COSIA Vidarbha Chapter meets Maharashtra Industry Minister 

Office bearers of COSIA Vidarbha called upon Shri Subhash Desai, Minister of Industries, Maharashtra State at Nagpur & apprised him of various issues & problems faced by MSMEs in Vidarbha region. COSIA submitted a memorandum briefing about various issues & probable solutions to the Minister on his visit to Nagpur City on 16.02.2022. The major issues highlighted in the memorandum were regarding Injustice met to Special LSI units in PSI -19 scheme. 

As per Package Scheme of Incentives {PSI-2019}, a special LSI is a one having eligible investment of more than Rs 50 crores but less than 100 crores. Whereas units below 50 crores investments & units above 100 crores including mega units are getting IPS in the form of Gross SGST reimbursement, only for special LSI it is provided NET SGST & that too only 40% which in majority of the cases are unable to claim benefits. Hence investing between 50 crores to 100 crores as Special LSI doesn't give them any major benefits & is sort of discrimination for the units falling within this investment bracket. Hence COSIA Vidarbha suggested to remove this anomaly & demanded to give Special LSIs incentives at least at par with LSI units

Second issue that was taken up in the memorandum was regarding hindrance caused due to levy of tax on MIDC plot allottees on Ready Reckoner Rates basis.

The rates of property on Ready Reckoner Rates are usually implemented in areas where there is no prescribed rate to calculate tax on property, or calculate income on sale of property or transfer the long term “lease hold rights” or to levy stamp duty in case of commercial transactions of immovable property. These rates are fixed on earlier commercial transactions of property that has taken place in similar location. This “Ready Reckoner Rates” are taken as the base to calculate the property tax for local body including Gram Panchayats. It is also taken as basis to calculate “Stamp Duty” and also as base on evaluation of Direct Tax by Revenue Department (Income Tax). Now, MIDC offers its land for lease specifically for industrial use only & thus rates of allotment for lease is also much less than RR Rates. Therefore taking “Ready Reckoner Rates” as base in MIDC areas is totally illogical and has its adverse effects like Inflated Stamp Duty, Inflated Capital Gain Tax & Inflated levy of property tax by local bodies, which results in hindrance of industrial development & discouraging transfer of sick/NCLT units to the prospective buyers. CA Julfesh Shah, Chairman COSIA Vidarbha ,Shri Vaibhav Agrawal, Vice Chairman & Pranav Ambaselkar Secretary were present in the meeting.

Be a part of COSIA