A webinar presentation on "Recent tax and regulatory considerations for MSMEs and Start-ups" with special emphasis on Govt's Atmanirbhar stimulus package" to the members of 10,000 Startups

1. MSMEs & Start-ups:
Recent tax & regulatory
considerations

2. Agenda
– Overview
– MSMEs
– Start-ups
– COVID-19 Package
– Key considerations
– Annexures

3. Overview

4. Overview
DPIIT recognised Start-ups MSMEs
Start-up or MSME or Both?
Key
differences
– Any entity including proprietorship, HUF,
AOP, co-operative society can register as an
MSME
– Relatively smaller entity designed for profit and
sells/ renders "known" products/ services
– Turnover less than INR 1 billion and
investment in plant & machinery/ equipments
does not exceed INR 200 million
– Only private companies, LLPs, and
registered partnership firms recognised as
Start-up
– Should have a innovative and scalable
business model
– Turnover less than INR 1 billion but no
requirement for investment in plant &
machinery/ equipments
Start-ups and MSMEs are recognized exclusively based on business ideas and scale of operations respectively. Organizations
fulfilling prescribed criteria could be registered as a start-up or as a MSME or even both and can avail a plethora of tax and
regulatory benefits and relaxations available to such registered entities
4
– Protection against delayed payments
– Easy access to credit and collateral free loans
– Lower interest rates on borrowings
– Various benefits under Central and State
Government schemes
– Tax holiday for 3 years out of first 10 years
– Tax saving schemes for start-up investors
– Rebate on patent costs
– Single window clearance for all clearances,
approvals and registrations on self-declaration
Key
benefits

5. MSMEs

6. 18.23%
11.31%
10.43%
10.22%
9.63%
3.40%
36.78%
Maharashtra
Tamil Nadu
Bihar
Madhya Pradesh
Uttar Pradesh
Others
Karnataka
41%
59%
Manufacturing Service
Background
MSME sector has emerged as a highly vibrant and dynamic sector of the Indian economy over
the last few decades
1,33,55,218 registered MSMEs in India
Activities
Enterprises Employment
Demography
0.43%
10.96%
88.62%
Economy
Micro
Small
Medium
Micro
62%
Small
32%
Medium
6%
Contributes 6.11% of
manufacturing GDP
Contributes 24.63% of
GDP from service
activities
Source: Public domain
Employment to 120 million people
6
Makes up 45% of
India’s exports

7. Eligibility for MSME Registration
7
– Distinction between manufacturing and services sector removed by making eligibility criteria same for all enterprises
– Criteria revised from a sole criteria of investment in Plant and Machinery or Equipment to combined criteria of
investment in Plant and Machinery (for manufacturing sector) or Equipments (for service sector) and annual
turnover limits
Erstwhile MSME definition*
Criteria: Investment in Plant & Machinery or Equipment
Classification Micro Small Medium
Manufacturing
sector
Investment < INR 2.5 million Investment < INR 50 million Investment < INR 100 million
Service sector Investment < INR 1 million Investment < INR 20 million Investment < INR 50 million
Revised MSME definition
Criteria: Investment (Plant & Machinery or Equipment) & Annual turnover
Classification Micro Small Medium
Manufacturing or
Service sector
Investment < INR 10 million and
Turnover < INR 50 million
Investment < INR 100 million and
Turnover < INR 500 million
Investment < INR 200 million and
Turnover < INR 1 billion
*S.O. 1642(E) dated September 29, 2006/ Section 7 of MSMED Act 2006
Expert Committee’s Report on MSME recommended turnover as per GST laws – "Aggregate turnover" means the aggregate value of all
taxable supplies, exempt supplies, exports and inter-State supplies of persons with same PAN - computed on all India basis but excludes GST
and cess
A registered MSME that crosses the above mentioned threshold is required to apply for de-registration

8. Eligibility for MSME Registration
8
GoI is considering further revision
to definition of MSME to expand
its scope and extend the benefit
to a larger group of enterprises
Capital invested in an enterprise by
promoters/ investors is not considered while
evaluating eligibility. Investment made by the
enterprise in plant & machinery/ equipment is
to be considered
* Additional investments by Start-ups in plant and machinery, if any, to meet investment thresholds
under MSME Act, must be carefully considered keeping in mind the depreciation related rules under
the Income Tax Act, which mandates that assets should be put to use for 180 days or more in the year
of purchase to claim full depreciation

9. Eligibility for MSME Registration
9
Original purchase
price of asset to be
considered irrespective
of whether it is newly
purchased or a
second-hand purchase
Book value (purchase
value minus
depreciation) not
relevant
Functional test approach - An item, article or thing which
is durable and which is used as a tool for the purpose of
carrying on business or profession is plant of that business
Examples: Assembly plants, Weaving machines, Packaging
machines etc
Investment in plant and machinery is the original cost
irrespective of whether the plant and machinery is new or
second handed, excluding items specified in Notification
No.S.O.1722 (E) dated October 5, 2006
Plant and machinery
Equipment Functional test approach - A tangible long-term asset
that benefits a business over several years of use
Examples: Cinematograph films, Machine tools,
Computers, Communication and storage devices
Investment in equipment is the original cost excluding
furniture, fittings and other items not directly related to
service rendered
In the absence of definition under MSMED Act, reference could be made to other statute such as Income tax or GST laws, Accounting
Standards, legal dictionaries and judicial precedents to determine if the asset could be qualified as Plant and machinery or Equipments.
Startups willing to obtain MSME registration may have to look at existing fixed assets (Gross Block value) in their balance sheet to
ascertain if they could meet this investment criteria

10. Eligibility for MSME Registration
– Tools jigs, dies, moulds and spare
parts for maintenance and cost of
consumable
– Installation of plant & machinery
– R&D equipment & pollution control
equipment
– Power generation set & extra
transformer installed as per State
Electricity board
– Bank charges and service charges
– Gas producer plants
– Storage tanks which store raw
materials etc (not linked with
manufacturing process)
– Charges paid for technical
knowhow for erection of plant and
Machinery
– Fire fighting equipments
– Import duties (excluding
transportation from port to factory
site, demurrage paid at the port etc)
– Shipping charges
– Custom clearance charges
– Sales Tax or Value Added Tax
– Procurement or installation of
cables, wiring, bus bars, electrical
control panels, oil circuit breakers
or mini circuit breakers necessary
for providing electrical power or for
safety measures
– Transportation charges for
indigenous machinery
Exclusions and inclusions from calculation of investment in Plant & Machinery
Notification No S.O. 1722(E) dated October 5, 2006
10

