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March 9, 2016 || FAPCCI Review || 3

PresidentANIL REDDY VENNAM

Senior Vice-PresidentRAVINDRA MODI

Vice-PresidentGOWRA SRINIVAS

Immediate Past PresidentSHIV KUMAR RUNGTA

Managing Committee

ARUN KUMAR DUKKIPATIMEELA JAYADEVANIL AGARWALVENKAT JASTI

M.S.P. RAMA RAOMANOJ KUMAR AGARWAL

CV ANIRUDH RAOAVINASH GUPTA

KARODIMAL AGARWALATHUKURI ANJANEYULU

B. P. SINGHALK. RAMABRAHMAM

A. PRAKASHVAKKALAGADDA BHASKARA RAO

MS.VINITA SURANAPOLAVARAPU PREM KUMAR

K. BHASKER REDDYDr .M. APPAYYA

SURESH KUMAR SINGHALRAJ KUMAR AGRAWAL

PREM CHAND KANKARIAARUN LUHARUKA

SHYAM SUNDER PASARICHALLA GUNARANJAN

V.V. SANYASI RAOPRAKASH CHANDRA GARG

G. APPNENDER BABUSUNIL KUMAR PATODIA

J. S. KARUNENDRAR. RAVI KUMAR

Dr. K. NARAYANA REDDYJITENDER KUMAR GUPTA

SHIV KUMAR GUPTAM SREE RAMA MURTHY

ESTD. 1917 Weekly Journal of the Federation of Andhra Pradesh Chambers of Commerce & Industry

Vol.XVI - No.10 March 9, 2016 Rs.15

Editor : P. VYDEHI, Secretary (I/c)

Editorial Advisory Board

M. GOPALAKRISHNA, I.A.S. (Retd.)

OMPRAKASH TIBREWALA NITIN K. PAREKHPast President, FAPCCI Member – FAPCCI

Dr. C.V. NARASIMHA REDDYDirector, Dept. of Information & Public Relations, Govt. of AP (Retd.)

The views expressed by the authors in their articles published in this magazine aretheir personal views and do not necessarily reflect the views of FAPCCI.

The Federation of Andhra Pradesh Chambers of Commerce & IndustryFederation House, FAPCCI Marg, Red Hills, Hyderabad - 500 004.

� : 23395515 (8 Lines), 66755021, 66755026 � Fax : 040-23395525E-mail : [email protected] � Website : www.fapcci.in

CONTENTS

FTAPCCI Program Proceedings 4

Budget 2016-17 - Key features 8

FAQ on Payment of Bonus Act, 1936 16

Forthcoming Events

Seminar on “Sustainable Development of

Poultry Sector in India” 20

Presentation on “The Great Digital Revolution

2016-The Impact of digital marketing on

your business” 22

4 || FAPCCI Review || March 9, 2016

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Seminar on Trade & Investment Opportunities inSouth Africa held on 22nd February, 2016 atHyderabad.

Mr. Phillip Mtsweni, Consul-Economic, South AfricanConsulate General welcomed the participants and saidthat the Seminar is intended to create awareness aboutbusiness opportunities and promoting trade andinvestment partnershipsbetween India andSouth Africa moreparticularly with Statesof Telangana andAndhra Pradesh.

Mr. Ravindra Modi,Senior Vice President,FTAPCCI informed thatFTAPCCI is workingvery closely with theHigh Commission ofSouth Africa in Delhi andmore particularly withConsulate General of South Africa in Mumbai, topromote the trade between the two countries byorganizing interaction meetings with the businessdelegations on a regular basis. He said that India andSouth Africa stand to mutually gain from our bilateraltrade relations, particularly in these competitive arenaacross the globe and requested the participants to takeadvantage of presence of this sizeable South Africanbusiness delegation during B2B meetings in having newcollaborations. Mr. France K Morule, High

Commissioner of South Africa to India informed thatSouth Africa is offering opportunities for investmentin diverse sectors ranging from mining, renewableenergy, agro processing, IT and BPO, automotive andcomponents and pharmaceuticals. He said that SouthAfrica has evolved and extended its capacity in varioussectors across the market which comes from its strong

ties and proficiency inbuilding trade partnerships,investment opportunitiesand brand promotions.With an aim to achieve $20billion trade with India by2018, South Africa isscouting for opportunitiesacross the country and iskeen to participate ininfrastructure projects bothin Telangana and AndhraPradesh. The 7thInvestment and TradeInitiative (ITI) is a part of

Department of Trade and Investment’s attempt toleverage South Africa as a preferred choice for bilateraltrade and investments with India. A delegation of 23South African small and medium companies includingProvincial Investment Promotion Agencies (MEGAand TIKZN) joined the initiative.

Ms.Mamotseki Hall and Ms.Yandeya Mashau gavepresentation on trade and investment opportunities inSouth Africa.

MSME Financial Assistance

Help Desk at FTAPCCI Every Saturday The following Banks has agreed to provide services throughthe Help Desk. 1. State Bank of India - 11.00 am to 1.00 pm 2. Andhra Bank - 2.30 pm to 5.30 pmMembers are requested to avail this opportunity and reap the benefit by interacting on every Saturday.

For appointments and other details contactMr. R. Kulkarni, Joint Director & Head Membership Wing at FTAPCCI

Ph : 8008579625; 040-23395515-22; email: [email protected]


SMB Connect, New Delhi, a knowledge-led platformfor small and medium businesses has organized 3rdedition of START MANAGE EXPAND, in association with FTAPCCI, on 22nd February 2016at hotel Fortune Murali Park, Vijayawada and on 24thFebruary at Hotel Gateway, Visakhapatnamrespectively. Mrs. A. Rajyalaxmi, Asst. Director,FTAPCCI attended the Programme at Vijayawadaand Sri. C. Anirudh Rao, Member, ManagingCommittee, FTAPCCI has attended the programmeat Visakhapatnam.

The objective of the program is to provide valuablebusiness inputs to MSME. A business or an industryby any nature small medium or even large, certain gapswill always emerge at different levels. And one needsto understand those gaps significantly, and to fill thegaps with suitable solutions.

Mr Syam Sekhar S, Chief Mentor & Strategist fromChennai, has addressed the gathering and explainedsmooth ways to fill business gaps through a

presentation. During the programme, FTAPCCI hadintroduced its services and contribution towards thegrowth of industry and trade in the State of AndhraPradesh both at Vijayawada and Vizag.

Mr Anirudh had a chance to thank SMB Connectfrom New delhi for choosing FTAPCCI as itsAssociation Partner for this program and selecting thisknowledge based program at Vizag.

Mr. Sanjay Tiwari, Sr. Manager SME Solutions ofVodafone explained on the new cloud basedtechnologies its has introduced to facilitate the industryand business fraternity in India.

Ms Muzeena, Senior Manager HR, Training &Placement from Radha madhav Adhistanam has spokeon how to retain best talent in the industry or abusiness. She has explained comprehensively thedesigning HR policies and developing an Employee and Employer relationship in an organisation.

FTAPCCI has conducted a Program on“Entrepreneur Development Skills” at HotelSarovar, Ongole on 27th February 2016 for thebenefit of prospective and existingentrepreneurs and unemployedyouth in the Prakasam District.

