AAKR ASSOCIATES

Taxation & Accounting

Category: Service Tax (page 1 of 365)

CGST Sixth Amendment Rules-2019

CGST Sixth Amendment Rules-2019

On October 9, 2019, the Government of India (GoI) has notified Sixth Amendment Rules, 2019, which have made some important changes to the existing Central Goods and Services Rules , primarily in the following areas:

  • Restriction on the input tax credit to 20% in case there is a difference with details uploaded by supplier in GSTR-1
  • It has also notified that GSTR-3B is a return under Section 39 with retrospective effect from 01-07-2017
  • Communication to be issued to chargeable persons before the actual issuance of show cause notice
  • Other clarifications

Below are details of the latest notified amendments:

Restriction on availing input tax credit in case of difference

According to the latest notification, a new rule has been inserted related to availing input tax credit which states that in respect of invoices or debit notes where the details have not been uploaded by the supplier in GSTR-1 and there is a difference. In such cases, the input tax credit availed shall not exceed 20% in respect of invoices or debit notes where the details have been uploaded.

This means that even if the actual eligible input tax credit based on invoices received is higher, because of non-reporting or incorrect reporting by the vendors, the actual credit that can be availed is restricted to 20% of the invoices that have been uploaded by the vendor.

Suspension of Registration

To clarify the period of suspension of registration, an explanation has been inserted in Rule 21A(3). The explanation states that the registered person shall not issue a tax invoice and, accordingly, not charge tax on supplies made by him during the suspension period.

If an order for cancellation of suspension is passed and registration is restored, then the invoice for the supplies made during the period of suspension can be revised so as to make it a valid tax invoice. The details of the supplies should be filed in the first return after such revocation of suspension.

Recognising status of GSTR-3B

According to the latest notification, the government has made an amendment from 01-07-2017, recognising that Form GSTR-3B is a ‘return’ under Section 39.

The notification states that wherever the time limit for filing GSTR-1 or GSTR-2 has been extended, the return shall be furnished in the Form GSTR-3B. Also, this is to be filed through GST portal, either directly or through a Facilitation Centre notified by the Commissioner:

In such cases, there will not be any requirement to file return in Form GSTR-3.

GST Practitioner 

The time limit given under Rule 83A (6) for any person enrolled as a goods and services tax practitioner to pass the examination has been aligned with Rule 83(3). Thus, the time limit for this year is thirty months from the appointed date. Thus, for eligible persons like sales tax practitioners or tax return preparers or retired tax officer in a government department, the time limit for passing the examination is December 31st, 2019.

Refund 

All refunds by the central Government shall be based on the concept of consolidated payment advice issued from a single authority, in accordance and with effect from the 24th September, 2019. Consequently, rule no 91 has been amended to insert the concept of consolidated payment advice.

TRAN-I & TRAN-II extensions

Rule 117(1A) has been amended to allow:

  • Availment of transitional credits through Form TRAN-I till 31st December, 2019 in cases where registered persons could not submit the said declaration by the due date due to technical difficulties on the GST portal, and
  • Ifthe Council has made a recommendation for extension TRAN-II can be filed till 31st January, 2020.

Additional Step prior to Issuance of Show Cause Notice

New sub-rule 1(A) has been inserted in Rule 142, which provides that before the notice is served to a person chargeable with tax, interest and penalty; the proper officer shall issue a communication detailing the tax, interest and penalty ascertained by the officer, in Part A of Form GST DRC-01A.  Upon receipt of such communication, the chargeable person can choose to pay the proposed dues or pay a partial amount, as may be determined by his own ascertainment or, as communicated by the proper officer under sub-rule (1A).

If partial payment of the amount communicated to the person or in case he/she desires to file any submissions against the proposed liability, he may make such submission in Part B of Form GST DRC-01A.

Thus, a show-cause notice will be issued after the above step is completed, to allow for the hearing of submissions before going ahead with the notice.

The exact notification is posted below:

CGST-6th Amendment Rules

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YSR Vahana Mitra Scheme

YSR Vahana Mitra Scheme

Andhra Pradesh Government has initiated “YSR Vahana Mitra Scheme†which aims to benefit self-employed auto, maxi cab and taxi drivers of the State. Under this scheme, the AP Government provides financial assistance of Rs.10,000 for eligible drivers. This social security scheme is supervised by the Transport and Road Department in Andhra Pradesh. Let us look in detail about the YSR Vahana Mitra Scheme in this article.

To know about the AP YSR Navodayam Scheme

Eligibility Criteria

The applicant should own and drive auto-rickshaw, taxi and Maxi Cab.

  • Applicant should have owned vehicles.
  • An auto-rickshaw, Taxi and Maxi Cab would be covered if holding a legal record such as registration certificate and income tax in case of LT cabs.
  • The beneficiary family (husband, wife and minor children) will be eligible to get one auto or Taxi or Maxi cab.
  • In the case, the wife and husband who are auto/taxi/cab drivers will be counted as one unit. Even their son or daughter who is major and having their own vehicle will also get the benefited amount.

Documents Required 

The following are the requested documentation list to be furnished along with the YSR Vahana Mitra Scheme application form are as follows:

  • Domicile Certificate
  • Photographs of the applicant (scanned copy)
  • Signature Photographs of the applicant (scanned copy)
  • BPL white ration card 
  • Vehicle Registration Number Proofs
  • Identity Proof: PAN  Card, Aadhar , Driving License, Voter Identity Card, etc.
  • Address Proof: Legal Passport, Aadhar, Utility bill, Property tax bill, etc.
  • Family income certificate
  • Bank account details (copy of bank passbook).
  • The applicant to not be a defaulter in the records of any bank.
  • Any other documents (if required)

Note: The fake documents or any discrepancy in the documents will lead to the rejection of the application. Therefore, the applicants are advised to provide the original certificates/records while applying for the scheme.

