Taxation & Accounting

Category: Service Tax (Page 2 of 435)

Possession Certificate

Possession Certificate

Also known as the Possession letter is one of the key documents that a property seller hands over to the property buyer. The possession certificate in India is usually given by the Tehsildar (in rural areas) and Revenue Divisional Officer (in urban areas). The buyer can use this certificate to secure a loan from financial securities too.

A possession certificate is proof that the property has been transferred without any illegal, illicit activities. But to confirm that an individual is the owner of the property he should have an occupancy certificate too.

The possession certificate in India is issued by local authorities stating that the property has been constructed as per the laws and the construction has been completed as per the plan that is approved.  The possession certificate is a document to affirm the ownership of the property. In case of failure to get the certificate, can make the property illegal in front of the local authorities.

Particulars of the possession certificate

The possession certificate includes information regarding the description of the property and the required add-ons like the parking, garage, etc. as agreed upon in the contract. The possession certificate should be authentic and include the date of the possession of the property.

Documents required to obtain a possession certificate

To obtain a possession certificate in India the following documents can be submitted:

  • Copy of the registered lease and the sale deed agreement
  • Ration Card
  • Copy of the encumbrance Certificate
  • Id proof of the applicant.

How to obtain a possession Certificate?

The process to obtain a possession certificate may be different in every state. But usually, the process is as follows:

  • Visit the nearest Anchaladhikari office for procuring the application form. The form can be downloaded from the Revenue and Land Reforms website of the respective state.
  • Fill the application form with the details that are required.
  • Attach the relevant documents and submit them with the form of the concerned office.
  • Once the documents are submitted the applicant will receive an acknowledgment receipt. The receipt will have an application number that can be used for further reference.

What is a conditional possession certificate?

Sometimes even though an individual has accepted the possession of the property, he might not be satisfied with the condition of the property. It can be due to various aspects like faulty constructions, usage of the different material for construction, poor quality of construction, etc. in such situations an individual as a buyer can accept the conditional possession letter in which all the conditions that are to be met the builder are mentioned in detail.

A person can provide and mention all the details because of which he is not satisfied with the property and ask the builder or the seller to make the changes as per the agreement. In case the builder fails to comply with the mentioned then the matter can be taken to the court by the buyer.

What is an occupancy certificate?

A possession Certificate is just a property that the interest in the property is transferred without any illegal activities. But to confirm that he owns the property an individual must get an occupancy certificate.

The occupancy certificate is issued by the local authorities stating that the property has been constructed as per the laws and the approved plan. This certificate is proof that the property is ready to be occupied. An occupancy certificate is a mandatory document to affirm the ownership of the property. Failing to get the occupancy certificate may term this property to illegal by the local authorities.

Possession Certificate vs Occupancy Certificate

The possession certificate does not make the buyer of the property the legal owner. The owner needs to have an occupancy certificate that not only gives him or her the right to the property but also access to the basic civic amenities that are offered in the complex.

The possession letter bears the period before which the owner has to make the final payment and take possession of the property. While securing a home loan the original copy of the possession letter must be produced.

An occupancy letter is issued by the local authorities that states the project is completed and the building can now be occupied. The occupancy letter also states that the property has been built in compliance with the laws applicable.

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SIDBI Assistance to Healthcare Sector In War Against Second Wave Of COVID19 (SHWAS Scheme)

SIDBI Assistance to Healthcare Sector In War Against Second Wave Of COVID19 (SHWAS Scheme)

Stepping up the fight against COVID -19 and helping Micro and Small Enterprises (MSEs) battle the prevailing situation, the Small Industries Development Bank of India has launched SIDBI Assistance to Healthcare Sector in War against Second Wave of COVID 19 SHWAS Scheme. As part of this financial scheme, assistance is provided for MSEs which are involved in the manufacturing of medical oxygen or providing services related to oxygen.

The main objective of the scheme is to support and encourage those MSEs who are helping the nation fight against the novel Corona Virus. SIDBI provides loans to MSEs at a low rate of interest of 4.5% to 5% within 48 hours, making it easier for them to facilitate tasks that can help tackle the pandemic.

The objective of the SHWAS scheme

As mentioned above, the key objective of the SHWAS scheme is to provide financial support to the Healthcare Sector which is evolved in the manufacturing of medical oxygen products related to fighting against the novel Coronavirus. SIDBI also aims to provide loan to MSEs which are providing services related to COVID-19

Key Features of the SHWAS scheme

The key features of the SIDBI Assistance to Healthcare Sector in War against Second Wave of COVID19 (SHWAS Scheme) are as follows:

  • Small Industries Development Bank of India is offering 100% finance under this financial scheme
  • SIDBI also offers the very low collateral option to borrowers
  • The eligible Healthcare Sector unit is not required to pay any processing fee to avail of the loan
  • SHWAS scheme provides Attractive Interest Rates, SIDBI provides loans to MSEs at a low rate of interest of 4.5% to 5%
  • Credit Guarantee option also available to MSE (Charges to be borne by SIDBI)

Purpose of Loan under SHWAS scheme

Small Industries Development Bank of India is providing the loan to the healthcare unit to fight against the second wave of COVID-19.

  • The MSE unit can use the loan available under the SHWAS scheme to purchase any equipment or assets for manufacturing or delivery of services related to medical oxygen
  • The loan  availed under the SHWAS scheme can be used for the purchase of raw material for the production of medical oxygen

Eligible Entity for SHWAS scheme

SIDBI Assistance to Healthcare Sector in War against Second Wave Of COVID19 (SHWAS Scheme) is applicable for all existing MSEs that manufacturing the following products.

  • Micro and Small Enterprises (MSEs) engaged in manufacturing of oxygen cylinders, oxy-generators, oxygen concentrators, liquid oxygen
  • Micro and Small Enterprises (MSEs) provide services in transportation, storage, and refilling to supply the above-mentioned items.

The assistance provided for SIDBI’s existing customers and new SIDBI customers

  • The Existing Customers of SIDBI need to furnish the Cash profit in the last audited balance sheet (i.e. FY 2020)
  • New customers to SIDBI need to furnish the Cash profit in the last two years.
  • The MSE should have a Satisfactory Credit track record with existing Bankers / Financial Institutions.

SHWAS Scheme Loan Details

SIDBI is providing Rs. 200 lakh for eligible entities under the SIDBI Assistance to Healthcare Sector in War against Second Wave of COVID19 (SHWAS Scheme). This scheme offers loans either in the form of the Term Loan or Working Capital Term

  • Term Loan is provided for acquiring equipment/machines
  • Working Capital Term Loan  can be availed for purchasing the raw materials or executing confirmed orders

Rate of Interest

The SIDBI has fixed the rates of Interest for 4.5% to 5% per annum on reducing balance.