The objective of the event was tocreate awareness among youngaspirants from Prakasham Districton emerging opportunities forentrepreneurs, MSME’s in thenewly formed state of AndhraPradesh and to provideentrepreneur development skillsthrough introducing EDP center inthe district.

Sri N Nageswarao President QIS EducationalInstitute, Ongole, Sri Murali Mohan General Manager, DIC, Sri Ramesh Branch Manager- SME SBI, SriRajendra Prasad FCA, M\s Kurapati Subba Rao &

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Co, Ongole. Welcoming the participants and guests,Sri Anil Reddy, Vennam, President FTAPCCI, gaveintroduction of FTAPCCI and its services for the

development of industry and trade in the State. Healso gave the detailed note of current industry scenarioand investment opportunities in different sectors,especially in Prakasam dist.

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Sri N. Nageswarao President QIS EducationalInstitute, Ongole addressed on the current and pasteconomic condition of the district. Being anacademician, he stressed more on education, itsgrowing importance and quality, skills for the district.He said the Government of AP is facilitating withseveral opportunities to young generation, hence it’sthe time for young aspirants to grap that opportunityin the form of startups and entrepreneurs of the stateof Andhra Pradesh.

Sri Murali Mohan GM DIC has spoke on thegovernment initiatives, subsidies for new industries andexisting industries in the district, land availability policyetc, and he would extend the support to entrepreneurs

The Inland Waterways Authority of India (IWAI)organised stakeholder summit at Vijayawada on 3rdMarch 2016. Ms. Rajyalakshmi, Asst. Director,FTAPCCI attended the summit.

IWAI has initiated action for development of Phase-Iof National Waterway 4 (NW) in Andhra Pradesh.The initiative is for providing a fairway with requisiteterminal facilities for movement of cargo vessels of 700tonne capacity from Kakinada to Ennore throughirrigation and North Buckingham Canal system.

The Krishna river stretch from Vijayawada to Muktyalawill also be developed on priority for providingconnectivity to new capital at Amravathi through IWTmode.

The development of the balance stretch of the riversconnecting Bhadrachalam & Wazirabad shall be takenup in Phase II, after the construction of dams atpollavaram & Pulichintala with suitable navigationlocks.

Due to the requirement of large investment forproviding the desired fairway & Infrastructure, IWAIhas engaged M/S Feedback Infra Pvt Ltd Gurgaonas the strategic consultant to explore the feasibility fordeveloping the waterway through PPP mode.

Hon’ble Chief Minister Shri N Chandrababu Naiduhas graced the event as chief guest. He suggested IWAIto take steps for increasing the quantity of goods

transported through inland waterways in the State by5% coming year.

The Krishna River and its canal network and theGodavari river system had tremendous potential forgoods transportation. Development of nationalwaterway 4 is on top of government’s agenda.

He expressed that India has scope and huge potentialfor inland waterways but due to lack of propermechanism, we are only at 0.3% of the goodstransportation through inland waterways in Indiacompared to 8.7% in China and a whopping 42% inNorway.

The NW4 could be transformed into a model for otherwaterways provided the NHAI and otherstakeholders collaborate with each other closely whilethe central and the state governments provides therequisite funds. The river front along the upcomingcapital city Amravati could be utilized fortransportation as well as for tourist attraction.

IWAI Chairman Shri Amitabh Verma said the 880 kmlong waterway connecting Buckingham Canal toWazirabad in Nalgonda district through Kakinada,Eluru and Vijayawada was under development. Thirtymillion tons cargo could be transported through it bythe year 2021. Irrigation Minister Sri D UmaMaheswara Rao and Energy Secretary Sri Ajay Jainwere among those present at the Summit.

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for setting up of the industries in Prakasham District.Sri Ramesh, Branch Manager SME SBI, gave adetailed note on the various government schemespertaining to industries, entrepreneurs and start upsincluding MUDRA scheme.

Sri Rajendra Prasad has explained through apresentation to the participants, how to start a business,manage the fund flow, preparation of project reportbefore to start any business or manufacturing activity.

Smt. A. rajyalaksmi, Asst. director, FTAPCCI in herVote of thanks, thanked all the participants fromOngole and support extended by QIS EducationInstitute and Balaji Industries in organizing theProgramme.


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FTAPCCI organized a Seminar on Post Union Budget2016-17 implications for trade and industry withknowledge partner of Deloitte Touche Tohmatsu IndiaLLP on March 1, 2016 at KLN Prasad Auditorium,FTAPCCI.

Sri Anil Reddy Vennam, President FTAPCCIwelcomed the announcement of share of central taxesto Andhra Pradesh, Telangana states as Rs.24,637.36crore and Rs .13,955.35 crore respectively. Theallocations were done to Educational institutions andother projects in the Telugu states.

The allocation for bank capitalization of 25,000 crorerupees is meager, as Economic Survey has identifiedallocation of 1,80,000 crores as the need of this vitalsector. The banking sector has a major role to play inspurring private investment which is lacking and withoutwhich the all-round economic revival is not a possibility.

The budget was focused on start ups in line with themake in India mission however 100% tax deductionfor new star ups for first 3 years is not enough it shouldbe extended to 5years. Because up to 3 yearscompanies may not generate any profit.

Sri Arun Luharuka, Chairman Direct taxes Committee,FTAPCCI stated that there are key challenges to theGovt. i.e. one is passing of GST, rationalization of

subsidy, Bank recapitalization, doubling of farm incomein the year 2020.

Sri S. Thirumalai, Advisor, Indirect Taxes Committee,FTAPCCI stated that if you look at the entire budgetmaking we will find out that entire budgetary supportfor 2015-16 has come from excise duty on crude oil,now the prices of oils are come down the govt. hastransferred the excises duty portion to the oilcompanies to minimize their losses.

Smt. R. Shakuntala, IRS, Chief Commissioner ofCustoms, Central Excise and Service Taxcomplimented the FTAPCCI for organizing this postbudget analysis to understand the implications on thetax proposals to the trade and industry. She furtherstated that FTAPCCI has acting as catalyst betweenthe govt. and the dealers and played the advisory aswell as consultative role. She has informed thebudgetary changes in the Central Excise, Customs andService Tax.

* Excise on readymade garments with retail priceof ‘ 1000 or more raised to 2% without input tax creditor 12.5% with input tax credit.

* Excise duty of ‘1% without input tax credit or12.5% with input tax credit’ on articles of jewellery[excluding silver jewellery, other than studded with


diamonds and some other precious stones], with ahigher exemption and eligibility limits of ̀ 6 crores and12 crores respectively.

* ‘Clean Energy Cess’ levied on coal, lignite andpeat renamed to ‘Clean Environment Cess’ and rateincreased from ̀ 200 per tonne to ̀ 400 per tonne.

* Excise duties on various tobacco products otherthan beedi raised by about 10 to 15%.

* Assignment of right to use the spectrum and itstransfers has been deducted as a service leviable toservice tax and not sale of intangible goods.

* Krishi Kalyan Cess, @ 0.5% on all taxableservices, w.e.f. 1 June 2016.

