Current Affairs – August, 2019

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CBDT notifies creation of special cell for startups

Central Board of Direct Taxes (CBDT) has created five-member special cell to address grievances of startups with relation to angel tax and other tax-related issues. It will be headed by member (Income Tax and Computerisation) of CBDT. This initiative is the latest amongst the recent initiatives taken by the CBDT to further ease the compliance issues pertaining to startups.

Special Cell

It will work towards redressal of grievances and mitigate tax-related issues in case of startup entities with respect to administration of Income-tax Act, 1961. Startup entities can approach the cell for speedy resolution of their grievances.

Background

Finance Minister Nirmala Sitharaman her recent press conference had announced creation of such a cell in the CBDT and had declared exempting startups from the so-called angel tax. She had mentioned that Government has decided that section 56(2)(viib) of the Income-Tax Act shall not be applicable to a startup registered with DPIIT. She also had notified that startup having any income tax issue can approach cell for quick resolution of the same for mitigating genuine difficulties of startups and their investors.

GeM inks MoU with SIDBI for MSMEs

Government portal for public procurement GeM (Government e-marketplace) has inked MoU with Small Industries Development Bank of India (SIDBI) to boost MSME ecommerce sales. The MoU aims to enable promotion of special initiatives of GeM, such as Womaniya and Start-up Runway, with SIDBI stakeholders. It also seeks to promote MSMEs, women entrepreneurs, and Self Help Groups (SHGs).

Features of MoU

Under it, GeM and SIDBI will take steps to ensure timely payments to sellers, and enhance working capital availability through bill discounting. It will also help to promote MSMEs, start-ups, and artisans, who can now sell to government on an open, transparent and technology-driven platform. It will help to strengthen capacity building through GeM-specific training programmes of personnel from partner agencies.

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