Security Details

For Existing customers: SIDBI will extend the existing securities or any other security to meet asset coverage

For New customers: Credit guarantee cover will be offered at no cost or any other security offered by the borrower to meet asset coverage norms

Repayment Details

The maximum repayment period for the term is 60 months including a 1-year moratorium and Working Capital Term Loan that need to be repaid within 18 months including a suitable moratorium.

Documentation for SHWAS Scheme

SIDBI offers a simple one-page application and built-in checklist for SIDBI Assistance to Healthcare Sector in War against Second Wave Of COVID19 (SHWAS Scheme). The Standard KYC checks and due diligence are also available for the SHWAS application.

SHWAS Scheme Application

The eligible MSME needs to access the SIDBI’s online application page to apply the scheme.

SHWAS Scheme - Application Page
SHWAS Scheme – Application Page

The online Registration Login page will display, by clicking on the Registration tab, a new user can register in SIDBI and avail of the loan.

SHWAS Scheme - User Registration Page
SHWAS Scheme – User Registration Page

The applicant entity needs to provide the details of Enterprise Name, Phone number, Email, and Proposed Total Loan Requirement. On successful registration, the user name and password will be provided to the entity.

SHWAS Scheme - User Login Page
SHWAS Scheme – User Login Page

After login into the portal, the applicant needs to fill in a simple one-page application and built-in checklist. After the Standard KYC checks and due diligence, the loan amount will be credited to the applicant’s account within 48 hours.

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MCA Clarification on CSR funds for COVID–19

MCA Clarification on CSR funds for COVID–19

Considering the second wave of the COVID-19 pandemic in India, the Ministry of Corporate Affairs (MCA) has announced that spending of corporate social responsibility funds  (CSR funds) for COVID-19 is an eligible CSR activity of a company. The Government further clarified that spending funds for setting up makeshift covid-19 hospitals and temporary care facilities would be considered as the corporate social responsibility (CSR ) activity of firms.

Know more about the Filing of eForm CSR-1

Synopsis of MCA Notification

MCA announced that Spending of CSR funds for setting up makeshift hospitals and temporary COVID care facilities is an eligible CSR activity under item no. (i) and (xii) of Schedule VII of the companies Act, 2013 relating to the promotion of health care, including preventive health care and disaster management.

CSR funds for COVID–19

Last year, when the first wave of covid-19 cases had hit in March and the disease was declared a pandemic by the World Health Organization (WHO), the MCA had announced that spending funds for covid-19 were an eligible CSR activity.

The Government clarified that the funds spent on measures to tackle the Covid-19 outbreak would be considered as the corporate social responsibility (CSR) activity of firms.

The funds can be spent on various activities related to COVID-19 on the promotion of healthcare; including preventive healthcare and sanitation will be considered as the company’s CSR obligations.

Know more about the CSR funds for COVID–19

Clarification on CSR funds for COVID–19 Vaccination

Wide a Notification dated January 22, 2021, the MCA had also clarified that spending funds on awareness campaigns and public outreach programs to promote COVID -19 vaccination against infectious disease would also be considered an eligible CSR activity.

Know more about Clarification on CSR funds for COVID–19

Spending CSR funds for Setting up Makeshift Hospital

As mentioned above, the funds spent for Setting up makeshift hospitals and Temporary Covid Care facilities will be considered as the company’s CSR obligations. The companies can undertake CSR activities in consultation with State Government subjects to fulfillment of Companies (CSR Policy) Rules, 2014.

The official notification of MCA related to the Clarification on CSR funds for COVID–19 is as follows:

GeneralCircularNo5_22042021

Applicability of CSR Provision

According to the Companies Act 2013 , certain classes of profitable organizations have to shell out at least 2 percent of the three-year annual net profit towards Corporate Social Responsibility (CSR) activities in a particular financial year.

The companies having the following net-worth during the immediately preceding financial year can make CSR expenditure for COVID – 19 under Section 135 of the Companies Act, 2013, every company having

  • The net worth of Rs. 500 Crore or more
  • Turnover of Rs. 1000 crore or more
  • Net Profit of Rs. 5 crores or more

A foreign corporation having its branch office or project office in India, which fulfills the criteria mentioned above can also make the Corporate Social Responsibility (CSR) for COVID – 19.

National CSR Data Portal

The National Corporate Social Responsibility Data Portal is an initiative by the Ministry of Corporate Affairs, Government of India to establish a platform to disseminate Corporate Social Responsibility related data and information filed by the companies registered with it.

As mentioned above, for CSR contribution, the Government of India established this portal on which specific requirements such as equipment, medicines, will be posted, and the company may be permitted to contribute CSR funds in cash or kind towards those particular requirements.

MCA Clarification on CSR funds for COVID–19 - National CSR Data Portal
MCA Clarification on CSR funds for COVID–19 – National CSR Data Portal

By clicking on the Explore CSR Data option from the Home page of the National CSR Data Portal , the applicant firm can get the CSR details:

  • State Wise CSR Details
  • Development Sector Wise CSR Details
  • Company-Specific CSR Data
  • Dynamic CSR Report
  • CSR MIS Report
MCA Clarification on CSR funds for COVID–19 - National CSR Data Portal2
MCA Clarification on CSR funds for COVID–19 – National CSR Data Portal2

Schedule VII of Companies Act, 2013

Spending of CSR funds for setting up makeshift hospitals and temporary COVID care facilities activities which may be included by companies in their Corporate Social Responsibility Policies Activities relating to item no. (i) and (xii) of Schedule VII of the companies Act, 2013. Item no. (i) and (xii) of Schedule VII of the companies Act, 2013 is as follows:

  • Eradicating hunger, poverty, and malnutrition, promoting health care including preventive health care and sanitation  including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation and making available safe drinking water
  • Disaster management, including relief, rehabilitation, and reconstruction activities

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COVID-19 Helpdesk for International Trade

COVID-19 Helpdesk for International Trade

The Direct General of Foreign Trade (DGFT) has announced the Operationalisation of DGFT COVID-19 Helpdesk for International Trade related Issues vide a Trade Notice No. 02/2021-2022 dated 26.04.2021. The DGFT took this initiative to monitor exports and imports’ status and the difficulties being faced by trade stakeholders because of the surge in COVID-19 cases. The current article briefs COVID-19 Helpdesk for International Trade.