* Infrastructure cess, of 1% on small petrol, LPG,CNG cars, 2.5% on diesel cars of certain capacityand 4% on other higher engine capacity vehicles 13and SUVs. No credit of this cess will be available norcredit of any other tax or duty be utilized for payingthis cess.

Sri Ravindra Modi, Sr. Vice President, FTAPCCIproposed vote of thanks Sri Gowra Srinivas, VicePresident, FTAPCCI was also participated in theSeminar.

Dr. Sarat Dhal, Director, Department of Economic andPolicy Research (DEPR), Reserve Bank of India,Kolkata briefly spoke about the Role of Government.He said it is always shifting of burden from to another.

He also said that the ability of the government to makeits policies clear.

He then stated that the budget was covered under 9pillars Agriculture, Rural, Social sector, Skills, Easeof Doing Business and Tax and Compliance reforms.He drew the attention of the members present aboutgovernment’s view i.e. from “Food Security” to“Income Security”.

He also clarified on Monetary Policy and FiscalPolicy. The aim of a policy is welfare of the Societyat large and it is based on more production and lessof taxes. He also described about the components ofgrowth factors i.e. capital, labour, infrastructure, etc.

Regarding taxes, stability in tax regimen boosts investorconfidence. He also said that Budget is not only abouttaxes, there are several other things that a governmenthas to do and which may not be visible with examples.

He said that the government expenditure was undercontrol and it is a good sign.

The technical session were handled by Sri K. S.Prasad, Tax Partner, Deloitte on Direct taxesProposals, Sri Subhobrata Sen, Senior Director -Transfer Pricing, Deloitte on Transfer Pricing, Sri JatinArora, Director – Indirect Tax, Deloitte on IndirectTaxes Proposals

Key Features of Budget 2016-2017

* Growth of Economy accelerated to 7.6% in2015-16.

* India hailed as a ‘bright spot’ amidst a slowingglobal economy by IMF.

* Robust growth achieved despite veryunfavourable global conditions and twoconsecutive years shortfall in monsoon by 13%

* Foreign exchange reserves touched highest everlevel of about 350 billion US dollars.

* Despite increased devolution to States by 55%as a result of the 14th Finance Commission award,plan expenditure increased at RE stage in 2015-16 – in contrast to earlier years.

IntroductionRisks of further global slowdown and turbulence.

Additional fiscal burden due to 7th Central Pay Commission recommendations and OROP.

ROADMAP & PRIORITIES

‘Transform India’ to have a significant impact oneconomy and lives of people.

Government to focus on – ensuring macro-economicstability and prudent fiscal management.

* boosting on domestic demand

* continuing with the pace of economic reforms andpolicy initiatives to change the lives of our people forthe better.

CHALLENGES IN 2016-17


Focus on enhancing expenditure in priority areas of -farm and rural sector, social sector, infrastructuresector employment generation and recapitalisation ofthe banks.

Focus on Vulnerable sections through:

* Pradhan Mantri Fasal Bima Yojana

* New health insurance scheme to protect againsthospitalisation expenditure

* facility of cooking gas connection for BPL families

Continue with the ongoing reform programme andensure passage of the Goods and Service Tax bill andInsolvency and Bankruptcy law

Undertake important reforms by:

* giving a statutory backing to AADHAR platformto ensure benefits reach the deserving.

* freeing the transport sector from constraints andrestrictions

* incentivising gas discovery and exploration byproviding calibrated marketing freedom

* enactment of a comprehensive law to deal withresolution of financial firms

* provide legal framework for dispute resolution andre-negotiations in PPP projects and public utilitycontracts

* undertake important banking sector reforms andpublic listing of general insurance companies undertakesignificant changes in FDI policy.

AGRICULTURE AND FARMERS’ WELFARE

* Allocation for Agriculture and Farmers’ welfareis ‘ 35,984 crore

* ‘Pradhan Mantri Krishi Sinchai Yojana’ to beimplemented in mission mode. 28.5 lakh hectareswill be brought under irrigation.

* Implementation of 89 irrigation projects underAIBP, which are languishing for a long time, will befast tracked

* A dedicated Long Term Irrigation Fund will becreated in NABARD with an initial corpus of about ‘20,000 crore

Programme for sustainable management of groundwater resources with an estimated cost of ‘ 6,000

crore will be implemented through multilateral funding

* 5 lakh farm ponds and dug wells in rain fed areasand 10 lakh compost pits for production of organicmanure will be taken up under MGNREGA

* Soil Health Card scheme will cover all 14 crorefarm holdings by March 2017.

* 2,000 model retail outlets of Fertilizer companieswill be provided with soil and seed testing facilitiesduring the next three years

* Promote organic farming through ‘ParmparagatKrishi Vikas Yojana’ and ‘Organic Value ChainDevelopment in North East Region’.

* Unified Agricultural Marketing ePlatform toprovide a common e- market platform for wholesalemarkets

* Allocation under Pradhan Mantri Gram SadakYojana increased to ‘ 19,000 crore. Will connectremaining 65,000 eligible habitations by 2019.

* To reduce the burden of loan repayment onfarmers, a provision of ‘ 15,000 crore has been madein the BE 2016-17 towards interest subvention

* Allocation under Prime Minister Fasal BimaYojana ‘ 5,500 crore.

* ‘ 850 crore for four dairying projects -‘Pashudhan Sanjivani’, ‘Nakul Swasthya Patra’,‘E-Pashudhan Haat’ and National Genomic Centrefor indigenous breeds.

RURAL SECTOR* Allocation for rural sector - ‘ 87,765 crore.

* ‘2.87 lakh crore will be given as Grant in Aid toGram Panchayats and Municipalities as per therecommendations of the 14 Finance Commission

* Every block under drought and rural distress willbe taken up as an intensive Block under the DeenDayal Antyodaya Mission

* A sum of ‘ 38,500 crore allocated forMGNREGS.

* 300 Rurban Clusters will be developed underthe Shyama Prasad Mukherjee Rurban Mission

* 100% village electrification by 1st May, 2018.

* District Level Committees under Chairmanshipof senior most Lok Sabha MP from the district for


monitoring and implementation of designated CentralSector and Centrally Sponsored Schemes.

* Priority allocation from Centrally SponsoredSchemes to be made to reward villages that havebecome free from open defecation.

* A new Digital Literacy Mission Scheme for ruralIndia to cover around 6 crore additional householdwithin the next 3 years.

* National Land Record ModernisationProgramme has been revamped.

* New scheme Rashtriya Gram Swaraj Abhiyanproposed with allocation of ‘ 655 crore.

SOCIAL SECTOR INCLUDING HEALTHCARE* Allocation for social sector including educationand health care – ‘1,51,581 crore.

* 2,000 crore allocated for initial cost of providingLPG connections to BPL families.

* New health protection scheme will provide healthcover up to ‘ One lakh per family. For senior citizensan additional top-up package up to ‘ 30,000 will beprovided.

* 3,000 Stores under Prime Minister’s JanAushadhi Yojana will be opened during 2016-17.

* ‘National Dialysis Services Programme’ to bestarted under National Health Mission through PPPmode

* “Stand Up India Scheme” to facilitate at least twoprojects per bank branch. This will benefit at least2.5 lakh entrepreneurs.

