ACT, 2006 AND THE CONCEPT OF PURCHASE PREFERENCE FOR SMEs THROUGH NSIC SINGLE POINT ENLISTMENT FOR GOVT PURCHASE PROGRAMME; MINISTRY OF MSME NEED TO BE ACTIVE AGAINST SUCH TACTICS IN PSUs TO CREATE HURDLES FOR AVOIDING ESTABLISHED AND CAPABLE SMEs
How to start SME
Murli Dhar Gaur | Sun Nov 25 14:29:11 2012
Hello, sir and madam I have want to start a business, but I have no idea of SMEs. I read about it but I want to join every partner and start business. I want to speared. Plz help me. but i have no good idea this SMEs
Recent addition to the Beaurocratic work for MSME
Sudhir Mohan Mittal | Sun Nov 25 13:51:26 2012
Ministry of Corporate Affairs has mandated that from FY 2012-13 any Company having more than 5 crore reserve, irrespective of its size will have to prepare a Cost Audit report certified by a cost accountant and submit it along with Annual Return of the Company. This has added at least 200 man hours of extra work and Rs 25000/- additional cost to an MSME like us. I am not aware how this mandate will benefit the Government, except add to the extra paperwork and cost for the business.
This requirement should be removed forthwith.
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Re: Recent addition to the Beaurocratic work for MSME
Vijay goyal | Wed Jun 12 08:02:08 2013
This should be mandatory for the organisation who comes under RTI act and Public limited company only who collect money from public
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Penalizing tax payers incl. SME's for governmental inefficiencies
S.SuryaprakasaRao | Sun Nov 25 11:36:48 2012
Daily examples abound plenty.Payers of license etc.fees by DD's has been ordered through Challans as the department failed to deposit DD's etc. to Banks on time. Healthy trend of promoting competition between RTC & Private Operators is sought to be replaced by selective route monopoly to RTC just because of corrupt practices in Govt. While even public utility bill collection thro' E-seva centers could not be properly handled due to frequent server / power failures Govt. is mulling to introduce more services to be offered thro' E-seva centers.All bus shelters built in cities are covered by advertisements for revenue sake but none shows the name of the STOP nor the buses plying on those routes though it does not cost a rupee to put it in writing on the shelters.when auto fare changes are announced,for paid meter recalibration it takes months together just because there are not enough centers.Unauthorized crowding of bus shelters by private vehicles and autos can not be stopped by Govt. just because it is no body's responsibility.Private operators encash on this but, RTC buses lose revenue.While power is bought at heavy cost and FSA is levied on consumers street lights are not switched off on many stretches even during day time.While drinking water leakages, thefts and contamination are rampant Govt. instead of plugging them resort to frequent raising of costs to honest payers.Public offices are in huge arrears for utilities causing avoidable interest payments are not touched.
Problem facing with Excise department
sanjay jain | Sun Nov 25 08:14:07 2012
Dear Sir, this issue has been taken up many many times but no action has been taken ,the reason being there are so many factors involved that is why none has been taken care of . . . the point is we must start with one and resolve that . . . we are talking about the difficulties to start a new business.....where as the existing units are getting shutdown by all the poor policies of the govt. myself is having a msme unit.... and have little export sale (through merchant exporter's)
The problem I am facing is with Excise department.......i.e submission of the export documents provided by the merchant exporter's. I think i don't have to elaborate as everybody knows the problem and no one has the solution.....I hope the policy makers may get sometime to resolve this issue without thinking of their personal interests .....but I am really glad to read and know that everybody is aware of the problem. . . . All the best to all the MSME units . . . this is the only thing i can do
Online Complaince Registration
Sasisekar | Sun Nov 25 08:10:29 2012
Government of Karnataka has introduced many registrations directly through online facility to avoid interaction with officials who possibly expect bribe. It is also of great convenience for us as entrepreneurs to use it. However even in this case, we still need to depend on offiers to clear our application and they visit us and look for some money to be paid. Then why online at all ??