Benefits of the Scheme

The below following are the general features of the YSR Vahana Mitra Scheme explained as follows:

  • The State Government has estimated an amount of Rs.400 crore will be the annual expenditure for this scheme. Around 4 lakh people would be benefited under this Auto and Taxi Cab drivers scheme. 
  • The Government provides subsidized financial help to the drivers of the state and support them with financial assistance that would be useful for insurance, vehicle repairs and fitness. 
  • Under the scheme, Below Poverty Line (BPL) persons will be granted with financial assistance for meeting up their vehicle repairs.
  • These schemes will support the overall development of the state and will also raise the standards of living in the state. 
  • Under this Scheme, entrepreneurs of BPL families can avail up to Rs.10,000 for their vehicle expenses.
  • The scheme is mainly focused on the people those who are driving commercial vehicles and depend on them for livelihood. 
  • The family driver will be taken as one unit to avail the benefits under this scheme. In the case, the same family has separate commercial taxi/cab/auto, then both will get the amount separately.
  • The DTC/MVI/RTO Transport offices will give complete guidance for filling up the Application Form online.
  • The Verification process of the beneficiary’s eligibility will be performed by the village/ward volunteers through Village Secretariat/Commissioner of Municipality and also Municipal Corporation by the District Collector.

Selection Process of Beneficiary

The transportation commissioners who are headed by the district Collectors will consider the applied applications and will select beneficiaries. After the verification process of AP Auto Driver Scheme Application, the Regional Nodal Officer (i.e.) the Commissioner in Urban areas and MPDO in Rural areas will further forward the application forms and enclosed documents to the district collector. They upload the details of the applicant to the CFMS database portal. Finally, the last district collector will approve the application. 

Application Procedure 

To apply for this scheme, the interested applicants must follow the below-given procedures.

Step 1: The eligible applicants must visit the official website of Andhra Pradesh.

Step 2: Click the “AP Auto Driver Scheme Apply Online†link to open the application form.

Step 3: The applicant will have to fill the application form with appropriate details without any mistakes. 

Step 4: After this, the applicant has to fill the scheme application form and also has to upload all the requested documents.

Step 5: Now the applicant will have to click on the “submit†button.

Step 6: After successful registration, the applicant will get the registration number by which the applicant can also trace the status of the registered complaint.

Track Application Status

After submitting the application form of AP YSR Vahana Mitra Scheme, click on the “Application Status’ link. Then enter Application Id number and Aadhaar card Number and click on submit to check the application status.

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National Scheme of Welfare of Fishermen

National Scheme of Welfare of Fishermen

The Centrally Sponsored National Scheme of Welfare of Fishermen was introduced to offer financial assistance for fishermen . The funds offered under the scheme can be built for constructing homes, community halls for both recreation and work purposes, installation of tube-wells, and drinking wells. The current plan outlay, which is in its 10th term, has a budget of Rs.120 crore.

Scope

The Centrally Sponsored Scheme seeks to assist fishermen from all over India to implement:

  • Development of self-sustainable fishermen villages
  • Accidental insurance for all active fishermen
  • Saving-cum-relief resources in case of work-related accidents

Group Accident Insurance

Under this component of the Centrally Sponsored National Scheme of Welfare of Fishermen, all fishermen who are registered with the State or UT government will receive Rs.50,000 worth of insurance on death or permanent disability . An additional Rs.25,000 is also allocated in case of partial disability.

The insurance cover lasts 12 months and is controlled by FISHCOPFED for all participating States and UTs. The annual premium that needs to be paid is a maximum of Rs.15 per head, which is a subsidised amount by the grants-in-aid from the Centre and the State Government. In Union Territories, the entire amount is borne by the Central Government.

The premium that is borne by FISHCOPFED is transferred directly to farmers’ insurance policies instead of being routed via the States of Union Territories. To keep the insurance plan active, farmers need to pay their share of the premium (maximum of Rs.15 per head/term) before the due dates.

Savings Cum Relief Scheme

This component of the Centrally Sponsored National Scheme of Welfare of Fishermen offers saving and relief benefits to fishermen. Under this component of the scheme:

  • Rs.75 per month is to be collected from marine fishermen for 8 months to a year
  • A total of Rs.600 needs to be collected with a matching amount of Rs.600 being offered by the State and Central Government on a 50-50 share basis.
  • If a fisherman defaults payment, any paid amount will be refunded along with accrued interest at the end of the 4th instalment’s due date.
  • If a fisherman defaults all payments, the scheme may be waived entirely.
  • Provisions are available for “lean months†which vary from coastal area to coastal area. The lean months are decided by the FISHCOPFED.

Eligibility Terms for Marine Fishermen

The scheme covers all marine fishermen eligible for Centrally Sponsored Schemes who operate under States, Union Territories, and FISHCOPFED. Fishermen under FISHCOPFED are eligible for the insurance component only. Fishermen officially licensed by their respective States or Union Territories are eligible for funds for building homes, community halls, utilities, and insurance.

