Andhra Chamber of Commerce - E Bulletin

ANDHRA CHAMBER
OF COMMERCE
VOL. - LXXI
May 2018
INFORMATION BULLETIN
PROGRESS THROUGH COMMERCE AND INDUSTRY
www.andhrachamber.com

C o n t e n t sShri Ch. Venkateswara Rao
Vice-President
Shri R.R. Padmanabhan
Chairman,
Skill Development Sub Committee
Shri M.K. Anand
Chairman
IT and Telecom Sub-committee
Shri V.V. Sampath Kumar
Chairman,IndirectTaxesSub-Committee
Shri K.N. Suresh Babu
E.C. Member
Shri V.S. Prasanth Kumar
E.C. Member
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Published by
Shri. P. Nandagopal
Secretary
Andhra Chamber of Commerce
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Printers
RATHINAM PRINTERS
New no 27, Old no 13,
Angamuthu Street,
Royapettah,
Chennai - 600 014
Bulletin Advisory Board
1
1. President Desk........................................................................2
2. Eleventh J.V. Somayajulu Memorial Lecture.............................3
3. Presentation on Capital Raising for Smes Through Bse............5
4. Presentation Meeting on “Lessons of
Management From Thirukkural”..............................................8
5. Foreign Trade........................................................................10
6. Start Up India Recognition For Accbi.....................................14
7. Stay of Demand For Collection
of Income Tax at First Appeal – Mr. P.s. Kumar.......................16
8. My Tryst With Air India – Mr. R.R. Padmanabhan....................20
9. Recent Judgments in
Vat Cst Gst – Mr. V.V. Sampathkumar..................................22
10. Valuation of Supply Under Gst – Mr. J. Purushothaman.........26
11. Age Backwards – Mr S. Prakash...........................................32
12. Andhra Pradesh Medtech Zone Ltd
– A To Z Medical Technology – Mrs. Ramavenugopal.............34
13. Successful Entrepreneurial
Competencies – Prof.C. Vasudevan.......................................41
14. A 24/7 True Consultant – Mr M K Anand................................42
15. Imbibing Process Driven Culture –
A Necessity for Msmes – Mr. V. Chandrachudan....................44
16. Consumer Price Index Numbers............................................49

D e s k
President
2
Dear Members,
Countries all over the world have been looking towards India to take over China in
manufacturing as the labour and input costs in China were on rising. With china losing
its cost competitiveness to rising Labour and input costs, India can leverage the opportunity
to strengthen its participation in the global manufacturing sector.
Honourable Prime Minister launched “Make in India” initiative with the primary goal of
making India a global manufacturing hub, by encouraging both domestic companies and as
well as multi – nationals to manufacture their products within India. Multiple new initiatives
were introduced duly promoting Foreign Direct Investment, implementing intellectual property
rights and developing the manufacturing sector. The unorganized sector was also brought
into main stream with the introduction of GST and demonetization.
The Government should take all the steps towards focussing on filling the skill gap, requisite
funding and integrating vocational training of the students to acquire employability skills to
grab the opportunities that may arise due to the growth happening in the manufacturing
sectors – MSME, Large Scale Industries as well as MNCS.
It is assumed that by 2020, India will have 64% of its population in the working age group.
In order to engage them towards socio-economic growth of the nation, the Government
should liberalise all the bottle necks in establishing industries. A robust manufacturing sector
is important for sustainable economic growth in India.
Further, with a trade war like situation emerging between the US and China, many Multi-
national Companies around the world are looking for alternate manufacturing locations. Time
is opportune now to give a big push to the manufacturing sector in India. India should also
focus on setting manufacturing eco system for various advantageous product groups.
Dr. V.L. INDIRA DUTT
PRESIDENT

3
C h a m b e r
Eleventh J.V. Somayajulu Memorial Lecture
The Eleventh J.V. Somayajulu Memorial Lecture organised under the auspices of the
Chamber was held on May 9, 2018 at E-Hotel, Chennai. Shri B.Santhanam, Managing
Director, Saint Gobain P.Ltd., was the Chief Guest. He delivered the Memorial Lecture on
the topic “Revival of Manufacturing sector in India – Way forward”.
Dr. V.L. Indira Dutt, President, Andhra Chamber of Commerce welcomed the chief Guest
and the Member & Invitees present. In her welcome address Dr.V.L. Indira Dutt observed:
“The Indian economy has reported rapid growth in the last two decades, transforming
from primarily an agrarian economy to a services driven economy with developed
manufacturing competence. Despite this favourable growth, India’s manufacturing sector
contributes only16% to the GDP as compared to China’s 34%.
The manufacturing sector in India continues to struggle to reach the expected level
with all the supportive measures offered by the Government including Make in India
policy measure. Some of the factors affecting manufacturing growth include inadequate
infrastructure, stringent and outdated Labour Laws and non availability of efficient and
skilled workforce”.
Dr.V.L. Indira Dutt honoured the Chief Guest with flower bouquet. Dr. J.Venkataramana,
former President of the Chamber honoured Shri B.Santhanam with shawl.
Shri Santhanam in his presentation on Revival of Manufacturing Sector in India
observed: “A true digital transformation requires more than merely investing in technology.
Truly becoming digitized requires a cultural shift and companies striving to be successful
need to be ready for it. These could include anything from purchasing and procurement
to inventory management.
We enter a digital era, leveraging Prime Minister’s thrust to a digital economy.
As more and more disruptive technologies and processes emerge, it is the entities with
farsightedness that will quickly adapt to the new order of business and be ready to take
on the future.
For Reimagining manufacturing through Digitalization the three Stakeholders --
Chambers & Industry Associations, Government, Individual Firms should take lead.
Manufacturing continues to evolve from metal cutting to Additive Manufacturing / 3-D
Printing from intensive manual Labour to Robots and Cobots from mass production
to Mass Customization. Manufacturing is getting transformed by Disruptive Digital
Technologies. There is an astonishing rise in data volumes, computational power and
connectivity.

The Internet of Things creating Dynamic, Self-
organizing, Real-time-optimized and Value-added
connections within and across entities and effecting
improvements in transferring digital instructions to
the physical world, such as advanced robotics and
3-D printing.
Plants are working on opportunities to Digitalize
Operations there by Real-Time monitoring of
Equipment and Processes to smarter Decisions
are happening. Plant Maintenance assisted by
e-Work Instructions, Check Sheets and Videos
are empowering the employees to take smart
decisions.
Mobile Apps ensure Real-Time Updates in
the Plants & Warehouses. Remote Monitoring
Applications make Line Managers Proactive.
It is Time for Reimagining Manufacturing
through Digitalization with the support of Industry
Associations and Chambers of Commerce.
The growth of the internet has impacted
profoundlyoneverydaylifeandtheglobaleconomy.
It has evolved into a global, interconnected network
of systems and information – cyberspace – that we
know today, transforming the conduct of business
and opening new markets”.
Shri Santhanam answered the questions raised
by the Members present.
Dr.V.L. Indira Dutt, President presented a
memento to Shri B.Santhanam.
The Eleventh J.V. Somayajulu Memorial Lecture
meeting concluded with a vote of thanks proposed
by Dr. J. Venkataramana and that was followed by
Dinner.
4

APresentation on “Capital raising for SMEs through BSE” organised by the Chamber with
the support of Bombay Stock Exchange Limited was held on April 12, 2018 at E-Hotel,
Chennai.
Shri C. Gurunathan, Associate Manager – Business Development, BSE Limited was the
Guest Speaker. Dr. V.L. Indira Dutt, President welcomed the speaker and the participants. Dr.
Indira Dutt in her welcome address observed: “SMEs are the back bone of the economy and
they are an engine of economic growth, promoting equitable development for all. SMEs are
labour intensive than large corporates and provide tremendous employment potential at a low
Capital cost. SMEs are also share a major portion of industrial production and exports in India
and play a pivotal role in the development of country’s Industrial economy.
The role of SMEs in the industrial sector is growing rapidly and they have become a thrust
area for future growth. Various Small and Medium Industries in the sectors like food processing,
textiles, garments, precision engineering, information technology, pharmaceuticals, agro and
service sectors are flourishing.
A stock market specialised in SMEs can be an important channel for the growth and financing
of businesses. BSE – MSE platform provides a great opportunity to the entrepreneurs to raise
the equity capital for the growth and expansion of SMEs. BSE helps to unleash the valuation
of the companies and in the process create wealth for all the stake holders including investors.
The first SME exchange in India “BSE – SME” has been developed after studying the best
practices and business models of SME Exchanges globally.
BSE plays a vital role in providing financial support to SMEs. It is evident and the fact that
more and more SMEs are being listed on SME platform of BSE. The trend is expected to
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Presentation on
Capital raising for
SMEs through BSE

scale up further since the prospective investors in
the market are willing to explore new avenues of
investment other than the conventional modes of
finance.
Awareness is the pivotal criteria for investments.
Series of initiatives for promoting capital market
for SMEs need to be taken including knowledge
sharing programmes of this nature by Chambers of
Commerce and professional institutions.
I thank BSE Limited for coming forward to
educate the SME sector to have major growth on
the two pillars of the financial system ie. Banking
and Capital Market. I wish similar programmes
should be conducted at various chapters of our
chamber like Hyderabad, Visakhapatnam and
Vijayawada with the support of BSE Limited for the
benefit of the trade and industry”.
Shri Kailashmull Dugar, Chairman, Banking &
Finance Sub-Committee addressed the gathering
on the theme of the topic and introduced the Guest
Speaker. In his address Shri Kailashmull Dugar
observed:” Traditionally SMEs are unorganised
sector. The operations and ownership of SMEs have
been confined to the family or group of associates.
The loans given to MSMEs are mainly under project
Finance, Equipment Finance, Business Loan or
Loan against properties. In the recent times with
the help of Information technology NFBCS have
become major source of working capital for small
and midsized companies.
In order to promote the development of SMEs
and equip them with proper finance tools, the
Government of India initiated the idea of a separate
exchange for the SMEs for raising capital. At
present, there are only two SME Exchanges in India
i.e. BSE SME platform, Bombay stock Exchange
and EMERGE Platform, National Stock Exchange.
Both the exchanges have their own eligibility norms
in addition to SEBI norms for listing.
BSE SME Platform provides a great opportunity
to the entrepreneurs to raise the equity capital
for the growth and expansion of SMEs. It also
provides immense opportunity to the investors to
identify and invest in the good SME companies at
an early stage. It helps unleash the valuation of the
company and in the process create wealth for all
the stakeholders including investors.
Today’s Speaker Shri Gurunathan is an
Economics graduate and Diploma holder in
Business Management, Mass Communication
and Export – Import Management. He has rich
experience in Finance, Property, Industry and
Consultancy fields for over 20 years. He held many
key positions in Madras Stock Exchange and at
present he is the Associate Manager – Business
Development in Bombay Stock Exchange Limited”.
ShriC.Gurunathaninhispresentationobserved:”
World over, governments have recognised the role
and importance of the SMEs in their economy
which have become silent drivers of economic
development. The biggest challenge being faced
by these enterprises is access to capital.
To overcome this, almost all major capital
markets have realised the need for a separate
exchange for SME segment. More than 20
countries operate separate SME bourses. These
markets have tried to create a SME-friendly market
architecture supported by effective institutions and
forging links to policies that foster a new class of
investable equities.
SME – The term has been defined differently
in different legislations and rule books. SMEs are
categorised on the basis of turnover, loan size,
investment in capital assets, capital base and
number of employees. The company does not
need to be a giant to be listed. If the institutional
and market circumstances are right, a stock market
specialized in SMEs can be an important channel
for the growth and financing of businesses.
Ease of access to capital & financing
opportunities: SMEs, by virtue of the nature of
their industry and working patterns were unable
to tap markets to raise equity and debt to fund
their projects. Some of these with viable greenfield
projects are not able to implement or execute them
for limited funds availability. With the easing of IPO
norms for SMEs, these SMEs found a solution to
raising funds. SME Listing provides an avenue to
raise capital through equity infusion for growth
oriented SME’s.
6