Red Tape Challenge - SMEs
Sivakumar | Sun Nov 25 06:28:11 2012
The current system is PATHETIC. Neither the banks nor the concerned government departments are helpful. The current system is designed to only discourage new SMEs/entrepreneurs. Rules and laws are interpreted as per one's imaginations and whims. I have lost all hope of ever getting a meagre loan without collateral and now have to figure out ways to either self start or get back to salaried class. Where are we heading? Do we really want to become a world power or are we comfortable were we are with all the corruption and bureaucratic mumbo-jumbo? We need a lot of reforms in all aspects of life and have to give everything a good shake-up.
Separate Mircro and Small from Medium
Shyam Maheshwari | Sun Nov 25 06:21:51 2012
An agency like DIC should be made responsible for taking up the tasks of dealing with all govt. procedures and related formalities after an MSME entrepreneur is registered with it and the entrepreneur has only to be involved in the main task of actual business activity. Also the guidelines for Micro and Small segment should be separated from Medium Scale industries.
The red tape challenge for SMEs
Tushar | Sun Nov 25 05:40:21 2012
Britain has only ONE but India has crores of "JAMES BONDS" in the form of SME owners.
One can only understand their difficult task by getting in their shoes at least once.
Instead of "Licence to kill" they all possess a "Licence to be killed".
'
Red tape kills SMEs' dream
Priyash Bhargava | Sun Nov 25 03:52:04 2012
True that's the competencies that never make SMEs to be Big companies . There are very few that can reach that level .
All these red tapes kills all dream.
RED Tape
Sanjiv | Sun Nov 25 03:29:54 2012
Enterpreneurship is the only thing which has built great world economies. India treats its enterprneures very shabilly. They cannot afford managers and have to manage everything on their own. They deserve all the respect and governent facilities at their doorstep. Why should the the contributor to GDP of our country stand in queues outside corrupt officials and waste his time and energy.
Difficulties faced by Small scale Industry.
M.VINOD | Sat Nov 24 17:59:37 2012
Small scale industries are facing financial problems and we are not able to get loan from the Bankers as we have to fuklfilseveral
procedures and formalities including colladral securities which we are unable to give as we do not have any fixed assests .
No Tax concessions for SME.
We are not encouraged by Public Sectors and Govt Organisations as they want lot of
formalities like Inspection of materials by Costlier Equipments which we can not afford to buy.We are unable to get third party Inspection Agencies approvel as they want lot of comforts like Inspection proccedures like Qalified Engineers,costlier Metal Testing Equipemts,Floor space etc., which a small enterperner starting business with a meegar amount.Increase in Electricity tariff,Power shut down etc., will hamper
our production and our end product cost will increase and we can not competite with large scale industries. In India for
selling our Products from one state to another state, we have to get Road Permit or Way Bill from concern State which is a difficult proceedures.Again after supply getting "C" Form is very difficult as the partiew are not giving "C" Forms for which we have to pay penalities and difference taxes to the concern State. The Government can relax "C" Form submission to Small scale Industry which turnover not exceeding Rs. 2crore per annum, of course they can collect CST Amount applicable but
can give relaxation in "C" Form submission.I request you to kindly make note of
these points
Certain Laws are Jokes - Heavy Metal in Ayurveda
Ramachandran | Sat Nov 24 11:38:53 2012
Maximum limit is fixed for export but not for domestic use - No protection for Indians. No control of HM/Pesticide residue/Micro contamination level, etc. in food grains, vegetables and fruits and imported goods of similar type. In the "note" 'Tests for heavy metals are not applicable for products meant for topical use' is mentioned but the bureaucrats says they are not informed of this and they require analysis report for all. For analyzing one sample in a NABL approved lab. it costs Rs.1500-2000 for HM alone. The export avge. value of each product in the order will be Rs.5000-1000.
If the cost is included along with the rate, they will flatly reject the offer. Except a few all the manufacturers are MSEs. So the law is to protect the big and punish the small.
In many cases, there is no clarity so the officials can interpret in whichever way they prefer. Before enforcing the laws, the draft should be discussed with the relevant segments and finalised. The law makers are sitting in the ivory castle and the so called civil servants are riding on the small and medium groups. They are not counting the economic and social contributions contributed by SMEs, probably they are ignorant about it. We are not self-reliant though we have enough resources on hand because, the law makers (politicians) & bureaucrats (implementers) and big guys (money power) don't know anything except grabing more power for themselves.
