A COVID19 Relief Package for SMEs

  • Industry News
  • Mar 23,20
Fiscal stimulus through Direct Benefit Transfer is surely the way to help the economically weaker sections but what about the 7,00,000 tax paying SMEs?
A COVID19 Relief Package for SMEs

Fiscal stimulus through Direct Benefit Transfer is surely the way to help the economically weaker sections but what about the 7,00,000 tax paying SMEs? Their businesses are completely jolted and disrupted. Even from the 70 million SMEs in the country 99% have a turnover of less than Rs 250 crores (Rs 2.5 billion). They do not have the cash to run the operation for more than a month or two and hence the government needs to act and FAST! 
 
Here is the "Relief Package" that the Govt of India needs to introduce for SMEs due to the COVID19 outbreak.
 
1. Defer tax payment deadlines by a month 
2. All defaults on contracts expecting execution by March to be given a three-month extension. 
3. Allow corporates / firms paying taxes of less that Rs 50 lacs, a three-month extension 
4. Loan defaults which have got triggered in Jan-March 2020 to be given a six-month extension 
5. Extend Vivaad se Vishwas amnesty scheme by two months and release all dues back to the taxpayer once settled. 
6. Announce 'interest payment holiday' for borrowers bearing loans during Jan - March 2020 for three months 
7. Align GST rates to two slabs 
8. All employers, who do not retrench staff during March - June 2020 and have a turnover of less than Rs 250 crores (Rs 2.5 billion), to be       given a tax deduction of 25% of tax payable 
9. Tax refunds & exporter drawbacks held up need to be released on an urgent basis 
10. Legal compliances for PF/ GST/ TDS need to be considered leniently for April 2020
 
 
Pratap Padode, Founder, ASAPP Info Global Group, and Founder & Executive Director at FIRST Construction Council and Smart Cities Council India
 
 
 

Related Stories

Electrical & Electronics
Supply Chain, Testing Hurdles hinder India's electrical growth: IEEMA President

Supply Chain, Testing Hurdles hinder India's electrical growth: IEEMA President

Arsiwala also emphasized the need for clearer state-level energy policies, particularly in emerging sectors like e-mobility, renewables, and green hydrogen

Read more
Policy Regulation
India's exports may hit $ 450B in 2024 amidst Red Sea mishap, says Ashwani Kumar

India's exports may hit $ 450B in 2024 amidst Red Sea mishap, says Ashwani Kumar

The main drivers of merchandise export growth in February include engineering goods, electronic goods, organic and inorganic chemicals, drugs and pharmaceuticals, and petroleum products

Read more
Policy Regulation
DGFT partners with DHL to prepare MSMEs for export in 76 districts

DGFT partners with DHL to prepare MSMEs for export in 76 districts

DGFT has been collaborating with various e-commerce platforms and other service providers to handhold and hold capacity building and training sessions in the identified districts

Read more

Related Products

Cnc End Machining Centre

Finishing Machines & Equipment

Brisk Tech Engineers offers a wide range of CNC end machining centre.

Read more

Request a Quote

CNC Polygon Turning Machine

Finishing Machines & Equipment

Brisk Tech Engineers offers a wide range of CNC polygon turning machine.


Read more

Request a Quote

CNC Shaft Turning Machine Ml400 With Gantry Loader

Finishing Machines & Equipment

Meiban Engineering Technologies Pvt Ltd offers a wide range of CNC shaft turning machine ML400 with gantry loader. 


Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back