Synopsis of Notification

The Department of Commerce, Government of India, and DGFT have undertaken steps to monitor the status of export and imports and difficulties being faced by trade stakeholders because of the surge of COVID-19 cases.

DGFT has accordingly operationalized a ‘COVID-19 Helpdesk’ to support and seek suitable resolutions to issues arising in respect of International Trade

Service Offered

This ‘COVID-19 Helpdesk’ would look into issues relating to the following:

  • Issues related to Department of Commerce/ Direct General of Foreign Trade (DGFT)
  • Import and Export Licensing Issues
  • Customs clearance delays
  • Complexities arising
  • Import/Export documentation issues
  • Banking matters

Helpdesk would also collect and collate trade-related issues concerning other Ministries, Departments, Agencies of Central Government and State Governments, and coordinate to seek the support and provide possible resolutions.

Procedure to Submit Issues

EXIM community may submit information on the DGFT website and submit information relating to their issues on which support is required using the following steps:

The applicant needs to access the official website of the DGFT Website and click on the Service option. Select the DGFT Helpdesk Service

COVID-19 Helpdesk for International Trade - DGFT Homepage
COVID-19 Helpdesk for International Trade – DGFT Homepage

By clicking on ‘Create New Request’, the applicant can submit the issue. Login to the DGFT web portal using the login credential.

COVID-19 Helpdesk for International Trade - DGFT Complaints
COVID-19 Helpdesk for International Trade – DGFT Complaints

After login to the portal, select the Category as ‘Covid-19′ and Select the suitable sub-category, enter the other relevant details and submit.

COVID-19 Helpdesk for International Trade - DGFT Login
COVID-19 Helpdesk for International Trade – DGFT Login

Note: Alternatively, The applicant can send the issues to email id: dgftedi@nic.in with the subject header: Covid-19 Helpdesk or call at Toll-Free No 1800-111-550

  • The status of resolutions and feedback may be tracked using the Status tracker under the DGFT Helpdesk Services.
  • Email and SMS would also be sent as and when the status of these tickets is updated.

The official trade notice about the COVID-19 Helpdesk for International Trade is as follows:

Trade Notice 02 -Covid Helpdesk Apr 2021

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Production Linked Incentive (PLI) Scheme for White Goods

Production Linked Incentive (PLI) Scheme for White Goods

The Department for Promotion of Industry and Internal Trade (DPIIT) has notified the Production Linked Incentive (PLI) scheme for white goods (air conditioners and LED lights), with a budgetary outlay of Rs 6,238 crore. The PLI scheme for White Goods (PLIWG) proposes a financial incentive to boost domestic manufacturing and attract large investments in the White Goods manufacturing value chain. Its prime objectives include removing sectoral disabilities, creating economies of scale, enhancing exports, creating a robust component ecosystem, and employment generation.

Synopsis of Notification

As per the notification, the DPIIT announced that the PLI scheme for white goods will extend an incentive of 4-6 percent on incremental sales of goods manufactured in India for a period of five years to companies engaged in the manufacturing of air conditioners and LED lights. The period of five years will be calculated after the base year and one year of gestation period.

Target Segments

Support under the Production Linked Incentive (PLI) scheme will be provided to companies engaged in manufacturing of components of Air Conditioners and LED Lights in India:

Air Conditioners

  • Air Conditioners (Components- High-value Intermediates or Low-Value Intermediates or sub-assemblies or a combination thereof)
    • Large Investments
    • Normal Investments
  • High-Value Intermediates (Copper Tubes, Aluminium Foil and Compressors)
    • Large Investments § Normal Investments
  • Low-Value Intermediates (PCB assembly for controllers, BLDC motors, Service Valves and Cross Flow fans for AC and other components)
    • Large Investments
    • Normal Investments

LED Lights

LED Lighting Products (Core Components like LED Chip Packaging, Resisters, ICs, Fuses and large-scale investments in other components, etc.)

  • Large Investments
  • Normal Investments

Components of LED Lighting Products (like LED Chips, LED Drivers, LED Engines, Mechanicals, Packaging, Modules, Wire Wound Inductors, and other components)

  • Large Investments
  • Normal Investments

Quantum of Incentive

The PLI Scheme shall extend an incentive of 4% to 6% on incremental sales (net of taxes) over the base year of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years after the base year and one year of gestation period.

  • The applicant will have to fulfill both criteria of cumulative incremental investment in plant and machinery as well as incremental sales over the base year in that respective year to be eligible for PLI.
  • The first year of investment will be FY 2021-22 and the first year of incremental sale will be FY 2022-2023. Actual disbursement of PLI for a respective year will be after that year.
  • The Scheme is Fund Limited and even in case of achievement the total pay-out of incentives would be capped at the amount approved by Cabinet

Eligibility Criteria

  • The incentive under the Scheme shall be provided to Companies making brownfield or greenfield investments for manufacturing in target segments in India.
  • Eligibility of Companies will be subject to meeting the pre-qualification criteria for different target segments
  • One entity may apply for one target segment only. However, separate Group companies may apply for different target segments
  • Eligibility shall be subject to thresholds of cumulative incremental investment and incremental sales (net of taxes) of manufactured goods (as distinct from traded goods) over the base year for the respective year

Note:  Any entity availing benefits under any other PLI Scheme of the Government of India will not be eligible under this scheme for the same products.

Tenure of the Scheme

Support under the PLI Scheme shall be provided for a period of five years after the base year as defined and one year of the gestation period for fructifying investment to be implemented over FY 2021-2022 to FY 2028-2029.

Selection of Beneficiaries

Selection of companies for the Scheme shall be done to incentivize manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity.

  • Companies investing in basic/core components shall have a higher priority.
  • Within a target segment, ‘Large Investment’ shall have a higher priority over ‘Normal Investment’.
  • The actual number of beneficiaries within a target segment shall be decided based on the response of the industry

Financial Outlay

As mentioned above, the PLI Scheme will be implemented within the overall financial limits of Rs. 6,238 Crores for implementation of the Scheme over a period of 5 years.

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Statement of Financial Transactions (SFT) for Interest Income

Statement of Financial Transactions (SFT) for Interest income

The Central Board of Direct Taxes (CBDT) prescribed the Format, Procedure, and Guidelines for submission of Statement of Financial Transactions  (SFT) for Interest income vide a Notification No. 2 of 2021 dated 20th April 2021. With this Notification, CBDT announced that the statement of financial transactions shall be furnished on or before the 31st May, immediately following the financial year in which the transaction is registered.