11. Eligibility for MSME Registration
Business activities not eligible for MSME registration
Fishing and
aquaculture
Wholesale and retail
trade and repair of
motor vehicle and
motorcycles
Activities of
households as
employees for
domestic personnel
Crop, animal
production, hunting
and related activities
(few exceptions)
Undifferentiated goods
and services
producing activities of
private households for
own use
Wholesale and retail
trade except of motor
vehicles and motor
cycle
Activities of
extraterritorial
organization and
bodies
Forestry and logging
11
Office Memorandum – F No. UAM/MC/01/2017-SME

12. Registration
Website: https://udyogaadhaar.gov.in
Preparation and filing of
Application
– Fill the required details
and submit prescribed
documents
– ~1-2 working days for
processing of application
Cost of Registration Application approval and
registration
– Upon approval, entity is
registered and related
documents/ certificate are
sent
Cost for Udyog Aadhaar
Registration is Nil
12

13. – Aadhaar Number of Entrepreneur
– Name of Enterprise
– Type of Organization (Proprietary /HUF/ Partnership/
Co-operative/ Private Limited company/Public limited
company/ Self help group/ LLP/ Society/ Trust )
– PAN
– Location/Address of plant
– Previous Enterprise Memorandum/ SSI/ UAM, if any
– Official address
List of information required for MSME registration
Registration
– Email ID and Mobile number of Entrepreneur
– Date of commencement of business
– Bank details (IFS Code/Bank account number)
– Major activity unit (Manufacturing or service)
– Main business activity
– Number of employees
– Investment (in Plant & Machinery /Equipment’s)
– Copies of Licenses and Bills of Machinery Purchased
– Additional details of enterprise like Partnership deed,
MOA, AOA
An option exists for companies to register without AADHAAR number of the entrepreneur by
obtaining a UAM registration and submitting other prescribed documents
13
Screenshot of UAM portal provided as Annexure

14. Eligibility for MSME Registration
Can a subsidiary company of a large enterprise register as an MSME?
Scenario 1
Holding entity is a large
organization crossing
MSME eligibility
thresholds
Scenario 2
Holding entity is a small
firm and fulfills MSME
threshold limits
The intention of having a separate framework for MSMEs was to pass on various relaxations, benefits and
subsidies to small companies that may not be able to compete with large businesses. The conditions for
obtaining a small-scale industry (SSI) certificate specifically excluded companies that are subsidiary of
another industrial undertaking. Therefore, where the holding entity is a large organization that is not eligible
for MSME registration, a subsidiary of such a company should not be granted a registration under MSME
Act. However, MSME Act remains silent on this aspect.
14

15. Key Benefits of MSME Registration
GoI has notified and implemented multiple schemes for the benefit for MSMEs which have been outlined in the Annexure (Slide Nos 44-45)
No additional filing/ reporting compliances to be done by an entity registered as an MSME
15
01
02
03
04
05
06
Buyer liable to make payment to MSME within 45 days. In case
of default, buyer to pay compound interest at 3 times of RBI
notified bank rate. Such interest is disallowed in the hands of
the buyer under the Income Tax Act (Sec 23 of MSMED Act)
01
Central Government ministries, Departments and PSU’s
procure minimum of 25 percent of their annual value of goods
or services from MSMEs
02
Lowers interest rate for bank loans by ~ 1-1.5 percent
compared to prevailing market rates03
Interest subvention of up to 2 percent for GST registered
MSMEs on incremental or fresh working capital sanctioned or
incremental/ new term loans
04
50 percent subsidy for patent registration by making an
application to the respective ministry05
Single brand retailers, with at least 51 percent foreign
investment, to source at least 30 percent of goods from MSMEs,
village and cottage industries, artisans and craftsmen in India
06

16. FDI in MSMEs
16
FDI in MSMEs is permitted in India under automatic route subject to few sectoral caps and
prohibited investment sectors as per the FDI policy
Opportunistic takeovers/ acquisition of companies observed in light
of falling valuations resulting from COVID 19 pandemic
MSMEs requested GoI protection from being sold under distress to
Chinese companies
Investments impacted from – China, Nepal, Bhutan, Myanmar,
Afghanistan (Pakistan & Bangladesh had restrictions earlier as well)
Countries not impacted – All other countries such as Hong Kong,
Korea, Singapore, Mauritius, Japan, USA, UK, etc
Beneficial owner of securities/ investor of a country which shares land border with
India can invest only under the Government approval route for all sectors
Transfer of FDI resulting in transfer of beneficial ownership to investors in such
countries would also require prior approval
To regulate takeovers, GoI revised the FDI guidelines

17. FDI in MSMEs
17
Nuances of beneficial ownership – definitions under Companies Act, 2013, regulations prescribed by
RBI, SEBI and Prevention of Money Laundering Act are all different
Any distinction between investment being strategic/ majority stake vis-à-vis purely
financial/ minority stake in Indian companies?
Whether under the new rules, investments from countries such as
Taiwan, Hong Kong, Macau etc be treated at par with those from China?
1
2
3
Areas of ambiguity arising from revised
guidelines

18. Benefits under Atmanirbhar Bharat Abhiyan
Subordinate debt
– Functioning MSMEs which are
NPA or are stressed
– Promoters to be given debt by
banks, which could then be
infused as equity in the unit by
such promoter
E- market and Fintech
– e-market place to be
promoted as a replacement
for trade fairs and exhibitions
– Services including online
registration, web store
management, customer
support through Call Centre
Receivables from GoI
MSMEs to mandatorily
receive its dues within 45
days from GoI and Central
PSUs
Equity infusion
– Setting up of FoF with Corpus
of INR 100 billion
– FoF to provide equity funding
for MSMEs with growth
potential and viability
– FOF to be operated through a
Mother Fund and few
Daughter Funds
Collateral free loans
Global tenders restricted
General Financial Rules (GFR)
amended - No global tender
up to INR 2 billion by GoI
– Borrower with up to INR 250 mn
outstanding and INR 1 billion
turnover
– Emergency credit line - up to 20
percent of outstanding credit as
on Feb 29, 2020
– Interest capping, no guarantee
fee, no fresh collateral
– Scheme valid till October 31, 2020
– Detailed FAQs released by
National Credit Guarantee
Trustee Company Ltd. Available
on https://www.eclgs.com/
18

