Activities Round Up

Date : 26 Feb to 26 Feb 2018
Place : NEW DELHI
Organised by : FISME

FISME raises issues of high social security cost, CLCSS in National MSME Board

 

The 16th Meeting of National MSME Bard was held in New Delhi on 26th Feb 2016. While the sector by and large seemed upbeat after Budget pronouncements concerning MSME sector, FISME raised a few important issues during the meet.

Mr. Pankaj Bansal, Treasurer, FISME highlighted the urgency of bringing down the cost of social security- which is greater than 25~3% of wages to not more than 10%. 

He also demanded that the suspense on Credit Linked Capital Subsidy Scheme (CLCSS) should end and Government should categorically spell out about the fate of the highly popular CLCSS scheme used for technological upgradation by MSMEs.    

In a memorandum submitted to the Board, FISME drew attention about applicability of the Long Term Capital gains Tax announced in the Budget 2018, pari passu for transfer of shares of closely held companies. According to the prevalent tax rules whenever an MSME entrepreneur sells shares of these closely held companies, they pay  an upfront 20%  capital gains tax even after ‘long term’ holding. This creates a quite disadvantaged situation vis – a - vis the sellers of ‘trade’ shares.

FISME suggested that the Board may recommend the Government to address this asymmetric and amend the relevant tax laws to charge 10% long term capital gains on the sell of shares of companies without making in distinction whatsoever.