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Aamir H Kaki The textile industry has welcomed the Government’s move to cut the Goods and Services Tax (GST) on job work or the third-party services, but said some more leniency in cost is needed. In its meeting last week, the GST Council, chaired by Finance Minister Arun Jaitley consisting of representatives from all the states, had taken the decision to bring down the tax on all the job works such as weaving, knitting, cutting, and embroidery in the textile sector at from 18% to 5%.      The 5% rate will be applied on job work in apparel, carpets and shawls.  “We welcome this move of the government but it would be better if it is zero percent,” P M Shah, President, Southern Gujarat Chamber of Commerce and Industry (SGCCI) told The Dollar Business. “The thing is that the ...

The Dollar Business Bureau  Striving to make the life of small exporters easier, the Department of Commerce is likely to push for greater interest subsidy and broader export credit insurance. As part of the review of Foreign Trade Policy (FTP) – 2015-2020, the Commerce Department is seeking to broaden the basket of services and to make it more attractive for foreign nationals to study and get medical treatment in the country. Nirmala Sitharaman, Commerce and Industry Minister, has marked two sections small exporters and services to be added in the review of the FTP, which is expected to be released in June, in time for the roll out of the Goods and Services Tax (GST). According to sources, Rs.1,000 crore has been ...

Press Information Bureau Commerce and Industry Minister Nirmala Sitharaman has said that the revised Foreign Trade Policy (FTP) would be released early to synchronise the same with the roll out of GST. The core focus of the revised FTP would be promoting exports from the SMEs and high employment potential sectors. Nirmala Sitharaman was chairing a meeting on the mid-term review of the Foreign Trade Policy 2015-20 organised jointly by Department of Commerce and Research and Information System for the Developing Countries (RIS) . Commerce Secretary Rita Teaotia, Chairman RIS Hardeep Singh Puri and DGFT Ajay Bhalla also participated in discussions. The event was attended by the trade policy experts from the industry, academia, research and Government. Major suggestions discussed during the deliberations ...

The Dollar Business Bureau Due to small businesses, which may not have the digital and technological means necessary to adapt to the GST regime, the Confederation of All India Traders (CAIT) has requested for a delay in the nation-wide roll out of GST. The new tax regime is scheduled to commence on July 1, 2017, after its final draft gets ratified in the parliament during the second half of budget session. CAIT argues that this gives only a 60 day bracket for small traders to transition into GST. Requesting for the implementation to be postponed to September 1, 2017, the leading trade association says that this would give enough time for small traders to understand and adopt the new tax mechanism. "Nearly 70% of small businesses in the country are yet to ...

The Dollar Business Bureau  Demonetisation would leave a negative effect on the small and medium enterprises (SMEs), job creation and rural consumption in the short-term whereas the large and well-organised sectors stand to benefit in the long-term, according to a recent ASSOCHAM Bizcon Survey.  The contrast in perception pointed out by the survey is quite stark. According to the survey, 81.5% of the participants felt that SMEs have been impacted and would still suffer the lingering impact for one more quarter. However, an equal number of respondents said that for big enterprises, the unprecedented measure of demonetisation impact would be positive.  On the other hand, on a holistic level, majority of respondents felt that the effect could be seen in the declining sales ...

The Dollar Business Bureau Suzlon Group, a leading renewable energy solutions provider in the world, announced on Monday that it has won an order of 50.40 MW project for wind power from a leading business house. “The project consists of 24 units of S95 90m tubular tower with a rated capacity of 2.1 MW,” Suzlon said in a press release. The project is located in the Anantapur district of Andhra Pradesh and is likely to be completed in March next year, it said. After bagging this order, the total order portfolio of the company in the current year with the business house reach to 84 MW, of which 33.60 MW was earlier announced as a part of order bagged from small and medium enterprises (SMEs). ...

Aamir H Kaki In an unexpected move, Prime Minister Narendra Modi announced the demonetisation of Rs.500 and Rs.1,000 notes from midnight. This move has been welcomed by the industry leaders, who said that it has been a ‘bold step’ and a great attack by government to curb black money. But what would be the impact on corporates, exporters and bankers, on this move by the government. Let us take a look. SMEs: Many SMEs operate on cash for small transactions as well as for employee payments. The sudden demonetistion will hamper trade in the short term, though most see it as a positive for the sector. Viren Bavishi, Director, Trade Association of Information Technology (TAIT), the association of SMEs in IT sector, says, “Now ...

The Dollar Business Bureau  All eyes are on British Prime Minister Theresa May's India visit after the latest changes in UK visa norms. Theresa May will visit India on Sunday as part of her three-day visit. This time around the PM is visiting with the largest ever business delegation from her country. India Inc views this as a sign of good times to come.  Bilateral trade will be at the forefront of discussions between the UK and India. Post Brexit, forging strong non-EU alliances with countries like India is crucial for the UK.  Trade between India and the UK is expected to suffer following the vote in favour of Brexit. The subsequent drop in the sterling pound value too has added to the woes ...