Less regulatory controls: As against an IPO
on the main exchanges, for a SME IPO, there are
multiple benefits in terms of regulatory supervision
and controls – both at the time of the IPO and on
routine compliance under the listing agreement
and regulations.
Enhanced visibility and credibility: Listing
provides these SMEs with the benefit of greater
credibility and enhanced financial status leading to
higher valuation of the company on one hand and
improved customer-client credibility on the other.
Even banks and financial institutions prefer to fund
listed SMEs as against an unlisted one.
Unlocking hidden value: As there is no market
available for trading of shares of an unlisted
company, the fair market value of such companies
is difficult to arrive at. Accordingly, listing helps
to unravel real value through market-driven
mechanism.
Eased Tax Planning: Any share transaction
through stock exchanges is exempt from the
provisions of Long Term Capital Gains (LTCG).
Rather, these transactions happen on payment of
Securities Transaction Tax (STT), which acts as a
major booster for share transactions.
Encourages SME growth: Equity financing
provides growth opportunities like expansion,
mergers and acquisitions thus being a cost
effective and tax efficient mode.
Migration provisions: One of the major
attractions for SME IPO remains the provision of
migration to the main exchanges. Any company
listed at the SME platform, after crossing the
threshold of Rs 10 Cr Capital may migrate to the
main exchange and upon crossing the threshold
of Rs 25 Cr has to mandatorily migrate to the main
exchange.
For Shareholders/Investors:
Easier liquidity and exit: Listing would provide
liquidity to shareholders and at the same time
would offer exit options to venture capital and
private equity investors.
No long-term capital gain tax: No long term
capital gains tax will be applicable on transfer of
shares through exchange, on payment of Securities
Transaction Tax (STT).
Well-organised risk distribution system:
Capital markets strengthen in-built mechanism of
risk transfer from one person to another through
well-organised market forces”.
More than 40 participants dream among the
Members of the Chamber participated in the
Meeting.
Earlier Dr.V.L. Indira Dutt presented a memento
to Shri C.Gurunathan.
The Meeting concluded with a vote of Thanks
proposed by Shri C. Nagendra Prasad, Vice-
President and that was followed by Hi-tea
sponsored by BSE limited.
7

PRESENTATION MEETING ON
“LESSONS OF MANAGEMENT
FROM THIRUKKURAL”
Andhra Chamber of Commerce in association with Madras Management
Association organised a presentation Meeting on “LESSONS OF MANAGEMENT
FROM THIRUKKURAL” on April 25, 2018 at the Chamber’s Conference Hall.
Shri Milton Rajasekar Senior Corporate Trainer was the Guest Speaker.
Shri R.R. Padamanadhan, Chairman, Skill Development Sub-Committee of the
Chamber welcomed the Guest Speaker and the Members present. In his welcome
address Shri Padmanabhan observed: “This is the 77th
event on the Management
series programmes jointly organised with MMA. The earlier seventy six meetings
were indeed interesting, thought provoking and well received by the participants.
As regards the topic for discussion today -- “LESSONS OF MANAGEMENT FROM
THIRUKKURAL” –Thirukkural is an ancient non-religious literature that guides people
on better living. Though written over 2,000 years ago by Thiruvalluvar in Tamil, the
way of life advised by Thirukkural is still relevant today.
Business ethics have become one of the major topics for discussion around the
world due to many of the business scandals that took place not only in the Indian
context but also throughout the world.
Thirukkural consists of several lessons for ethical business practices for effective
business leadership in organisations. Although numerous studies on Thirukkural have
made in Tamil language especially in Tamil Nadu, studies on Thirukkural in English
and other languages are limited. The teachings from the Thirukkural do not conflict
with Vedanta and are of no difference to the teachings from the Bible, the Koran, the
philosophy of Buddha, Confucius and other philosophical schools of thought.
Today’s Speaker Shri Milton Rajasekar studied is a Master of Arts in History and
Master of Arts in Christian studies in Madras University. He is an MBA from Annamalai
University. He worked in Lucas TVS for more than 30 years in managerial positions in
Finance, Planning, Factory Production and Human Resources.
8

9
He has Written two Books - Bharathi
Gnanaguru Nivethitha and a Prayer Book. He
has made two films in the internet and they are
available in the You Tube – they are Pasumai,
Kattrilalayum Kelvigal. He is passionate
about Thirukural, The Bible and Poetry. He
is a Member of Toast Masters Club for more
than twenty five years from Royapettah. Out
of the two persons who were awarded Life
time Achievement Award from Toast Masters
International – One is Mr. Ramakrishanan
Senior MMA Member and another is Milton
Rajasekar”.
Shri Milton Rajasekar in his presentation
observed: “Thirukkural is a treatise on ethical
business leadership. Thirukkural advocates a
consciousness and a spirit-centered approach
to the subject of business ethics based on
eternal values and moral principles that should
govern the conduct of business leaders. The
1,330 couplets (Kural) of the Thirukkural are
rich with several lessons on business ethics
and leadership.
The management section of Thirukkural
has the functional aspects of planning,
organising, conduct of affairs and control.
Profit is needed to pay for attainment of the
objectives of the business. Profit is a condition
of survival. It is the cost of the future, the cost
of staying in business.
Thirukkural says “Never trust men
without testing them, give each one of them
the work for which they are fit.”
Managers need to be resolute, decisive
and action-oriented. Loyalty to the manage-
ment and operating within the company policy
paradigm are two of the several qualities they
need to have.
Management is all about getting things
done. A smart manager would know what
needs to be done, who is the best person for
doing it, and the right time to get it done”.
Shri Milton Rajasekar clarified the
doubts expressed by the participants.
Shri K.N. Suresh Babu, Member –
Executive Committee of the Andhra Chamber
of Commerce presented a memento to the
Guest speaker. More than 50 participants
drawn among the Member-group of Andhra
Chamber of Commerce & MMA participated
in the above Meeting. The Meeting concluded
with a hearty vote of thanks proposed by Shri
B. Gautham, Member, Executive Committee,
ACC.

FOREIGN TRADE – STATISTICS
India’s Foreign Trade (Merchandise): March 2018
I. MERCHANDISE TRADE
EXPORTS (including re-exports)
Exports during 2017-18 are at US $ 302.84 Billion registering a growth of 9.78 per cent
in dollar terms vis-à-vis 2016-17.
Exports during March 2018 were valued at US $ 29.11 Billion as compared to US $ 29.30
Billion during March 2017 exhibited negative growth of 0.66 per cent. In Rupee terms, exports
were valued at Rs. 189271.16 crore as compared to Rs. 193028.91 crore during March 2017,
registering a fall of 1.95 per cent.
During March 2018, major commodity groups of export showing positive growth over the
corresponding month of last year are
10

Cumulative value of exports for the period
April-March 2017-18 was US $ 302.84 Billion (Rs
1952168.79 crore) as against US $ 275.85 Billion
(Rs 1849428.76 crore) registering a positive growth
of 9.78 per cent in Dollar terms and 5.56 per cent in
Rupee terms over the same period last year.
Non-petroleum and Non Gems & Jewellery
exports in March 2018 were valued at US $ 22.42
Billion as against US $ 21.44 Billion in March
2017, an increase of 4.60%. Non-petroleum and
Non Gems and Jewellery exports during April-
March 2017-18 were valued at US $ 222.45
Billion as compared to US $ 200.89 Billion for the
corresponding period in 2016-17, an increase of
10.73%.
IMPORTS
Imports during March 2018 were valued at US $
42.80 Billion (Rs 278296.95 crore) which was 7.15
per cent higher in Dollar terms and 5.75 per cent
higher in Rupee terms over the level of imports
valued at US $ 39.95 Billion (Rs. 263155.49 crore)
in March 2017. Cumulative value of imports for
the period April-March 2017-18 was US $ 459.67
Billion (Rs. 2962897.70 crore) as against US $
384.36 Billion (Rs. 2577665.59 crore) registering a
positive growth of 19.59 per cent in Dollar terms
and 14.94 per cent in Rupee terms over the same
period last year.
Major commodity groups of import showing
high growth in March 2018 over the corresponding
month of last year are:
CRUDE OIL AND NON-OIL IMPORTS:
Oil imports during March 2018 were valued at
US $ 11.11 Billion which was 13.92 percent higher
than oil imports valued at US $ 9.75 Billion in
March 2017. Oil imports during April- March 2017-
18 were valued at US $ 109.11 Billion which was
25.47 per cent higher than the oil imports of US $
86.96 Billion in the corresponding period last year.
In this connection it is mentioned that the global
Brent prices ($/bbl) have increased by 27.86 % in
March 2018 vis-à-vis March 2017 as per World
Bank commodity price data (The pink sheet).
Non-oil imports during March 2018 were
estimated at US $ 31.69 Billion which was 4.96
per cent higher than non-oil imports of US $ 30.20
Billion in March 2017. Non-oil imports during April-
March 2017-18 were valued at US $ 350.56 Billion
which was 17.88 per cent higher than the level of
such imports valued at US $ 297.39 Billion in April-
March, 2016-17.
II. TRADE IN SERVICES (for February,
2018, as per the RBI Press Release dated
13th April 2018)
EXPORTS (Receipts)
Exports during February 2018 were valued at
US $ 15.71 Billion (Rs. 101124.86 Crore) registering
a negative growth of 3.84 per cent in dollar terms
as compared to positive growth of 2.07 per cent
during January 2018 (as per RBI’s Press Release
for the respective months).
11

