SME Times Exclusive | 04 Feb, 2020
Indian small and medium enterprises
(SMEs) hailed a string of positive measures included in the Union Budget
2020-21 tabled in the Parliament last week.
Sitharaman introduced a series of
measures, in line with the recommendations of U. K. Sinha Committee, to
support the MSMEs through easy liquidity, greater business opportunities, and
operational efficiency, said Ketan Gaikwad, CEO of Receivables Exchange of
Some of these measures will help in the
greater participation on the trade receivables discounting platform (TReDS), which
is a unified platform for MSME sellers, their large buyers which includes PSUs
and Corporates, and financiers, to facilitate timely payments and secure credit
on more favourable terms, he added.
In a similar tone, Malay Dikshit , Founder & CEO , Piscium Health
Sciences Pvt Ltd said that it is a great budget for start-ups
– especially focused on the manufacturing sector.
announcements on setting up knowledge and technology clusters to empower
start-ups as well as National Mission on Quantum Technologies and applications
will potentially set a new direction for aspirational entrepreneurs in the
country, going forward, he added.
same time, increasing tax deductions and relaxation of taxes on ESOPs will too
contribute towards healthier growth of the start-up ecosystem in the country;
and like me, will empower several professionals to cherish their dreams of
being business owners, he said.
CMA B Mallikarjun Gupta - Chief Taxologist, Logo Infosoft, said that the
budget has provided a tremendous thrust on MSME Sector as it has introduced
Safeguard Duties, this is essentially required as imports are becoming cheaper
on account of IGST being eligible for Input Tax Credit for traders which
replaced CVD which was not eligible earlier. This would help the align MSME
manufacturing sector on track.
fake invoices being issued in GST Regime has become a big headache for the
Government and to punish such errant taxpayers the budget proposes hefty penalty
equivalent to the aggregate amount of fake invoices issued or transactions
omitted,” he said.
budget also proposes to levy equal amount of penalties on the person who has
received or miss used to take input tax credit. These stringent provisions will
definitely weed out the black sheep from the system, he added.
Mehrotra, Chairman, 315Work Avenue, co-working space provider, said that the Union
Budget 2020-21 has announced a few measures that would benefit the start-up
industry and indirectly the coworking sector.
budget has proposed deferring the tax payments on ESOPs by five years or till
the employees leave the company or sell their shares, whichever is the
earliest. This will reduce the cash flow problem for employees who do not sell
their shares immediately and continue to hold them for a long term, he said.
budget has also proposed a 100% deduction of profits for three consecutive
assessment years out of seven for eligible start-ups having turnover of up to
Rs 25 crore and an increase in the turnover limit for tax exemption for
start-ups from Rs 25 crore to Rs 100 crore, all of which will boost the
start-up sector, he added.
funding, single window clearance and portal for start-ups would also encourage
entrepreneurs to take greater risks to set up start-ups. This will augment the
number of start-ups in the country and we could be heading to be the largest
start-up ecosystem in the world, he said.