/ National Scheduled Caste and Scheduled TribeHub to be set up in partnership with industryassociations

* Allocation of ‘ 100 crore each for celebrating theBirth Centenary of Pandit Deen Dayal Upadhyayand the 350th Birth Anniversary of Guru GobindSingh.

EDUCATION, SKILLS AND JOB CREATION

* 62 new Navodaya Vidyalayas will be opened

Sarva Shiksha Abhiyan to increasing focus on qualityof education

* Regulatory architecture to be provided to ten

public and ten private institutions to emerge as world-class Teaching and Research Institutions

* Higher Education Financing Agency to be set-up with initial capital base of ‘ 1000 Crores

* Digital Depository for School LeavingCertificates, College Degrees, Academic Awardsand Mark sheets to be set-up.

SKILL DEVELOPMENT* Allocation for skill development – ‘ 1804. crore.

* 1500 Multi Skill Training Institutes to be set-up.

* National Board for Skill DevelopmentCertification to be setup in partnership with theindustry and academia Entrepreneurship Education andTraining through Massive Open Online Courses

JOB CREATION

* GoI will pay contribution of 8.33% for of all newemployees enrolling in EPFO for the first three yearsof their employment. Budget provision of ‘ 1000 crorefor this scheme.

* Deduction under Section 80JJAA of the IncomeTax Act will be available to all assesses who aresubject to statutory audit under the Act

* 100 Model Career Centres to operational by theend of 2016-17 under National Career Service.

* Model Shops and Establishments Bill to becirculated to States.

INFRASTRUCTURE AND INVESTMENT* Total investment in the road sector, includingPMGSY allocation, would be ‘ 97,000 crore during2016-17.

* India’s highest ever kilometres of new highwayswere awarded in 2015. To approve nearly 10,000kms of National Highways in 2016-17.

* Allocation of ‘ 55,000 crore in the Budget forRoads. Additional ‘ 15,000 crore to be raised byNHAI through bonds.

* Total outlay for infrastructure - ‘ 2,21,246crore.

* Amendments to be made in Motor Vehicles Actto open up the road transport sector in the passengersegment

* Action plan for revival of unserved and


underserved airports to be drawn up in partnershipwith State Governments.

* To provide calibrated marketing freedom in orderto incentivise gas production from deep-water, ultradeep-water and high pressure-high temperature areas

* Comprehensive plan, spanning next 15 to 20years, to augment the investment in nuclear powergeneration to be drawn up. Steps to re-vitalise PPPs:

* Public Utility (Resolution of Disputes) Bill will beintroduced during 2016-17

* Guidelines for renegotiation of PPP ConcessionAgreements will be issued

* New credit rating system for infrastructureprojects to be introduced

* Reforms in FDI policy in the areas of Insuranceand Pension, Asset Reconstruction Companies, StockExchanges.

* 100% FDI to be allowed through FIPB routein marketing of food products produced andmanufactured in India.

* A new policy for management of Governmentinvestment in Public Sector Enterprises, includingdisinvestment andstrategic sale, approved.

FINANCIAL SECTOR REFORMS

* A comprehensive Code on Resolution ofFinancial Firms to be introduced.

* Statutory basis for a Monetary Policy frameworkand a Monetary Policy Committee through the FinanceBill 2016.

* A Financial Data Management Centre to be setup.

* RBI to facilitate retail participation in Governmentsecurities.

* New derivative products will be developed bySEBI in the Commodity Derivatives market.

* Amendments in the SARFAESI Act 2002 toenable the sponsor of an ARC to hold up to 100%stake in the ARC and permit non institutional investorsto invest in Securitization Receipts.

* Comprehensive Central Legislation to be boughtto deal with the menace of illicit deposit takingschemes.

* Increasing members and benches of the SecuritiesAppellate Tribunal.

* Allocation of ‘ 25,000 crore towardsrecapitalisation of Public Sector Banks.

* Target of amount sanctioned under PradhanMantri Mudra Yojana increased to ‘ 1,80,000crore.

* General Insurance Companies owned by theGovernment to be listed in the stock exchanges.

GOVERNANCE AND EASE OF DOINGBUSINESS

* A Task Force has been constituted forrationalisation of human resources in various Ministries.

* Comprehensive review and rationalisation ofAutonomous Bodies.

* Bill for Targeted Delivery of Financial and OtherSubsidies, Benefits and Services by using the Aadharframework to be introduced.

* Introduce DBT on pilot basis for fertilizer.

* Automation facilities will be provided in 3 lakhfair price shops by March 2017.

* Amendments in Companies Act to improveenabling environment for start-ups.

* Price Stabilisation Fund with a corpus of ‘ 900crore to help maintain stable prices of Pulses.

* “Ek Bharat Shreshtha Bharat” programme willbe launched to link States and Districts in an annualprogramme that connects people through exchangesin areas of language, trade, culture, travel and tourism.

FISCAL DISCIPLINE* Fiscal deficit in RE 2015-16 and BE 2016-17retained at 3.9% and 3.5%.

* Revenue Deficit target from 2.8% to 2.5% in RE2015-16

* Total expenditure projected at ‘ 19.78 lakh crore

* Plan expenditure pegged at ‘ 5.50 lakh crore underPlan, increase of 15.3%

* Non-Plan expenditure kept at ‘ 14.28 lakh crores

* Special emphasis to sectors such as agriculture,irrigation, social sector including health, women andchild development, welfare of Scheduled Castes and


Scheduled Tribes, minorities, infrastructure.

* Mobilisation of additional finances to the extent of‘ 31,300 crore by NHAI, PFC, REC, IREDA,NABARD and Inland Water Authority by raisingBonds.

* Plan / Non-Plan classification to be done awaywith from 2017-18.

* Every new scheme sanctioned will have a sunsetdate and outcome review.

* Rationalised and restructured more than 1500Central Plan Schemes into about 300 Central Sectorand 30 Centrally Sponsored Schemes.

* Committee to review the implementation of theFRBM Act

RELIEF TO SMALL TAX PAYERS

* Raise the ceiling of tax rebate under section 87Afrom ‘2000 to ‘5000 to lessen tax burden on individualswith income upto ‘5 laks.

* Increase the limit of deduction of rent paid undersection 80GG from ‘24000 per annum to ‘60000, toprovide relief to those who live in rented houses.

BOOST EMPLOYMENT AND GROWTH

* Increase the turnover limit under Presumptivetaxation scheme under section 44AD of the IncomeTax Act to ‘ 2 crores to bring big relief to a largenumber of assessees in the MSME category.

* Extend the presumptive taxation scheme with profitdeemed to be 50%, to professionals with grossreceipts up to ‘50 lakh.

* Phasing out deduction under Income Tax:

* Accelerated depreciation wherever provided in ITAct will be limited to maximum 40% from 1.4.2017

* Benefit of deductions for Research would be limitedto 150% from 1.4.2017 and 100% from 1.4.2020

* Benefit of section 10AA to new SEZ units will beavailable to those units which commence activity before31.3.2020.

* The weighted deduction under section 35CCD forskill development will continue up to 1.4.2020

* Corporate Tax rate proposals:

* New manufacturing companies incorporated on or

after 1.3.2016 to be given an option to be taxed at25% + surcharge and cess provided they do not claimprofit linked or investment linked deductions and donot avail of investment allowance and accelerateddepreciation.