IMPORTS (Payments)
Imports during February 2018 were valued at
US $ 10.14 Billion (Rs. 65294.38 Crore) registering
a positive growth of 3.10 per cent in dollar terms
as compared to negative growth of 0.12 per cent
during January 2018 (as per RBI’s Press Release
for the respective months).
III.TRADE BALANCE
MERCHANDISE: The trade deficit for March
2018 was estimated at US $ 13.69 Billion as against
the deficit of US $ 10.65 Billion during March 2017.
SERVICES: As per RBI’s Press Release dated
13th April 2018, the trade balance in Services (i.e.
net export of Services) for February, 2018 was
estimated at US $ 5.57 Billion.
OVERALL TRADE BALANCE: Taking
merchandise and services together, overall trade
deficit for April-March 2017-18 is estimated at
US $ 87.17 Billion as compared to US $ 47.70
Billion during April-March 2016-17. (Services data
pertains to April-February 2017-18 as February
2018 is the latest data available as per RBI’s Press
Release dated 13th April 2018)
MERCHANDISE TRADE
EXPORTS & IMPORTS: (US $ Billion)
(PROVISIONAL)
MARCH APRIL-MARCH
EXPORTS (including re-exports)
2016-17 29.30 275.85
2017-18 29.11 302.84
%Growth 2017-18/ 2016-17 -0.66 9.78
IMPORTS
2016-17 39.95 384.36
2017-18 42.80 459.67
%Growth 2017-18/ 2016-17 7.15 19.59
TRADE BALANCE
2016-17 -10.65 -108.50
2017-18 -13.69 -156.83
EXPORTS & IMPORTS: (Rs. Crore)
(PROVISIONAL)
MARCH APRIL-MARCH
EXPORTS(including re-exports)
2016-17 193028.91 1849428.76
2017-18 189271.16 1952168.79
%Growth 2017-18/ 2016-17 -1.95 5.56
IMPORTS
2016-17 263155.49 2577665.59
2017-18 278296.95 2962897.70
%Growth 2017-18/ 2016-17 5.75 14.94
12

TRADE BALANCE
2016-17 -70126.58 -728236.83
2017-18 -89025.79 -1010728.92
SERVICES TRADE
EXPORTS & IMPORTS (SERVICES) : (US $ Billion)
(Provisional) February 2018
EXPORTS (Receipts) 15.71
IMPORTS (Payments) 10.14
TRADE BALANCE 5.57
EXPORTS & IMPORTS (SERVICES): (Rs. Crore)
(Provisional) February 2018
EXPORTS (Receipts) 101124.86
IMPORTS (Payments) 65294.38
TRADE BALANCE 35830.48
Source: RBI Press Release dated 13th April, 2018
13

14
Great News…
ACC Business Incubator by Andhra Chamber of Commerce is recognized by
Startup India….
Honorable Prime Minister of India Shri Narendra Modiji has unveiled a Startup
Eco system by name Startup India in January 2016. An action plan is formulated
for the purpose of creating an ecosystem for the startups and also for ease of
doing business. Necessary amendments have been made in the business and
environmental laws conducive to roll out their venture. An Inter ministerial board
has been setup to avail the benefits and incentives through Startup India Action
Plan 2016.
By and large, Startup India is a flagship initiative by the Government of India
intended to build an eco system for nurturing innovation & start-ups for sustainable
economicgrowthandalsoforthegenerationoflargescaleemploymentopportunities.
ACC Business Incubator by Andhra Chamber of Commerce is recognized as
an Incubator by Startup India Hub.
Please click the following Link to visit ACC Business Incubator in Startup
India Hub
h t t p s : / / w w w. s t a r t u p i n d i a h u b . o rg . i n / c o n t e n t / s i h / e n / s e a r c h .
html?states=sih:location/india/tamil-nadu&roles=Incubator&page=0
Proposed Schemes & Incentives under Startup India Action Plan 2016:
1. Compliance Regime based on Self-Certification.
2. Startup India Hub
3. Rolling out of Mobile App & Portal: Ease of Doing Business
4. Legal Support and Fast-Tracking Patent Examination At Lower Costs:

15
5. TheRelaxednormsofpublicprocurement
for startup
6. The insolvency and Bankruptcy bill 2015
(IBB)
7. Provide funding support through Fund of
Funds with a corpus of INR 10,000 Crore (INR
2,500 Crore over a period of 4 years)
8. Credit Guarantee Fund for Startups
9. Tax Exemption on Capital Gains
10. Tax Exemption to Startups for 3 years
11. Tax Exemption on Investment above fair
market value
12. Industry – Academic partnership
Incubators
13. Launch of Aral Innovation Mission (AIM)
with self employment and Talent utilization
(SETU) program
14. Harnessing private sector Enterprise for
Incubator Set Up
15. Providing Innovation Centres at national
Institutes
16. Setting Up of 7 New research parks
modelled on IIT Madras Research Park
17. Promoting Start-ups in Bio Technology
Sector
18. Launching of Innovation focused
programme for students
Definition of Startup – only to receive
incentives from government
1. Not more than 5 years old registered firm or
a Company registered in India
2. Turnover does not exceed 25 crores in any
year of operations
3. Should have funded by Venture Capital
4. Fostering Innovation. A certification to
inter-ministerial Board has to be obtained to get all
the incentives.
Any Startup Incubated at ACC Business
Incubator will receive the above said benefits
and the Incubator team will help and mentor the
Startups to receive those benefits and Incentives
by Startup India. We welcome you to incubate your
Business Idea in to ACC Business Incubator. We
will transform your Idea in to a Viable Business
Entity.
For further details please contact Prof.
C. Vasudevan, Director, ACC Business Incubator
# 23, Third Cross Street, West CIT Nagar,
Nandanam, Chennai - 600 035
Tel:04424315279 EMail:accbusinessincubator
@gmail.com

16
Mr. P S Kumar,
Senior Partner, Brahmayya& Co
Introduction
There are times when even those assessees who are careful in estimating their taxes on
advance tax basis will have surprises when assessments are completed resulting in
unexpected additions to income and the consequent tax demands. As a matter of natural
justice, when assessees go on appeal, The Income Tax Act, 1961 (The Act) has provisions
under which assessees are granted stay of proceedings with regard to the additional
tax demands whereby the demands are kept in abeyance till the matters are resolved.
This article deals with stay of collections as far as first appeals i.e. appeals before the
Commissioner of Income Tax (Appeals) [CIT (Appeals)]are concerned.
When any tax, interest, penalty fine or any other sum is payable in consequence of
any order passed under The Act, as per section 156, the Assessing Officer (AO) will serve
upon the assessee a notice of demand specifying the amount payable. The demand will
be made out as per Rule 15 in Form No. 7.
The Central Board of Direct Taxes
There is a substantial change in the thinking of the Central Board of Direct Taxes
(CBDT) vis-à-vis the manner of collection of disputed taxes. Where, previously, the matter
was purely left to the discretion of the authorities (although at first appeal the authorities
were required to be sympathetic to the assessees), now the matter is governed by Rules
removing subjectivity to a great extent. There have been three important notifications on
the subject which are as follows:
1. Instruction No. 1914, dated 2-2-1993 partially amended by
2. Office Memorandum F.No.404/72/93 – ITCC dated 29-2-2016 prescribing a minimum payment
of 15% of the demand,
3. Office Memorandum F.No.404/72/93 – ITCC dated 31-7-2017 increasing the minimum payment
to 20% of the demand.
The sum and substance of the above instructions by the CBDT are as follows:
Instruction no. 1914, dated 2-2-1993
• Demand may be kept in abeyance for valid reasons only in accordance with the guidelines.
Stay petitions filed with the Assessing Officers must be disposed of within two weeks
of the filing of petition by the taxpayer. The assessee must be intimated of the decision
without delay.
• The decision in the matter of stay of demand should normally be taken by AO / Tax
Recovery Officer (TRO) and his immediate superior. A higher superior authority should
for Collection of Income
Tax at First Appeal
Stay of Demand

17
interfere with the decision of the AO/TRO only
in exceptional circumstances e.g. where the
assessment order appears to be unreasonably
high pitched or where genuine hardship is likely
to be caused to the assessee.
• A few illustrative situations where stay could be
granted are — (a) if the demand in dispute relates
to issues that have been decided in assessee’s
favour by an appellate authority or court earlier;
or
(b) if the demand in dispute has arisen because
the Assessing Officer had adopted an interpretation
of law in respect of which there exist conflicting
decisions of one or more High Courts (not of the
High Court under whose jurisdiction the Assessing
Officer is working); or
(c) if the High Court having jurisdiction
has adopted a contrary interpretation but the
Department has not accepted that judgment.
• In granting stay, the Assessing Officer may
impose such conditions as he may think fit
including requiring the assessee to pay towards
the disputed taxes a reasonable amount in lump
sum or in instalments;
• Since the phrase ‘stay of demand’ does not
occur in section 220(6) of the Income-tax Act,
the Assessing Officer should always use in any
order passed under section 220(6) [or under
section 220(3) or section 220(7)], the expression
that occurs in the section viz, that he agrees to
treat the assessee as not “being in default” in
respect of the amount specified, subject to such
conditions as he deems fit to impose.
• While considering an application under section
220(6), the Assessing Officer should consider all
relevant factors having a bearing on the demand
raised and communicate his decision in the form
of a speaking order.
Office Memorandum F.No.404/72/93 – ITCC
dated 29-2-2016 prescribing a minimum pay-
ment of 15% of the demand.
In order to streamline the process and
standardize the quantum of lump sum required to
be paid as a pre-condition for stay of demand, the
CBDT issued the memorandum cited above. The
key points are:
The AO may demand that the assessee pay
15% of the disputed amount unless the case falls
in the category discussed below:
a) the nature of the addition in assessment
is such that a lump sum higher than 15% is
warranted. This would arise in situations such
as where the same issue has been confirmed by
appellate authorities in earlier years or there are
precedents in favour of the Revenue etc.
b) the AO is of the view that payment of lump
sum lower than 15% is warranted as a result
of circumstances in favour of the assessee
such same issue has been deleted by appellate
authoritiesinearlieryearsorthereareprecedents
in favour of the assessee.
The AO will have to refer the matter to the
administrative Principal CIT or the CIT who will
take a decision.
c) if the assessee is aggrieved by the demand for
payment of lump sum of 15% as a pre-condition,
the assessee may approach the administrative
Principal CIT or the CIT who will take a decision.
Office Memorandum F.No.404/72/93 – ITCC
dated 31-7-2017 prescribing a minimum payment
of 20% of the demand.
The matter was reviewed by the CBDT in the
light of feedback received from field authorities. In
view of the Board’s efforts to contain over pitched
assessments through several measures resulting
in fairer and more reasonable assessment orders,
the standard rate of 15% of the disputed demand
was found to be on the lower side and hence it
was decided that the standard rate prescribed
previously was revised to 20% of the disputed
demand, where the demand is contested before
CIT(A).
Litigation
The above marks the shift of the thinking of
the CBDT to a rule based regime in so far as this
touchy subject is concerned. While the guidelines
are reasonably clear, the subject has also given
rise to litigation.
In Jagdish Gandabhai Shah v. Principal
Commissioner of Income-tax, 81 Taxmann.