Synopsis of Notification

Synopsis of Notification about the Statement of Financial Transactions (SFT) for Interest income is as follows:

  • With this notification, CBDT prescribes the guidelines for the preparation and submission of Statement of Financial Transactions (SFT) information for Interest income.
  • The information is required to be uploaded in a data file. The data structure and validation rules are also enclosed with this notification.

Overview of Statement of Financial Translations (SFT)

Statement of Financial Translations or SFT refers to information related to certain high-value transactions which specified persons are required to report to the income tax department. The SFT was earlier known as ‘Annual Information Return (AIR)’. The objective of SFT was to curb black money and widening the tax base.

Section 285BA of the Income Tax Act

The specified reporting entity/person must furnish a statement of financial transaction or reportable account as per Section 285BA of the Income Tax Act , 1961.

Rule 114E of the Income Tax Rules

To furnish a statement of financial transactions, specified forms are required to be submitted as per Rule 114E of Income Tax Rules, 1962  referred to as “Statement of Financial Transaction (SFT). Rule 114E of the Income Tax Rules, 1962 specifies that the statement of financial transaction to be furnished in Form No. 61A

Furnishing of Statement of Financial Transaction

As mentioned above, the statement of the financial transaction needs to be furnished in respect of a financial year in Form No. 61A under sub-section (1) of section 285BA of the Income Tax Act

Statement of Financial Translations (SFT) for Interest income

To enable pre-filling of return of income, CBDT has issued an Income-tax (4th Amendment) Rules, 2021 to include reporting of information relating to Interest income. According to the Income-tax (4th Amendment) Rules, the sub-rule 5A is inserted by the Income-tax department for pre-filling the return of income. The new sub-rule 5A of rule 114E specifies that the information shall be furnished in a prescribed form, at such frequency, and in such manner, as may be specified by the Director-General of Income Tax (Systems), with the approval of the CBDT.

Prescribed Date for Submission of SFT

The statement of financial transactions needs to be furnished on or before the 31st of May, immediately following the financial year in which the transaction is registered or recorded.

Eligible Person to furnish SFT for Interest income

  • A banking company or a co­operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act
  • Post-Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).
  • Non­banking financial company which holds a certificate of registration under section 45­IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public

Note:

  • The statement of the financial transaction shall be signed, verified, and furnished by the specified Designated Director.
  • If the reporting person is a non-resident, the statement may be signed, verified, and furnished by a person who holds a valid power of attorney from such Designated Director

Guidelines for Preparation of SFT for Interest income

  • The information is to be reported for all account holders where cumulative interest exceeds Rs.5,000 per person in the financial year
  • The interest which is exempt from tax under the Income-tax Act, 1961 such as interest on Public Provident Fund (PPF) Account, Foreign Currency Non­resident (FCNR) Account, Sukanya Samriddhi Account, and Resident Foreign Currency Account, etc. need not be reported
  • While reporting the interest amount, a deduction of Rs. 10,000 available under section 80TTA should not be reduced from the interest amount paid
  • In the case of a joint account, the interest paid should be assigned to the primary account holder or specified assigned person as per Form 37BA
  • In the case of minor being the account holder, the information to be reported in the name of Legal Guardian
  • A separate report needs to submit for each account type (i.e. Savings, Time Deposit, Recurring Deposit, Others) and Interest on the same account type is required to be aggregated in the report.
  •  Interest will be the total amount of Interest paid/credited during the financial year.

Preparation of Data File for Submission of SFT

The SFT information is required to be uploaded in a data file. Reporting entities are required to prepare the data file in a prescribed format from their internal system.

  • An excel-based report preparation utility has also been provided to assist small reporting entities in preparing data files.
  • The data files prepared by the internal system/report preparation utility should be validated using Text File Validator/Submission Utility.
  • After validation, the text file is required to be compressed, encrypted, and signed using the Text File Submission Utility before uploading on the reporting portal
  • Reporting entities, having a large number of data files, can also submit the data files using SFTP Server (specific request may be made for SFTP upload).

The data file should be in ASCII format with one report per line. All fields in each file should be delimited with the delimiter “|â€. The data structure is as under:

notification_2_2021_interest_income-5

Procedure for Submission of SFT on Reporting Portal

The statement of financial transactions shall be furnished online through the Income Tax Department Reporting Portal.

Statement of Financial Transactions (SFT) for Dividend income - Reporting
Statement of Financial Transactions (SFT)  – Reporting

The data files are required to be uploaded at the reporting portal through the login credentials (PAN and password) of the designated director.

Already registered reporting entities on Income Tax e-filing portal:

The registration details of already registered reporting persons have been migrated from the e-filing portal to reporting portal. The registered users of such reporting persons shall be communicated with their new login credentials through registered email to be used at Reporting Portal. There is no need of registering again for such persons/entities.

Statement of Financial Transactions (SFT) for Dividend income -Login Page
Statement of Financial Transactions (SFT)  – Login Page

New Registration on Reporting Portal

  • The reporting person is required to get registered with the Income Tax Department by logging in to the e-filing website with the login ID used to file the Income Tax Return of the reporting person.
  • The reporting person needs to click on the “Reporting Portal†link under the “My Account†tab at the e-filing portal to access the ‘Reporting Portal’ for first-time registration.
  •  The reporting person will be required to enter the details of form type, category, and address of reporting person along with details of Principal Officer mandatorily.
  • On successful submission, the ITDREIN is generated and the principal officer will receive a confirmation e-mail on his/her registered e-mail address and SMS at his/her registered mobile number.
Statement of Financial Transactions (SFT) for Dividend income -Reporting Portal Login Page
Statement of Financial Transactions (SFT)  – Reporting Portal Login Page

Note: There will be no option to de-activate ITDREIN, once it is generated

Addition of Designated Director

The reporting person is required to submit the details of the designated director either at the time of new registration or at a later stage, but before the STF submission on reporting portal.

  • The designated director will receive a confirmation e-mail with login credentials for login into reporting portal at his/her registered email address.
  • The designated director of the reporting person can digitally sign and upload the Statement of Financial Transaction (SFT) and the corresponding correction statements if any through his/her own login credentials at the reporting portal or through Generic Submission Utility.

Submission of Form No. 61A

Every reporting person is required to submit the Statement of Financial Transaction (SFT) in Form No. 61A.

The prescribed schema, Report Generation and Validation Utility for Form No. 61A and Generic Submission Utility can be downloaded from the reporting portal under the “Resources†tab.