How we have been harassed
Rakesh Kumar | Sat Nov 24 11:21:02 2012
The article published by you is a real story of everyday life of a small entrepreneurs like me. We supplied three imported trucks with Indian trailer to DMRC, New Delhi in year 2006 for transportation of Bulldozers and Excavators, and DMRC further forwarded these trucks to notorious MCD, Delhi. All formalities were completed by us as per the norms. There was a term in the contract prepared by MCD that " Equipment Must be loaded on the prime mover with its own power". Everybody can understand the meaning of this sentence that for example a bull dozer must be loaded with its own power through the use of Ramps of Trailer. Unfortunately and purposely MCD SE (Elect & Mech) misinterpreted it by saying that Ramps must be hydraulically operated. We made one set of ramp hydraulically operated. Next comment of SE came to convert manually operated hydraulic ramps to electric motor driven hydraulic pump operated. We again, under protest made it electrically operated. Since SE Mr. Anil Sharma had something else in his mind so he objected not to use power from Truck batteries and insisted us to install one Generator. All these silly things were not a part of our contract. Three times RITES conducted its inspection and submitted their inspection report in our favor. Our huge payment is still withheld. We wrote many letters to Mr E. Sridharan and he instructed GMs of DMRC to reconcile the matter. We are a small business organization in Rajasthan and have fallen pray to this ugly red tap.
Mere Sales Tax/VAT laws alone kill major time of SMEs
M Selvakumar | Sat Nov 24 10:44:04 2012
It is true. As you feared, the magnitude of the problem faced, barriers put are beyond your message. Mere Sales Tax/VAT laws alone kill major time of SMEs and take away huge money. Giving single VAT No should solve all the problems and no Declaration Forms should be insisted. VAT/ST Laws to be simplified immediately. There should be a readymade format for starting a new business. New entrepreneur will fill only this form and with that, Govt should give single window clearance to start business. This form should be submitted to a single designated authority and he is time-bound to reply the queries. A Resolution Officer should be there in every deptt, who is not from the same deptt, so that we can take up issues of the deptt for resolution and disposal. This will stop unnecessary harassment of officers and corruption. More to say, it will ease out SMEs problem of handling govt officials.
SME.....toy for the govt.officials.....
r.k.seethapathi naidu | Sat Nov 24 10:38:37 2012
Poor govt officials want to earn through SME promoters: Despite single window, support, officials know how to make a company into deep trouble: For all I know, companies will go to death bed during initial stage itself:
How to change this?
DELICENSE,except arms, ammunition, etc . . . there are so many people like me to overcome these corrupting officials to keep the company running . . .
Sales Tax, Electricity depts most corrupt
Sumit K Mazumdar | Sat Nov 24 09:25:19 2012
Nothing is more true than what you have mentioned. The other thing you got to add is about corruption and greed that is making survival of SMEs so difficult.
Our experience is that departments like Sales Tax and Electricity under the State Government are most corrupt and they work to ensure that industry is compelled to fall into their trap. Some thing is required to address the issue.
VAT was introduced to bring an uniformity which is hardly evident and most State Government have gone back to old Sales Tax days.
Strangely, we do not require any permit or license for export but require some form (Way Bill, Road Permit, etc) to sale and ship material to other states. Strange, is it not ?
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Re: Sales Tax, Electricity depts most corrupt
Sandeep B | Tue Nov 27 16:15:30 2012
i agree with Sumit. This way bill/road permit is useless. It just adds one more burden in our day-to-day works. Unfortunately the truth is that more you grow your business more problems you face from sales tax department.
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Forward our problem to PM, FM
Ramesh Koshti - rajshreeind@vsnl.net | Sat Nov 24 08:57:12 2012
For SMEs, it is very difficult to run the business, because of government policies, like Duty, Cess, VAT, Octroi, etc.
Some suggestion:-there must be only one tax including central State and local (Octroi)
We have to maintain 6 columns to pay taxes which is very difficult. Keep only one and delete all.
We request you to forward our problem to PM & FM , Your co-operation will be highly obliged,
Yours Faithfully,
SME.
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Re: Forward our problem to PM, FM
r.k.seethapathi naidu | Sat Nov 24 10:41:16 2012
Dear Mr.Ramesh, it is pity even after 60 years, our PM/FM are extending DEAF ear to SME's...where is the Question of approaching them: if u r a multinational with bag full of CASH u can very well counter everything in India!