19. Start-ups

20. 20
Is Your Company A Startup?
Start-up India Action Plan
•Incorporated as a Private Limited Company, a Registered
Partnership Firm or an LLP
•Period of existence and operations should not be exceeding 10
years from the date of incorporation
•Should have an annual turnover not exceeding INR 1 billion for
any of the financial years since its incorporation
•Entity should not have been formed by splitting up or
reconstructing an already existing business
•Should work towards development or improvement of a
product, process or service and/or have scalable business
model with high potential for creation of wealth & employment
Income Tax Act, 1961
•Incorporated/ registered as Private Limited Company/ LLP
•Incorporation: April 1, 2016 – April 1, 2021
•Annual turnover < INR 1 billion in the previous year relevant to
the assessment year for which tax holiday is claimed
•Working towards innovation, development or improvement of
products or processes or services, or should be a scalable
business model with a high potential of employment
generation or wealth creation
•Holds certificate from the IMB as constituted by the DIPP
•Subject to certain reconstruction provisions
A recognised Start-up ceases to be a Start-up on completion of 10 years or if it exceeds prescribed turnover thresholds

21. 21
Key Consideration
Anomaly with regards to year for which turnover is restricted to
INR 1 Billion:
– IT Act: Turnover in the previous year relevant to the assessment
year for which deduction is claimed
– Memorandum to Finance Act 2020: Turnover in any of the
previous years beginning from the year in which it is incorporated
The IMB has approved and granted certificate to 266 Start-ups till
February 19, 2020 (42nd meeting), while there are 32,178 Start-ups
recognised by DPIIT
Not even 1 percent of Start-ups recognised by DPIIT are
"eligible" for availing income tax related benefits. Impact of
exemption curtailed to a fraction of the total ecosystem. A list
of eligible Start-ups as approved by IMB has been provided as
Annexure

22. 22
Registration with DPIIT
List of documents / information
1. Incorporation/
Registration Certificate
2. Description of your
business in brief
Certificate from IMB post registration with DPIIT
required to avail income tax benefits
Start-ups are separately recognised by State authorities for providing various state and local incentives.
Nonetheless, for availing all tax and regulatory benefits, registration with DPIIT is a pre-requisite

23. 23
Certification from IMB
1. Application in Form 1 (screenshot
in the Annexure) containing the
name of startup, incorporation
details, address, PAN
2. Submit annual financial
statements for last three FY
3. Submit copies of Income-tax
returns for last three FY
(not required if incorporated after
April 1, 2018)
Approval for Certificate – declared in the Meeting of IMB and posted on the website of DPIIT/ Start-up India
Procedure for application with IMB to avail Income-tax benefits
4. Video of start-up for max 2 mins
(Working of prototype or concept)
5. Pitch deck of max 5 slides (Brief
about Start-up and workforce)

24. 24
100% tax holiday
Section 80-IAC
Angel Tax - Section
56(2)(viib)
ESOP taxation for
employees
Carry forward and
set off of losses as
per Section 79
Income tax provisions for Start-ups in India
Section 54GB exempted long term capital gain on sale of residential property before March 31, 2019 if net consideration from sale is invested eligible
start-ups or MSMEs. Section 54EE exempts long-term capital gain if such gain up to INR 5 million is invested in a fund notified by GoI. Start-up India
Action Plan to establish and notify a fund of funds which would be eligible for such deduction

25. 25
For Start-up Companies For Employees of Eligible Start-ups
ESOP tax on perquisite value (ie tax on
difference between FMV and exercise price)
deferred to the earliest of following dates:
a) Expiry of 5 years from relevant AY
b) Date of sale of such securities, or
c) Date of termination of employment
Start-ups employers would withhold tax
under Section 192 on such perquisites only
on the above deferred dates, and not in the
year of exercising ESOPs by the employees
Section 80-IAC
100 percent tax holiday for
3 years consecutively out
of 10 years only for
"eligible" Start-ups
Conditions:
a) Start-up shall be
approved by DIPP and
be incorporated
between April 1, 2016 –
April 1, 2021
b) Certification from IMB
Section 79
Carry forward & set off
losses provided:
a) All the shareholders
shall continue to hold
shares on the last day
of the FY
b) Such losses incurred
during the period of 7
years starting from the
year of incorporation
Mismatch – 10 years vs 7 years
Income tax Benefits for Start-ups in India

26. 26
Deferment of ESOP taxation for employees of eligible start-ups
Point to Ponder
Options granted
before but exercised after
April 1, 2020?
Options granted and
exercised
after April 1, 2020?
Tax on perquisite portion of ESOPs under Section 17(2)(vi) is triggered on the exercise of options and not on
grant date. The amendment in perquisite taxation scheme introduced by Finance Act 2020 defers taxation and
does not refer to ESOP timelines. A view may be taken that all options that are exercised on or after April 1, 2020
(irrespective of date of grant) should be eligible for beneficial provisions

27. Provisions of
Section 56(2)(viib)
Where consideration for issue of shares
received by private company exceeds face
value of the shares, the aggregate
consideration received as exceeds FMV of
such shares shall be taxable under Section
56(2)(viib) of the IT Act
[if Sale Price > Face Value then,
Sale Price – FMV = Excess consideration taxable]
FMV of shares of both listed and unlisted
private companies shall be determined as per
methods prescribed in Rule 11U and 11UA
of the IT Rules
Applicable to all private companies in India, except
where consideration is received:
(a) by a venture capital undertaking from venture
capital company or fund
(b) by a notified company
CBDT Notification dated March 5, 2019
exempted start-ups from the said provisions if
certain conditions prescribed are fulfilled
Determination of FMV of shares and taxability of
excess premium under Section 56(2)(viib) involves
various issues discussed in the ensuing slides
Excess premium received at the time of issue of shares by private company over FMV of the shares is deemed to
be an income and is liable to tax in the hands of such private company under Section 56(2)(viib) of the IT Act
Angel Tax - Overview
27

28. 28
Angel Tax - History
Introduction of Angel Tax
Provisions of Section
56(2)(viib) along with Rules
11U and 11UA enacted into
law by Finance Act 2012,
with effect from AY 2013-14
CBDT Notification dated
May 24, 2018
Section 56(2)(viib) not
applicable if consideration
received from an investor in
accordance with the
approval granted by the IMB
CBDT Notification dated
January 31, 2019
CBDT amended its 2018
notification, wherein the
approval was required to
be granted by CBDT and
not IMB
CBDT Notification dated
March 5, 2019
CBDT exempted start-up
private companies from
Section 56(2)(viib)
provided such companies
fulfilled prescribed
conditions as specified in
the DPIIT Notification
dated February 19, 2019
CBDT Circular dated
August 30, 2019
CBDT issued a circular for
income tax assessment of
start-up private companies,
wherein it directed that
scrutiny with respect to
adjustments under Section
56(2)(viib) shall not be
pursued
2012
May 24,
2018
Jan 31,
2019
Mar 5,
2019
Aug 30,
2019
Apr 21,
2020
CBDT clarification dated
April 21, 2020
CBDT clarified that its
email to all those who are
entitled to get tax refund
but also have outstanding
tax to pay cannot be
misconstrued as
harassment

