The Coimbatore District Small Industries Association (Codissia) on Friday welcomed the announcements made by Union Finance Minister Nirmala Sitharaman for economic upsurge.
A release said that Codissia’s representation relating to MSMEs’ non-performing assets to be extended has been addressed as “banks do not have to declare any stressed MSME as non-performing asset (NPA) until March 31, 2020.
The announcement has come as a relief to all MSMEs and they can concentrate on future opportunities to increase the business. Banks to increase lending to medium and small-scale enterprises have entered into 14 tie-ups with NBFCs for co-originating loans. Another 36 tie-ups are in the pipeline.
Loan melas by public sector banks have been planned in 400 districts. Companies can opt for concessional rate of tax. Existing companies have to pay tax at 22% while new manufacturing units incorporated on or after October 1, 2019 have to pay tax at 15%. Effective tax rate for manufacturing companies will be 17.01% inclusive of all surcharge and cess. Minimum Alternate Tax is not applicable for above companies. The above measures will help in supply chain for MSMEs. The new tax rate will be applicable from the current financial year, i.e. from April 1, 2019.
Meanwhile, wet grinder manufacturers have welcomed the reduction of GST on the product. Initially, the GST was 28%, then it was brought down to 12% and now it was made 5%. They said that it will benefit the Coimbatore cluster.
