Putting an end to the questions over effective utilisation of the ‘Fund of Funds’ under the Startup India initiative, the Prime Minister clarified that about Rs. 1,285 crore has been committed towards startups since the launch of the Rs. 10,000-crore fund in January 2016. In an interaction with young entrepreneurs from across the country, including cities such as Dehradun, Guwahati and Raipur, PM Narendra Modi said the fund of funds has helped venture capital firms in the country leverage investments of almost Rs. 7,000 crore among startups.
“When the fund of funds completes its fund-raising, the corpus will touch almost Rs. 14,000 crore. Thus, when the fund of funds matures over time, almost Rs. 1 lakh crore will be available for startup funding in India. This is a huge contribution towards venture capital investing in the Indian startup ecosystem,” said the PM while addressing concerns of capital availability to grow business ideas among startups.
Govt. extends period of special GST refund fortnight by 2 days till June 16, 2018
The Government has launched the second “Special Drive Refund Fortnight” from 31.5.2018 to 14.6.2018. During the first Refund Fortnight from 15th to 29th March an amount of Rs.5350 Crore was sanctioned and during this fortnight over Rs 7500 Crore has been sanctioned. In view of overwhelming response from exporters and pending claims, the period of Refund fortnight is being extended by two more days i.e up to 16th June, 2018. All exporters whose refunds have been held up on account of short payment are required to make the payment of IGST equal to short payment and follow the instructions of Circular No.12/2018-Customs dated 29.5.2018. In IGST short payment cases, small exporters whose aggregate IGST refund amount for the period July, 2017 to March, 2018 is up to Rs. 10 Lakhs are required to submit self-certified copies of proof of payment of IGST to the concerned Customs office at the port of export. Others are required to submit a certificate from a Chartered Accountant including the proof of payment.
Intra-State e-way bill applicable from June 16, 2018 to Delhi if consignment value exceeds Rs. 1 lakh
The E-way bill system would be applicable from June 16, 2018 in the State of Delhi for intra-State movement of goods. There is no need for generation of e-way bill in case of B2C transactions or where consignment value does not exceed Rs. 1 lakh.
No need to file return related to change in shareholding of promoters of listed cos. MCA
Earlier every listed Company, under section 93 read with Rule 13, was required to file a Return in e-form No. MGT-10, with Registrar to intimate changes either increase or decrease of two percent or more in the shareholding of Promoters and top 10 shareholders of the Company of the paid-up share capital, within 15 days of such changes. Such requirement has been done away with after amendment of Companies (Management and Administration) Rules, 2014.
Businesses not Under GST to Get 180 Days to Pay Back Their Loans
In a temporary relief to small businesses not registered under the Goods and Services Tax, the Reserve Bank of India on Wednesday extended loan repayments deadline to 180 days from the due date without being classified as a non-performing asset.
This latest announcement comes after the regulator’s April diktat which had allowed GST registered MSME borrowers with a turnover of up to Rs. 25 crore to delay loan repayments by 180 days.
“Having regard to the input credit linkages and associated issues, it has now been decided to temporarily allow banks and NBFCs to classify their exposure, as per the 180 day past due criterion, to all MSMEs with aggregate credit facilities up to the above limit (up to Rs. 25 crore), including those not registered under GST,” the RBI said.
The central bank has been facing demands that it remains lenient on the medium and small enterprises as it is the biggest employer and is facing severe pressures from the implementation of the GST which has disrupted the economic landscape in which they operate.
Anti-profiteering authority’s orders on GST have so far favoured firms
Allaying industry’s apprehensions, all three orders passed by the National Anti-Profiteering Authority under the goods and services tax (GST) regime have so far gone in favour of companies.
In its latest order, the five member NAA has dismissed complaint against elevator manufacturer Schindler India for charges of profiteering filed by a Delhi business. The complaint pertained to charging of service tax on the payment made to Schindler India before GST implementation on July 1, 2017 and GST for the payment installments made in July when the installation took place.
However, since elevators were delivered to the firm before July 1, the tax had been charged without excluding the pre-GST regime excise duty. Hence, the applicant was charged twice — once on the pre-GST excise duty and subsequently on the full value of the material used in the lift.
Indian Valuation Standards notified, effective from 1st July, 2018
The Institute of Chartered Accountants of India has notified the Indian Valuation Standards (IVS). These Standards are effective for the valuation reports issued on or after 1st July, 2018. This has been necessitated amid increasing need of standardising the practices, principles and procedures followed by valuation professionals supported by Valuation Standards, Guidance Notes, Interpretations and other technical matters. These Valuation Standards will be applicable for all valuations under the Companies Act, 2013 mandatorily. In respect of valuations under any other Act, these Standards are recommendatory.
According to IVS 202, nature of the engagement of valuation purpose decides the form and content of a valuation report. It prescribes significant elements and minimum contents of a valuation report, basis for preparation of a valuation report and provides guidance on sufficient and appropriate documentation of the engagement.