Here are the key highlights from the press conference of Finance Minster Ms Nirmala Sitaraman:-
1. Rs 20,000 crore will be infused through subordinate debt for stressed MSMEs who have equity problems. This liquidity line will benefit 2 lakh MSMEs. All NPA’ or stressed MSMEs are eligible for the scheme. The government will provide Rs 4,000 crore to CGTMSE who will provide a partial guarantee to banks who will then give benefit to stressed MSMEs.
2. For MSMEs, collateral-free automatic loans worth Rs 3 lakh crore will be provided. This is for a 4-year tenure and is 100 per cent guaranteed. This will last until October 21, 2020. It will benefit 45 lakh units, allowing them to resume activity and safeguarding jobs.
3. The definition being changed for MSMEs in their benefit. So that they can grow in size and get benefits. Investment limit which defined MSMEs revised upwards. Additional criteria being brought in is turnover size – earlier differentiation between manufacturing and service MSMEs will be categorised similarly.
4. Funds of the fund will infuse Rs 50,000 crore equity for those MSMEs who have potential and are viable. Corpus of Rs 10,000 crore – through mother fund and daughter fund we will provide support. This will help expand capacities and help them get listed in markets of choosing.
5. Next step for MSMEs, global tenders in government procurement will be disallowed for up to Rs 200 crore or less. This will allow MSMEs a chance to supply for these big projects. Small units can be part of government purchases and now Self-reliant India can Make in India.
6. The sixth step for MSMEs is that post COVID since trade fairs and exhibitions will be difficult, we will provide e-market facilities. GoI and CPMEs where there are receivables – all will be cleared within 45 days
7. EPF relief for all establishments with Rs 2,500 crore liquidity support. GoI will provide both employer and employee – 12% contributions. Extending support for another three months from March-May 2020 to June-August 2020 as well. Nearly 3.6 lakh establishments benefit, 72.22 lakh employees will benefit.
8. The rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates.
9. Payment for the contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS.
10. This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. from tomorrow to 31st March 2021.
11. Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October 2020 to 30th November 2020 and Tax audit from 30th September 2020 to 31st October 2020
12. Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December 2020.