29. 29
Exemption from Angel Tax
Start-ups Angel Tax
Recognised by DPIIT
(registered with DPIIT)
shall file Form 2 (please
refer screenshot in
Annexure). Form 2 is
forwarded by DPIIT to
CBDT
Aggregate amount of share capital and share
premium does not exceed INR 0.25 billion
Exceptions
Shares issued to following shall be excluded:
a) Non-resident
b) VC company or fund registered as
Category I AIF
c) Specified Company*
Investment in any of these assets shall not
be made for 7 years from the end of latest
FY in which shares are issued by the start-
up at premium: (a) Building or land
appurtenant – except renting, held as stock-
in-trade (b) Land or building or both - except
renting, held as stock-in-trade (c) Loans &
advances – except where lending is
substantial part of business (d) Capital
contribution to any entity (e) Investment in
shares & securities (f) Motor vehicle, aircraft
or others – except plying, hiring, stock-in-
trade (g) Jewellery – Stock-in-trade (h)
Investment in any other asset prohibited in
Expl (d) of Section 56(2)(viib) of IT Act
3 Conditions for
exemption
* Specified company means a company whose shares are frequently traded within the
meaning of Securities and Exchange Board of India (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011 and whose net worth on the last date of FY preceding the
year in which the shares are issued exceeds INR 1 billion or its turnover for the FY
preceding the year in which the shares are issued exceeds INR 2.5 billion

30. A. Actuals vs Projected DCF
values
B. DCF or NAV method of
valuation
Can the Tax officer compare revenues/ profits projected under DCF method vis-à-vis
actual revenue/ profit of the company and reject the valuation report?
‒ DCF method is based on projections of future events and cannot be estimated with 100
percent accuracy. Therefore, a valuation report cannot be compared with actual results at
a later point in time.
‒ Projections are comparable on account of failure of Management to substantiate to the tax
officer, such information made available during valuation process to arrive at the share/
enterprise valuation
Does the assessee have an option to adopt either NAV or DCF method for valuation of
shares?
‒ Rule 11UA prescribes two methods for determination of FMV and it is at the option of the
Company to choose one of the two options
‒ The tax officer may either propose adjustments or obtain fresh valuation of the shares.
Nonetheless, the method of valuation as adopted by the Company should not be changed
during a tax assessment
Can the provisions of Section 56(2)(viib) be invoked even if satisfactory explanation is
provided under Section 68 of IT Act?
‒ If Section 68 is applicable, and the proviso is not satisfied, then entire amount credited to
the books would be treated as income. If satisfactory explanation is offered as to the
source, then premium paid as revealed from the books should not be brought to tax as
income from other sources
VS
56(2)
(viib)
68
C.
Angel Tax - Key Considerations
30

31. A Actuals vs projected revenue
B DCF vs NAV Method
C Section 56(2)(viib) vs Section 68
Delhi
Rajasthan
Maharashtra
Kerala
Karnataka
Innoviti Payment Solutions (Bangalore ITAT)
TUV Rheinland NIFE Academy (Bangalore ITAT)
A Vodafone M-Pesa Ltd (Mumbai ITAT)
B
Ozoneland Agro Pvt Ltd (Mum ITAT)
Vodafone M-Pesa Ltd (Bom HC)
A,
B
Agro Portfolio Private Ltd (ITAT)
B Cinestaan Entertainment (P) Ltd (ITAT)
India Today Online (P.) Ltd (ITAT)
A
Rameshwaram Strong Glass (P) Ltd
(Jaipur ITAT)
B
Choudhary Buildmart Pvt
Ltd (HC)
C
Sunrise Academy of Medical
Specialties (India) (P) Ltd (HC)
A,
B
31

32. COVID-19 Package

33. 33
Relaxations as per COVID-19 Package
Extension of due dates for
income tax compliances (such
as filing tax returns, tax audits,
assessments etc) by 1-4 months
TDS/ TCS rates on resident
payments (other than payroll
payments) reduced by 25
percent for the period May 14,
2020 to March 31, 2021 to
promote liquidity (CBDT Press
Release dated May 13, 2020)
Extension of validity of lower/
Nil TDS certificate for FY
2019-20 to June 30, 2020
and new applications
facilitated online (e-mail
mode)
Extension of period for making
payment without additional fee
to December 31, 2020 under
amnesty scheme Vivad Se
Vishwas
Reduced interest rates at 0.75 percent
per month (or part of month) for
delayed payment of taxes until June
30, 2020 (advance tax, withholding tax
and other such taxes). Provision for
penalty and prosecution eased for
delayed payments
All pending refunds to non-corporate
businesses including
proprietorship, partnership & LLP to be
issued immediately

34. 06 01
02
0304
05
Extension of due dates for GST
compliances until June 30, 2020 (such
as annual return filing, availing
composition scheme etc) to last week
of June 2020 and other relaxations
such as late fee waiver, availing ITC,
filing LUT etc
Statutory PF contribution of employer
& employee reduced to 10 percent for
all establishments covered by EPFO
for May, June and July 2020. Detailed
FAQs issued on May 20, 2020.
Available on EPFO website
–Import payables for imports made
before July 31, 2020 can be settled
within 12 months (instead of 6
months)
–Export proceeds for exports made
upto July 31, 2020 to be realised
within15 months (instead of 9
months)
All pending customs refund
and drawback claims to be
expeditiously processed in
order to provide immediate
relief to business entities,
especially MSMEs
–Bankruptcy trigger threshold
increased to INR 10 million
–Suspension of fresh initiation of
insolvency proceedings up to 1 year
–Special insolvency resolution
framework for MSMEs to be notified
soon
– Various compliance requirements
extended for companies including few
relaxations to conduct board meetings
and general meetings
– Decriminalization of Companies Act
violations involving minor technical and
procedural defaults
– Lower penalties for all defaults for Small
Companies, OPC, Producer Companies
& Start Ups
Relaxations as per COVID-19 package
34

