What's in the budget 2010 for MSME's ?
1. Extension of existing interest subvention of 2% for one more year for exports covering handicrafts, carpets, handlooms and small and medium enterprises.
2. High Level Council on Micro and Small Enterprises to monitor the implementation of the recommendations of High-Level Task Force constituted by Prime Minister.
1. Increase sub-limit to 6 percent from 4.9 percent
2. Shortage of credit
3. Need for a focused procurement policy
4. Prompt payment of MSME dues
5. Additional finances from SIDBI
6. Simplification of labour laws to prevent inspector raj
7. Formulation of a one-time settlement policy to strengthen the MSME industries
8. Remove bottlenecks in their development.
3. The corpus for Micro-Finance Development and Equity Fund doubled to Rs. 400 crore in 2010-11.
4. National Social Security Fund for unorganized sector workers to be set up with an initial allocation of Rs. 1000 crore. This fund will support schemes for weavers, toddy tappers, rickshaw pullers, bidi workers etc.
5. Limits for turnover over which accounts need to be audited enhanced to Rs. 60 lakh for businesses and to Rs. 15 lakh for professions.
6. Limit of turnover for the purse of presumptive taxation of small businesses enhanced to Rs. 60 lakh.
7. To facilitate the conversion of small companies into Limited Liability Partnerships, transfer of assets as a result of such conversion not to be subject to capital gains tax.
8. To ease the cash flow position for small-scale manufacturers, they would be permitted to take full credit of Central Excise duty paid on capital goods in a single installment in the year of their receipt. Secondly, they would be permitted to pay Central Excise duty on a quarterly, rather than monthly basis.
9. Reduction in central excise duty on corrugated boxes and cartons from 8% to 4%.
10. Enhancement of weighted deduction on payments made to National Laboratories, research associations, colleges, universities and other institutions, for scientific research from 125% to 175%.