18
com 45 (Gujarat), the High Court of Gujarat after
considering - Instruction no. 1914, dated 2-2-
1993 and Office Memorandum F.No.404/72/93
– ITCC dated 29-2-2016 - prescribing a minimum
payment of 15% of the demand held that any order
of AO demanding 15% is against the scheme of
things as per The Act. The AO has to examine the
merits of request for stay of demand and refer the
matter to the Principal CIT / CIT and then only can
proceed to demand the payment. It should be noted
that in this particular case income was determined
at Rs. 1,97,76,53 as against the returned income
at Rs. 4,64,554 and that, pursuant to the scrutiny
assessment under Section 143 (3) of the Act, a
demand notice of Rs. 91,38,400 was issued to the
assessee-petitioner.
In Flipkart India (P.) Ltd. v. Assistant
Commissioner of Income-tax [2017] 79
taxmann.com 159 (Karnataka)/ [2017] 396
ITR 551 (Karnataka)/[2017], The Karnataka
High Court had to consider a similar issue.
The assessee-petitioner submitted its Income
Tax Returns for the Assessment Year 2014-
15, declaring a loss of Rs.3,58,81,84,343 and
for the Assessment Year 2015-16, loss of
Rs.7,96,34,36,865. The assessments orders were
passed in which for the Assessment Year 2014-15
an amount of Rs.5,01,86,62,282 was added, and
for the Assessment Year 2015-16, an amount of
Rs.12,04,67,98,537 was added. The balance tax
payable by the petitioner was determined to be
Rs.28,94,96,028 for the Assessment Year 2014-
15, and Rs.1,36,99,99,033 for the Assessment
Year 2015-16. The petitioner was directed to
deposit the said amount within a period of thirty
days. The assessee-petitioner filed applications
before the Assistant Commissioner for keeping
the demand in abeyance. However, the Assistant
Commissioner directed the petitioner to deposit
15% of the disputed demand amounting to
Rs.3,37,11,514 for the Assessment Year 2014-15,
andRs.22,92,02,561fortheAssessmentYear2015-
16. The High Court took the view in favour of the
assessee-petitioner considering that, the Circular
dated 29-2-2016 was only a partial modification of
Instruction No.1914 of 2-2-1993 and that deposit
of 15% was still subject to a consideration of a
lower amount of deposit if the circumstances so
warranted as provided in the Instruction.
In yet another case decided in favour of the
assessee, in the case of Vodafone India Ltd.
v. Commissioner of Income-tax, TDS [2018]
89 taxmann.com 54 (Bombay), [2018] 400 ITR
516 (Bombay) the High Court of Bombay had to
consider the case of an assessee who had surplus
funds and who had deposited Rs.27.45 Crores
i.e. almost 38% of the outstanding demand of
Rs.71.16 crores. The High Court had this to say-
“Prima facie, we also find that the impugned order
dated 21st December 2017 of the Respondent
No.1 has completely ignored the parameters laid
down by this Court in KEC International Ltd. v.
B.R. Balakrishnan [2001] 251 ITR 158/119 Taxman
974 (Bom.)., UTI Mutual Fund v. ITO [2012] 19
taxmann.com 250/206 Taxman 341/345 ITR 71
(Bom.), and MMRDA v. Dy. DIT [WP(L) No. 2348
of 2014, dated 29-10-2014], for deciding stay
applications. Further as held by this Court mere
having of funds i.e. no financial hardship would
not itself justify the deposit where a prima facie
case is made out. (See UTI Mutual Fund v. ITO
[2013] 31 taxmann.com 222 (Bom.). The impugned
order also nowhere even remotely attributes that
the delay in disposal of the pending Appeals was
on account of the Petitioner”
Conclusion
A word of warning though. Tax-payers are
warned that application of stay of demand should
not be considered on the basis that there would be
savings on interest costs since an assessee would
be prone to thinking that what is not paid to the
Revenue Dept. would result in savings in interest
cost. As The Act stands, sub-section (2) of section
220 provides for levy of interest at the rate of one
per cent for every month or part of month for the
period during which the default continues. Should
the tax-payer ultimately fail in his/her appeal
interest would start running from day 1 i.e. go back
to the date of demand notice under section 156.
Also to be considered is that interest paid to the
Dept. is not a tax deductible expense. Therefore

19
if one were to gross up the cost of interest, it
would be much more than what one would save as
finance cost. One should therefore consider the
worst-case scenario i.e. cost in terms of appeal
being unsuccessful. Readers should therefore
obtain professional advice when considering costs
and benefits in these situations rather than being
influenced by a pure instinct to defer payments to
the Dept.
P.S.Kumar
(The author is a former President of Andhra
Chamber of Commerce)
(The views expressed are the views solely of the
author’

20
Ihad to be Delhi in connection with a case coming before the Honorable Supreme court on behalf
of my client. I had to brief the advocate appearing in the case. I was checking the availability of
flights to Delhi from Chennai and back through Make my trip.com. The best combination of up
and down flight schedule was from Air India (AI 143). Without any hesitation, I booked the tickets.
There are many in my circle who would vouch that they would never choose Air India as their first
option. But I did. Here I am enumerating my experience in flying Air India to the readers. Without
adding any suspense, I should tell the readers my experience had been good and enjoying.
The story is not without its share of hiccups here and there; but even those hiccups were
caused by my casual attitude. Therefore, even these hiccups could have been avoided had I
been little more careful.
I did not know that nor did I check that aircraft from Chennai to Delhi was an international
one. Thinking that it is a domestic flight I went to domestic departure, only to be told politely by
the security that the flight was an international one and that I had to go to international terminal.
In the meantime, I alighted from the car and sent the driver back. Imagine having to walk in the
morning sun about 1 km (or may be less perhaps but the very thought of it was scary). Then help
came from a good Samaritan, a taxi driver was just moving from the area. I requested him to
drop me and he promptly obliged. In any case, one has to cross international terminal to exit the
airport. But time was short. So, the taxi driver’s assistance was timely.
I rushed to the counter and had my check in. Since it was a short trip, I had only one luggage.
With clothes, books for study and files, it weighed more than 7 kgs. Only 7 kgs is allowed as
hand baggage; otherwise it had to be checked in as cabin luggage. But looking at me, the
counter staff politely obliged me to hand carry the luggage.
Being the national carrier, Air India always gets the privilege of aero bridge and normally one
does not have to ferry through a bus. I detest the very idea of boarding a bus to reach the aircraft.
Of course, there is simply no reason for this. It is just like that. On the way to aircraft, one of
private guard announced in a loud voice that all passengers must show their tickets along with
their identity cards. I was a bit irritated. I asked him ‘how many times should I show my identity
card’. He came closer to me and said “Sir, this is an international flight. Some people exchange
their board cards here in this queue and try to avoid customs formalities. That is why we insist”.
Now I could visualize the hanky-panky dealing that some people indulge in.
R R Padmanabhan
Chairman,
Foreign Trade Sub Committee
My Tryst
with Air India

21
In the aircraft, the staff welcomed us warmly.
There was genuineness in their greeting. After the
flight ascended, we were served sumptuous break
fast complete with South Indian delicacy and
hot coffee. I must also mention here that aircraft
commenced on time. We had absolutely neat
flight right through our journey. The staffs were
courteous and were caring for our requests for
water and newspaper.
On time, the aircraft landed in Delhi and the
landing was silk and smooth. I sent message of
thanks for smooth landing through the hostess to
the captain.
After this experience, I was brooding over the
entire journey from Chennai to Delhi. Several
myths were busted in this journey; that Air India’s
service is not good, the staffs are not courteous
and they do not maintain their timings. But on
the other hand, here I am with the best of service
being provided. Adding to cream was their food,
so delicious and piping hot. I must confess here
that in one of my flights through private airliner, the
food served was cold and the hostess simply said
that this was what she was having and that she
felt sorry about it. It only meant that she could do
nothing about it.
Given a choice, hereafter, I would always choose
Air India.

Recent Judgments in VAT CST GST
GST Cess On COAL: Section 18 of the Constitution (101 Amendment) Act 2016
does not enable the Parliament to levy any cess which stood abolished in terms of the
Third Schedule of the Taxation Laws (Amendment) Act, 2017. Hence the validity of levy
of cess on Coal in the context of abolition of Clean Energy Cess with effect from 1st July
2017 is stayed- UNION OF INDIA Vs MOHIT MINERAL PVT LTD
Input tax Credit: Mineral was sold by the Monitoring committee and the Court
directed the Monitoring Committee to take necessary action to enable the lessee to
claim and obtain input tax credit under the CGST Act, 2017 and that the GST payable
on the sale value of the mineral purchased in the e-auction shall be paid by the buyer
directly to the lessee and the lessee would be responsible for all compliances as may be
required under Act. Further the Court directed that the Monitoring Committee to prepare
appropriate proforma and also take steps for carrying proper TIN of the respective
lessees on the invoices as may be required. SAMAJ PARIVARTANA SAMUDAYA Vs
STATE OF KARNATAKA
AAR: UPS and Battery sale, Composite supply? : What should be the tariff head
when the UPS and the battery are supplied as separate goods, but a single price is
charged for the combination of the goods supplied as a single contract? The West
Bengal State Advance ruling authority clarified that the applicant insists that as the
battery, being supplied as part of an integral contract, remains naturally bundled with
UPS i.e. the principal supply is fallacious. Goods are naturally bundled in a supply
contract if the contract is indivisible. The contract for the supply of a combination of
UPS and battery, if not built as a composite machine, is not indivisible. The recipient
can split it up into separate supply contracts if he chooses. The goods supplied in terms
of such contracts are, therefore, no longer naturally bundled and cannot be treated as
a composite supply though UPS and Battery are two different and independent items,
they are billed together and a single price is quoted for the sale. The supply of UPS
and Battery is to be considered as Mixed Supply within the meaning of Section 2(74) of
the GST Act, as they are supplied under a single contract at a combined single price.
Mr V.V. Sampathkumar
22