Statement of Financial Transactions (SFT) for Dividend income - Reporting
Statement of Financial Transactions (SFT) – Reporting

The prepared SFTs to be filed is required to be digitally signed by and uploaded at the reporting portal or through Generic Submission Utility through the login credentials (PAN and password) of the designated director

  • The reporting entities are advised to furnish information of Interest income, reported to Income Tax Department, to the taxpayers which will enable them to reconcile the information displayed in the Annual Information Statement (AIS) (Form 26AS).

In case, the reporting entity discovers any inaccuracy in the information provided in the statement of the defects that have been communicated to the reporting person/entity, it is required to remove the defects by submitting a correction/ statement

Any file which does not meet the validation requirements will be rejected and after uploading the file a unique Statement ID will be provided for each file.

Error in Uploaded File

In case of any error, the complete file will be rejected and the rejection reason can be viewed by clicking the Rejected link under the Status column. The reporting entity needs to correct the relevant errors and upload the file again.

Modification of uploaded data

In case Reporting Entity needs to modify uploaded data, a Correction Statement is required to be filed. In the Correction Statement, only those reports should be uploaded in which correction is required. Statement ID of the original Statement which is being corrected should be selected while uploading. The Report Serial Number (RSN) and Original Statement ID will uniquely identify the report being corrected. If the correction statement is successfully accepted, the reports in the earlier statement will be marked as inactive and the newly uploaded report will be active.

Procedure to delete uploaded data

If the Reporting Entity needs to delete uploaded data, Deletion Statement is required to be filed. In the Deletion Statement, only those reports should be uploaded which are to be deleted. Statement ID of the original Statement which is being deleted should be selected while uploading. The Report Serial Number (RSN) and Original Statement ID will uniquely identify the report that is being deleted. If the Deletion Statement is successfully accepted, the reports in the earlier statement will be marked as inactive.

Validation of SFT Date Files

Upload level validation would be done to ascertain that the correct file is being uploaded. The file would be rejected at the upload stage if it does not clear the upload level validations. Any file which does not meet the following requirements will be rejected.

notification_2_2021_interest_income-6-8

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FSSAI Announces Relaxation to FBO – COVID 19

FSSAI Announces Relaxation to FBO – COVID 19

To facilitate the continuity of food business operations during the prevailing COVID-19 outbreak, the Food Safety and Standards Authority of India (FSSAI) has announced various Relaxations to FBO. FSSAI is offering permission to temporarily operate food business and also providing permission to operate the food businesses with higher capacity.

FSSAI announced that no pre-inspections are required for the issuance of a new FSSAI license and FSSAI extended the due date for filling Food Business Annual Returns.  The present article highlights the applicable eligible condition and relaxation offered thereon by the FSSAI.

Synopsis of FSSAI Notification

As per the Notification dated 20th April 2021, FSSAI is decided to facilitate the Food Business Operator (FBOs) and ensure ease of doing business by providing the following relaxations.

  • As mentioned above, FSSAI is providing permission to temporarily operate food business (other than Manufacturers) based on 17-digits Application reference number
  • The Manufacturers are allowed to operate their food businesses with higher capacity, based on an application for modification of License
  • No pre-inspections are required for issuance of new FSSAI license/registration
  • Extension for the timeline for submission of online Annual Returns through FoSCoS
  • Waiver of late fee for renewing the license

Permission to Temporarily Operate Food Business

FSSAI is providing permission to temporarily operate food business (other than Manufacturers) based on 17-digits Application reference number

Applicability

  • All FBOs except Manufacturers are allowed to temporarily operate their food business based on application
  • The applicants who have the requisite permission from State/ relevant local authorities to operate in the lockdown/ restrictions/ curfew only can temporarily operate food business based on 17-digits Application reference number

Note:  The FBO shall cease his operations at the premises related to food unless he has obtained a valid FSSAI license/ registration within 30 days after the expiry of this relaxation.

Procedure to obtain FSSAI License to Temporarily Operate Food Business

To obtain FSSAI License to Temporarily Operate Food Business, The FBO can apply for a New FSSAI License or modify the existing license.

FBOs need to submit an online application with a prescribed fee through online mode on Food Safety Compliance System (FoSCoS)   and possess a valid receipt of the application having a seventeen-digit application reference number.

FSSAI Announces Relaxation to FBO – FoSCoS Homepage
FSSAI Announces Relaxation to FBO – FoSCoS Homepage
  • After login to the FoSCoS portal, a dashboard will be displayed, click on the License/Registration option in the left menu and select the Apply for New License/Registration option.
FSSAI Announces Relaxation to FBO – FoSCoS Login
FSSAI Announces Relaxation to FBO – FoSCoS Login
  • Select the head office as per the KoB details and Select appropriate kind of business applications as per food Business to be conducted. The FBO needs to provide the details in Form-B and submit the application for registration
  • FBO have to inform by email the concerned Licensing / Registration Authorities/ Commissioner of Food Safety about commencing his food business enclosing a scanned copy of the application in a prescribed format.
  • The prescribed format of “Form M – Intimation and declaration regarding commencing of food business activities during the lockdown period†is attached here for reference:
  • The application form needs to be signed by the proprietor/director/partners or a senior employee of the applicant.

Permission to Operate the Food Businesses with Higher Capacity

FSSAI also provide relaxation in terms of providing permission to operate their food businesses with higher capacity, based on an application for modification of License.

The FBOs need to apply for modification of FSSAI license by making an online application with the prescribed fee through online mode on Food Safety Compliance System (FoSCoS) and possess a valid receipt of the application having 17-digits application reference number.

Fee for Applying for FSSAI License

The fee structure for applying the FSSAI New License / Modification of existing license is as follows:

Sl.No Details Fee
1 Manufacturing License Rs.2000 to 7500 per year
2 Registration Certificate Rs.100 per year
3 Modification of License and Certificate Rs.1000 for license and Rs.100 for registration
4 Renewal of License and Certificate Same as New license/Registration

Limited Inspections and only e-inspections

No pre-inspections are required for the issuance of new FSSAI license/registration. However; food safety authorities can conduct e-inspections on basis of risk profiling.

Inspection will be carried out for food emergency/ incidents and complaints as per the existing provision of the Food Safety Standard Act, 2006

FSSAI also announced that the inspections are mandatory for issuance of new FSSAI license/registration in case of manufacturing of high-risk food product:

  • Milk and milk products
  • Slaughterhouses
  • meat and meat products etc

Extension of Annual Returns Filing Due Date

The timeline for submission of online annual yearly returns (D-1) for the period 2020-21 due for submission on or before 31st May 2021 has been extended till 30th, June 2021. The same has to be filed mandatorily through online mode i.e. through Food Safety Compliance System (FOSCOS)

Procedure to File Annual/ Half -Yearly Return

The FBO needs to download the requisite form D1/D2 Based on the kind of business (KOB. Fill in the basic details of the food business and review the details provide and corroborate with the facts declared during the licensing process.