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Re: Re: Forward our problem to PM, FM
Atam Parkash Gulati | Sat Dec 1 19:51:24 2012
That's the true state of India toda.
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Ground realities
Shrinivas Moghe | Sat Nov 24 08:22:06 2012
Sir you have invited our views on ground realities and our suggestions on over coming the red tap. The reality is that in obtaining various statutory permissions and compliances, it takes about 180 days. Many of the permissions and compliances are sequential. You obtain one, and then only you can apply for the other. Besides; as you have very aptly said, a SSI starter, is always short of resources, which force him to be perpetually on the mercy and whims of the Officer. Greasing palms at every stage is not possible for him/her. This triggers the ordeal. Hiring consultants is not feasible always.
One way to improve this scenario is to have all the statutory compliances processed in one go and that too on a one window. It would be more better to go for e-applications, and fixing a time limit for total processing. In such a situation hiring a consultant can become affordable, if in case one is not able to execute e-applications on his/her own. This will also solve problem of palm greasing. Time bound processing will ensure accountability of the Officers.
Bunch of suggestions
CHAND RAI | Sat Nov 24 07:49:20 2012
At the outset, I suggest, we should segregate Micro & Small from Medium Industries. I would even go to the extent of stating that we have a separate set of administrators for Micro & Small as their are a lot of issues which are specific to each of these industrial sectors.
The fact that India ranks very low on many indices in global terms as enumerated by the World Bank report is a pointer to the fact the their is a lot amiss in the Indian industrial climate vis-a-vis Micro & Small industries (I wonder why the Micro sector was not defined in the World Bank report).
The Medium & the Large scale industry has the wherewithal to quickly respond to various changes made by the numerous Govt Departments as opposed to the Micro / Small industries. The latter is easily brow beaten thus leading to corruption.
If Income Tax rates are fixed on the basis of variable income then why can't the same principle be applied to Indirect Taxes regime. Furthermore we should grant tax holidays to Micro & Small industries to allow them to stand on their feet.
Finally on the question of Red Tape the less said the better. It starts from the time an industry is conceived, not even born. On birth the child begins learning to become 'street smart' rather than become a good corporate citizen. Shameful.
Like we have a quota for minorities & special privileges for the have-not's (e.g. RTE Act) the MSME should be administered with the same yard stick & similar benefits be granted to them.
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Re: Bunch of suggestions
R.K.Seethapathi Naidu | Sat Nov 24 10:42:26 2012
Why do not delicense if the SME invest less than Rs 5,00,000?
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Online IE Code not possible with many JDGFTs. Agents are there . . .
Kannan | Sat Nov 24 06:37:34 2012
Some of the JDGFTs are not connected with DGFT online IE code application system. If we apply IE code through DGFT online, we can't get. We have to call concerned JDGFT and inquire them; after that they will say, "Send copy of application by post". Then for what propose the online system made with Rs 20 cr. Big companies can spend Rs. 5000 to agents and get IE code within week. Small businesses like me want to get it paying Rs 250 the charge as fixed by the government. If the government bureaucracy do their duty properly we can get IE code within 3 days through online at Rs 250 Charges.
I don't know when this will happen in India
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Re: Online IE Code not possible with many JDGFTs. Agents are there . . .
ashwani | Mon Nov 26 11:28:46 2012
No you are wrong only they take 2000 directly and provide the copy. Rate of Chandigarh
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RED TAPE Corruption in nationalized banks
Jitendra Tah | Sat Nov 24 06:36:30 2012
It is very strange but true that the SME suffer from Nationalised Banks as finance is Not readily available to genuine people willing to set up industry in PUNJAB. You have either to go through agents and SET NETWORK OF CAs, or face harassment for no reason. All banks starting from SBI are "Dalals ka adda". No loan gets passed without 2% commission to bm/po and 1.5% to CA . This is the general setup in Punjab. No genuine entrepreneur gets loan without this setup. All from PO to-bm, DGM SBI -- they all do good LIP service but on ground work do nothing. No transparency at all, no one cares ,every one wants share of the loan pie.
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Re: RED TAPE Corruption in nationalized banks
Atam Parkash Gulati | Sat Dec 1 19:54:45 2012
Very well said , here in Gurgaon (Haryana) it is minimum 4% bribe rate for bank managers and that also if you have all the documents in place.
