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MSMEs are crucial for nation building, employment, and industry supply chains: Piyush Goyal

Quality Control Orders protect MSMEs from unfair competition from outside the country: Shri Goyal

An MSME should not be looked upon as merely a small enterprise, its thinking should not be small or negative since MSMEs are a big force, they are successful, they are the strength of the nation, are giving employment to millions of countrymen and contribute to nation building. This was stated by Union Commerce and Industry Minister, Shri Piyush Goyal at the 10th India International MSME Startup Expo & Summit 2024 in New Delhi today.

Shri Goyal said that innovative ideas and new ways of doing things are the hallmark of the entrepreneurs of MSMEs. The entire ecosystem around big industries and enterprises comprises thousands of MSMEs, without whom they cannot succeed, he said, adding that MSMEs act both as suppliers and customers of big industries.

Shri Goyal pointed out that MSMEs play an important role in tourism and infrastructure development of the country and have a big share in India’s exports. The growth of this sector is vital for the country and a focus area for the government, he said. The Commerce Minister said that when 140 crore countrymen get together to contribute in nation building, India will become a developed nation by 2047 and we can ensure prosperity for all.

Shri Goyal highlighted the fact that through Quality Control Orders (QCO) the government is supporting the MSME sector. “We are giving time to MSMEs to meet the requirements,” he said, adding that MSMEs will benefit due to two reasons. QCOs stop substandard goods imported at strange rates from outside the country and thus helps the MSME sector by protecting it from unfair competition. And secondly, when MSMEs meet the standards, they can become competitive both nationally and internationally and become profitable. There are numerous examples on how the QCs have benefitted individual sectors, he said.

An employee cannot be deprived from his service benefits by backdating the termination of his employment

Copy of judgement attached

An employee cannot be deprived from his service benefits by backdating the termination of his employment.

Copy of judgement attached

GatiShakti evaluates six infrastructure projects

The 77th meeting of the Network Planning Group (NPG) under the PM GatiShakti initiative was recently convened in New Delhi under the chairmanship of Additional Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Shri Rajeev Singh Thakur. The meeting focused on evaluating six important infrastructure projects from Ministry of Railways (MoR), Ministry of Road Transport and Highways (MoRTH), Ministry of Civil Aviation (MoCA) and Ministry of Ports, Shipping and Waterways (MoPSW) were evaluated for their alignment with the principles of integrated planning outlined in the PM GatiShakti National Master Plan (NMP). The evaluation and their anticipated impacts of these projects are detailed below.

Hazira – Gothangam New Rail Line in Gujarat

A greenfield project in Gujarat involving the construction of a 36.35 km Broad Gauge (BG) Double Line connecting Gothangam to Hazira. This project aims to enhance section capacity and improve connectivity to major industries and Hazira port, a key cargo hub. By supporting the efficient movement of bulk and containerized cargo, the project is expected to foster regional economic development, reduce road traffic, and minimise environmental impacts through the modal shift of the cargo from road to rail transportation.

Bilasipara – Guwahati Road in Assam

A strategic road upgrade in Assam to 4-lane NH-17, covering a 44.56 km stretch between Chirakuta (Bilasipara) and Tulungia. This project will enhance regional connectivity, linking Assam to West Bengal, Meghalaya, and important infrastructure such as the Multi Modal Logistics Park at Jogighopa and Rupsi and Guwahati Airports. It is expected to significantly boost economic activities, reduce travel time, and alleviate congestion in the region.

Multi-Modal Logistics Park (MMLP) in Nashik, Maharashtra

Development of a Multi-Modal Logistics Park (MMLP) in Nashik, Maharashtra, over 109.97 acres. This greenfield project is designed to integrate road and rail transport, improving logistics efficiency, reducing costs, and supporting regional industries by providing facilities such as cargo consolidation, storage, and customs clearance. The project is anticipated to handle 3.11 million metric tons of cargo annually from 2029 onwards.

Development of New Civil Enclave at Bihta Airport, Patna Bihar

A brownfield project in Bihar involves the development of a new civil enclave at Bihta Airfield, 28km from Jay Prakash Narayan International Airport in Patna. This project addresses capacity constraints at Patna Airport and includes a new terminal building capable of handling 5 million passengers annually. The project also involves a 10-bay apron for A-321 aircraft, with the aim of accommodating growing passenger traffic and improving connectivity in the region.