35. RBI had announced a moratorium on repayment of term loans for a 3 months period (March - May) which was
further extended by 3 months (June - August) recently. This is not a loan waiver - it is just a moratorium, which
means a pause/ stay to existing EMI payments for a period of 3 - 6 months
Particulars Moratorium 1.0 - 3 Months Moratorium 2.0 - 6 Months
Current EMI 22,244 22,244
Principal outstanding after moratorium 6,90,018 7,10,926
Option 1 - Same tenure
New EMI 22,919 23,613
Change in EMI 675 1,368
Total Financial impact 24,300 49,284
Option 2 - Same EMI
Increase in total tenure (months) 2 3
Total Financial impact 29,397 60,067
Rescheduling of Payments – Moratorium impact
Loan amount INR 10,00,000 Instalments paid 24 months
Interest rate 12% Balance Loan tenure 36 months
Loan tenure 60 months Balance loan amount INR 6,69,725
Opting for moratorium may showcase uncertainty on capability to handle full burden of EMIs after the moratorium period and
aversion to take a view on a business for longer term (10-15 years) when a short-term disruption could dent the visibility of
business owner himself. Remember that availing the facility could come to bite in the long term. One may also need to
arithmetically analyse top-up under ECLGS over an EMI moratorium
35

36. Key considerations

37. 37
* Tax on Dividends (C) in the hands of individual shareholder is considered at maximum marginal rate (30 percent + Surcharge at 37 percent
and Cess at 4 percent)
Evaluation of post tax earnings
Headline corporate tax rates for MSME/ Start-up companies (non-IMB certified): (a) 15 percent - New manufacturing companies set up on or
after October 1, 2019, (b) 22 percent - Companies opting for new regime with limited income tax benefits (c) 25 percent - Companies with
turnover below INR 4 billion opting for old regime with all income tax benefits. Please refer Slide No 54 for more details
Particulars Company LLP
Basic Tax Rate 15% 22% 25% 30%
Surcharge 10% 10% 12% 12%
Cess 4% 4% 4% 4%
Total Tax Rate 17.16% 25.17% 29.12% 34.94%
Profit Before Tax 100 100 100 100
Tax Cost 17.16 25.17 29.12 34.94
Profit After Tax 82.84 74.83 70.88 65.06
DDT Dividend Distribution Tax abolished NA
Balance to Shareholders / Partners 82.84 74.83 70.88 65.06
Dividend Tax 35.41 31.99 30.30 NA
Net Balance 47.43 42.85 40.58 65.06
Total Tax Cost 52.57 57.15 59.42 34.94
Tax regime to be adopted should be re-evaluated considering the economic slowdown. MSMEs and Start-ups should
analyse MAT credits carried forward, additional depreciation and available brought forward business losses before
opting under concessional tax scheme, considering that profit margins in near term would dip significantly

38. Key considerations
Quarterly payment of payroll TDS
‒ Rule 30 (3) allows quarterly payment
of payroll TDS in special cases with
prior approval from Tax authorities
‒ MSMEs and Start-ups with limited
resources to raise funds could apply to
TDS officer to treat COVID-19 as a
special case resulting in cash crunch
and attempt to obtain approval for
quarterly payment of payroll TDS
‒ Definitive need to "uniquely
demonstrate“ cash crunch after
exhausting all available remedies such
as increase of working capital limit,
equity infusion by promoters etc
Salary cuts and Deferral
‒ Section 15 vs Section 192 of Income
Tax Act - Income tax charged on salary
due from employer irrespective of
whether paid or not vs withholding only
on payment/ disbursal
‒ Mismatch in provisions governing
taxability and withholding leads to
ambiguity in the year of accrual as well
as year of payment
‒ In case of deferment, income tax
implications can potentially rub salt into
employees' wounds (pay income tax
on salary not received)
‒ Salary cuts to communicated in writing
with revised compensation structure
(CTC) that could be used by
employees to defend later in case of
scrutiny
Reduced PF contribution
Employer contribution to PF exempt in the hands of
employees. GoI has reduced the contribution rate from 12
percent to 10 percent and clarified that employers following
the CTC model will have to compensate the employees by
paying an amount equivalent to 2 percent contribution if the
employees are opting for reduced contribution of 10 percent
instead of 12 percent. Amount equivalent to 2 percent
differential shall be taxable in the hands of the employee?
38

39. Key considerations
Application for Lower/ Nil deduction
certificates
‒ Considering low profit margins,
MSMEs and start-ups should explore
obtaining a lower/ Nil withholding
certificate to ensure that tax being
deducted at source on payments from
customers are not substantially higher
than overall tax liability
‒ This would not only ease cash flow
during the year, but also ensure that
tax refunds are not stuck after filing the
return of income
Deferral of other payments
‒ Considering March 2020 is the close
of the financial year, payment against
expenses that have been accrued in
the books of accounts may be
deferred to subsequent months
‒ TDS provisions require deduction of
taxes at the time of accrual or
payment, whichever is earlier.
Therefore, taxes need to deducted on
all accruals and mapped in the
subsequent year when payments are
made
‒ GST and accounting implications to be
separately analysed as well
39
Reduced TDS/TCS rates
‒ Reduction in TDS/ TCS rates does not reduce overall income
tax liability
‒ Advance tax payments may correspondingly increase due to
lower tax credits and should be deposited within due dates to
prevent trigger of interest (unless profit margin reduction maps
to lower TDS credits)

40. Key considerations
40
PAN-Aadhaar linking
‒ IT Act provides for higher rate of TDS if PAN is not furnished by the payee
‒ CBDT had notified Rule 114AAA on February 13, 2020 to provide that failure to
link Aadhaar number by March 31, 2020 (now June 30, 2020) shall render PAN,
allotted to such person inoperative
‒ Subsequent to PAN becoming inoperative, it shall be presumed that such person
has not furnished PAN, triggering Sec 206AA provisions [Rule 114AAA(2)]
‒ Companies needs to ensure that suppliers/ vendors link their PAN and Aadhaar.
Failure to do so would attract higher TDS. Exposure of interest under Section 201
exist for payer company in case right rate of TDS not applied
Fast track income tax refunds
‒ Tax authorities have been instructed to fast
track issue of refunds for non-corporates
‒ Where refunds are pending, taxpayers can
file a grievance on the income tax portal
requesting for issue of refund and reasons
for delay
Work from Home Allowances
‒ Under the current scenario, companies are
reimbursing employees for additional costs
incurred while working from home, such as
internet devices, cost of Wi-Fi/ broadband
connection etc
‒ As per Section 17 of the IT Act, such
allowances are a taxable perquisite for the
employee and the employer needs to duly
deduct taxes under Section 192 of the IT Act
while making such payments