To be eligible for the scheme, an individual has to be:

  • Engaged in full-time fishing in the sea
  • Be a member of a Cooperative Society/Welfare Society/Federation
  • Lives below poverty line (BPL)

Eligibility Terms for Inland Fishermen

For inland fishermen, the eligibility terms are different from full-time marine fishermen living in coastal areas. Fishermen officially licensed by their respective States or Union Territories are eligible for funds for building homes, community halls, utilities, and insurance. To be eligible for the scheme, a fisherman needs to:

  • Be below 60 years of age
  • Be from below poverty line (BPL)
  • Engaged in full-time activities within the inlands

Fishermen families or fishermen who are regularly employed or indulge in other income-generating activities will not be eligible for the scheme.

How to Apply

To apply for the scheme, potential beneficiaries need to apply to the nearest FISHCOPFED office. The contribution is collected by the President or Secretary of the Associations and forwarded to nationalised bank accounts held by the Director of Fisheries.

Once the funds are submitted to the Director of Fisheries, the State and Central Governments match the contributions of the fishermen as part of their premiums. Upon maturity of the schemes, the full investment is returned, along with any interest accrued.

Documents required when applying at FISHCOPFED include:

  • Aadhaar Card
  • Voter ID Card
  • Income Certificate
  • Registration as a fisherman under the State or Central Government

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Mukhyamantri Saur Krushi Pump Yojana

Mukhyamantri Saur Krushi Pump Yojana

The Government of Maharashtra has introduced the Mukhyamantri Saur Krushi Pump Yojana to promote solar energy. Under this scheme, the Maharashtra Government will provide a 95% subsidy to the farmers for setting up of solar pump sets. This article explains the Mukhyamantri Saur Krushi Pump Yojana in detail.

Also, read about Saur Sujala Yojana

Objectives

The objectives of the Mukhyamantri Saur Krushi Pump Yojana are listed below:

  • To lessen the burden of farmers expending on irrigation pumps.
  • To minimise the subsidy burden on commercial, industrial electricity consumers.
  • To replace diesel pumps inorder to reduce pollution.

Features of the Scheme

The features of the Mukhyamantri Saur Krushi Pump Yojana are as follows:

  • Mukhyamantri Saur Krushi Pump Yojana aims to reach out farmers from remote areas where the agricultural feeder is not possible.
  • As per the scheme guidelines, the government will provide solar pumps at subsidised rates for the farmers.
  • Under the scheme, 3HP or 5HP solar pumps would be installed along with the lighting system comprising of 2 LED bulbs, 1 USB port for mobile charging and socket for battery charging.
  • The Government has targeted deployment of 1 lakh Off-Grid Solar-powered Ag pumps in phase manner.
  • Under the scheme, the farmers with less than 5 acres will get subsidy at the rate of 95% of the total cost of 3 HP solar pump while farmers with more than 5 acres will be provided with 5 HP solar pump for Rs.30,000.

Eligibility Criteria

The following are the criteria to be satisfied by the applicant while applying for the scheme:

  • All Small, medium and large-scale farmers are eligible to apply for this scheme.
  • The farmers must be the resident of Maharashtra State.
  • The farmers holding farmland with an assured source of water are eligible.

Note: However, farmers having conventional electricity connections would not be eligible to get benefits of Solar AG pump from this scheme.

Beneficiary Contribution

S.No Category Beneficiary Contribution for 3HP (Rupees) Beneficiary Contribution for 5HP (Rupees)
1. Open category 25500 (10%) 38500 (10%)
2. SC category 12750 (5%) 19250 (5%)
3. ST category 12750 (5%) 19250 (5%)

Documents Required

The following are the documents mandatorily required while applying for the scheme:

Application Procedure

To apply for the Mukhyamantri Saur Krushi Pump Yojana, follow the below procedure:

Step 1: The applicant has to submit the application form online by accessing the official portal of MSEDCL.

Step 2: In case of existing applicants, fill the mandatory details such as Aadhaar card number, email id and email id, paid pending application number, fee payment details, sanction number, source of irrigation and its depth, capacity demanded.

Step 3: In case of the new user, Part II of the application form has to be filled with the following details such as name, address, type of land, are of land, Aadhaar number, email id, mobile number, residential address, type of applicant, irrigation type and its depth.

Step 4: After filling the form, the applicant is required to take the print out of the signed application form, and the same has to be uploaded online along with the required documents.

Note: The application form for Mukhyamantri Saur Krushi Pump Yojana is given below in the pdf format:

applicationform

Survey

Upon receipt of the application form the applicant, the concerned Sub Divisional Officer (SDO) will take over the site inspection where the information filled in the application form will be verified. Then the site inspection will be performed by the SDO with three days from the date of receipt of the application submitted to the circle office. In case of any discrepancy found during the survey has to be rectified and uploaded on the same portal or through a mobile app.

Sanction Process

After receipt of the site survey report from SDO and SE (Q&M) will sanction the application of the farmer on a daily basis. The sanction of the pump capacity would be done based upon the following:

  • In the case of landholding by the farmer is less than or up to 5 acres, 3 HP solar pump will be provided.
  • In the case of landholding by the farmer is more than 5 acres, 5HP solar pump will be provided.

The selection of solar pump capacity will be defined in the system as per the above criteria. However, in case the pump capacity is not adequate, or any deviation is required from the farmer for the selection of capacity, such cases report has to be submitted to the Corporate office for approval.

Upon approval, the firm quotation will be produced automatically and intimated automatically to the beneficiary on SMS and email.