23
SWITCHING AVO ELECTRO POWER LTD
AAR: GST in import / High Sea Sales: The
Kerala State Advance ruling authority clarified that
integrated tax on goods imported into India shall
be levied and collected at the point when duties
of customs are levied on the said goods under
Section 12 of the Customs Act, 1962 - The goods
are liable to IGST when they are imported into India
and the IGST is payable at the time of importation
of goods. The applicant is neither liable to GST
on the sale of goods procured from China and
directly supplied to USA nor on the sale of goods
stored in the warehouse in Netherlands, after being
procured from China, to customers, in and around
Netherlands, as the goods are not imported into
India at any point. M/s SYNTHITE INDUSTRIES
LTD
AAR: Classification of skin care preparations:
The Applicant argues that its skin care preparations
are Ayurvedic Medicaments meant for therapeutic
or prophylactic uses and put up in packaging for
retail sale, therefore, said goods entirely correspond
to the description of goods under HSN 3004
[serial no. 63 of Notification No. 1/2017-CT(Rate)
dated 28/06/2017] and taxable under Schedule II
of the GST Act. The West Bengal Advance ruling
authority held that the Medicaments are not defined
under the GST Act or in the First Schedule of the
Customs Tariff Act, 1975, with which the GST Act
has been aligned for the purpose of classification.
The methods settled by the Apex Court for
determining whether a product is to be classified as
medicaments for fixing the tariff should be followed
as the only lawful course and it is not sufficient that
a skin care preparation, manufactured following a
formula in an authoritative textbook of Ayurveda,
helps in controlling skin disease. Its curative or
preventive value must be substantial, and the
product must be manufactured primarily to control
or cure a skin-related disease. Only the products,
Rupam (Pimple pack) and Pailab (Anti-crack
cream) of the list of applicant’s 33 products are
offered for treatment or prevention of specific skin
disorders. The other products are either already
specified under heading 3304 (like talcum powder,
sunscreen, moisturising lotion etc.) and, therefore,
cannot be considered for inclusion under heading
3004. The remaining products mentioned in the
list submitted by them are not offered primarily as
medicaments and, therefore, not to be included
under heading 3004. AKANSHA HAIR SKIN
CARE HERBAL UNIT PVT LTD
AAR Supply of food to employees,
taxable?:The Kerala State Advance ruling authority
clarified that even though there is no profit as
claimed by the applicant on the supply of food to
its employees, there is “supply” and the applicant
would come under the definition of “Supplier” -
Since the applicant recovers the cost of food from
its employees, there involves a ‘consideration’ as
defined in Section 2(31) of the Act - recovery of
food expenses from the employees for the canteen
services provided by company would come under
the definition of ‘outward supply’ as defined in
Section 2(83) of the Act and therefore, taxable as
a supply of service under GST. M/s CALTECH
POLYMERS PVT LTD
AAR Rate of tax of standing rubber trees: In
this case, under the contract of supply, growing
crops i.e., rubber trees are agreed to be severed
before supply and hence, comes under the
definition of ‘goods’. Thus, standing rubber trees
no longer remain as such. Therefore, it can only be
treated as ‘wood in rough form’. In GST, firewood
is exempted as per HSN Code 4401. The Kerala
State Advance ruling authority clarified that the
rate of tax on rubber wood in the said transaction is
18% under the HSN 4403.SRI. N.C. VARGHESE,
THRISSUR
AAR Export of services or not?: In the case of
Export of Services all the conditions as laid down
under Section 2(6) of IGST Act is to be followed
in totality without any violation, and that there is
no scope of partial compliance of the conditions
laid down therein. The Applicant is facilitating
recruitment / enrolment of students to foreign
Universities. If promotion of university courses
were the principal supply, the applicant should
have been remunerated for its promotional activity
no matter whether it facilitates recruitment or not.
If the Applicant receives ‘commission’ based on

recruitment / enrolment through it, the principal
supply is clearly facilitating the foreign university
in recruitment/enrolment with promotional services
ancillary to the principal supply. The West Bengal
State advance ruling authority states that being
an intermediary service provider, the place of the
Applicant’s supply shall be determined under
section 13(8)(b) ofthe IGST Act and not under
section 13(2) of the IGST Act. The place of supply
under the above legal framework is the territory of
India. As the condition under section 2(6)(iii) of the
IGST Act is not satisfied, the Applicant’s service to
the foreign universities does not qualify as Export of
Services, and is, therefore, taxable under the GST
Act. GLOBAL REACH EDUCATION SERVICES
PVT LTD
AAR, GST Registration : Applicants main
income is the interest consideration received
by way of interest on services like extending
deposits, loans or advances. when the query
whether applicant is liable for registration under
any clause of Section 24 of the GST Act even if
it is not making any taxable supply it was held
by the West Bengal advance ruling authority that
the Applicant is engaged exclusively in supplying
goods and services that are wholly exempt from
tax, and, therefore, not liable to be registered in
accordance with the provisions under section 23(1)
of the GST Act, subject to the condition that the
Applicant is not otherwise liable to pay tax under
the Reverse Charge mechanism under Section
9(3) of the GST Act or 5(3) of the IGST Act. JOINT
PLANT COMMITTEE
AAR, classification: “SIKA Block Joining
Mortar” is to be classified under tariff item 3214
90 90 of the Customs Tariff Act, 1975 and taxable
under serial no. 24 of Schedule IV vide Notification
No. 01/2017-Central Tax (Rate) dated 28/06/2017
under CGST Act, 2017 and 1125-FT dated
28/06/2017 under WBGST Act, 2017 - As the
Applicant’s product, namely ‘Sika Block Joining
Mortar’ is already specified under tariff item 3214
90 90, heading 3824 does not come into the
picture. SIKA INDIA PVT LTD
AAR sale of goods to international
passengers: Supply of goods to the International
passengers going abroad by the applicant from
the retail outlet situated in the Security Hold Area
may be taking place beyond Customs Frontiers
of India as defined under Section 2(4) of the IGST
Act, 2017. However, the said outlet is not outside
India but the same is within the territory of India as
defined under Section 2(56) of the CGST Act, 2017
and Section 2(27) of the Customs Act, 1962 and
hence the applicant is not taking goods out of India
and hence the supply cannot be called “export”
under Section 2(5) of the IGST Act, 2017 or “zero
rated supply” under Section 2(23) and Section
16(1) of the IGST Act, 2017. Accordingly, the Delhi
State advance ruling authority concluded that the
applicant is required to pay GST at the applicable
rates. M/s ROD RETAIL PRIVATE LIMITED
GST Implementation: Petitioner cannot urge
and/or seek directions to the respondents to
postpone the decision to implement GST with
effect from 1.7.2017, for simple reason that levy
and collection of taxes on goods and services
has sanction of law. Dr. KANAGASABAPATHY
SUNDARAM PILLAI Vs UNION GOVT. OF INDIA
[2017] (Bom)
Legal services: If in fact all legal services are
to be governed by the reverse charge mechanism
then there would be no purpose in requiring legal
practitioners and law firms to compulsorily get
registered under the CGST, IGST and/or DGST
Acts. Those seeking voluntary registration would
anyway avail of the facility under Section 25 (3) of
the CGST Act (and the corresponding provision of
the other two statutes). There is therefore prima
facie merit in the contention of Petitioner that
the legal practitioners are under a genuine doubt
whether they require to get themselves registered
under the three statutes. In the circumstances,
the Court directs that no coercive action be taken
against any lawyer or law firms for non-compliance
with any legal requirement under the CGST Act,
the IGST Act or the DGST Act till a clarification is
issued by the Central Government and the GNCTD
and till further orders in that regard by this Court.
24

J K MITTAL COMPANY Vs UNION OF INDIA
[2017] (Del)
Applicability of GST on Legal Services:
Whether the recommendations of the GST Council
could be modified, clarified, amended etc by a
notification/notice/circular of ‘press release’, the
Court held that considering the Respondents are
seeking more time to address the important legal
and constitutional issues, the Court directs that till
further orders (i) no coercive action would be taken
against advocates, law firms of advocates (ii) Any
registered advocate, law firm of advocates, LLPs
of advocates will not be denied the benefit of this
interim order (iii) In view of the Press Release issued
by the MoF, the legal position that existed under
the Finance Act, 1994 as regard legal services
being amenable to service tax under the reverse
charge mechanism continuing even under the GST
Acts, till further orders, all legal services provided
by advocates, law firms of advocates, or LLPs of
advocates will be continued to be governed by
the reverse charge mechanism unless of course
any such legal service provider wants to take
advantage of input tax credit and seeks to continue
with the voluntary registration under CGST Act and
the corresponding provision of IGST or DGST Act.
J K MITTAL COMPANY Vs UNION OF INDIA
[2017] (Del)
25

26
INTRODUCTION
One of the essential requirements of the GST Laws is the determination of value on
which the tax is to be levied. This is governed by section 15 of the GST Act and Chapter
IV and Rules 18 to 23 of GST Rules, 2017. In this article an attempt is being made
to explain the various provisions relating to valuation in a simple and understandable
manner.
TRANSACTION VALUE
Generally the value of a supply of goods or services or both shall be the transaction
value i.e the price actually paid or payable for the said supply. However this is subject
to the following two conditions:
The supplier and the recipient of the supply are not related
The price is not the sole consideration for the supply.
There are special provisions in the Rules to determine the value of supply under
the above two circumstance which. We shall discuss the same at the latter part of this
article.
SPECIFIC INCLUSIONS AND EXCLUSIONS
The Law provides that the value of supply shall include–––
a. any taxes, duties, cesses, fees and charges under any law. However the taxes
charged under the following Acts need not be included if charged separately by the
supplier:
b. Central Goods and services Tax Act,
c. the State Goods and Services Tax Act,
d. the Union Territory Goods and Services Tax Act and the Goods and Services Tax
(Compensation to States) Act
Example: The value will not include CGST, SGST, UTGST and Compensation Cess
if charged separately in the invoice. However Customs Duty paid shall be added to
the value as the same has been paid under a different Act other than the above four
specified Acts.
OF SUPPLY UNDER GST
VALUATION CA. Mr J. Purushothaman
Purushothaman Bhutani Co,