41. 41
e-Assessment Scheme – A paradigm shift
Taxpayer Taxmen /
Assessing Officer
NeAC
NeAC issues assessment notices
Taxpayer submits responses & docs NeAC transfers all the records to AO
AO uploads the Assessment Order /
requirement of additional info
Faceless and nameless scrutiny process introduced to bring anonymity in audit proceedings using
technology in order to ensure that vested interests do not obstruct due course of law
• NeAC, as a nodal agency, shall facilitate the conduct of e-assessment in a centralized manner
• Every delivery of record to be followed by a 'real time alert' to the taxpayer
• Oral communications, if any, shall be facilitated via video conferencing or video telephony
• Though there would be no human intervention at the front-end under the scheme, a fail-safe mechanism has been
prescribed to transfer the case to the jurisdictional assessing officer at any stage of assessment/ audit
Removing personal interaction from the system may be a mixed blessing for businesses, requiring companies
to rethink how they submit their tax returns and communicate with tax officials during the course of audit/
assessments. To avoid problems with the new system, companies should prepare a concise defense of their
tax positions and keep track of electronic communication to avoid misunderstandings and errors

42. Annexures

43. 43
MSME Registration

44. GoI Schemes for MSMEs
Sl No Schemes
1 Prime Minister Employment Generation Programme and Other Credit Support Schemes
1.1. Prime Minister Employment Generation Programme(PMEGP)
1.2. Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)
1.3. Interest Subsidy Eligibility Certificate (ISEC)
2 Development of Khadi, Village and Coir Industries
2.1. Science and Technology Scheme
2.2. Market Promotion & Development Scheme (MPDA)
2.3. Revamped Scheme Of Fund for Regeneration Of Traditional Industries (SFURTI)
2.4. Coir Vikas Yojana (CVY)
2.4.1. Coir Industry Technology Upgradation Scheme (CITUS)
2.4.2. Science and Technology (S&T) for Coir
2.4.3. Skill Upgradation & Mahila Coir Yojana (MCY)
2.4.4. Export Market Promotion (EMP)
2.4.5. Domestic Market Promotion Scheme (DMP)
2.4.6. Trade and Industry Related Functional Support Services (TIRFSS)
2.4.7. Welfare Measures (Pradhan Mantri Suraksha Bima Yojana (PMSBY))
3 Technology Upgradation and Quality Certification
3.1. Financial Support to MSMEs in ZED Certification Scheme
3.2. A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)
3.3. National Manufacturing Competitiveness Programme (NMCP)
3.3.1. Credit Linked Capital Subsidy for Technology Upgradation
3.3.3. Marketing Support/Assistance to MSMEs (Bar Code)
44

45. GoI Schemes for MSMEs
Sl No Schemes
3.3.4. Lean Manufacturing Competitiveness for MSMEs
3.3.5. Design Clinic for Design Expertise to MSMEs
3.3.6. Technology and Quality Upgradation Support to MSMEs
3.3.7. Entrepreneurial and Managerial Development of SMEs through Incubators
3.3.8. Enabling Manufacturing Sector to be Competitive through QMS&QTT
3.3.9. Building Awareness on Intellectual Property Rights (IPR)
4 Marketing Promotion Schemes
4.1. International Cooperation
4.2. Marketing Assistance Scheme
4.3. Procurement and Marketing Support Scheme (P&MS)
5 Entrepreneurship and skill Development Programme
5.1. Entrepreneurship Skill Development Programme (ESDP)
5.2. Assistance to Training Institutions (ATI)
6 Infrastructure Development Programme
6.1. Micro & Small Enterprises Cluster Development (MSE-CDP)
7 Scheme of Surveys, Studies and Policy Research
7.1. Revised guidelines (bilingual) of scheme SS&PR with effect from 15-10-2018
8 SC-ST-HUB
9 Scheme of Information, Education and Communication
45

46. No Start-up Companies No Start-up Companies
1 Golden App Pvt Ltd 24 Skyjumper Sports And Amusements Private Limited
2 Eyedentify Systems Private Limited 25 Spawoz Technologies Private Limited
3 RVM Recycle Private Limited 26 Jewelxy Marketplace Private Limited
4 Grow Well Organic And Eco Products Pvt Ltd 27 Redcliffe Hygiene Private Limited
5 Navia Life Care Pvt Ltd 28 Teerhub Technology Private Limited
6 Aadvik Foods And Products Private Limited 29 Faatso Online Private Limited
7 Juru Yoga Pvt Ltd 30 Quirkstation Retail Private Limited
8 HPS Lab Designs Private Limited 31 Shibu Smart Solutions Private Limited
9 Nithi Ventures Private Limited 32 Artisanal Drinks Private Limited
10 Amaterasu Lifesciences LLP 33 Karo Sambhav Private Limited
11 Respirer Living Sciences Private Limited 34 Jugadee Services Private Limited
12 Obsequium Global Services (India) Private Limited 35 Sanitech Innovations LLP
13 Anvayaa Kin Care Private Limited 36 Ahammune Biosciences Pvt Ltd
14 Afin Health Care Solutions Private Limited 37 Bhurak Technologies Private Limited
15 Craft Academia Private Limited 38 Hakitech Private Limited
16 Icuboid Private Limited 39 Jasper Concepts Private Limited
17 Paramotor Digital Technology Private Limited 40 Incredible Devices
18 Activelogica Lifescience Innovations Private Limited 41 Keed Agro Pvt Ltd
19 Cogos Technologies Private Limited 42 Med Invent Devices Private Limited
20 Embright Infotech Private Limited 43 Shanmukha Innovations Private Limited
21 3Cad Hospitality Limited Liability Partnership 44 Predible Health
22 Francium Technologies Private Limited 45 Ledchip Indus Private Limited
23 Honasa Consumer Private Limited 46 Flycatcher Technologies LLP
Source: IMB decisions available at https://www.startupindia.gov.in
Start-ups approved by IMB for income tax benefits
46