The details of payment to be paid by the farmer will be sent by courier post, and already paid amount will be adjusted, and the beneficiary is required to pay the balance amount calculated by the system.

Scheme Implementation 

For the purpose of providing solar pumps, the MSEDCL has floated tenders are as follows:

  • The tender for supply of and execution of 50,000 solar pumps is in process and will be finalised.
  • The tender for empanelment of 25,000 pumps will also be floated and will be finalised.

The establishment of solar pump revenue division wise agencies will be empanelled. The beneficiary can select the agency after making the payment of demand note. After making intimation of the agency to the MSEDCL by an applicant, will issue the work order to the respective agency and the agency is required to carry out the work within three months from the issue of the work order.

Payment Procedure

The payment of 70% will be released by the agency and remaining 10% of payment against installation or supply of solar photovoltaic water pumping system excluding taxes would be released on the successful supply of solar photovoltaic water pumping systems.

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GST on Airport Levies

GST on Airport Levies

As per latest circular from the Ministry of Finance on 11th October 2019, the CBIC has issued a clarification for GST applicable on airport levies, stating that since airport levies do not form a part of the value of services provided by airlines, no GST should be charged to airlines on such airport levies.

The CBIC has recognised that airport levies such as passenger service fees (PSF) and user development fees (UDF) are merely collected by the airlines as ‘pure agents’  on behalf of Airport operators, and as such, GST on airport levies shall not apply to airlines.

Airport Levies

Airport operators collect, through airlines, a certain amount as Passenger Service Fee (PSF) from travelling passengers. This amount is charged to passengers for the development of airport infrastructure and facilitation of the travellers. Further, at major airports, in order to avoid inconvenience to passengers and for smooth and orderly air transport/airport operations, a certain amount is charged as User Development Fees (UDF) by the airlines at the time of issue of an airline ticket. Both these airport levies, i.e. PSF and UDF, collected by the airlines from passengers, are later forwarded to the Airports Authority of India as per the relevant procedures.

For this service of collecting the airport levies from the passengers, a charge of Rs.5 is made by the airlines to Airport Authority of India, which cannot be passed onto passengers.

Thus, the CBIC notification  recognised that the airport levies, i.e. PSF and UDF, are effectively charged by the airport operators for providing services to airline passengers.

Airport levies collected are a ‘consideration’

According to Section 2(31) of the CGST Rules, “consideration†includes any payment made, via money or otherwise, for the supply of goods and/or services by the recipient of such goods and/or services. Thus, Passenger Service Fee and User Development Fee charged by airport operators are a “consideration†for providing services to passengers . Prior to the implementation of GST, UDF was liable to service tax.

These charges are collected by the airlines as an agent and is not as a consideration for any service provided by the airlines themselves. Thus, the airlines are not responsible for payment of GST on UDF or PSF, as long as they acts as ‘pure agents’ under Rule 33 of the CGST Rules

According to Rule 33 of the CGST Rule

All expenses or costs borne by a supplier as a ‘pure agent’  shall be deducted from the value of goods and services supplied under the following conditions:

  • When the said supplier makes the payment to the third party on authorisation from the recipient of the goods and services;
  • the payment made by the pure agent is stated separately in the invoice issued to the recipient; and
  • the supplies procured from the third party are in addition to the services he supplies on his own account to the recipient

As such, the airline acting as a ‘pure agent’  of the passenger shall:

  • Separately indicate the actual amount of PSF and UDF and GST payable on such PSF and UDF by the Airport Operator, in the invoice issued by airlines to its passengers.
  • Only recover the actual PSF and UDF and the GST payable on such PSF and UDF by the airline operator and
  • The amount thus recovered will be omitted from the value of supplies made by the airline itself to its passengers.

Who can claim Input Tax Credit

  • The airline shall not take Input Tax Credit of GST payable or paid on airport levies such as PSF and UDF.
  • The airline passengers, being the final recipient of the airport services, may take Input Tax Credit of GST paid on PSF and UDF on the basis of the invoice bill issued by the airlines.
  • Airport operators also pay collection charges to airlines for the collection of airport levies from passengers. These charges, by definition, are a consideration for services provided by the airlines to the airport operators and, as such, airlines shall have to pay GST on the same under forward charge.
  • Input Tax Credit of such collection charges will be available with the airport operators.

GST on airport levies payable by airport operators

Airport operators are collecting PSF and UDF inclusive of GST from passengers through the airlines, and therefore, they are required to pay such GST collected by them to the Government, the CBIC noted. The clarification is notified through a circular which can be found below:

GST on Airport Levies

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Scheme for MSMEs – Reimbursement of Loan Processing Fee

Scheme for MSMEs – Reimbursement of Loan Processing Fee

Access to finance is a significant factor affecting the success of MSE and loan processing fee charged to a potential borrower by various banks is an issue faced by MSE. Accordingly, the Government has decided to provide financial support to SC/ST owned MSEs under the Bank Loan Processing Reimbursement Scheme to enhance the participation rate of MSE in public procurement. In this article, we will have a look at the Scheme for Reimbursement of Loan Processing Fee in detail.

Objectives of the Scheme

Bank Loan Processing Reimbursement Scheme aims to offer financial assistance against the processing fees charged by the Scheduled Commercial Banks for sanctioning and availing of business loans (both against fund and non-fund based limits), exclusively for SC/ST micro and small enterprises (MSEs). The overall objective for offering this assistance is to achieve the procurement target of 4% set aside for SC/ST MSEs under the public procurement policy:

  • To enhance the marketing capabilities and competitiveness of SC/ST MSEs
  • To update the MSE enterprises about the prevalent global market scenario
  • To showcase MSEs competencies
  • For providing a platform for interaction with large institutional buyers

Prescribed Authority

The National Small Industries Corporation (NSIC) is the nodal agency for implementation of Bank Loan Processing Reimbursement Scheme.