* Lower the corporate tax rate for the next financialyear for relatively small enterprises i.e companies withturnover not exceeding ‘ 5 crore (in the financial yearending March 2015), to 29% plus surcharge and cess.

* 100% deduction of profits for 3 out of 5 years forstartups setup during April, 2016 to March, 2019.MAT will apply in such cases.

* 10% rate of tax on income from worldwideexploitation of patents developed and registered inIndia by a resident.

* Complete pass through of income-tax tosecuritization trusts including trusts of ARCs.Securitisation trusts required to deduct tax at source.

* Period for getting benefit of long term capital gainregime in case of unlisted companies is proposed tobe reduced from three to two years.

* Non-banking financial companies shall be eligiblefor deduction to the extent of 5% of its income inrespect of provision for bad and doubtful debts.

* Determination of residency of foreign company onthe basis of Place of Effective Management (POEM)is proposed to be deferred by one year.

* Commitment to implement General Anti AvoidanceRules (GAAR) from 1.4.2017.

* Exemption of service tax on services providedunder Deen Dayal Upadhyay Grameen KaushalyaYojana and services provided by Assessing Bodiesempanelled by Ministry of Skill Development &Entrepreneurship.

* Exemption of Service tax on general insuranceservices provided under ‘Niramaya’ Health InsuranceScheme launched by National Trust for the Welfareof Persons with Autism, Cerebral Palsy, MentalRetardation and Multiple Disability.

* Basic custom and excise duty on refrigeratedcontainers reduced to 5% and 6%.


MAKE IN INDIA

* Changes in customs and excise duty rates oncertain inputs to reduce costs and improvecompetitiveness of domestic industry in sectors likeInformation technology hardware, capital goods,defence production, textiles, mineral fuels & mineraloils, chemicals & petrochemicals, paper, paperboard& newsprint, Maintenance repair and overhauling[MRO] of aircrafts and ship repair.

MOVING TOWARDS A PENSIONEDSOCIETY

* Withdrawal up to 40% of the corpus at the timeof retirement to be tax exempt in the case of NationalPension Scheme (NPS). Annuity fund which goes tolegal heir will not be taxable.

* In case of superannuation funds and recognizedprovident funds, including EPF, the same norm of 40%of corpus to be tax free will apply in respect of corpuscreated out of contributions made on or from 1.4.2016.

* Limit for contribution of employer in recognizedProvident and Superannuation Fund of ‘ 1.5 lakh perannum for taking tax benefit. Exemption from servicetax for Annuity services provided by NPS and Servicesprovided by EPFO to employees.

* Reduce service tax on Single premium Annuity(Insurance) Policies from 3.5% to 1.4% of the premiumpaid in certain cases.

PROMOTING AFFORDABLE HOUSING

* 100% deduction for profits to an undertaking inhousing project for flats upto 30 sq. metres in fourmetro cities and 60 sq. metres in other cities, approvedduring June 2016 to March 2019 and completed inthree years. MAT to apply.

* Deduction for additional interest of ‘50,000 perannum for loans up to

‘35 lakh sanctioned in 2016-17 for first timehome buyers, where house cost does not exceed ‘50 lakh.

* Distribution made out of income of SPV to theREITs and INVITs having specified shareholding willnot be subjected to Dividend Distribution Tax, inrespect of dividend distributed after the specified date.

* Exemption from service tax on construction ofaffordable houses up to

60 square metres under any scheme of the Central orState Government including PPP Schemes.

* Extend excise duty exemption, presently availableto Concrete Mix manufactured at site for use inconstruction work to Ready Mix Concrete.

RESOURCE MOBILIZATION FORAGRICULTURE, RURAL ECONOMY ANDCLEAN ENVIRONMENT

* Additional tax at the rate of 10% of gross amountof dividend will be payable by the recipients receivingdividend in excess of ‘ 10 lakh per annum.

* Surcharge to be raised from 12% to 15% onpersons, other than companies, firms and cooperativesocieties having income above ‘ 1 crore.

* Tax to be deducted at source at the rate of 1 %on purchase of luxury cars exceeding value of ‘ tenlakh and purchase of goods and services in cashexceeding ‘ two lakh.

* Securities Transaction tax in case of ‘Options’ isproposed to be increased from .017% to .05%.

* Equalization levy of 6% of gross amount forpayment made to non- residents exceeding ‘ 1 lakh ayear in case of B2B transactions.

* Krishi Kalyan Cess, @ 0.5% on all taxableservices, w.e.f. 1 June 2016. Proceeds would beexclusively used for financing initiatives forimprovement of agriculture and welfare of farmers.Input tax credit of this cess will be available forpayment of this cess.

* Infrastructure cess, of 1% on small petrol, LPG,CNG cars, 2.5% on diesel cars of certain capacityand 4% on other higher engine capacity vehicles andSUVs. No credit of this cess will be available norcredit of any other tax or duty be utilized for payingthis cess.

* Excise duty of ‘1% without input tax credit or12.5% with input tax credit’ on articles of jewellery[excluding silver jewellery, other than studded withdiamonds and some other precious stones], with ahigher exemption and eligibility limits of ̀ 6 crores and` 12 crores respectively.

* Excise on readymade garments with retail priceof ‘ 1000 or more raised to 2% without input taxcredit or 12.5% with input tax credit.


* ‘Clean Energy Cess’ levied on coal, lignite andpeat renamed to ‘Clean Environment Cess’ and rateincreased from ̀ 200 per tonne to ̀ 400 per tonne.

* Excise duties on various tobacco products otherthan beedi raised by about 10 to 15%.

* Assignment of right to use the spectrum and itstransfers has been deducted as a service leviable toservice tax and not sale of intangible goods.

PROVIDING CERTAINITY IN TAXATION

* Committed to providing a stable and predictabletaxation regime and reduce black money.

* Domestic taxpayers can declare undisclosedincome or such income represented in the form of anyasset by paying tax at 30%, and surcharge at 7.5%and penalty at 7.5%, which is a total of 45% of theundisclosed income. Declarants will have immunityfrom prosecution.

* Surcharge levied at 7.5% of undisclosed incomewill be called Krishi Kalyan surcharge to be used foragriculture and rural economy.

* New Dispute Resolution Scheme to beintroduced. No penalty in respect of cases withdisputed tax up to ‘ 10 lakh. Cases with disputed taxexceeding ‘ 10 lakh to be subjected to 25% of theminimum of the imposable penalty. Any pending appealagainst a penalty order can also

be settled by paying 25% of the minimum of theimposable penalty and tax interest on quantumaddition.

* High Level Committee chaired by RevenueSecretary to oversee fresh cases where assessingofficer applies the retrospective amendment.

* One-time scheme of Dispute Resolution forongoing cases under retrospective amendment.

* Penalty rates to be 50% of tax in case ofunderreporting of income and 200% of tax where thereis misreporting of facts.

* Disallowance will be limited to 1% of theaverage monthly value of investments yielding exemptincome, but not exceeding the actual expenditureclaimed under rule 8D of Section 14A of Income TaxAct.

* Time limit of one year for disposing petitions of

the tax payers seeking waiver of interest and penalty.