47. No Start-up Companies No Start-up Companies
47 Eunimart Multichannel Private Limited 70 Cyrrup Solutions Private Limited
48 Nebulaa Innovations Pvt Ltd 71 Cyton Mv Private Limited
49 Dynamit Innovations Private Limited 72 Delectrik Systems Private Limited
50 Zeco Plast Recycling LLP 73 Doorbox Global LLP
51 Shashvi Remedies OPC Private Limited 74 Dzeal Private Limited
52 Indira Astron Drive 75 Ethereal Machines Private Limited
53 Ecomaxgo 76 Fabulyst Private Limited
54 Chakr Innovation Private Limited 77 Genio Solutions LLP
55 Vizara Technologies Private Limited 78 Happy Adda Studios Private Limited
56 Bestek It Systems LLP 79 Heelium Sports Private Limited
57 Autonomous Logistics Technologies Private Limited 80 Innodi Water Technologies Pvt Ltd
58 Aarna Biomedical Products Private Limited 81 Invento Makerspaces
59 Aesop Designs (OPC) Private Limited 82 Jarsh Innovations Private Limited
60 Agricxlab Private Limited 83 Kalki Ecosphere LLP
61 Akxa Tech Private Limited 84 Khethworks Private Limited
62 Alacris Research & Development Private Limited 85 Knox Innovations LLP
63 Alphatub Innovations Private Limited 86 Larica Led Products Pvt Ltd
64 Aodh Lifesciences Private Limited 87 Lynk Ambupod Pvt Ltd
65 Aquasense Private Limited 88 Magnic Technologies Private Limited
66 Bharatrohan Airborne Innovations Private Limited 89 Matisoft Cyber Security Labs Private Limited
67 Bioprime Agrisolutions Pvt Ltd 90 Mcssan Itech Company LLP
68 Cerebroz Edutree LLP 91 Meladath Auto Components
69 Chargein Kiosk Private Limited 92 Multifun Technologies Private Limited
Start-ups approved by IMB for income tax benefits
47

48. No Start-up Companies No Start-up Companies
93 Nanoclean Global Private Limited 116 Testright Nanosystems Private Limited
94 Neomotion Assistive Solutions 117 Thinkerbell Labs Private Limited
95 Niramai Health Analytix Private Limited 118 Thirdwatch Data Pvt Ltd
96 Nymble Labs Private Limited 119 Ulti-Met Helmatron LLP
97 Nyokas Technologies Pvt Ltd 120 Unesar Private Limited
98 Omiom Cleantech LLP 121 Vadr Network Private Limited
99 Omnibrx Biotechnologies Pvt Ltd 122 Vasitars Private Limited
100 Padmashree Manufacturing LLP 123 Virtspaces Private Limited
101 Pentoreum Innovations Private Limited 124 Vortex Solar Energy Private Limited
102 Responscity Systems Private Limited 125 Wayusaka Innovations Private Limited
103 Revy Environmental Solutions Private Limited 126 Xu West Wang Private Limited
104 Securefire Safety Industries Private Limited 127 Zeolr Technologies
105 Sensehawk Technologies Private Limited 128 Tunwal E-Vehicle India Private Limited
106 Shayna Ecounified India Private Limited 129 Udma Technologies Private Limited
107 Sheveer Intech LLP 130 Nueved Business Services Private Limited
108 Signovate Technologies Private Limited 131 Northmist Private Limited
109 Sindhanai Artificial Intelligence Systems Pvt Ltd 132 Kariwala Info Services Private Limited
110 Spruce Up Industries Private Limited 133 Darwin Travel Tech Private Limited
111 Streak Helmets Private Limited 134 Kumble Solar Energy Solutions Private Limited
112 Sunraysia Organics Private Limited 135 Dnaerospace Private Limited
113 Taimed Hygiene Pvt Ltd 136 Axeon Ventures Private Limited
114 Taraltec Solutions Private Limited 137 I-Tech Mission Private Limited
115 Tatoll Teleserve Private Limited 138 Indshine Energy Private Limited
Start-ups approved by IMB for income tax benefits
48

49. No Start-up Companies No Start-up Companies
139 Zld Technologies Private Limited 162 Pigeon Innovative Solutions LLP
140 Garveish Herbaceuticals Private Limited 163 Aseemshakti Enablers (OPC) Private Limited
141 Globalplay Media Technologies Private Limited 164 Kryt Info LLP
142 Obii Kriationz Web LLP 165 Oscki Labs Private Limited
143 Alcodes Mobility Private Limited 166 Greenfield Agroscience LLP
144 Somo Media Private Limited 167 Epvi Lighting Technology LLP
145 Overbridge Business Solutions Private Limited 168 Sattvic Goa LLP
146 Skyroot Aerospace Private Limited 169 Lansiso Innovation Technologies Private Limited
147 Atlantech Online Services Private Limited 170 Positivenaick Analytics Private Limited
148 Bluethunder Comics Private Limited 171 Renascence Talent Solutions (OPC) Private Limited
149 Balaji Staffing Solutions Private Limited 172 Fernweh Orbit Private Limited
150 Airmed Pathology Private Limited 173 Epic Vila Pro Services Private Limited
151 Kupchi Global Foods Private Limited 174 Thangvung Privilege Services Private Limited
152 Peerxp Info Technologies Private Limited 175 Happy Turtle (OPC) Private Limited
153 Toujours Training Private Limited 176 Wiwitan Solutions India Private Limited
154 Performant Systems Private Limited 177 Green Chutney Films LLP
155 Avwebworld Private Limited 178 Curious Kids Media Tech Private Limited
156 Kalpa Power Private Limited 179 Paynet Systems Private Limited
157 Purdian Technologies Private Limited 180 22Bate7 Software Private Limited
158 Peer Networks Private Limited 181 Addverb Technologies Private Limited
159 Cinfytech Web Systems Private Limited 182 Basava Pracheena Vaidya Anveshana Private Limited
160 Conbuss Online Manufacturing Private Limited 183 Beable Health Private Limited
161 Valectus Private Limited 184 Crecientech Infosystem Private Limited
Start-ups approved by IMB for income tax benefits
49