In case of any deviations, please update the license by applying for modification through Food Safety and Compliance System (FoSCoS).

Upon finalizing the details, the FBO can either send the details through a registered post or email to the licensing authority within the respective jurisdiction. The details of the licensing authority can be accessed through the official website of the FSSAI.

Note: Please note FSSAI doesn’t acknowledge confirming the successful submission of the returns.

Know more about the Revised Guidelines of Food Business Annual Return Filing

Waiver of Late Fee for Renewing the License

As per the FSS (Licensing and Registration of Food Businesses) Regulations 2011], the FBO need to pay a late of Rs. 100 to Rs. 3000 in case of not applying for renewal as early as 30 days before the expiry of license.

With this notification, FSSAI announced that no late fee for renewal of licenses shall be charged till 30th June 2021, i.e. no late fee for renewal application will be charged for licenses, if filed on or before 30th June 2021.

As the process for renewal of license and registration is completely online and renewals can be filed as early as 180 days before the expiry of license and registration, food businesses are advised to file the renewal application well in time to avoid the expiry of their licenses and registrations and causing unnecessary hassle to themselves.

FSSAI also clarified that the late fee applicable on renewals applied after 30h June 2021 will be charged as per the provisions in FSS (Licensing and Registration of Food Businesses) Regulations 2011.

Other Announcements

The relaxations so mentioned shall cease with effect from June 30th 2021 irrespective of the status of lockdown/ curfew/ containment at any location.

The post FSSAI Announces Relaxation to FBO – COVID 19 appeared first on IndiaFilings – Learning Centre .

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Revised List of Documents Required for FSSAI License

Revised List of Documents Required for FSSAI License

A list of documents required to be submitted at the time of applying for a new FSSAI license and renewal/modification of license was issued by Food Safety and Standards Authority of India (FSSAI) vide a Notification dated 19th March 2021. With this notification, FSSAI has come up with a KoB wise list of documents to be submitted with the application for a license. The current article briefs the documents required for obtaining FSSAI License .

Know more about the FSSAI Announces Relaxation to FBO – COVID 19

Synopsis of Notification

  • The FSSAI announced that necessary changes have also been made in the online licensing and registration system – Food Safety Compliance System (FoSCoS) .
  • The documents need to be self-attested by the authorities’ signatory/proprietor before being uploaded on FoSCoS.
  • The following list of documents to be enclosed for new, conversion, and renewal of FSSAI for license and same to be submitted to State/Central Licensing Authority.
  • These documents are applicable for the following three types of FSSAI/ Food Licence
    • FSSAI Basic License.
    • FSSAIState License.
    • FSSAICentral License

Revised List of KoB wise Mandatory Documents

The KoB wise list of documents is divided into two parts i.e. Documents for Non-Manufacturing KoBs and Documents for Manufacturing KoBs.

Documents for Non-Manufacturing KoBs

The KoBs wise mandatory documents for Non-Manufacturing KoBs are as follows:

The list of documents for non-manufacturing/processing Kind of Business applicable for all kind of business:

  • List of Directors/Partners/Proprietor/Executive members of Society/ Trust with full address and contact details with the nomination of authorized signatory
  • Photo ID and address proof issued by Government authority of Proprietor/Partner/Directors /Authorized Signatory
  • Proof of possession of premises (Sale deed/Rent Agreement/Electricity bill)
  • Partnership Deed/Self Declaration for Proprietorship/Momendrum and Article of Association towards the constitution of the firm
  • Copy of Certificate obtained under Coop Act – 1861
  • Form IX – Nomination of Person

Documents for Manufacturing KoBs

A list of additional specific documents related to the type of food business activity is given here:

Sl.No Type of Food Business Documents Required
1 Hotels, Restaurant, Food Vending Establishment, Club/Canteen Analysis report of water to be as an ingredient in food from a recognized/public health laboratory
2 Importer Importer Export Code and Recall Pan
3 Merchant Exporter Importer Export Code and Declaration that products meant for export only shall not be exposed for sale and consumption in the domestic market.
4 Head office/Registered office/e-Commerce Recall Pan
5 Transporters List of Vehicle Registration Numbers

Documents Required for Manufacturers/Processors

The following documents are applicable for all manufacturing and processing KoBs.

  • List of Directors, Partners, Proprietor, Executive Members of Society, Trust with full address and contact details with the nomination of authorized signatory
  • Photo ID and address of proof issued by the Government authority of Proprietor, Partner, Directors and authorized Signatory
  • Proof of Possession of premises (Sale Deed, Rent Agreement, Electricity Bill)
  • Partnership Deed, Self Declaration for Proprietorship, Memorandum, and Article of Association towards the constitution of the firm
  • Copy of certificate obtained under Coop Act-1861
  • Form IX- Nomination of a person as the FSS Rules, 2008
  • Blueprint/layout plan of the processing unit showing the dimensions in meters/square meters and operation-wise area location.
  • Production unit photographs
  • Name and list of equipment and Machinery along with a number, installed capacity, and horsepower used
  • Analysis report (Chemical and bacteriological) of water to be used as an ingredient in food from recognized /public health laboratory

Additional Specific Documents for Manufacturing/Processing Activity

Sl.No

Type of Manufacturing/Processing Activity

Documents Required

1

Dairy Processing Source or procurement plan for milk

2

Meat Processing

Source of Raw Material

NOC from Municipal Corporation /Local body

3

Slaughter House NOC from Municipal Corporation /Local body

4

Relabellers and Repackers NOC from Manufactures

5

Nutraceuticals Product Specification of each product

6

Proprietary Foods Composition of each product

7

Packaged Drinking Water Pesticide residues report of water to be used as an ingredient

8

Novel Foods Product Approval from FSSAI HQ for each product

Additional Documents to Manufacturer – Exporters

  • Import Export Code
  • A declaration that the product meant for export only shall not be exposed for sale and consumption in the domestic market. Further, the products (meant for export only) meet the standards of importing country
  • Ministry of Commerce Certificate for 100% EOU

Other Documents list irrespective of Kind of Business

  • In case of extraction of groundwater, NOC from CGWA as per FSSAI order dated 2nd Jan 2018 and 11th January 2021
  • Any document which is required by the licensing authority to ensure food safety of food
  • Any document specified by FSSAI or Commissioner of Food Safety through a public order for any particular Kind of Business Activity

Documents Required for Renewal of License

The following documents will be applicable for all kind of business

  • FSMS Certificate
  • Updating of details of Nominee
  • Modification of License
  • Supporting Document for modification on letterhead
  • Any document which is required by licensing authority to ensure the safety of food

The official notification pertaining to the Revised List of Documents Required for FSSAI License is attached here for reference:

DocumentListMarch

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Filing of eForm CSR-1

Filing of eForm CSR-1

Ministry of Corporate Affairs has mandated filing of eForm CSR-1 by implementing entities intending to undertake CSR activities for all CSR projects effective from 1st April 2021. MCA has announced that eForm CSR-1 is now live for Filing on MCA Portal and advised stakeholders to file the Form as soon as possible. A unique CSR Registration Number shall be generated for all entities submitting Form CSR-1. The current article briefs the application procedure for Filing of eForm CSR-1.