* Mandatory for the assessing officer to grant stayof demand once the assesse pays 15% of the disputeddemand, while the appeal is pending beforeCommissioner of Income-tax (Appeals).

* Monetary limit for deciding an appeal by a singlemember Bench of ITAT enhanced from ‘ 15 lakhs to‘ 50 lakhs.

* 11 new benches of Customs, Excise and ServiceTax Appellate Tribunal (CESTAT).

SIMPLIFICATION AND RATIONALIZATIONOF TAXES

* 13 cesses, levied by various Ministries in whichrevenue collection is less than ‘ 50 crore in a year tobe abolished.

* For non-residents providing alternativedocuments to PAN card, higher TDS not to apply.

* Revision of return extended to Central Exciseassesses.

* Additional options to banking companies andfinancial institutions, including NBFCs, for reversal ofinput tax credits with respect to non- taxable services.

* Customs Act to provide for deferred paymentof customs duties for

importers and exporters with proven track record.

* Customs Single Window Project to beimplemented at major ports and airports starting frombeginning of next financial year.

* Increase in free baggage allowance forinternational passengers. Filing of baggage only forthose carrying dutiable goods.

TECHNOLOGY FOR ACCOUNTABILITY

* Expansion in the scope of e-assessments to allassessees in 7 mega cities in the coming years.

* Interest at the rate of 9% p.a against normalrate of 6% p.a for delay in giving effect to Appellateorder beyond ninety days.

* ‘e-Sahyog’ to be expanded to reducecompliance cost, especially for small taxpayers.

*****


Meeting with Ms. Rita Teaotia, IAS, CommerceSecretary, Govt. of India held on 4th March, 2016The Indian School of Business (ISB) Auditorium Hall,Hyderabad.

FIEO jointly with State Governments of Telangana andAndhra Pradesh with the support of all TradePromotion Organizations organized a meeting with Ms.Rita Teaotia, IAS, Commerce Secretary, Ministry ofCommerce & Industry, Govt. of India on 4th March,2016 The Indian School of Business (ISB) AuditoriumHall, ISB Campus, Hyderabad. On behalf ofFTAPCCI, Mr. Anil Reddy Vennam, President andMr.R. Kulkarni, Joint Director attended the meeting.

The meeting has been called specifically to discussissues/ suggestions related to Export from Telanganaand Andhra Pradesh especially related to various

MeeMeeMeeMeeMeeting with Ms. Rita Tting with Ms. Rita Tting with Ms. Rita Tting with Ms. Rita Tting with Ms. Rita Teaoeaoeaoeaoeaotia, IAS, Commertia, IAS, Commertia, IAS, Commertia, IAS, Commertia, IAS, Commerce Secrece Secrece Secrece Secrece Secretartartartartaryyyyy,,,,,

Govt. of IndiaGovt. of IndiaGovt. of IndiaGovt. of IndiaGovt. of Indiainfrastructural and policy supports required and alsoon how to increase our share in exports, constrains inour markets, how to become more competitive, etc. Senior officials from Customs, Central Excise, DGFT,Govt. of Telangana and Andhra Pradesh, etc.participated in the meeting and interacted with theparticipants.

FTAPCCI suggested for enhancing the budgetarysupport and scope under MDA/MAI Scheme,authorization to the State Chambers like FTAPCCIto recommend applications under MDA/MAI andother Schemes for availing the benefit, an exclusiveExport Commissionerate/Department at State leveland co-ordination with District Industries Centres(DICs) to get the information of export potential ofthe respective districts and provide support to exportthe goods/services.

We request all the members to pay the Annual Subscription for 2016-17 by 31st March 2016.A request letter detailing the amount due has already been mailed. FTAPCCI Articles stipulatethat payments made after the said due date would entail suspension of services as alsorestrictions in the rights as a member.

The subscription amount can be paid by cheque or draft drawn favouring “FTAPCCI” payable atHyderabad. Payment can also be made by NEFT/RTGS . However on online payment,members have to intimate to FTAPCCI, for updating the records.

Upon receipt of the full payment, invoice and receipt as also a new Membership Certificatefor 2016-17 will issued.

We trust we would have your continued support to help us render better and faster services.If you need any help, please contact “[email protected]” by email or call uson +91 40 2339 5524 during office hours on any working days.

An appeal to MembersAn appeal to MembersAn appeal to MembersAn appeal to MembersAn appeal to Members

PPPPPAAAAAYMENT OF ANNUYMENT OF ANNUYMENT OF ANNUYMENT OF ANNUYMENT OF ANNUAL SUBSCRIPTION FAL SUBSCRIPTION FAL SUBSCRIPTION FAL SUBSCRIPTION FAL SUBSCRIPTION FOR 20OR 20OR 20OR 20OR 20111116-16-16-16-16-177777

For NEFT / RTGS Payments please find below the details:.

Bank : SBIBranch : Bazarghat, HyderabadBank Code : 05893A/c. No : 10005356049

A/c. No : 10005356049IFSC Code : SBIN0005893PAN Code : AAATT3962Ee-mail : [email protected]


Payment of Bonus Act, 1936Frequently asked Questions

Q : Payment of Bonus act is applicable to whichcompanies / establishments?

A : The Act is applicable to Factories employing 10 ormore persons and other establishments employing 20more persons on any day during the financial year.

When once applicable, the Act will continue to beapplicable even when the number of persons employedhave reduced in the subsequent financial year.

Q : Is Payment of Bonus Act is applicable to newlyestablished factories and establishments?

A : Yes. The Act is applicable to newly establishedfactories and establishments from the date of profitsbeing derived as stipulated under the Act irrespectiveof completing 5 years or not.

For Clarity, the financial year in which the first invoiceis raised is taken as the year of commencement ofbusiness. After the said year, during the first five years,bonus will become payable only for the financial yearsin which the new factory or establishment derivesprofit. If the company has not derived profit duringthe first 5 years of its existence after completion of thefinancial year in which first invoice has been raised,the company is not required to pay bonus under theAct.

Q : One company may have different unitsestablished at different times. Some unit may beprofitable and some other units may be incurringlosses. Whether all the units are entitled forbonus or not?

A : As long as separate accounts and individual balancesheets are maintained for distinct units, bonus is payablein accordance with profit derived by the respectiveunits.

In the matter of workmen of Modern Mills Vs GeneralManager [1986 (2) LLJ 329] it has been held thatwhere a separate profit and loss account and balancesheet has been maintained by the employer as regardsany unit or branch thereof, employees of that unit wouldbe entitled to bonus on the basis of the financialstatements of that unit but the requirement being thathe has done so in the previous year also.

The Supreme Court in the matter of workmen of HMTVs National Tribunal [AIR 1973 SC 2300] held thatin case where the different units have been treatedseparately for the purpose of computation of bonusand separate balance sheet, profit and loss accountshave been prepared in respect thereof the unit wouldnot lose their separate identity as establishment.

Q : Is employer liable to pay bonus even whenthe company has not made any profits?

A : Yes. After completion of first 5 years after thefinancial year in which first invoice is raised, thecompany is liable to make payment of bonus to itseligible employees at a rate of 8.33 percent of thewages or salary earned during the financial year subjectto other conditions stipulated in this regard even thoughthe company does not have allocable surplus in theaccounting year.