Reimbursement of Bank Loan Processing Fee

Bank Loan Processing Reimbursement Scheme will provide reimbursement of processing fees charged by the FIs for sanctioning and availing of business loans (both against fund and non-fund based limits) to SC/ST MSEs.

The assistance under this scheme will be released from NSSH funds and will be limited to 50% or Rs.10000 (excluding GST and all other applicable taxes), whichever is less on processing the fees charged by the bank, only after availing of business loan.

Note: The reimbursement can be availed multiple times in a financial year by SC/ST MSEs.

Eligibility Criteria

The eligibility criteria for availing the reimbursement of bank loan processing charges are explained in detail below:

  • All SC/ST MSEs can avail the benefits under the scheme upon submission of relevant documents. The following definition is applicable for recognizing the SC or ST MSEs.
  • In case of proprietorship firm, the proprietor should be from SC or ST Category
  • In case of partnership firm, the SC or ST partners should be holding at least 51% of shares in the unit
  • For private limited companies, at least 51% shares should be held by SC or ST promoters
  • Only SC, ST MSEs having the Udyog Aadhaar Memorandum number (UAN), PAN and registration under Goods and Service Tax (GST) are eligible to avail this scheme.

Note: In case the unit has not provided GST number, self-declaration for the same with reason should be provided by the unit.

Financial Institution Criteria

Only SC, ST MSEs that avail loans from the any Scheduled Commercial Banks will be considered under this scheme where the loan processing fee is being charged by such banks.

Timeline for Submission of Claims

The applicant has to submit the claims within 45 days from the date of the sanctioned loan amount. Once the claim is submitted the NSSH office will conduct due diligence and accordingly, reimbursement will be made to each applicant by NSSH office within 45 days from the receipt of application form subject to the submission of all required

Time Period

Bank Loan Processing Reimbursement Scheme is valid till the existence of the National SC/ST Hub (NSSH) Scheme or until further orders the Ministry of MSME.

Documents Required

The documents required for the Bank Loan Processing Reimbursement Scheme is listed as follows:

  • Self-certified copy of UAM and GST
  • Self-attested copy of PAN card – In case of proprietorship, PAN card of SC/ST proprietor ought to be submitted
  • Copy of Caste certificate of the proprietor, all partners and directors
  • Details of shareholding in case of partnership, private limited and LLP firm.
  • In case of partnership concerns, the shareholding of the enterprises will be required to ascertain the status of the MSME
  • Copy of Partnership deed for partnership firm
  • Memorandum of Article of Association in case of LLP, Private limited company, is required.
  • Bank attested debit statement with bank loan processing charges mentioning loan number and applicant MSE’s name, valid payment receipt, original receipt of bank loan processing fee paid by the applicant and system-generated GST invoices.
  • Business loan detail certificate and disbursement certificate
  • Bank attested copy of loan sanction letter
  • Cancelled cheque of the current account of the enterprises from which bank loan processing charges have been debited
  • Proof of transferred amount as reimbursement by NSSHO, NSIC through PFMS under this scheme

Application Procedure

The application procedure for the Bank Loan Processing Reimbursement Scheme is explained in detail below:

Submission of Claims

After obtaining the sanctioned loan, the applicant has to approach the nearest NSSH office for claiming the reimbursement of processing fees charged by the FIs with dully prescribed application form along with all documents.

Application

Due Diligence by NSSHO

  • In-depth evaluation of the application in terms of documentation will be conducted by the respective officer at NSSHO.
  • In case of any discrepancy, clarification will be sought from the applicant and bank appropriately.
  • Applications with incomplete documents will not be acceptable.

Submission of Documents to NSSH Cell

Post evaluation by NSSHO, proposals of all applicants in the prescribed format will have to be submitted to NSSH cell at NSIC head office for approval.

Final Approval on Reimbursement

  • Based on the evaluation of conducted by NSSHO, the consolidated proposal will be formulated by the NSSH Cell and NSIC head office, to Screening committee headed by Director-NSCI and having officials from Ministry of MSME, NSSH Cell and Finance Division of NSIC as members, for consideration.
  • The proposal duly recommended by the screening committee will be forwarded to the CMD-NSIC for approval.

Payment of Reimbursement Amount

The reimbursement amount will be transferred to the applicant’s bank account, where the processing fees charged by the FIs, directly through the Public Financial Management System (PFMS) by the respective NSSHO/NSSH Cell.

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Chief Minister Kanyadan Yojana 

Chief Minister Kanyadan Yojana

Chief Minister Kanyadan Yojana is a social welfare program administered by the Social Justice and Disabled Welfare Department, Government of Madhya Pradesh. This scheme intends to provide financial assistance and utility gifts to newly married couples of the poor family. The Madhya Pradesh Government has launched this welfare scheme to support the well-being of the poor families of the state. In this article, we will look at Chief Minister Kanyadan Yojana in detail.

Know more about the Madhya Pradesh Marriage Certificate

The objective of Chief Minister Kanyadan Yojana

The objective of the Chief Minister Kanyadan Yojana is to stop discriminating the poor, assist and give them equal benefits just like any other citizen. This scheme provides marriage incentives to poor, needy and destitute families for getting their daughter married.