27
a. any amount that the supplier is liable to pay
in relation to such supply, but which has been
incurred by the recipient of the supply and not
included in the price actually paid.
Example: If as per the terms of the agreement
the supply is FOR to recipient of supply and the
recipient makes the payment for freight which is
subsequently reimbursed by the supplier, then
the freight charges paid by the recipient shall be
included in the value of supply.
b. incidental expenses including commission
and packing, charged by the supplier and
any amount charged for anything done by the
supplier in respect of the supply at the time of or
before delivery of goods or supply of services.
c. interest or late fee or penalty for delayed payment
of any consideration for any supply; and
d. subsidies directly linked to the price excluding
subsidies provided by the Central Government
and State Governments. The amount of subsidy
shall be included in the value of supply of the
supplier who receives the subsidy.
e. Treatment of discounts under GST: Discounts
may be given either at the time of supply or after
the supply has been effected. If the discount
is given at the time of supply and if the same
has been duly recorded in the invoice issued
then the same need not be included in the
value of supply. If the discount is given after
the supply has been effected, (for example
quantity discount/scheme discount etc.) the
taxable person can take credit for the same if
the following conditions are satisfied.
i Such discount is in terms of an agreement
entered into at or before the time of such supply
ii Such discount is specifically linked to the
relevant invoices
iiiThe input tax credit attributable to the discount
has been reversed by the recipient of supply.
RULES FOR DETERMINATION OF VALUE OF
SUPPLY UNDER SPECIAL CIRCUMSTANCES
We have seen earlier that there are two
exceptions for considering the transaction value
as the value of supply. These are
1. The price is not the sole consideration for the
supply.
2. Where The supplier and the recipient of the
supply are not related
Before proceeding to analyse the various
provisions relating to the above, we should
understand the meaning of two terms a) open
market value and b) supply of goods or services or
both of like kind and quality as these two terms are
frequently used.
“open market value” of a supply means the
full value in money. The open market value shall
not include the integrated tax, central tax, State
tax, Union territory tax and the cess payable by
a person in a transaction. The supplier and the
recipient of the supply should not be related. The
price is the sole consideration, to obtain such
supply at the same time when the supply being
valued is made.
“supply of goods or services or both of
like kind and quality” means any other supply
of goods or services or both made under similar
circumstancesthat,inrespectofthecharacteristics,
quality, quantity, functional components, materials,
and reputation of the goods or services or both , is
the same as, or closely or substantially resembles,
that supply of goods or services or both
Determination of value of supply, where
consideration is not wholly in money.
a. If open market value is available , the value of
the supply shall be the open market value of
such supply;
Example: Where a new phone is supplied for
Rs.20000 along with the exchange of an old phone
and if the price of the new phone without exchange
is Rs.24000, the open market value of the new
phone is Rs 24000.
b. if open market value is not available, the value of
supply shall be, the sum total of consideration in
money and any such further amount in money as
is equivalent to the consideration not in money
if such amount is known at the time of supply;

28
Example: Where a laptop is supplied for
Rs.40000 along with a barter of printer that is
manufactured by the recipient and the value of the
printer known at the time of supply is Rs.4000 but
the open market value of the laptop is not known,
the value of the supply of laptop is Rs.44000.
c. if the value of supply is not determinable under
clause (a) or clause (b), the value of the supply
shall be the value of supply of goods or services
or both of like kind and quality;
d. if value is not determinable under clause (a) or
clause (b) or clause (c), above,
Where the value of a supply is not determinable
as above , the same shall be determined as
provided in the following order.
i Tthe value shall be one hundred and ten
percent of the cost of production or manufacture
or cost of acquisition of such goods or cost of
provision of such services.
ii. The value shall be determined using
reasonable means consistent with the principles
and general provisions of section 15 and the rules
However the supplier of service may opt for
method ii above disregarding method i.
Determination of Value of supply of goods
or services or both between distinct or related
persons:
Meaning of distinct person
Section 25(4) and section 25 (5) defines a
distinct person.
Section 25 (4) A person who has obtained or
is required to obtain more than one registration,
whether in one State or Union territory or more
than one State or Union territory shall, in respect
of each such registration, be treated as distinct
persons for the purposes of this Act.
Section25 (5) Where a person who has obtained
or is required to obtain registration in a State or
Union territory in respect of an establishment,
has an establishment in another State or Union
territory, then such establishments shall be treated
as establishments of distinct persons for the
purposes of this Act.
In short an entity which has taken independent
registration in respect of its branches whether
within the state or across various various states
shall be treated as a distinct person.
Meaning of Related persons
In the following situations the supplier and
recipient shall be deemed o be “related persons”
(i) such persons are officers or directors of one
another’s businesses;
(ii) such persons are legally recognised partners
in business;
(iii) such persons are employer and employee;
(iv) any person directly or indirectly owns,
controls or holds twenty-five per cent or more of
the outstanding voting stock or shares of both
of them;
(v) one of them directly or indirectly controls the
other;
(vi) both of them are directly or indirectly
controlled by a third person;
(vii) together they directly or indirectly control a
third person; or
(viii) they are members of the same family;
(ix) persons who are associated in the business
of one another in that one is the sole agent or sole
distributor or sole concessionaire, howsoever
described, of the other, shall be deemed to be
related.
Value of supply of goods or services or both
between distinct or related persons, other than
through an agent
(a) Value shall be the open market value of such
supply;
(b) if open market value is not available, value
shall be the value of supply of goods or services of
like kind and quality;
(c) if value is not determinable under clause
(a) or (b), be the value shall be as determined by
application of the following rule in that order:

29
However the supplier of service may opt for
method ii above disregarding method
However where the goods are intended for
further supply as such by the recipient, the value
shall, at the option of the supplier, be an amount
equivalent to ninety percent of the price charged
for the supply of goods of like kind and quality by
the recipient to his customer, who is not a related
person to the recipient.
Similarly where the recipient is eligible for full
input tax credit, the value declared in the invoice
shall be deemed to be the open market value of
goods or services.
Value of supply of goods made or received
through an agent
(i) shall be the open market value of the goods
being supplied, or
(ii) at the option of the supplier, be ninety
percent of the price charged for the supply of
goods of like kind and quality by the recipient to
his customer. The customer to whom the agent
supplies the goods should not be a related person
to the agent.
Illustration:Whereaprincipalsuppliesgroundnut
to his agent and the agent is supplying groundnuts
of like kind and quality in subsequent supplies at a
price of Rs.5000 per quintal.
Another independent supplier is supplying
groundnuts of like kind and quality to the said
agent at the price of Rs.4550 per quintal.
The value of the supply made by the principal
shall be Rs.4550 per quintal or where he exercises
the option the value shall be 90% of the Rs.5000
i.e. is Rs.4500 per quintal.
Where the value of a supply is not determinable
as above, the same shall be determined as provided
in the following order.
DETERMINATION OF VALUE IN RESPECT OF
CERTAIN SPECIFIED SUPPLIES:
Special provisions in respect of certain
categories of supplies: The Rule 6 provides for
determination of value of supply in respect of
certain categories of supplies. These categories of
supplies are
a. Lottery, betting,gambling and horse racing
b. Services provided by Foreign exchange dealers
c. Services provided by the Air travel agent for
Booking of tickets for travel by air
d. value of supply of services in relation to life
insurance business
e. Value of Supply by a person dealing in second
hand goods i.e. used goods
f. Value of Token, Voucher etc.
g. Residuary provisions
Now let us analyse provisions relating to the
above supplies individually.
Lottery, betting,gambling and horse racing
For the purpose of determination of value
Lottery is divided into two categories:
1. Lottery run by State Governments
2. Lottery authorised by State Govern ments.
The meaning of the above two terms are as
follows:
(a) “lottery run by State Governments” means
a lottery not allowed to be sold in any State other
than the organizing State;
(b) “lottery authorised by State Governments”
means a lottery which is authorised to be sold in
State(s) other than the organising State also; and
The value of supply shall be determined as
follows:

30
(a) The value of supply of lottery run by State
Governments shall be deemed to be 100/112 of
the face value of ticket or of the price as notified
in the Official Gazette by the organising State,
whichever is higher.
(b) The value of supply of lottery authorised by
State Governments shall be deemed to be 100/128
of the face value of ticket or of the price as notified
in the Official Gazette by the organising State,
whichever is higher.
a. The value of supply in betting, gambling or horse
racing in a shall be 100% of the face value of
the bet or the amount paid into the totalisator.
b. Services provided by Foreign exchange
dealers
Suppliers of the above services have got two
options:
Option 1
The value of supply of services in relation
to purchase or sale of foreign currency, shall be
determined in the following manner:-
If RBI reference rate is available
For a currency, when exchanged from, or to,
Indian Rupees (INR), the value shall be equal to the
difference in the buying rate or the selling rate, and
the Reserve Bank of India (RBI) reference rate for
that currency at that time, multiplied by the total
units of currency:
If RBI reference rate is not available the value
shall be 1% of the gross amount of Indian Rupees
provided or received by the person changing the
money:
If neither of the currencies is exchanged in
Indian Rupee, the value shall be equal to 1% of
the lesser of the two amounts the person changing
the money would have received by converting any
of the two currencies into Indian Rupee
Option II
This option is to be exercised for a financial
year. Option once exercised cannot be withdrawn
during the remaining part of the financial year
The value shall be deemed to be
(i) one per cent. of the gross amount of currency
exchanged for an amount up to one lakh rupees,
subject to a minimum amount of two hundred and
fifty rupees;
(ii) one thousand rupees and half of a per cent.
of the gross amount of currency exchanged for an
amount exceeding one lakh rupees and up to ten
lakh rupees; and
(iii) five thousand rupees and one tenth of a per
cent. of the gross amount of currency exchanged
for an amount exceeding ten lakh rupees, subject
to maximum amount of sixty thousand rupees.
Services provided by the Air travel agent for
Booking of tickets for travel by air
The value of supply In the case of domestic
booking shall be deemed to be an amount
calculated at the rate of five percent. of the basic
fare
The value of supply in the case of international
bookings at the rate of ten per cent. of the basic
fare
For the above purpose the term “basic fare”
means that part of the air fare on which commission
is normally paid to the air travel agent by the airline.
d). value of supply of services in relation to life
insurance business:
(a) the gross premium charged from a policy
holder reduced by the amount allocated for
investment, or savings on behalf of the policy
holder, if such amount is intimated to the policy
holder at the time of supply of service;
(b) in case of single premium annuity policies
other than (a), ten per cent. of single premium
charged from the policy holder; or
(c) in all other cases, twenty five per cent of the
premium charged from the policy holder in the first
year and twelve and a half per cent of the premium
charged from policy holder in subsequent years:
However the above provisions shall not apply
where the entire premium paid by the policy holder
is only towards the risk cover in life insurance.
e Value of Supply by a person dealing in second
hand goods i.e. used goods