Q : What is allocable surplus?

A : Every company has to calculate available surplusas per the provisions of section 5,6 and 7 of thePayment of Bonus Act. 67 percent of the availablesurplus will be the allocable surplus. Based on theamount available in the allocable surplus, thepercentage of bonus for the year shall be determined.

Q : What is the maximum bonus payable?

A : The maximum bonus payable under the act is 20percent.

Q : Who is an employee under the Act?

A : Any person employed other than an apprenticefor wages or salary of Rs. 21,000/- or below permonth in any capacity.

Q : Whether Part Time employees are coveredunder the Act?

A : Yes. Part Time employees are covered under theAct.

In the Case of Sweepers whose working hours areon part time basis and for fixed hours it was held theyare to be taken as employees and hence eligible to anentitlement of bonus. Automobile


KaramchariSanghVs Industrial Tribunal 1971(22) FLR 98.

Q : What components of emoluments constitutewages under the Act?

A : Salary or wages means all remuneration capableof being expressed in terms of money, includingdearness allowance and excluding any other allowancethat is paid for time being, traveling concession andvalue of any house accommodation.

As a practice over years, the industry has been takingBasic, DA, VDA and FDA as wages or salary for thepurpose of coverage under the Act.

Q : Will providing free food or food allowancegiven to an employee will constitute wage?

A ; Food Allowance is different from providing freefood.If the employee is receiving ‘Food Allowance’and not ‘free food’ the said allowance is notconsidered as wage.

The Madras High Court in the matter of UnitedShippers and Dredgers Ltd VsLabour Court,

Coimbatore [1992 LLR 607] held that cash siteallowance and food allowance paid to an

employee will not form part of salary in so far aspayment of Bonus Act is concerned.

But food provided free of cost, the cost of suchfood will be form part of the wages or salary ofthe employee and hence to be taken into account forthe purpose of payment of bonus.

Q : Will City compensatory allowance willconstitute wage under the Act?

A : Yes. Madras High Court [2004 LLR 802] heldthat City compensatory allowance will form part ofwages for calculation of bonus.

Q : Will retaining allowance paid to seasonalemployees will constitute wage under the Act?

A : Yes. Retaining allowance paid to seasonalemployees will constitute wage and the Mumbai HighCourt n the matter ofSangammerBhagSahakariSakharKarkhana LtdVsRashtriyaSakharKamgar Union [2001 II LLJ707] held that retention allowance paid to seasonalemployees will form part of wages under Payment ofBonus Act and such employees will be entitled to Bonus.

Q : Is there any minimum period of working ofan employee to become eligible for bonus?

A : Yes. Employees who have worked 30 or moreworking days in the financial year are entitled underthe Act.

Q : When can an employee be disqualified fromreceipt of bonus?

A : An employee shall be disqualified from receivingbonus, if he is dismissed from service for the actscommitted by him which constitute (a) fraud or (b)riotous or violent behaviour or (c) theft,misappropriation or sabotage of any property of theestablishment.

Q : What is the method of calculation for paymentof bonus to employees?

A : The employees whose salary or wages are belowRs. 21,000/- are covered under the act. If the salaryor wage of an employee exceeds Rs. 7000/- permonth or the minimum wage for scheduledemployment whichever is higher, the bonus payableshall be calculated as if his salary or wage were Rs.7000/- or the minimum wage whichever is higher.

Q : Please give some examples of the method ofcalculation of bonus.

Example 1:

With the amendment to the bonus act employeeswhose salary or wage is Rs. 21,000/- and below havebecome eligible for bonus. The method of calculationof bonus has also been amended wherein whose salaryor wage is more than Rs. 7000/- or the minimum wage,salary or wage should be treated as Rs.7000/- or theminimum wage whichever is higher.

The minimum wages will change once in six months inthe some states and once in three months in somestates. Hence, the applicable minimum wage for therelevant period has to be taken into account forcalculation of bonus payable.

As the minimum wage is different in the first six monthsand second six months of the financial year, the bonuseligibility is different for the two six months period.That is to say, higher the minimum wage higherthe bonus entitlement. (Calculation is for minimumbonus 8.33%)


Example 2: (minimum bonus of 8.33%)When the salary or wage of the employee is below Rs. 7000/- or the minimum wage, the bonus willbecome payable on actual wage or salary.Hence there will be no impact of minimum wages in these cases.

Reddy Bottle filler 5500 5000 10500 7643 7816 2750 2750 5500

Raju Bottle washer 5500 4500 10000 7499 7672 2750 2750 5500

Yadv Helper 5500 4000 9500 7253 7426 2750 2750 5500

Ram Chemist 21500 4000 25500 11568 11741 Nil Nil NIL

Gopi Chemist 17000 4000 21000 11568 11741 5784 5871 11655

Shyam Chemist 15000 4000 19000 11568 11741 5784 5871 11655

Name Design Basic+DA

OtherAllow

Salarypm

MinWage 1

MinWage 2

Bonus1

Bonus2

TotalBonus

Design Basic+ DA

Other Allow

Salary p m

MinWage 1

MinWage 2

Bonus1

Bonus2

TotalBonus

If the wages or salary of the same employees is aboveRs. 7000/- and below the minimum wage,the bonusentitlement will not be restricted to Rs. 7000/- for the purpose of calculation of bonus and actual wage isconsidered.(Bonus is paid on Actual Salary or Wage drawn by the employee)

Name

In both the above examples, the bonus payable will be the actual wage of the employee and there will be noeffect of minimum wage or Rs. 7000/- restriction of wage for computation of bonus.

If the wages or salary of the same employees is above the minimum wages, the bonus entitlement will becalculated as if the salary or wage is minimum wage or Rs. 7000/- whichever is higher, as the wage forpurpose of calculation. In the below mentioned example, as the minimum wage is less than Rs.7000/- and theactual wage of the employee is above Rs. 7000/-, the ceiling limit will be Rs. 7000/- and bonus payable is as ifhis wage is Rs. 7000/-



Yadv Helper 7100 4000 12100 7253 7426 3550 3550 7100

Design Basic+ DA

Other Allow

Salary p m

MinWage 1

MinWage 2

Bonus1

Bonus2

TotalBonus

Name



Yadv Helper 7100 4000 12100 6500 6750 3500 3500 7000

Design Basic+ DA

Other Allow

Salary p m

MinWage 1

MinWage 2

Bonus1

Bonus2

TotalBonus

Name


As the minimum wage is less than Rs. 7000/-, in the concept of whichever is higher, Rs. 7000/- will become thelimit for calculation.For the same employees if the wages are above Rs. 7000/- and also above the minimum wage, for thepurpose of calculation of bonus, the minimum wages will be taken into consideration.



Yadv Helper 8000 4500 12500 7253 7426 3625 3712 7337

Design Basic+ DA

Other Allow

Salary p m

MinWage 1

MinWage 2

Bonus1

Bonus2

TotalBonus

Name

It could be seen from the above, though the wages of all the three employees is same, the bonus payable isdifferent as applicable minimum wage is different for all the three employees.

Q : Is there any time limit set in the act for payment of Bonus?

A : Yes. Bonus should be paid within eight months from the close of the accounting year.

