20% rule

The problem in India is that people here are smart enough to circumvent any rule those come-up, with good intentions from the Govt. Anyone can register a company under MSME, import goods, and sale those to private industry and it's within 20% limit. In my 35-years in the industry I see only imported goods are sold by the importer companies to its clients, and the clients pay with RUPEE so they easily classify those goods under MSME quota.

It is time that the Govt. gets smarter and the 20% rule must be specific to direct MSME manufacturer companies who source all (or say over 70 to 80%) raw material requirements from local (within India) vendors. It's very easy to check and implement by the client company, BY ASKING THE MSME COMPANY TO DECLARE THEIR PREVIOUS YEARS IMPORT COMPONENT, AND ALSO OBTAINING A SELF-CERTIFICATE ABOUT THE EXTENT OF THEIR CURRENT YEAR'S IMPORT COMPONENT. more  

View all 7 comments Below 7 comments
good to point out flaws of law, in fact, no body can question mark on the working/intentions of this central govt. but here less than half of the business man are only honest, rest are always try to find a quick money, by using flaws of law. and there is no direct control of central govt, on the state level business. hence central authorities are handicapped on this matter. also, there no feed back mechanism for such misuses. more  
The phenomenon is also prevalent in China also, but their government all out for the exporters. more  
I feel that now we should now start thinking of competing in the international markets and not expect the government to protect us. We will make our mark only if we are able to compete. Of course the government should pull up its executives to come out of its slumber who still view an entrepreneur as a drain on resources of the country. more  
You are 100% right and I agree with you. Our Government should facilitate in Import substitute vigorously by encouraging in setting up more R&D centres by Private entrepreneurs. There is no shortage of scientists and intellectuals in India but due to lack of facilities, under utilized and most of such highly educated people are entering in to their own Business of consultancy or advising Industry. Make in India has to be established with proper actions and opening opportunity. Subhasish Banerjee more  
This problem is not in India only. But it is prevailing more or less similar problem in other countries also. Refer recent financial jugglery of Deutsche Bank. more  
Post a Comment

Related Posts

    • Layoffs everywhere

      Layoffs going on in full swing in IT sector! Daily 1-2 news coming in closed circles... crazy consolidation. Worser than 2000, 2002, 2008-2009 and 2015.

      By Vijaya Nair
    • Terrible job market

      36% students from IIT bombay are unemployed at graduation. Where exactly are we headed as a nation. Imagine the state at NITs and other govt engg colleges. Private colleges to we must forget only. ...

      By Ajay Dutta
    • GST number is designed to compromise your details

      Dumbest thing in GST is using PAN as GST number and Mandating displaying GST number in Sign Boards. So that everyone on street knows our PAN. PAN is used as password in income tax docume...

      By Vinay Sen
    • Will many CAs may have to close soon

      Many CA, CS and CMA Professionals have to either change work or close their practice after this attached circular.

      By Ajay Dutta
    • Google is a pathetic company

      Google India hiked the rate of business mail by 350 %. With fear of recession looming and when msme are struggling this is not the right thing to do. It will cost msme sector 5000 crore per year...

      By Vishal Khanna
    • GST filing

      Still GST system is not 100 % user/official friendly. there are news that so much money (in lacs) collected by fraudulent GST bills. I am a GST registered vendor. The company turn over is almo...

      By Subramanian Venkataraman
    • Taxation Issues faced by Startups: Inputs Sought

      Many of you know how LocalCircles had worked with the Government in 2019 on resolution of angel tax issues under Section 56 (2)(viib) of the Income Tax act. Once again, the Government h...

      By LocalCircles Manager
    • Why no penalty an dprosecution for govt

      Now our IT portal has become sick being suffering babu virus or extortion virus. McA site never works on last days and people have to pay penalties for mistakes of govt. Now professionals are wasti...

    • Income Tax Return Filing Portal

      What about income tax return filing date? Any extension thereof? As of today, I am not able to file the return . Has any one else file the income tax return? Has Portal issue been solved? I have al...

      By Hasmukh Sangani
    • Grass root experience

      I have been doing and promoting small business for the last 30 years. The real problem is that the ministers and their secretaries don't have practical experience and they look for 5 trillion dolla...

    • Why do Ministers refrain from engaging with businesses

      I find it quite interesting that the ministers want to deal only with tata adani ambani and not the real msme and startups. Why is the msme minister (appointed this week Narayan Rane) his secretary...

      By Aditi Mitra
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)