Eligibility Standards

The eligibility criteria to avail the benefits of Chief Minister Kanyadan Yojana as given below:

  • The applicant should be a citizen of Madhya Pradesh
  • The applicant must not be an income taxpayer to avail the benefits of the scheme.
  • The male applicant has to be 21 years old, and the female applicant has to be at least 18 years old.
  • The parents of the girl child should be living in below poverty line .
  • The applicants can avail the benefits of the scheme only if the marriage is socially, religiously and legally acceptable.

Benefits of Chief Minister Kanyadan Yojana

The benefits of Chief Minister Kanyadan Yojana are listed as follows:

  • An amount of Rs.17000 is provided to the girl through an account of payee check for the well being of the married life and establishment of the world.
  • Under this scheme, Rs.5000 is provided for the purchase of necessary materials such as clothes, nettles, silver, and seven utensils) for the ceremony. The value and quality of the material will be decided by the district-level committee.
  • Apart from this grant, an expenditure of Rs.3000 is given to the rural/urban bodies for organizing group wedding programs.
  • A smartphone or a check of Rs.3000 will be provided for the applicant to purchase the phone. After purchasing, the applicant has to produce a smartphone for verification.

Documents Required

Following documents need to be submitted for availing the benefit of Chief Minister Kanyadan Yojana:

Chief Minister Kanyadan Yojana Application Procedure

The application procedure to avail the benefit of Chief Minister Kanyadan Yojana is explained in detail below: To get the benefit of Chief Minister Kanyadan Yojana, the applicant can apply through offline and online.

Offline Application Process

If the applicant desires to apply offline, the applicant has to make a prescribed application form to Gram Panchayat, Janpad Panchayat, Ward Office, Urban bodies of the area where the applicant resides.

Kanyadaan-15-23

Online Application

  • To get the benefit of Chief Minister Kanyadan Yojana, the online application can be made through the Samagra Vivah Portal.
Image 1 Chief Minister Kanyadan Yojana
Image 1 Chief Minister Kanyadan Yojana
  • The applicant has to log in to the portal using the user name and password. After login to the portal, the applicant needs to click on the Chief Minister Kanyadan Yojana link.
  • The application form will be displayed, provide all details in the application form. After completing the details, click on the submit button.
  • Physical verification of the beneficiaries applying for assistance will be done by the respective bodies after that beneficiaries with the information of saving account by the district panchayat and urban bodies are verified as per the eligibility under the Chief Minister Kanyadan Yojana.
  • After verifying the beneficiary by the district panchayat and urban body, the proposal will be prepared and forwarded to the district office (drawing and disbursing officer).
  • The list of beneficiaries will be uploaded in the treasury system based on the proposal received by the drawing and disbursing officer.
  • Image 2 Chief Minister Kanyadan Yojana
    Image 2 Chief Minister Kanyadan Yojana
  • The beneficiary will be e-paid through the system.

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GST for ESDM Industries

GST for ESDM Industries

Department of Revenue issued a circular clarifying the determination of place of supply of software or design services from a taxable territory to non-taxable territory by Electronics Semi-conductor and Design Manufacturing (ESDM) industries. The circular was released on 11th October 2019 through the circular No. 118/37/2019-GST.

The Government of India (GoI) has provided various scheme and incentives to boost the Indian electronics manufacturing sector. The schemes and incentives were provided to increase productivity, increase employment, increase import and export and create competitiveness in the global market. Few schemes announced by the GoI are:

Clarification Requested from the Trade

The trade had requested the Department of Revenue to clarify whether the goods have to be made physically available by the manufacturer/distributor to the client/customer. The trade community has requested this clarification because the Electronics Semi-conductor and Design Manufacturing (ESDM) industries are involved with producing and supporting software for client abroad. Foreign design companies partnered with Indian manufacturers require design software and Intellectual Property (IP) blocks. The designs are communicated electronically to the clients by the manufacturer. Since the software is being operated electronically, the service rendered by the manufacturer shall be done online. In case of hardware, the prototype shall be serviced in India and sent back for further testing.

Clarification from the Department of Revenue

To clarify, the Department of Revenue has stated that as per Integrated Goods and Services Tax Act, 2017 (IGST Act), Section 168 of Central Goods and Services Tax Act, 2017 and Place of Provision of Service Rules, 2012 the software developed by the manufacturers for the prototype is provided to improve the quality and does not act as a separate entity. Hence the software shall be treated as an auxiliary.

Since the software designed to the client by the manufacturer shall be treated as auxiliary support, the tax shall be calculated as per Section 13(2) of IGST Act. Hence, the origin of the product manufactured will be calculated for GST , even if the delivery place does not fall under GST norms.

Place of Provision

To avoid the geographical issue for GST taxation, the GoI has implemented the Place of Provision of Service Rules, 2012 to determine the place provided or agreed to be provided by the manufacturer. The place of provision can be notified to the manufacturer by Export of Services Rules 2005, Taxation of Services (Provided from out of India and received in India) Rules 2006 and Place of Provision of Services Rules, 2012.

