The Union Budget 2016-17 laid special emphasis on job creation and outlined measures to facilitate ease of doing business whilst simultaneously boosting the agricultural sector and the infrastructural growth. Measures such as lower corporate rate for small enterprises, increased turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act for assesses in MSME category and few others are welcome move for SME players.
Mr. R. Narayan, Founder & CEO, Power2SME said that, “The Union Budget 2016-17 acknowledged some of the challenges hindering progress in the MSME sector. In its present form the allocations designed only continue to support the measures that were previously extended to the Startup & SME ecosystem.” He further added that, “These measures, however, may not reflect significantly tangible results for the startup & SME space as yet. The sector still looks forward to developments related to GST and clarity on utilization of funds being allocated towards Mudra Yojana in previous and in current Budget, to harness the sector’s full potential.”
Government’s announcement for new manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25% + surcharge, will attract entrepreneurial push in the manufacturing sector. However, the turnover limit announced under Presumptive Taxation scheme could have been clocked between 3-5 crores and tax benefit of 25% + surcharge must have been given to larger set of manufacturing units with lesser number of existence.
With continued focus on the Make in India Campaign, Swacch Bharat Abhiyaan and Skill India Campaign, government has announced measures that will indirectly impact MSME sector. Extended allocation of money towards Skill India, changes in customs and excise duty rates on certain inputs, introduction of Model Shops and Establishments Bill, that allow small, medium shop owners to do business 24x7, are some measures that will improve competitiveness and boost domestic demand.
About Power2SME
The first ‘Buying Club’ for SMEs in India, Power2SME, financially backed by Nandan Nilekani, Inventus Capital Partners, Kalaari Capital and Accel Partners, began operations in 2012. Committed to empowering SMEs by increasing their profits, Power2SME focuses on reducing purchase prices for SMEs and enhancing productivity. Power2SME enables SME clients to focus on their core business of driving growth and expansion, while taking on the role of sourcing input raw materials at the most competitive price points across multiple products in categories such as Chemicals, Additives, Inks, Paints, Metals, Polymer Commodity, Polymer Engineering, etc.
Power2SME works with established and trusted suppliers such as SAIL, TATA Steel, ESSAR Steel, Allied Strips, JSW, Rathi Steel, Victor Exim, Balaji Enterprise, POSCO Steel, Apollo Pipes, JSL, and many more
Company website: http://www.power2sme.com
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