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Over 1 yr - waiting time for electricity connection
ADITYA | Sat Nov 24 06:19:57 2012
Very true, recently last year, the waiting time for getting electricity for our new production unit of fabric manufacturing was over ONE YEAR. Moreover, it was a nightmare to follow the department with the paperwork. The cost involved was beyond our expectation. How this scenario is going to be helpful for SMEs particularly in UTTAR PRADESH ???
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Re: Over 1 yr - waiting time for electricity connection
Ashwani Jidnal | Mon Nov 26 11:25:49 2012
Give bribe to Concerned JE, SDO , total expenses will be 800-100 per KW in2 number. Your work will be done . It is rate of Haryana UHVBN .
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Solution: go online, bring transparency
Rajesh Daga | Sat Nov 24 06:19:12 2012
Put everything online, all docs can be scanned, digital sign, and hierarchy to be decided for particular work. Putting request online should generate a no for further follow up. Total disclosure of regulation, forms and contact no of particular hierarchy level to be mentioned. If any personal meet required. Online date and time to be generated. Fee to be collected online so no bribes possible. It is just the eye-view or first draft. I can further draft the white paper if required. If a online banking and online shopping can work superbly why can't govt working?
Red tap, corruption and loose judicial system of India
Manish | Sat Nov 24 06:11:45 2012
We as SME face hurdles in every govt. dept. and long delays which cause huge losses to us and also harm growth of our dear country INDIA.
Suggestion: need SME Help Center
SANJIVE MEHTA | Sat Nov 24 05:54:10 2012
15 years ago I went to Taipei for exploration. I got a call from Taipei Economic Commission asking me if they could be any assistance. When I said yes, they took care of all logistics and made me meet a large number of Taipei Businessmen. They helped me overcome all kind of bottlenecks. In INDIA our bureaucracy starts with a belief that everyone is a thief. So all procedures and papers are basically to ensure that the theft does not take place. To stop 1% of theft 99% have to suffer. The motto is "let work not be done. But there should be no scope of cheating". The result is that most of the SMEs simply give up half way or spent a lot of their productive time simply handling the red tape. May I request the Government setting up of a SME help center, having experts to guide SMEs with the labyrinth of red tape. It is very painful hiring different "Consultants" commercially who have no legal standing in the department. If this SME Help Center is given some legal authority, then if some department is trying to create unnecessary hurdles, this body can take appropriate action. If such an expert body is setup, which act as one point guidance cell for SME on all statutory matters, it would be a great help. This body should be pro SME and not a police man waiting to punish in event of smallest of errors. Please take up with concerned authorities. Kind Regards.
Example: annual stamping of weighing scales
Amar Navani | Sat Nov 24 05:22:50 2012
In our country there are many rules formed in the public interest, many of there rules are not reviewed since so many years and are obsolete in today's business systems, one is annual stamping of weighing scales from Weights & Measures Dept, 90% of weighing instruments are being used as part of production process i.e internal quality check and control in industries but as per the rules these scales are to be stamped every year from Legal Metrology Inspector, also rules describe that every weighing instruments is to be sealed at time of stamping and is to be re stamped if it is repaired or calibrated. There are division wise inspectors there duty is to stamped the scales in industries, indirectly it is govt interfere in the production process, the dept does not have any infrastructure but have full authority to penalize industries for violations, result in corruption, even new rules were formed as per legal Metrology act 2011 but rules are not clear about the exemption from Stamping for weighing instruments used in industries as internal quality control or as part of production process, many small and large industries of practically every sector are disturbed and have to pay for the instruments stamping annually, the rules has become a formality for the users and revenue collection for the government as well its officers.This matter is to be highlighted in the interest of all industries and weighing instrument users whose business is not directly connected with consumer.
Thanks
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Re: Example: annual stamping of weighing scales
ashwani Jindal | Mon Nov 26 11:27:00 2012
It is just 1000-2000 expenses .
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Corporation tax - biggest joke
Martin Edney | Fri Nov 23 21:03:17 2012
You have not even mentioned employment laws, Health & Safety, Brussels or the biggest joke of all corporation tax on small business's, if ever there was a tax invented for lack of investment or jobs , it is corporation tax.
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