The following shall be the determining factor to check the location of the service provider:

  • The location where the business has been established
  • The location where the services have been provided or received in case of more than one establishment
  • Where the services have been provided or received other than the business establishment
  • If the organisation is placed in the taxable territory, the organisation is liable to pay tax
  • If both the organisation is outside the taxable territory, GST is not applicable

Non-Taxable (Clause 35) and Taxable Territory (Clause 52)

  • As per Chapter V of the Finance Act 1994, the tax shall be applicable to all the states except Jammu and Kashmir
  • Non-Taxable territory shall mean that apart from Jammu and Kashmir all the other states shall be liable to pay tax

For detailed information about the notification, check below

circular-cgst-118

To know about foreign subsidiaries and GST return filings, click here

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Babu Jagjivan Ram Chhatrawas Yojana (BJRCY)

Babu Jagjivan Ram Chhatrawas Yojana (BJRCY)

The Ministry of Social Justice & Empowerment has initiated the Babu Jagjivan Ram Chhatrawas Yojana (BJRCY) for the construction of hostels which enables and encourages students belonging to Scheduled Castes (SC) to attain quality education. The Scheme’s objective is to attract the implementing agencies for undertaking hostel construction program is beneficial to the students hailing from the rural and remote areas. Let us look in detail about the Babu Jagjivan Ram Chhatrawas Yojana in this article.

To know about Working Women Hostel Scheme

Objectives

The scheme of construction of hostels for the SC students aims towards the broader conception and reduction of their drop out rate. This scheme intends to prioritize the construction of girls hostel holding with a capacity of 100 seats, in each and every block headquarters of low literacy Districts. To achieve the standardization and reduction in the gestation of the construction period and also ensures having an effective mechanism for reviewing, monitoring, quality control, etc. 

Eligibility Criteria 

The BJRCY Scheme will be implemented through the State/Union Territory Administrations and the Central and State Universities or institutions, and they will be provided with eligible central assistance based on the provision of this scheme, both for the new construction of hostel building and for expansion of their existing hostel facilities. Under the private sector, the Non-Governmental Organizations (NGOs) and deemed Universities maintaining a good track record will be eligible to apply for the central assistance under the Scheme only for enhancing the infrastructure facilities of their existing hostel.

Location and Scope of Hostels

  • The priority to be given to the areas having a major population of SC people of 20% and more and without adequate hostel facilities for SC students while the sanctioning process of hostels.
  • The preference will be given to integrated hostels (which are part of established educational institutions) over the stand-alone hostels. 
  • In the case of girls, the hostel buildings will be located in the areas having low SC women literacy. The girls’ hostel building will be constructed in the close vicinity (as far as possible within a radius of 200m) of the educational institution. 
  • The focus will be given for the construction of hostel buildings for the middle and higher secondary levels of education. The hostels can also be constructed for the college and university levels of education. 
  • The boundary walls construction, two rooms set for the hostel warden and one room set for the Chowkidar would be an integral part of this scheme. 
  • The expenditure on the maintenance of the hostels will be borne by the implementing agencies concerned with their own funds. 

Capacity of Hostels

The capacity per hostel must not exceed 100 students. In cases, the hostels with the larger capacities can be considered. Each hostel room must accommodate 2 to 3 students. No single room for accommodation would be provided in the hostels. 

Funding Pattern 

Hostels for SC Girls

  • 100% central assistance would be granted to the State Governments and UT Administrations and the Central/State Universities or institutions. 
  • 90% of central assistance would be granted to the private sectors of NGOs and deemed Universities only for the development of the existing hostel facilities. 

Hostels for SC Boys

  • The central assistance of 50% to the State Governments on the matching share basis and 100% to the UT Administrations. 
  • The central assistance of 90% to the Central Universities or institutions (remaining 10% of the cost to be borne by the University or institution concerned), while for the State Universities or institutions, the central assistance would be granted of about 45% and the remaining 55% of the total cost to be borne by the University or institution and the State Government or UT Administration concerned)
  • The central assistance of about 45% to the private sectors of NGOs and deemed Universities for the expansion of their existing hostels (the remaining 55% of the cost to be borne by the concerned agency and the State Government or UT Administration)
  • In case the State Government or UT Administration that does not contribute their expected share of about 45% to the NGOs or Universities, the share of the former will also have to be borne by the concerned NGOs or Universities, thereby raising 55% of their contribution.

Terms and Conditions

No fee would be chargeable from the SC students for any kind of provisions of hostel facilities which includes water, electricity and maintenance charges, etc. The central assistance will be granted only towards the sharing of the cost of construction of the hostels for the SC girls and boys as per the norms. In addition to the central assistance under the scheme, a one-time grant of Rs.2500 per student will also be provided for making provisions of a cot, table and chair for each student. The implementing companies must hold ownership and occupancy status record over the land where the hostels are to be established.

Application Procedure

  • Separate application forms to be submitted for SC Girls and Boys as per the prescribed formats. Wherever applicable, the applications to be supported by details of the physical and financial progress of hostels sanctioned earlier by the Department of Social Justice and Empowerment.
  • A proposal for the hostel construction would necessarily be accompanied by a detailed record of the names etc. of the students those who are belonging to the target groups in the existing roll and stated policy proof and commitment of the institution regarding its action plan for the implementation of the reservation norms.
  • The proposal for the enhancement of existing hostels would be submitted by the NGOs or deemed universities in the private sector to the concerned State Government or UT Administration.
  • Upon submitting proposals for the release of central assistance, the implementing agencies would give a time frame about the completion of the construction of hostels which would, in any case, be less than the maximum prescribed period.
  • It would be mandatory for all the institutions concerned to the provide proportional representation to the SC girls/boys in their regular hostels and the additional seats created under this Scheme, together with the normal quota will be allocated evenly amongst all the hostels including the hostels constructed under the BJRCY Scheme.