Form CSR-1

Form CSR-1 is a registration form for getting CSR funding by implementing agencies from the corporates. The Form CSR-1 is termed as Form for “Registration of Entities for undertaking CSR Activitiesâ€. The Form CSR-1 mainly consists of two parts:

  • The first part is relating to the information about the entity that intends to undertake CSR activities.
  • The second part of Form CSR-1 is certification by practising professional.

Law Governing the eForm CSR-1

eForm CSR-1 is required to be filed according to Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014.

Purpose of the Form CSR-1

As per the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 , the company can undertake CSR activities either itself or through entities defined under Companies (Corporate Social Responsibility Policy) Rules, 2014

These companies/entities are required to mandatorily register themselves with the central government for undertaking any CSR activity by filing the e-form CSR-1 with the Registrar.

CSR Registration by NGOs

The Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“New CSR Rulesâ€) has introduced substantial changes in the specifications and procedure to be followed by the NGOs while discharging their CSR obligations

One of the major changes introduced via New CSR Rules for the NGOs is making registration compulsory for undertaking CSR activities on behalf of companies.

Such registration is required to be taken in e-form CSR-1. The purpose of mandatory registration is for monitoring the activities of the NGOs and other agencies.

Eligibility Criteria for NGO

The conditions for an NGO to receive CSR funds from a company only if are as follows:

  • A section 8 company Registered under section 12A and 80G of the Income Tax and have at least 3 years of undertaking charitable activities.
  • A registered public trust Registered under section 12A and 80G of the Income Tax and have at least 3 years of undertaking charitable activities.
  • A registered society Registered under section 12A and 80G of the Income Tax and have at least 3 years of undertaking charitable activities.

Note: CSR spending through an unregistered NGO is not eligible for counting towards CSR activities.

Registration of an NGO with MCA portal for accessing CSR funds

Rule 4(2) of the New Companies CSR Amendment Rules, 2021 specifies the following procedure for the registration of an NGO with an MCA portal for accessing corporate CSR funds:

  • Every NGO that intends to undertake the CSR activity need to register itself with the Central Government by filing the form CSR-1 electronically with the Registrar
  • Form CSR-1 will be verified digitally by a Chartered Accountant in practice or a Company Secretary in practice or a Cost Accountant in practice
  • On the submission of the Form CSR-1 on the portal, a unique CSR Registration Number will be generated by the system automatically.

Documents Required for CSR-1 Registration

The documents required to upload for CSR-1 Registration is as follows:

  • Copy of the registration certificate
  • Copy of the PAN of the NGO with Form CSR-1
  • DIN/PAN of the Director, Trustee, Secretary, etc. of the organization
  • Copy of the Resolution authorizing the person by the entity with Resolution number and date of the resolution
  • DSC of the person

Procedure to Download Form CSR-1

The procedure to download Form CSR-1 from the MCA website is as follows:

  • The applicant needs to access the official webpage of the Ministry of Corporate Office (MCA) and Click on Forms & Downloads on the top of the webpage.
  • Scroll down the page till the topic ‘Incorporation services’ is reached. Click on the “Registration of Entities for undertaking CSR activities Form CSR-1†Download the e-Form with or without Instruction. This will be downloaded in zip file format. Unzip it and extract the relevant pdf files.
  • Open the pdf file named ‘Form_CSR-1’. This is Form CSR-1 for the registration of entities for undertaking CSR activities.

The new Form CSR-1 is reproduced below for your reference:

Form_CSR-1

Procedure for Filing of Form CSR-1

The following steps can be used for filing the Form CSR-1 on the MCA portal.

  • The applicant needs to access the official website of the Ministry of Corporate Affairs  to file Form CSR-1. By login into the portal, the applicant can upload the Form CSR-1
  • After login to the portal, enter a valid ‘Corporate identity number’ (CIN) for cancellation of unused issued Share of one class and increase in share capital.
  • Select the purpose of the eForm from the drop-down menu and in case of others selected, specify the entity in the description box

Declaration and Designation

Select any one of the options from the drop-down values for declaration and digitally sign the Form CSR-1.

  • In case the person digitally signing the Form CSR-1 is a Director, approved DIN need to be provided.
  • In case the person digitally signing the Form CSR-1 is Manager, enter approved DIN or valid income-tax PAN.
  • Membership number need to be filed, in case the person digitally signing the Form CSR-1 is Company Secretary

Upload Documents

By clicking on the attach button, the required document can be uploaded and click on the pay the payment button for making the fee.

On successful submission of the Form CSR-1, the eForm will be processed by the office of the Registrar of Companies.

SRN Generation

SRN will be generated and displayed to the applicant on successful submission of the Form CSR-1. This SRN will be used for future correspondence with MCA.

Challan Generation

On successful submission, a challan will be generated depicting the details of the fees paid by the user to the Ministry. It is the acknowledgement to the applicant that the Form CSR-1 has been filed.

Get Acknowledgement

When the Form CSR-1 is completely processed by the authority, an acknowledgement will be sent to the official mail of the company.

Get CSR Registration Number

On the submission of the Form CSR-1 on the portal, a unique CSR Registration Number shall be generated by the system automatically.

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Startup India Seed Fund Scheme (SISFS)

Startup India Seed Fund Scheme (SISFS)

To foster growth and development in the startup sector, the Central Government recently notified the ‘Startup India Seed Fund Scheme’ (“SISFSâ€). The objective of the SISFS is to establish a structure that provides monetary benefits to eligible startups for proof of concept, prototype development, product trials, market entry, and commercialization. The Startup India Seed Fund, which has a target corpus of Rs 945 crore to be disbursed over five years in early-stage startups, is looking to support around 3,600 entrepreneurs through 300 incubators.