31
This provision is applicable only when the goods
are sold as such. However minor processing
which does not change the nature of the goods
is permitted. The value of supply shall be the
difference between the selling price and purchase
price . Where the value of such supply calculated
as above is negative it shall be ignored. No input
tax credit is allowed on purchase of such goods.
Where the goods are repossessed from a
defaulting borrower, who is not registered, for the
purpose of recovery of a loan or debt, the purchase
value shall be deemed to be the purchase price of
such goods by the defaulting borrower reduced
by five percentage points for every quarter or part
thereof, between the date of purchase and the date
ofdisposalbythepersonmakingsuchrepossession.
f. Value of Token, Voucher etc.
The value of a token, or a voucher, or a coupon,
or a stamp (other than postage stamp) which is
redeemable against a supply shall be equal to the
money value of supply redeemable against such
token, voucher, coupon, or stamp.
g Residuary provisions
The government has retained power to notify
that the value of certain services shall be NIL.
However the the services in respect of which input
tax credit is not available u/s 17(5) is out of this
perview. However this could be done only on the
recommendations of the Council.
Value of supply of services in case of pure agent
Generally all reimbursements are taxable as
supplies. However if one claims reimbursement as
pure agent the same is excluded from the value of
supply subject to various conditions specified. For
the purpose of claiming this exclusion one has to
understand the meaning of “Pure Agent”
The term “Pure Agent” has been defined to
mean a person who
(a) enters into a contractual agreement with the
recipient of supply to act as his pure agent to incur
expenditure or costs in the course of supply of
goods or services or both;
(b) neither intends to hold nor holds any title
to the goods or services or both so procured or
provided as pure agent of the recipient of supply;
(c) does not use for his own interest such goods
or services so procured; and
(d) receives only the actual amount incurred to
procure such goods or services.
The expenditure or costs incurred by the
supplier as a pure agent of the recipient of supply
of services shall be excluded from the value of
supply, if all the following conditions are satisfied:-
the supplier acts as a pure agent of the recipient
of the supply, when he makes the payment to the
third party on authorisation by such recipient;
the payment made by the pure agent on behalf
of the recipient of supply has been separately
indicated in the invoice issued by the pure agent to
the recipient of service; and
the supplies procured by the pure agent from
the third party as a pure agent of the recipient of
supply are in addition to the services he supplies
on his own account.
Illustration. Corporate services firm A is
engaged to handle the legal work pertaining to the
incorporation of Company B. Other than its service
fees, A also recovers from B, registration fee and
approval fee for the name of the company paid to
Registrar of the Companies. The fees charged by
the Registrar of the companies registration and
approval of the name are compulsorily levied on B.
A is merely acting as a pure agent in the payment
of those fees. Therefore, A’s recovery of such
expenses is a disbursement and not part of the
value of supply made by A to B.
Where Value of supply inclusive of integrated
tax, central tax, State tax, Union territory tax.-
Where the value of supply is inclusive of
integrated tax or, as the case may be, central tax,
State tax, Union territory tax, the tax amount shall
be determined in the following manner, namely,-
Tax amount = (Value inclusive of taxes X tax rate
in % of IGST or, as the case may be,
CGST, SGST or UTGST) ÷ (100+ sum of tax
rates, as applicable, in %)

The truth is actually that anyone can be 68 going on 50. All you need is a
motivational mindset. Then you, too, can start counting the calendar backwards
at each birthday.
Beyond good diet and exercise – which are critical for anyone at any age – getting
motivated is the key to aging well. Here are five ways to adopt a motivational
mindset, launch your own age rollback and engage the world at any age:
1. Change your WOE to WOW ratio- There›s nothing more de-motivating than
living in a world of WOE (which is an acronym that stands for What On Earth).
The world of WOE is dark and consists largely of finding fault and blame. WOE is
like a leech that sucks the life spirit out of you. Its opposite, WOW (which means
Wonderfully Obsessed with Winning) infuses every moment with excitement about
the world. WOW is that frame of mind that motivates you to fully embrace whatever
you’re doing. No, you can’t get rid of WOE -- it’s part of the human condition. But
you can choose to minimize the presence of WOE and focus on WOW; the key is
to become more aware of WOE’s presence and to consciously opt for WOW. Try it.
Keep a notebook of how much time you spend in a WOE state versus a WOW state.
Then set a goal to focus on WOW for 15 minutes as you start your day. Soon, it will
become a habit, and you won’t even have to think about it.
2. Get curious - Many studies have shown the more you flex your mind as you
age, the healthier your mind will be. In addition to engaging in brain-cell building
activities like puzzles, ask questions about how things work and why things are.
Nothing motivates like a good question. Find a headline story each day that you
want to learn more about. Find a topic each week that you want to research through
books or using online resources. Adopt the curiosity of a child. The more new things
you learn, the more you’ll be motivated to discover new areas of interest.
3. Invest in the moment - It›s so easy to look back with regrets or nostalgia that
we forget to see the joy of what›s happening in the present. Ditto for spending time
Author Mr S. Prakash,
CEO of See Change Consulting
Age Backwards
32

gazing into the future with apprehension or fear.
Try an experiment: every day, spend five minutes
focusing on the here and now, and allow yourself
to feel totally invested in whatever you’re doing,
whether it’s work or play. Be conscious that you’re
in the moment. When you get comfortable with
that notion, expand the time you spend in the here
and now each day.
4. Let go and take a higher perspective - When
you were younger, you were probably in the mode
of striving for more – more money, more status,
more security or more attention. More anything.
As you age, that pressure starts to diminish. But
if you’re like most of us, you still likely cling to the
notion you’re in some kind of a race you must win.
Let it go! When you stop competing against others,
you’ll be motivated to appreciate those things that
really matter and you probably already have.
5. Do things that put you in a good mood - Good
moods don›t just happen. They come about from
doing things that make us feel happy, things we
enjoy. When we were younger, it was easy to feel
good because we weren›t shy about letting our hair
down and having fun. You can recapture that habit
now. Incorporate at least one thing a day into your
routine that puts you in a good mood whether it›s
taking a walk, completing a puzzle or pulling out a
board game or a deck of cards with friends. When
you›re feeling good, you›ll likely be more motivated
to try new things. And you can almost hear the
clock ticking backwards.
Be aware a motivational mindset doesn’t come
overnight. But the more receptive you are to it,
the more you’ll enjoy waking up every morning –
and flipping another page back on your internal
calendar!
The Author is S. Prakash, CEO and Principal
Consultant at See Change Consulting,
Chennai, India. He can be reached at prakash@
seechangeworld.com
33

OPERATIONS
Andhra Pradesh MedTech Zone Limited (AMTZ) was setup by the
Government of Andhra Pradesh as a dedicated Public - Sector
enterprise for creation of a ‘one - stop solution’ industrial park for
Medical Device Manufacturing.
Government of AP allotted a land of 270 acre in Visakhapatnam
towards this purpose. The objective of the State Government is not
only to provide a platform for manufacturing of medical devices at a
substantiallyreduced cost of upto 40%, but also to simplify the end
– to- end operational needs of the industry, in turn reducing the huge
import dependency of the country on medical devices.
AMTZ’s mission is to create a world class manufacturing hub in the country for the medical
devices sector and catapult India as a global destination of world class medical technology
products, and provide easy and affordable access of health care products to the citizens of India.
To identify a suitable location / property meeting the requirements of the company, due diligence
was made by prominent industry members representing medical device manufacturing sector,
which surveyed different land parcels in Visakhapatnam and based on such due diligence, the site
at Nadupuru, PeddaGantyada, Visakhapatnam was finally selected.
This site with its proximity to Vizag Steel Plant was found to be an ideal location for the zone with
easy access to well - developed infrastructure, apart from the added advantage of its proximity to
both the international airport and seaport.
To identify the interventions needed to be done by the Company in accordance with the it was
decided to assign the task of preparing the Detailed Project Report (DPR) to KPMG. The DPR was
submitted by KPMG on August 26, 2016. The DPR identified the critical requirements of the project
and provided the roadmap for your company to take forward the mandate given by the Govt. of
Andhra Pradesh for supporting competitive indigenous manufacturing in the zone and to establish
a world class facility for Indian made products on identified segments of the medical devices sector.
As part of background research for the DPR the KPMG team visited Hsinchu Science Park,
Hsinchu, Taiwan. The visiting team interacted with the key medical device manufacturers within
the Hsinchu Science Park Sahnghai Medical Zone, China. The team also visited and gathered
basic information about various scientific institutions including nationalnano device lab, national
radiation technology institute and institute for health research.
Thus, AMTZ has ensured that the mandate given to it by the Andhra Pradesh Government has
been translated into action based on sound global infrastructure, although no such zone exists
in Asia.
34
Mrs. Rama Venugopal
Executive Director
M/s. Value Added Corporate
Services P Ltd
Chairman – Entrepreneurship
Development Centre, Andhra
Chamber of Commerce

PROJECT IMPLEMENTATION
The foundation stone at the site was laid by
Honorable Chief Minister of Andhra Pradesh Shri
Chandrababu Naidu on August 19, 2016. The event
was attended by the then Honorable Union Minister
of Urban Development, Housing Urban Poverty
Alleviation and Information and Broadcasting,
Govt. of India, Shri Venkaiah Naidu; Honorable
Union Minister of Chemicals and Fertilizers and
Parliamentary Affairs, Govt. of India, Shri Ananth
Kumar; Honorable Minister for Health and Medical
Education, Government of Andhra Pradesh,
Dr.Kamineni Srinivas, WHO Representative Mr
HenkBenkedam, representatives of Indian medical
device industry and other notable personalities.
AMTZ is providing prebuilt manufacturing units
built in plots measuring 0.25 acres / 0.5 acres / 1.0
acres / 2.0 acres in size to interested manufacturers.
Thezoneisofferingworldclassscientificfacilities
like gamma irradiation, biomaterials testing, EMI/
EMC testing, 3D printing, prototyping and rapid
tooling, X-ray and CT Scan tube Manufacturing
etc.
The mandate given AMTZ for reducing the
cost of manufacturing required that the common
scientific facilities which are high investment
facilities be setup in Public Private Partnership
(PPP) mode.
The service providers for each of these scientific
facilities are being selected by bidding process.
Each of the service provider has to ensure that
the facilities created is operated and maintained as
per the parameters indicated by your company.
All such facilities created would be operated by
the service provider on revenue sharing basis, as
mutually decided upon on each case.
The service providers for scientific facilities
were finalized through the tendering process
and contracts were signed with winning bidders
on June 16th 2017. The list of selected service
Providers is given below:
The launch for bookings plots was opened
to manufacturers on October 2nd 2016 at
Visakhapatnam.
In order to provide Design review, Value
Engineering, Procurement and day to day
Construction supervision of the Park which would
include Common Commercial Facilities (CCF),
Common Scientific Facilities (CSF), Common
Social Support Facilities (CSSF) and manufacturing
units, a Project Management Consultancy (PMC)
was also selected and selection of contractor is in
the process of tendering.
STUDY ON MEDICAL DEVICES SECTOR
The medical devices sector in India did not a
have detailed study showcasing the state of the
industry. A report capturing vital statistics like
import vs export data, current manufacturers in
India, product segments by consumption etc
was not available. AMTZ in collaboration with
Department of Pharmaceuticals (DoP), Department
35

of Industrial Policy Promotion (DIPP) and World Health Organization (WHO) carried out a study covering
all such aspects and the report of the study titled “Medical Device Manufacturing in India – A Sunrise” The
report gives a pen picture of the global and Indian medical device market, highlighting global and Indian
medical device market size, segments, growth factors for high demand in India, existing and proposed
device clusters in the country, import trend in Indian scenario and high potential manufacturing segments
in India.The high potential segments in India identified in the report were as follows:
36

