The Finance Minister announced an investment-linked tax incentive scheme for farm produce and warehouses in the Union Budget. The scheme proposes that all capital expenditure to build and operate such facilities would be fully eligible for small business tax deductions. Business expenditures on land, goodwill and financial instruments would not be eligible for the deductions, said LiveMint.com.

The proposal is aimed at reducing waste of perishables and attracting investment into the sector. The scheme was welcomed as a big boost to the cold chain and warehousing sector. Currently, small businesses are eligible for a subsidy and the Income Tax Act allows several exemptions and deductions. These, however, are not sufficient to invite investment. порно xxx

The Development Commissioner (MSME) announced a support scheme for MSMEs through incubators for entrepreneurial and management development. The main objective of the scheme is promoting technological and knowledge-based ventures to create innovative new business ideas, said the SME Times.

The Ministry of MSME, which oversees entrepreneurship and creation of employment, is heading up the initiative.

For details on the guidelines of the scheme, application form for submission of proposals,

visit: http://www.dcmsme.gov.in/schemes/NMCPscheme.htm

A policy revision for units in Karnataka special economic zones (SEZs) has withdrawn an earlier blanket exemption on service tax. Units will now have to pay service tax and claim refunds later. This has raised concerns among the units that they would require more cash in their kitties, as previous experiences in getting refunds have meant long delays. There is already a pending notification of Clause 10AA announced by the finance ministry in the interim budget concerning revised income tax exemptions. The good news is that the policy now requires SEZ units to be exempt from paying stamp duty up to 8 per cent and will be fully exempt from paying value added tax (VAT). VAT was to be earlier refunded.

The India government has revised foreign direct investment (FDI) norms in what is being seen as populist pre-election move. The revision will permit a foreign investor with a non-controlling stake in an Indian company, to also invest in minority stakes of other Indian companies which are stake holders in the target company.
The move is being met with resistance by several lobbies and is being seen as intended loophole to FDI caps. Retail and telecom are seen as the top beneficiaries of the move.

All 28 public sector banks have reduced interest rates. While Indian small and medium enterprises will receive a reduction of 50 basis points, micro enterprises will receive a rate reduction totalling 100 basis points in interest.

Officials at the Orissa State Level Bankers Committee meeting urged bankers to fulfil their MSME loan targets for this financial year, increase loan extensions under the Credit Linked Capital Subsidy Scheme and tap into micro-finance institutions to service rural markets.

In order to extend credit beyond the mining industry, the Committee also recommended that the Khadi and Village Industries Board raise lending targets set under the Pradhanmantri Employment Guarantee Programme (PMEGP).

The Reserve Bank of India (RBI) and the government of India are requiring banks to double their 2005 credit flow by 2010 to support the Indian small business sector during the economic downturn.

The mandate originated at a Officials of the State Level Bankers Committee (SLBC) meeting, held in Karnataka to discuss issues related to Small and Medium Enterprises (SMEs) during the economic downturn.