The objective of the SISFS

Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization. This would enable these startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions.

Features of the SISFS

On February 5, 2021, the Government of India made an official announcement about the approval of SISFS. It has been approved for four years and was implemented with effect from April 1, 2021.

  • The Seed Fund will be disbursed to eligible startups through eligible incubators across India.
  • Once incubated, the startups will be provided physical infrastructure, support for testing, mentoring for prototype or commercialization, human resources, and legal compliances, all by the incubators

Eligibility Criteria for Startups

The eligibility criteria for a startup to apply under the Startup India Seed Fund Scheme are as follows:

  • A startup should be recognized by DPIIT and incorporated not more than 2 years ago at the time of application
  • The startup must have a business idea to develop a product or a service with the market fit, viable commercialization, and scope of scaling
  • A startup should be using technology in their core product, service, business model, distribution model, methodology to solve the problem being targeted
  • A startup should not have received more than Rs. 10 lakh of monetary support under any other Government scheme. This does not include prize money from competitions and grand challenges, subsidized working space, founder monthly allowance, access to labs, or access to prototyping facility
  • Shareholding by Indian promoters in the startup should be at least 51%, as per the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018
  • Preference will be provided to startups creating innovative solutions in the following sectors:
    • Social impact
    • Waste management and Water management
    • Financial inclusion
    • Education and Agriculture
    • Food processing and Biotechnology
    • Healthcare
    • Energy and mobility
    • Defence and space
    • Railways and Textiles
    • Oil and gas

Eligibility Criteria for Incubators

The eligibility criteria for an incubator to apply in the Startup India Seed Fund scheme are as follows:

  • The incubator must be a legal entity:
    • A society registered under the Societies Registration Act 1860
    • A Trust registered under the Indian Trusts Act 1882
    • A Private Limited company registered under the Companies Act 1956 of the Companies Act 2013
    • A statutory body created through an Act of the legislature
  • The incubator should be operational for at least two years on the date of application to the scheme
  • The incubator must have facilities to seat at least 25 individuals
  • The incubator must have at least 5 startups undergoing incubation physically on the date of application
  • The incubator must have a full-time Chief Executive Officer, experienced in business development and entrepreneurship, supported by a capable team responsible for mentoring startups in testing and validating ideas, as well as in finance, legal, and human resources functions
  • The incubator should not be disbursing seed fund to startups using funding from any third-party private entity
  • The incubator must have been assisted by the Central/State Government
  • In case the incubator has not been assisted by the Central or State Government:
    • The incubator must be operational for at least three years
    • Must have at least 10 separate startups undergoing incubation in the incubator physically on the date of application
    • Must present audited annual reports for the last 2 years

Experts Advisory Committee (EAC)

An Experts Advisory Committee (EAC) will be constituted by DPIIT, which will be responsible for the overall execution and monitoring of the Startup India Seed Fund Scheme. The EAC will evaluate and select incubators for allotment of Seed Funds, monitor progress, and take all necessary measures for efficient utilization of funds towards the fulfilment of objectives of Startup India Seed Fund Scheme

Assistance to Incubators

  • Experts Advisory Committee (EAC) will evaluate incubators for grant assistance. A Grant of up to Rs. 5 Crores will be provided to a selected incubator in milestone-based three (or) more instalments.
  • The exact quantum of grant and instalments for each incubator will be decided by the Experts Advisory Committee (EAC) based on its evaluation

Selection of Incubators

Online Applications will be invited from incubators across India to participate in the scheme. The applicant needs to apply to the scheme through the official webpage of Startup India.

Incubators shall be selected based on the following parameters:

  • Fulfilment of eligibility criteria
  • Quality of the team of Incubator
  • Available infrastructure, testing labs
  • Composition of ISMC
  • Incubation support provided by the incubator in the last three years
  • Funding support extended to startups in the last three years
  • Mentoring provided to startups in last three years:
  • Other support extended to startups in the last three years
  • Number of startups that the incubator intends to support
  • Quantum of funds applied for, along with fund deployment plan with timelines

Startup India Seed Fund Scheme Application Procedure

The application for Startup India Seed Fund Scheme is as follows:

Selection of Startup

Incubators applying for the Startup India Seed Fund Scheme will constitute a committee called the Incubator Seed Management Committee (ISMC), consisting of experts who can evaluate and select startups for seed support.

Online Application

An online call for applications will be hosted on an ongoing basis on the Startup India portal

Entrepreneurs can apply for seed funds to any three incubators selected as disbursing partners for this scheme in order of their preference. The applicant needs to provide the following details:

  • Team profile
  • Problem statement
  • Product/service overview
  • Business model
  • Customer profile
  • Market size
  • Quantum of funds needed
  • Projected utilization plan for funds

Evaluation of Application

All applications received will be shared online with respective incubators for further evaluation. Eligible applications will be evaluated by ISMC using the following criteria:

Sl.No

Criteria

Details

The weightage (%)

1

Idea

Market size, what market gap is it filling, does it solve a real-world problem?

P

2

Feasibility

Feasibility and reasonability of the technical claims, methodology used/ to be used for PoC and validation, a roadmap for product development

Q

3

Potential Impact

Customer demographic & the technology’s effect on these, national importance (if any)

R

4

Novelty

USP of the technology, associated IP

S

5

Team

Strength of the team, Technical and business expertise

T

6

Fund Utilization Plan

Roadmap of money utilization

U

7

Additional Parameters

Any additional parameters considered appropriate by the incubator

V

8

Presentation

Overall assessment

w

  • The incubator may shortlist applicants based on their evaluation for a presentation before ISMC
  • ISMC shall evaluate applicants based on their submissions and presentations and select startups for Seed Fund within 45 days of receipt of the application
  • All incubators shall provide information about the progress of evaluation of startups in real-time to the Startup India portal

Disbursement of Seed Fund

  • Selected startups shall receive seed funding under the respective incubator that selects them as beneficiaries as per the preference shared during the application
  • All applicants will be able to track the progress of their application on the Startup India portal on a real-time basis

Note: Applicants who are rejected will also be notified through email and an applicant, if rejected once, may apply afresh

Disbursement of Seed Fund to Startups by Incubators

Seed Fund to an eligible startup by the incubator shall be disbursed as follows:

The Government will provide up to Rs. 20 Lakhs as a grant for validation of Proof of Concept, or prototype development, or product trials. The grant will be disbursed in milestone-based instalments. These milestones can be related to the development of a prototype, product testing, building a product ready for market launch, etc.

The Government will provide up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments

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