Development of New Civil Enclave at Bagdogra Airport, Siliguri, West Bengal

A brownfield project involving the development of a new civil enclave at Bagdogra Airport, in the Darjeeling district of West Bengal. The expansion includes constructing a new terminal building with a capacity to handle 10 million passengers annually and an apron for 10 aircraft. Located strategically in the & chicken neck area, Bagdogra Airport serves as a critical gateway to the North-eastern region of the country, and this expansion is essential for meeting the region’s growing connectivity needs.

Development of international Container Transshipment Port al Galathea Bay in Andaman & Nicoba

A transformative project for developing an International Container Transshipment Port (ICTP) at Galathea Bay on Great Nicobar Island in the Union Territory of Andaman & Nicobar. With a project cost of Rs. 44,313 crores, this greenfield initiative aims to capitalise on the strategic location and deeper waters of the bay. The port is expected to handle transshipment cargo from Indian ports, and the neighbouring countries in the region, enhancing India’s maritime trade competitiveness and generating substantial economic benefits.

NPG evaluated all six projects from the perspective of the principles of PM GatiShakti: integrated development of multimodal infrastructure, last-mile connectivity to economic and social nodes, intermodal connectivity, and synchronised implementation of projects. These projects are expected to play pivotal roles in nation-building, integrating various modes of transport, and providing substantial socio-economic benefits and ease of living, thereby contributing to the overall development of the regions.

Mere non-performance of an Agreement to Sell by itself does not amount to the offences of cheating and criminal breach of trust.

Judgement attached

CBDT issues clarification in respect of Income-tax clearance certificate (ITCC)

It is being erroneously reported that all Indian citizens must obtain income-tax clearance certificate (ITCC) before leaving the country- a position that is factually incorrect

Section 230 (1A) of the Income-tax Act, 1961(the ‘Act’) relates to obtaining of a tax clearance certificate, in certain circumstances, by persons domiciled in India. The said provision, as it stands, came on the statute through the Finance Act, 2003 w.e.f. 1.6.2003.

The Finance (No.2) Act, 2024 has made only an amendment in Section 230(1A) of the Act, vide which, reference of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the ‘Black Money Act’) has been inserted in the said Section. This insertion has been made to also cover the liabilities under the Black Money Act in the same manner as the liabilities under the Income-tax Act,1961 and other Acts dealing with direct taxes for the purpose of Section 230(1A) of the Income-tax Act,1961.

There appears to be a mis-information about the said amendment emanating from incorrect interpretation of the amendment. It is being erroneously reported that all Indian citizens must obtain income-tax clearance certificate (ITCC) before leaving the country. This position is factually incorrect.

As per section 230 of the Act, every person is not required to obtain a tax clearance certificate. Only certain persons, in respect of whom circumstances exist which make it necessary to obtain a tax clearance certificate, are required to obtain the said certificate. This position has been in the statute since 2003 and remains unchanged even with the amendments vide Finance (No. 2) Act, 2024.

In this context, the CBDT, vide its Instruction No. 1/2004, dated 05.02.2004, has specified that the tax clearance certificate under Section 230(1A) of the Act, may be required to be obtained by persons domiciled in India only in the following circumstances:

i. where the person is involved in serious financial irregularities and his presence is necessary in investigation of cases under the Income-tax Act or the Wealth-tax Act and it is likely that a tax demand will be raised against him, or
ii. where the person has direct tax arrears exceeding Rs.10 lakh outstanding against him which have not been stayed by any authority.

Further, a person can be asked to obtain a tax clearance certificate only after recording the reasons for the same and after taking approval from the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax.

In view thereof, it is reiterated that the ITCC under Section 230(1A) of the Act, is needed by residents domiciled in India, only in rare cases, such as (a) where a person is involved in serious financial irregularities or (b) where a tax demand of more than Rs.10 lakh is pending which is not stayed by any authority.

Doctrine of proportionality cannot be invoked in cases where the root of the employment itself is based upon a forged document.

Judgement attached

If Payments are made to employees in relation to the ESOPs, it would have been necessary to deduct the value thereof to arrive at the value of the perquisite.

Judgement attached.