50. No Start-up Companies No Start-up Companies
185 Drivamp LLP 208 Roxiler Systems Private Limited
186 Eduvanz Financing Private Limited 209 Sattwa Global Solutions Private Limited
187 Giftolexia Solutions Private Limited 210 Speechlogix Technologies Private Limited
188 Newmodelmep Trading International (OPC) Pvt Ltd 211 Ssh Delicacies Private Limited
189 Proelectric Projects Private Limited 212 Study At Home Private Limited
190 Progist Solutions LLP 213 Suryalogix Private Limited
191 Raav Techlabs Private Limited 214 Verbolabs Languages (OPC) Private Limited
192 Sjr Infomedia Ventures Private Limited 215 Vizcom Animations LLP
193 Sl4 Technology India Private Limited 216 Wolkus Technology Solutions Private Limited
194 Techsamvaad Private Limited 217 Shreeyansh Db Software Pvt Ltd
195 Trademill Technologies Private Limited 218 Payagri Innovations Private Limited
196 Verteil Technologies Private Limited 219 Geton Infotech Private Limited
197 Wordsmaya Edutech Private Limited 220 Chamestudio Private Limited
198 Zodhana Mobile Solutions Pvt Ltd 221 Levant Solar Private Limited
199 Aidia Technovations Private Limited 222 Cathect Technologies Private Limited
200 Bonanza Interactive LLP 223 Examable E-Learning Private Limited
201 Conexao Technology Solutions Private Limited 224 Hopeberry Retail Private Limited
202 Couture Ai Private Limited 225 Nell Infotech Private Limited
203 Energeia Microgrid Private Limited 226 Nimble Vision Private Limited
204 Fibcorp Polyweave Private Limited 227 Oncosimis Biotech Private Limited
205 Funvention Learning Private Limited 228 Digiotech Solutions Private Limited
206 Kuza Technologies Private Limited 229 Ionnix Smart Systems Private Limited
207 Podrones Logistics Private Limited 230 Electrosan Technologies Private Limited
Start-ups approved by IMB for income tax benefits
50

51. No Start-up Companies No Start-up Companies
231 Saaibizz Ventures Private Limited 249 Communifi Technologies LLP
232 Neurapy Private Limited 250 Lemuria Digital Marketing Private Limited
233 Tfn Enterprise (OPC) Private Limited 251 Aahan Farm Private Limited
234 Scoutmytrip Private Limited 252 Mediasha Technologies Private Limited
235 Arogyam Medisoft Solution Private Limited 253 Utopiatech Private Limited
236 Antargyan Cloudworks LLP 254 Punaha Battery Renescance Private Limited
237 Kiksar Technologies Private Limited 255 Minionlabs India Private Limited
238 Nullpointer Analytics Private Limited 256 Eco-Agripreneurs Private Limited
239 Bioheaven 360 Genotec Private Limited 257 Logics Poweramr Private Limited
240 Techculture Solutions Private Limited 258 Limelightit Research Private Limited
241 Pequrel Microelectronics Private Limited 259 Genrobotic Innovations Private Limited
242 Ikshavaku Software Ventures India Private Limited 260 Loves Cloud Private Limited
243 Saltech Design Labs Private Limited 261 Yoryo Technologies Private Limited
244 Nemocare Wellness Private Limited 262 Boxop Solutions India Private Limited
245 Rrk A2Z Services Private Limited 263 Ev Techo Electra Motors Private Limited
246 Ben & Gaws Private Limited 264 Microgo
247 Orangecross Homehealth Private Limited 265 Cricketronics Private Limited
248 Timble Technologies Private Limited 266 Haastika Handicrafts Private Limited
Start-ups approved by IMB for income tax benefits
51

52. Application for IMB certification
52

53. Application for exemption from Angel Tax
53

54. Subsidized Tax Rates: Domestic Companies
54
Particulars Section 115BAA Section 115BAB
Effective Tax
Rates
25.17% 17.16%
Applicability Domestic Companies, subject to conditions New Domestic Manufacturing Companies
Conditions − Such companies should not avail any
exemptions/ incentives under different
provisions of income tax
− Such companies will have to exercise
this option to be taxed under the section
115BAA on or before the due date of
filing income tax returns i.e. usually 30th
September of the assessment year
− Once the company opts for section
115BAA in a particular financial year, it
cannot be withdrawn subsequently
− The Company has been set-up and registered on or
after October 1, 2019 and has commenced
manufacturing or production of an article or thing on or
before March 31, 2023
− The business is not formed by splitting up, or the
reconstruction, of a business already in existence
− The Company does not use any machinery or plant
previously used for any purpose
− The Company does not use any building previously
used as a hotel or a convention center, in respect of
which deduction under Section 80-ID has been
claimed and allowed
− The Company should be engaged in the business of
manufacture or production of any article or thing, and
research in relation to such article or thing. It can also
be engaged in the distribution of such article or thing
manufactured or produced by it
− The total income of the Company should be calculated
without claiming tax exemptions and incentives
Notified Forms for
availing lower tax
rates
CBDT has notified Form 10-IC (to be
furnished electronically) for availing lower
tax rate under Section 115BAA
CBDT has notified Form 10-ID (to be furnished
electronically) for availing lower tax rate under Section
115BAB

55. AO Assessing Officer IT Act Income Tax Act, 1961
AOA Articles of Association IT Rules Income Tax Rules, 1962
AOP Associate of persons ITAT Income Tax Appellate Tribunal
AY Assessment Year ITC Input tax credit
CBDT Central Board of Direct Taxation JCIT Joint Commissioner of Income Tax
CTC Cost to company LLP Limited Liability Partnership
DCF Discounted Cash-flow LUT Letter of undertaking
DDT Dividend Distribution Tax MAT Minimum Alternate Tax
DIPP Department of Industrial Policy and Promotion MOA Memorandum of Association
DPIIT
Department for Promotion of Industry and Internal
Trade
MSME Micro, Small and Medium Enterprise
EMI Equated monthly instalments MSMED Micro, Small and Medium Enterprise Development Act
EPFO Employees' Provident Fund NAV Net Asset value
ESOP Employee Stock Option Plan NeAC National e-assessment Center
FAQ Frequently Asked Questions NPA Non-Performing Assets
FDI Foreign Direct Investment OPC One Person Company
FG Finished Goods PAN Permanent Account Number
FMV Fair market value PF Provident Fund
FOF Fund of Funds PSU Public Sector Undertakings
FY Financial Year R&D Research & Development
GDP Gross Domestic Product SSI Small Scale Industries
GoI Government of India TCS Tax collected at source
GST Goods and Service Tax TDS Tax deducted at source
HC High Court UAM Udyog Aadhaar Memorandum
HUF Hindu Undivided Family UK United Kingdom
IMB Inter-Ministerial Board USA United States of America
Glossary
55

56. Thank you
Sandeep Jhunjhunwala
Partner
Nangia Andersen LLP
sandeep.jhunjhunwala@nangia-andersen.com
+91 80 2228 0999
The opinions and analyses expressed herein are subject to change at any time. Any suggestions contained herein are general, and do
not take into account an individual’s or entity’s specific circumstances or applicable governing law, which may vary from jurisdiction to
jurisdiction and be subject to change. No warranty or representation, express or implied, is made by us, nor does the Firm or the
Presenter accept any liability with respect to the information and data set forth herein. Distribution hereof does not constitute legal, tax,
accounting, investment or other professional advice. Recipients should consult their professional advisors prior to acting on the
information set forth herein.
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