A COVID19 Relief Package for SMEs
ECONOMY & POLICY

A COVID19 Relief Package for SMEs

Fiscal stimulus through Direct Benefit Transfer is surely the way to help the economically weaker sections but what about the 7,00,000 tax paying SMEs? Their businesses are completely jolted and disrupted. Even from the 70 million SMEs in the country 99% have a turnover of less than Rs 250 crores (Rs 2.5 billion). They do not have the cash to run the operation for more than a month or two and hence the government needs to act and FAST!

Here is the "Relief Package" that the Govt of India needs to introduce for SMEs due to the COVID19 outbreak.

1. Defer tax payment deadlines by a month
2. All defaults on contracts expecting execution by March to be given a three-month extension.
3. Allow corporates / firms paying taxes of less that Rs 50 lacs, a three-month extension
4. Loan defaults which have got triggered in Jan-March 2020 to be given a six-month extension
5. Extend Vivaad se Vishwas amnesty scheme by two months and release all dues back to the taxpayer once settled.
6. Announce 'interest payment holiday' for borrowers bearing loans during Jan - March 2020 for three months
7. Align GST rates to two slabs
8. All employers, who do not retrench staff during March - June 2020 and have a turnover of less than Rs 250 crores (Rs 2.5 billion), to be given a tax deduction of 25% of tax payable
9. Tax refunds & exporter drawbacks held up need to be released on an urgent basis
10. Legal compliances for PF/ GST/ TDS need to be considered leniently for April 2020

Pratap Padode, Founder, ASAPP Info Global Group, and Founder & Executive Director at FIRST Construction Council and Smart Cities Council India


Fiscal stimulus through Direct Benefit Transfer is surely the way to help the economically weaker sections but what about the 7,00,000 tax paying SMEs? Their businesses are completely jolted and disrupted. Even from the 70 million SMEs in the country 99% have a turnover of less than Rs 250 crores (Rs 2.5 billion). They do not have the cash to run the operation for more than a month or two and hence the government needs to act and FAST! Here is the Relief Package that the Govt of India needs to introduce for SMEs due to the COVID19 outbreak.1. Defer tax payment deadlines by a month 2. All defaults on contracts expecting execution by March to be given a three-month extension. 3. Allow corporates / firms paying taxes of less that Rs 50 lacs, a three-month extension 4. Loan defaults which have got triggered in Jan-March 2020 to be given a six-month extension 5. Extend Vivaad se Vishwas amnesty scheme by two months and release all dues back to the taxpayer once settled. 6. Announce 'interest payment holiday' for borrowers bearing loans during Jan - March 2020 for three months 7. Align GST rates to two slabs 8. All employers, who do not retrench staff during March - June 2020 and have a turnover of less than Rs 250 crores (Rs 2.5 billion), to be given a tax deduction of 25% of tax payable 9. Tax refunds & exporter drawbacks held up need to be released on an urgent basis 10. Legal compliances for PF/ GST/ TDS need to be considered leniently for April 2020 Pratap Padode, Founder, ASAPP Info Global Group, and Founder & Executive Director at FIRST Construction Council and Smart Cities Council India

Next Story
Infrastructure Urban

CONCOR Launches Double-stack Service Between NCR and Varnama

State-run Container Corporation of India (CONCOR) has launched double-stack container train services between the National Capital Region (NCR) and Varnama near Baroda. This initiative aims to facilitate customers at Nhava Sheva near Mumbai, home to Jawaharlal Nehru Port (J N Port). On December 21, the first double-stack container train from Khatuwas and Dadri in NCR reached CONCOR’s Gati Shakti Multimodal Cargo Terminal (GCT) at Varnama, situated along the Western Dedicated Freight Corridor (WDFC). The train carried export cargo destined for J N Port, according to a statement from the state..

Next Story
Infrastructure Transport

Less than 10% of Rs 40 Billion State-aid for Shipbuilding Utilised

A government-sanctioned financial assistance program worth Rs 40 billion, intended to support local shipbuilders over a decade starting in April 2016, has seen minimal utilisation, with only Rs 3.85 billion—less than 10 per cent of the total fund—disbursed thus far. With 15 months remaining before the scheme concludes, its uptake has been limited. The financial aid applies to shipbuilding contracts signed between April 1, 2016, and March 31, 2026. According to a written response provided by Union Minister of Ports, Shipping, and Waterways Sarbananda Sonowal to the Rajya Sabha on December ..

Next Story
Infrastructure Transport

Civil Aviation Minister Opens New ATC Tower at Indore Airport

The Minister for Civil Aviation, Ram Mohan Naidu Kinjarapu, inaugurated the new Air Traffic Control (ATC) Tower-cum-technical block at Devi Ahilyabai Holkar International Airport in Indore, Madhya Pradesh. During the inauguration, the minister toured the facility, where ATC experts explained various technical aspects of tracking and coordinating flights from the newly constructed tower. In addition to the ATC tower, the airport has also introduced a zero-waste plant. The union minister confirmed that this initiative aligns with the government’s commitment to sustainability. Minister Ki..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000