AMTZis targeting manufacturing of such
category of products, which are being imported
presently and provides a ready business
opportunity. The current set of companies who
have agreed to manufacture at AMTZ cover all the
high import categories.
REGULATORY APPROVALS
AMTZ has applied for all necessary regulatory
clearances and approvals. Land transfer from the
Govt. of Andhra Pradesh to AMTZ by execution of
the conveyance deed on August 18, 2016.
The Environment Impact Assessment Report
prepared by AMTZ was submitted for clearance
by State Level Environment Impact Assessment
Authority and the competent authority has
accorded prior environmental clearance to the
project on July 10, 2017.
Consent to Establish has been accorded
on September 6, 2017 by the Andhra Pradesh
Pollution Control Board (APPCB).
BUSINESS REVIEW
Business development activity to attract
investments AMTZ was undertaken through
multiple channels throughout the year. Individual
client visits through direct communication was one
of the chief means adopted by AMTZ and extensive
efforts were made to establish such direct contacts
throughout the year.
Investor meets wherein more than 10 investors/
manufacturers interested in the medical device
space could be garnered were conducted across
India and also abroad. The main agenda of these
meets was to introduce the core offering of AMTZ
and convert their interest into investments within
the zone. A total of eight investor meets were
conducted since August 2016. Some of these
meets were conducted on the sidelines of large
events related to the medical technology space, to
interact with a large set of potential investors.
The 1st AMTZ Investors’ Summit held on August
19,2016 along with foundation ceremony saw
participation of representatives from Government
Departments, Industry Associations, Medical
Device Manufacturers Testing Laboratories
and other Field Experts Market Analysts. The
summit had interactive panel discussions with
representatives from WHO, School of International
Biodesign (SIB), Association of Indian Medical
Device Industry (AiMeD), Andhra Chamber of
Commerce, PHD Chamber of Commerce, World
Association for Small Medium Enterprises
(WASME), Federation of Indian Chambers of
Commerce Industry (FICCI) and other individual
manufacturing representatives.
AMTZ’s first international investors meet was
held on the sidelines of Medica, Germany on
November 15th, 2016. Medica is the world’s largest
and most attended medical devices expo. The
investors meet was attended by a large number
of delegates representing different manufacturing
companies from across the globe. The AMTZ
project was applauded as a pioneer effort, as one
of its kind medical devices park. The response
was very encouraging and led to many fruitful
conversations with potential investors.
AMTZ hosted an investors meet specifically for
Chinese investors on December 9, 2016 which
was attended by a Chinese delegation comprising
more than 30 investors to discuss investment
opportunities. The meet was Facilitated by
co-chairman, Foreign Trade and Investment
Committee, PHD Chamber of Commerce and
Industry Mr.SurinderKalra. Senior management led
by Dr. Jitendar Sharma, Director CEO, AMTZ and
the Chinese delegation led by Co-founder of SKK
– JW Associates Jessie Wei discussed about the
work and support available for the medical devices
manufacturers at the zone.
The business development team of AMTZ
also attended many conferences, events where
meetings with potential investors were held to
further the cause of manufacturing medical devices
within the zone. A total of 15 manufacturers
confirmed through booked units within the zone in
2016-2017.
37

Details of Investor Meets done in 2016-17:
AMTZ was a key participant at many events connected with the healthcare industry.
The objective of attending these events was two-fold, 1) to drive awareness about the immense growth
opportunity that the medical device sector offers; 2) to encourage domestic manufacturing by way of
knowledge sharing about various government programs / initiatives / incentives. AMTZ also organized
many major events in the medical technology space.
38

Events attended by AMTZ in 2016-17
MOUs
AMTZ has entered into many MoUs with different
organizations across the spectrum. The idea behind
each of these MoUs was to provide complete
support to manufacturers in AMTZ and enable
them to succeed. MoUs have been completed with
partners across Industry Associations, technology
providers, business advocacy groups, financial
institutions etc.
Partners have been selected for the specific
support that will be needed by manufacturers
within the zone. AMTZ signed a Memorandum of
Understanding (MoU) with the Quality Council of
India (QCI) for the promotion of Indian Certification
for Medical Devices (ICMED) Scheme in India,
in order to significantly eliminate trading of sub-
standard products or devices supply chains of
which are unknown. Developed in collaboration
with AiMeD, QCI and NABCB, ICMED is a quality
certification scheme for medical devices in the
country with an aim to enhance patient safety,
and increase consumer protection, along with
providing the much-needed product credentials to
manufacturers to instill confidence among buyers.
Society for Applied Microwave Electronics
Engineering Research (SAMEER), a research and
development laboratory of Ministry of Electronics
and Information Technology (MeitY) Govt. of
India, entered into anMoU with AMTZ to transfer
technology to industry for commercialization
which is backed by demand assurance by Govt. of
Andhra Pradesh.
This MoU would ensure that innovations find
proper commercialization channels and necessary
demand can be assured for the innovations to
succeed.
AMTZ and Association of Indian Medical Device
Industry (AiMeD) also entered into anMoU
on September 29, 2016, to jointly promote the
Indian Medical Device Industry.
MoUs entered into by AMTZ during the year
were:
PARTNERSHIPS
AMTZ has also worked towards enabling other
key support systems by empaneling partners
across technology transfer, human resources,
quality and regulatory compliance, project
management, financial support. A manufacturer
has the option to choose from these bouquet of
service providers for any of their requirements.
AMTZ has done the basic due diligence to ensure
the partners are capable and competitive to
support the manufacturers within the zone.
Andhra Pradesh MedTech Zone (AMTZ) joined
the Global Medical Device Nomenclature (GMDN)
Agency as partners. This partnership will provide
great value-addition to all the manufacturers at
AMTZ. GMDNs association with AMTZ will be an
enabler for export and global market access.
39

List of Empaneled Agencies:
40

Are entrepreneurs born, or are they made?
Certain characteristics are common of
successful entrepreneurs, including Risk Taking,
Achievement Orientation, and creativity and
innovation. However these are innate qualities,
and by using them as a benchmark only certain
types of people are deemed capable of being good
entrepreneurs. In fact, entrepreneurial behavior can
be learned and developed through competencies
that provide a foundation for vital business skills.
Through practice, aspiring entrepreneurs
can apply key business knowledge using their
competencies to gain essential habits. With enough
practice, these habits become the ‘driving force’ of
successful entrepreneurial ventures. The following
are some of the most crucial competencies for
entrepreneurs:
Creativity Innovation: At the most basic stage
of this competency, the entrepreneur expresses
a willingness to do things differently. At a more
advanced level, the entrepreneur is able to create
new ideas, solutions, and approaches to ongoing
challenges. Entrepreneurs who have the highest
level of this competency continually support others
in generating new and innovative approaches,
either by providing funding, building on new ideas,
recognizing innovation, and more.
Fostering Learning and Development:
Communicating what behaviors constitute
success will help empower employees to see how
their jobs can contribute to the overall well-being
of your business. At a basic level, entrepreneurs
with this competency share their knowledge and
expertise to support learning and development. As
they advance, entrepreneurs encourage others to
take responsibility for managing their own learning,
and eventually develop strategies to promote
continuous learning and development.
Business Perspective: At a basic level,
entrepreneurs are able to articulate how their own
responsibilities, activities, and decisions relate
to the success of the business. For a mid-level
demonstration of this competency, an entrepreneur
must make decisions that clearly support the
business strategy, and at an advanced level must
develop ideas to position the organization for long-
term success.
Use of Information Technology: Entrepreneurs
must be competent in the use of basic computer
hardware (e.g. printers, copiers, PCs) and software
(e.g. spreadsheets, word processing). A successful
entrepreneur can easily communicate and prepare
documents electronically without assistance. At
the most basic level this just involves using IT
tools, while at an advanced level the entrepreneur
must evaluate the effectiveness of information
technology systems.
This is by no means a comprehensive list of
entrepreneurial competencies, but by evaluating
their aptitude based on competencies like these,
aspiring entrepreneurs can determine their
readiness to tackle starting a business. If you’d
like to know more about leadership roles and their
corresponding competencies, please contact us.
Prof.C.Vasudevan, Director, ACC Business
Incubator, Andhra Chamber of Commerce, # 23,
Third Cross Street, West CIT Nagar, Nandanam,
Chennai 600035. Tel: 044 - 24315279’E Mail:
accbusinessincubator@gmail.com
SUCCESSFUL
ENTREPRENEURIAL
COMPETENCIES
Prof.C. Vasudevan,
41

42
Mr. M.K.Anand
“When you are in doubt refer your heart” said by Rev.Babuji Maharaj, Shri Ram
Chandra Mission. Do you think it is just a philosophical quote? Not at all. It is
a wisdom for leading your life in every way, be it family, profession, business and social
interactions or whatever.
This is something which is profound for entrepreneurs while taking decisions.
Because, every decision of an entrepreneur or a leader in the organisations impacts
millions of human lives and growth trajectory of the country. Before taking any decision
you should think several times, discuss with several people who have the subject
knowledge and with your core members into confidence. Once a decision is taken, it
must be executed without confusion ambiguity. Decision making rests with people
who sit at the helm of affairs in every organisation and the buck stops with the Leader.
At some point you may feel that you are left alone and this is where you need to tick all
appropriate boxes which are enablers and showstoppers for the implementation.
Here the HEART plays a vital role in decision making. You heard it right. Mind helps
you to provide all the data, statistics, pros and cons but only the Heart tells the truth
provided if we are ready and listen to heart. Listening to heart is something which
corporate world is not used to. Over the last 25 years of my work experience and 19
years of business experience, I have seen that many a times Heart played a crucial
role in my life to take very vital and important decisions effortlessly with focus. Hence,
I suggest you to experience this at your own will and come to a conclusion how it can
impact your life. The way forward is extremely simple, please take time to listen to your
heart and see how it speaks and it speaks the blunt truth which might not be agreeable
A
Chairman - IT Telecom Sub Committee
Co-Chairman Skill Development Sub Committee,
True Consultant

initially but if you allow it to speak often, you will
find a wonderful “A True Consultant” inside you
and advises all that you can and you should do to
accomplish your goals in all areas of life. The result
will be increasingly purposeful.
How to listen to your heart?
1. You may choose to spend daily 30 minutes of
your time to sit in a calm place with a quite mind
and stay focussed with your attention on your
heart.
2. Think that the source of light from the nature is
in your heart and observe your heart for some time.
Do it every day morning. It is called the heartfulness
way. Visit www.theheartfulnessway.com
3. For systematic learning and systematic practice
to derive full benefits, please talk to heartfulness
institute trainers who are spread across the globe
and heartfulness institute is a ‘Not for Profit
organization’ helping people to learn heartfulness
practice for the wellness of body, mind and life
in general. It is 100% free service available for
everyone around the world.
Once you start practicing this for 3 months, you
will know the Art of Listening to the Heart and it
helps you with good clarity especially when you
take decisions and it is that simple indeed.
Article by M.K.Anand. He can be reached at +91
94440-25283 for more insights.
43

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