Daily Archive: February 19, 2019
DPIIT to issue notification today
Union Minister of Commerce & Industry and Civil Aviation, Suresh Prabhu has cleared a proposal aiming at simplifying the process of exemptions for Start-ups under Section 56 (2) (viib) of Income Tax Act. The Department for Promotion of Industry and Internal Trade (DPIIT) will be issuing a gazette notification today to this effect.
In order to catalyse entrepreneurship by enabling angel investments to innovators across all sections of society and all sectors of economy, a Gazette notification in partial modification of Gazette Notification number G.S.R 364 (E) dated April 11, 2018 was issued on 16.02.19. However, concerns were expressed regarding taxation of angel investments and there were issues that needed to be addressed to ensure availability of capital to Start-ups.
The Minister took up these issues with concerned officials and a roundtable was organized on 4th February, 2019 under the chairmanship of Secretary DPIIT with Start-ups, angel investors, and other stakeholders with a view to discuss the new measures undertaken by the Department to address the Angel Tax issue and understand the mechanism to deal with it institutionally.
With this notification, the definition of Start-ups will be expanded. Now an entity will be considered as a Start-ups upto a period of ten years from the date of incorporation and registration in place of the earlier duration of 7 years. Similarly, an entity will continue to be recognised as a Start-ups, if its turnover for any of the financial years since incorporation and registration has not exceeded Rs. 100 crore in place of Rs. 25 crore earlier.
A Start-ups will be eligible for exemption under Section 56 (2) (viib) of Income Tax Act, if it is a private limited company recognized by DPIIT and is not investing in any of the following assets:
building or land appurtenant thereto, being a residential house, other than that used by the Start-ups for the purposes of renting or held by it as stock-in-trade, in the ordinary course of business;
land or building, or both, not being a residential house, other than that occupied by the Start-ups for its business or used by it for purposes of renting or held by it as stock-in trade, in the ordinary course of business;
loans and advances, other than loans or advances extended in the ordinary course of business by the Start-ups where the lending of money is substantial part of its business;
(iv) capital contribution made to any other entity;
shares and securities;
(vi) a motor vehicle, aircraft, yacht or any other mode of transport, the actual cost of which exceeds ten lakh rupees, other than that held by the Start-ups for the purpose of plying, hiring, leasing or as stock-in-trade, in the ordinary course of business;
jewellary other than that held by the Start-ups as stock-in-trade in the ordinary course of business;
any other asset, whether in the nature of capital asset or otherwise, of the nature specified in sub-clauses (iv) to (ix) of clause (d) of Explanation to clause (vii) of sub-section (2) of section 56 of the Act.
Consideration received by eligible Start-ups for shares issued or proposed to be issued shall be exempt up to an aggregate limit of Rs. 25 crore.
In addition, consideration received by eligible Start-ups for shares issued or proposed to be issued to a listed company having a net worth of Rs.100 crore or turnover of at least Rs. 250 crore will also be exempted.
The aggregate limit of Rs. 25 crore will exclude consideration received by eligible Start-ups for the following classes of persons:
Alternative Investment Funds- Category-I registered with SEBI
Listed company having a net worth of Rs.100 Crores or turnover of at least Rs. 250 crore provided that its shares are frequently traded as per SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
Start-ups will file a duly signed declaration with DPIIT for availing exemption. The declaration will be transmitted by DPIIT to CBDT.
Prime Minister inaugurates Virtual Experiential Museum at Man – Mahal near Dashashwamedh Ghat at Varanasi
The Prime Minister, Sri Narendra Modi inaugurated the newly established Virtual Experiential Museum (VEM) in a Centrally Protected Monument under Archeological Survey of India, Man – Mahal, situated on the bank of the Ganges near holy Dashashwamedh Ghat at Varanasi today.
Virtual Experiential Museum has been established by the National Council of Science Museum (NCSM) working under the Ministry of Culture, Government of India. NCSM has worked hard to show a glimpse of various cultural aspects, tangible and intangible, of Varanasi through the use of modern and sophisticated virtual reality technology in this museum. Indian National Trust for Art and Cultural Heritage (INTACH) helped in designing and curation of this Virtual Experiential Museum and also in preparing of script for various documentaries to be shown in this VEM.
A tour of VEM will be a unique experience for the visitors where they will get the experience of the holy ghats, classical music, weaving of sari, Ram Leela, 3D view of monuments, narrow lanes and betel shop etc. of Varanasi in an interesting way with the help of curved T.V. screen, paintings, touch screens and projectors etc.
The story of the descent of the holy Ganga on earth will also be shown to the visitors in a most interesting manner.