Release of Central Assistance 

In the case of the private sector of NGOs and deemed Universities, the admissible grants-in-aid shall be released generally in two equal instalments. 

  • First instalment: Released at the time of sanctioning the project
  • Second and Final installment: Released upon the receipt of physical and financial reports from the designated authority only after the completion of construction work at least up to roof level and full utilization of the first installment amount of the grants-in-aid released by the Ministry of Social Justice and Empowerment together with applicable matching share by the concerned NGOs or deemed Universities. 

In the case of State/Central Governments & State Universities or institutions, the admissible grants-in-aid would be released after ensuring the physical release of requisite matching shares. The admissible grants-in-aid for the implementing agencies would be released to them directly.

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National Disaster Response Fund

National Disaster Response Fund

As per recommendation by the Thirteenth Finance Commission (TFC), the Ministry of Home Affairs, Government of India, has approved for the provision of a fund to set up a National Disaster Response Fund (NDRF). The NDRF is managed by the Government of India to enhance the State Disaster Response Funds (SDRF) and meet the expenses of rescue and relief operations during the man-made and natural calamities. The calamities include cyclone, drought, earthquake, tsunami, fire, flood, hailstorm, thunder attack, pest attack, landslide, avalanche and cloudburst.

Objective of NDRF

The purpose of the NDRF is as follows:

  • To extend its support to affected States and Union Territories during severe natural and man-made calamities
  • To supplement the State Disaster Response Fund (SDRF)
  • To address the problem of disaster response and management at both state and national level
  • To carry out organisational arrangements such as scheduling, capacity building, monitoring and rehabilitation activities

Grant Allotted under NDRF

  • The already existing National Calamity Contingency Fund (NCCF) is merged into the National Disaster Response Fund (NDRF). Hence, the closing balance of NCCF’s current financial year is considered as the opening balance of the NDRF.
  • The Central Government allocates 75% relief fund for the General Category States and 90% for the North-Eastern and other hilly States.
  • Generally, the initial relief expenses are borne by the SDRF and the NDRF supplements the States in case of severe calamities.

Scope of Coverage

In case of non-availability of the fund in SDRF, the state should request the Ministry of Home Affairs for the additional assistance under NDRF, and the Ministry provides assistance to the affected states for the following categories:

  • To carry out the search and rescue operations in the affected areas.
  • To provide relief to the families whose livelihood are severely affected.
  • To provide temporary accommodation, food, medical care and other necessities for the affected people who are evacuated and sheltered in the relief camps set up by the Central Rescue Teams.
  • To cover the loss of life of people and personnel involved in the rescue operations and cover the loss of any other injuries or disabilities caused during the calamity.
  • For airdropping basic supplies in the affected areas.
  • To clear all the infected areas by removing the debris in the public places, draining off floodwater and clearing up all the other damages caused during the natural calamities.
  • The Ministry of Home Affairs, under the evaluation and request of Ministry of Agriculture, provides assistance to the farmers having lands up to 2 hectares to desilt the debris befallen due to the landslide, avalanche, flood etc.
  • The input subsidy is allocated to the farmers to incur the crop losses of 33% and above.
  • The assistance is provided to replace the affected milk animals such as cow, buffaloes, camel, sheep and goat and haul animals such as horse, donkey, ox and bullock, and poultries.
  • To provide food, water, medicines and other basic amenities for the animals lodged in the relief camps for the cattle.
  • A separate assistance is provided to support the fishermen for repairing/replacing their damaged boats, nets and fish seed farms .
  • Handicrafts artisans are supported with the relief fund to cover the cost of their damaged goods, tools, raw materials and other finished products.
  • The assistance is provided to repair/replace the damaged houses and restore the infrastructure such as roads, bridges, drinking water supply, electric supply, schools, primary health centres and telecommunication services.

Monitoring Committee

The Department of Disaster Management, Ministry of Home Affairs has set up a High-Level Committee (HLC) to assess and allocate the relief fund under NDRF, and the committee comprises of:

  • Finance Minister
  • Agriculture Minister
  • Home Minister
  • Deputy Chairman and
  • Planning Commission as its members

Operational Procedure

The Ministry of Home Affairs carries out the following procedure to disburse the relief fund to the SDRF:

  • A notice from the State Government is assessed and examined to check if the request suits the norms and assistance of expenses listed under the SDRF/NDRF.
  • In case of adequate funds in the SDRF, the HLC offers its advisory guidelines to carry out the rescue and relief operations with the available funds.
  • In case of an inadequate fund with SDRF, the HLC dispatches the Central Team to assess the situation of the affected areas and a report is to be submitted to the National Executive Committee (NEC), constituted under the Section 8 of Disaster Management Act 2005.
  • The NEC evaluates the report to assess the extent of assistance that can be allocated under the NDRF and make recommendations.
  • The HLC, depending upon the recommendations of NEC, approves and releases the quantum of relief amount from NDRF to carry out the rescue and relief operations in the affected states.
  • The State Executive Committee established by the State Government under Section 20 of the Disaster Management Act, 2005 is the responsible body to acquire and manage the relief fund from the NDRF.

Maintenance of Funds

  • The Controller General of Accounts maintains the brief account of the National Disaster Response Fund through the Chief Controller of Accounts, Ministry of Finance.
  • The NDRF accounts are audited by the Comptroller and Auditor General every year.
  • The State Government should present the copy of the audit report of CAG to the Ministry of Home Affairs and Ministry of Finance on demand.

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