Q : Can an employer deduct any amount from the bonus payable to the employee?

Only in the case of established misconduct as per industrial employment standing orders act resulting in financialloss to the company, the employer can deduct the amount of loss from the bonus payable to the employee.

With a view to streamline the process of grant of stay of demand when the case of the taxpayer is pendingbefore Commissioner (Appeals) and to standardize the quantum of lump-sum payment required to bemade by the assessee as a pre-condition for stay of demand disputed, the Central Board of Direct Taxes(CBDT) has issued fresh guidelines to the field authorities of the Income Tax Department.

Under the revised guidelines, where the outstanding demand is disputed before Commissioner(Appeals), the assessing officer shall grant stay of demand till disposal of first appeal on paymentof 15% of the disputed demand. In case, any deviation from the standard pre-payment of 15%is proposed by the Assessing Officer, he shall refer the matter to the administrative PrincipalCommissioner or Commissioner, who after considering all relevant facts shall decide the quantum/ proportionof demand to be paid by the assessee as lump sum payment for granting a stay of the balance demand. Ina case, where stay of demand is granted by the Assessing Officer on payment of 15% of the disputeddemand and the assessee is still aggrieved, he may approach the jurisdictional administrative PrincipalCommissioner or Commissioner for a review of the decision of the assessing officer.

This decision of the Board is expected to provide significant relief to the taxpayers in mattersrelating to grant of stay and recovery of demand by reducing arbitrariness in the disposal ofstay petitions where the tax demand is contested at the First Appellate stage.

The Office Memorandum dated 29.02.2016 issued in this regard is available with FTAPCCI.Those interested may procure a soft copy of the same on request marked tonvslakshmi @fapcci.in.

CBDT issued Revised Guidelines for stay of demand at theCBDT issued Revised Guidelines for stay of demand at theCBDT issued Revised Guidelines for stay of demand at theCBDT issued Revised Guidelines for stay of demand at theCBDT issued Revised Guidelines for stay of demand at the

First Appeal StageFirst Appeal StageFirst Appeal StageFirst Appeal StageFirst Appeal Stage

*****


Seminar on “Sustainable Development of Poultry Sector in India”March 21, 2016 at 9.30 am at FTAPCCI Auditorium, Federation House, FTAPCCI

Forthcoming Events

FTAPCCI is organizing one Day Seminar on“Sustainable Development of Poultry Sector in India”on 21st March, 2016 at FTAPCCI, Red Hills,Hyderabad. The programme is aimed at educating thefarmers about the prospects of livestock sector andwill focus on significance of Poultry processing andincreasing their productivity. Further, the Seminar willbring all the entrepreneurs to a common platform toaddress the techno economic and management issuesrelating to Poultry sector in the State.

Renowned speakers are being invited to givetheir lecture on the following topics

* Status and Scope of Poultry Industryincluding Bio Security

* Scope of Family poultry and organic chickenproduction with low input birds.

* Sustainability prospects in poultry sectors

* Integrators and future of contracting formingin poultry sector

* Processing and value edition in poultry sector

* Poultry Bio product utilization and WasteManagement

Sri Pocharam Srinivas Reddy, Hon‘ble Minister forAgriculture, Govt. of Telangana is being invited to bethe Chief Guest to inaugurate the Seminar. SeniorGovernment officials from concerned Govt.Departments are also being invited as Guest of Honour.

For NEFT / RTGS Payments please find below the details:.

Bank : SBIBranch : Bazarghat, HyderabadBank Code : 05893A/c. No : 10005356049

A/c. No : 10005356049IFSC Code : SBIN0005893PAN Code : AAATT3962Ee-mail : [email protected]

The Delegate fee is Rs. 500/- for participants (inclusive of service tax).The fee is to be paid way of Cash or Cheque / DD in favour of ‘FTAPCCI’

For further detailsplease contact

L. Girijapathi, Asst.Director,

Mob: 9959822264,8008700258, e-mail:[email protected],

ADR-cum-Legal Clinic at FTAPCCIEvery Monday from 2.30 to 5.00 pm

The Alternative Dispute Resolution (ADR) methods have been introduced in India due to huge pendency ofcases in courts. The ADR would provide a new forum and procedure for resolving international and domesticcommercial disputes quickly. The International Centre for Alternative Dispute Resolution (ICADR) isan autonomous organization working under the aegis of the Ministry of Law & Justice, Govt. of India with itsheadquarters at New Delhi and Regional Centres at Hyderabad and Bengaluru. The Governing Council ofICADR comprises of several eminent personalities drawn from various fields.

To create awareness about ADR methods and apprise its benefits to the business fraternity, FTAPCCIhas set up an ADR-cum-Legal Clinic (Help Desk) at Federation House. Senior Officials of ICADRand Shri JLN Murthy, Regional Centre Incharge & Secretary, ICADR, Hyderabad will be availableat the Help Desk on every Monday from 2.30 to 5.00 p.m. to offer guidance to the Members aboutthe benefits of ADR and answer their queries.

Members are requested to avail this opportunity and reap the benefit by interacting on every Mondayfrom 2.30 to 5.00 p.m. For appointments and other details contact: Mr. R. Kulkarni, Joint Director &Head Membership Wing at FTAPCCI 8008579625; 040-23395515-22; email: [email protected]


Presentation on“The Great Digital Revolution 2016 -

The impact of digital marketing on your business”12th March, 2016 at 4.30 p.m. at Federation House, Red Hills, Hyderabad

SIDBI CREDITAdvisory Services

at FTAPCCI Every Tuesday from14.00 hrs to 16.00 hrs.

Sri M.S. Nagarajababa, has beenappointed by SIDBI to act as

knowledge partner for theCredit Advisory Centre of SIDBI.

Members are requested to avail theadvisory services of

Sri M.S. Nagarajababa and hiscontact details:

Mobile: 9440229229, e-mail:[email protected].

" Be more dedicated to makingsolid achievements than in running

after swift but synthetichappiness."

A.P.J Abdul Kalam

Digital Marketing evolves quickly. Every yearbrings new hardware, new software and new userpreferences. In order to develop a successful digitalmarketing strategy, companies need to stay up-to-dateon the latest trends. Those that can identify the nextbig thing — as opposed to investing resources intothe next big flop — have a decided advantage overtheir competition in reaching new markets and furtherestablishing their reputation and expertise.

To take advantage of enormous ideas and expertiseof Mr. Natchi Lazarus, CEO., Open MindsAgency, FTAPCCI is organizing a Presentation on“The Great Digital Revolution 2016 - The impactof digital marketing on your business” on 12thMarch, 2016 at 4.30 p.m. at J.S. Krishna Murty Hall,Federation House, Hyderabad. Mr. Natchi Lazarus

has consented to address the members of theFTAPCCI.

Entrepreneurs as well as executives of organizationsat senior, middle and junior level from all functionalareas will find great value from the presentation. Thisprogram enables participants to leverage on digitalmarketing trends and add value to both organizationand self.

There is no participation fee, however priorregistration is must.

Members are requested to kindly participate in theprogram and join us at Hi-Tea. Please confirm yourparticipation to Mr. Abdul Saleem, AEO, Mobile:8688282007, Ph: 23395515-22 (8lines), email:[email protected]

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