Before the setting up of VEM, the centrally protected monument observatory of Man – Mahal was conserved scientifically as this building was constructed by Raja Man – Singh in 1600 A.D., a close associate of Mughal Emperor Akbar. Later, in 1734, an observatory was constructed on the roof of this monument by Sawai Jai Singh II of Jaipur, which was planned by Samarath Jagannath to calculate time, prepare lunar and solar calendar, study movement & angles of star and planet.
Entry ticket for this museum with monument is Rs. 25/- for Indian and visitor from SAARC and BIMSTEC countries while for other foreign visitors, Rs. 300/- will be charged. The VEM will remain open from sun rise to sun set. The entry of children below 15 years is free.
Ceremonial lamp being lit to launch SWAYATT
Union Minister of Commerce & Industry and Civil Aviation, Suresh Prabhu, launched SWAYATT in New Delhi today. SWAYATT is an initiative to promote Start-ups, Women and Youth Advantage Through eTransactions on Government e Marketplace (GeM). This will bring together the key stakeholders within the Indian entrepreneurial ecosystem to Government e-Marketplace the national procurement portal.
On this occasion, Commerce Minister also dedicated GeM Start-up Runway-an initiative of GeM in association with Start -up India to facilitate Start-ups registered with Start -up India to access the public procurement market and sell innovative products and services to government buyers.
Suresh Prabhu also felicitated a few successful entrepreneurs from Women Self Help Groups, Start-ups and MSMEs in GeM.
Speaking on the occasion Commerce Minister said, Suresh Prabhu appreciated the achievements of GeM reaching out and empowering these diverse groups and reiterated the need to support and strengthen such initiatives and enterprises which constitute the backbone of the Indian economy. He also appreciated the event for impressively showcasing many such successful efforts of SHGs, Start-ups, Women enterprises, MSMEs partnering GeM.
Minister of State for Commerce and Industry, C.R. Chaudhary, released a movie on GeM SWAYATT and expressed hope that the national launch of SWAYATT would further seek to promote inclusiveness by catapulting various categories of sellers and service providers, take proactive steps to facilitate the training and registrations of such specific category of manufacturers and sellers, develop women entrepreneurship and encourage participation of MSME sector and Start-ups in public procurement.
CEO GeM, Radha Chauhan, introduced the concept of SWAYATT and Start-up Runway.
The event which was web cast LIVE across the country, witnessed enthusiastic participation from all over India including policy makers, social activists, artisans, women entrepreneurs, and start-ups who will work to ensure market linkages for these sections in public procurement.
Women Self Help Groups, Start-ups, and Government Organization had exhibited 24 stalls at the venue. The event partners included various Ministries like Women & Child Development, Electronics & IT, MSME, Ministry of Housing and Urban Affairs and Rural Development and Skill Development apart from industry associations financial institutions, autonomous bodies like NSIC, KVIC, CCIC and SPVs – Invest India and Start-up India.
GeM Start-up Runway seeks to align certified Start-ups with Government procurement orders and contracts, to enable Start-ups in scaling operations from ideation to growth stage in minimal time, and spur hyper-local job-creation and wealth-generation and for achieving socially-inclusive economic growth.
While Government has relaxed norms in Public Procurement for Start-ups by exempting them from prior experience, prior turnover and Earnest Money Deposit [EMD] stipulations, subject to meeting of quality and technical specifications, product comparison and price discovery are two major constraints for Government buyers in procuring innovative products from Start-ups.
Start-up Runway will enable Start-ups to conduct market trials with government buyers, seek time-bound feedback and gain realistic product, price comparison and market valuation from potential buyers and investors.
Certified Start-ups will register on GeM portal as a seller with their DPIIT number, provide basic description about the performance of their products/services along with the Test Certificates of quality, their functional utility and specify potential user Ministry/ departments where these products can be used.
Ministries and departments will be sensitised proactively through system generated messages/ alerts in Marketplace about availability of such innovative products on the portal Potential buyers can evaluate these products and services with respect to their utility, uniqueness with respect to design, process and concept, and provide feedback in a time-bound interval and manner. Innovative products with 3+ ratings on a rating scale of (1-5) from 3 or more buyers will be accepted for listing as a regular product or service on GeM
Approximately 1,516 Start-ups are presently registered on GeM with 12,915 products to offer and have received more than 5,000 orders till date.
GeM Start-up Runway seeks to support technology development, spur research and innovation by ensuring a conducive policy environment for industrial diversification and value addition to commodities, and aligns with Government’s philosophy to turn Job-seekers into job-creators.
GeM Start-up Runway will address goals and objectives under United Nations Sustainable Development Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.
Government e Marketplace, an online market place for procurement of common use goods and services by government ministries, departments and CPSEs was setup in 2016 and has 801,956 products and 5,197 services, with 199,654 registered sellers, service providers and 33,536 government buyers. Since inception, GeM has processed 1,386,030 orders worth Rs. 19,214 crore in gross merchandise value.
Ministry of Housing & Urban Affairs Focus on replacing regulatory ‘control’ based environments with enabling ‘strategic’ planning framework : Hardeep Puri
Must ensure that growth is environmentally sustainable and equitable : Puri
Land Pooling Policy- a major paradigm shift towards people-led development : Puri
Conference to deliberate on Delhi Master Plan 2041
Shri Hardeep Singh Puri, Minister of State (I/C) of Housing and Urban Affairs, has said that in the last few years a more holistic view of urban development has emerged that focuses on replacing regulatory ‘control’ based environments with a more enabling ‘strategic’ planning framework, on active citizen engagement and co-creation, on sustainable green growth principles, on compact mixed-use planning of cities and on data-linked governance and service provision. He was addressing a two-day international Conference on ‘Re-Inventing Delhi’ here today. He said, many of the policies of the Government have focused around creating such an enabling environment that can harness not just growth but ‘good growth’.
Lt. Governor of Delhi Shri Anil Baijal, Shri Durga Shankar Mishra, Secretary, M/o Housing and Urban Affairs, Vice-Chairman of Delhi Development Authority Shri Tarun Kapoor, Senior Fellow, Marron Institute of Urban Management Shri Pedro B. Ortiz, various stakeholders and experts on Urban planning were present on the occasion.
Shri Puri said, engagements in the preparation of the next perspective planning blueprint for the city of Delhi will help in furthering a process of transformation that has already been initiated by the Government, through many of the progressive national level urban policies and more specifically through several progressive policies/projects that we are implementing in Delhi.
Pointing out that Delhi is symptomatic of the issues that plague metropolitan cities across India- unsustainable spread and sprawl of development (in many cases unplanned and unregulated), lack of adequate basic services like water supply, solid waste management, waste water management, etc., extreme traffic congestion and air pollution due to increase in private vehicle trips, and a general degradation of quality of urban space, Shri Puri said that while we focus on developing our cities as vibrant centres of investment and productivity, we must ensure that such growth is environmentally sustainable and equitable. “In other words, growth that meets the 3Es of sustainable development – equity, economy and environment”, he said.
The Minister said that inability of planned development to catch up with the speed of population growth and increase in demand for planned housing, commerce, industry, etc. has resulted in acute shortage on the one hand, and on the other, it has spurned an entire unregulated supply chain of unauthorized developments that have come up to fill the gaps in the market. “In order to correct this situation, we have initiated the Land Pooling Policy. This is a major paradigm shift towards people-led development where landowners will pool land together, be part of a co-created integrated plan for the sector and undertake development as per requirements”, he added.
He said, the Policy is expected to create a large number of housing units that will cater to Delhi’s unmet housing demand in addition to becoming centres for new institutions, city level green spaces, commercial areas, and cultural centres/entertainment areas for citizens.
Shri Puri said, another important issue for Delhi is the need for regeneration of brown field areas in the city. “Much of this redevelopment must compliment the extensive metro network already established in the city by planning higher densities of people and jobs closer to transit. A comprehensive Transit Oriented Policy (TOD) Policy is being developed and will be implemented shortly”, he said. Strategic implementation of the Policy is expected to yield substantial economic benefits by facilitating the development of new housing stock and economic centres, he added.
Shri Puri informed that conservation and judicious use of resources such as water has been incorporated as an integral part of all our new policies and projects. “This is not just a response to water scarcity in Delhi but symbolic of the new ethos of sustainable and environmentally responsible development that is being inculcated in the city”, he said.
Secretary, MOHUA, Shri Durga Shanker Mishra in his address highlighted the importance of ensuring quality life for the citizens in any future planning. He said, the Master Plan for Delhi 2041 must take into account the need for public spaces, cleaner environment, water and biodiversity conservation, slum re-development, safety and maximizing the potential of Delhi heritage and history. Shri Mishra emphasized on the need to de-congest the city and mobility. He said Regional Rapid Transit System (RRTS) will go a long way to decongest the city.
Lt. Governor of Delhi Shri Anil Baijal said Delhi Master Plan 2041 must take into account the sustainable environment, citizen engagement in planning at local level, universal accessibility, zero waste mechanism, efficient energy use and constant monitoring and review.