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SMALL & MEDIUM ENTERPRISES

Compliance to CSR codes a big block


Posted: Friday, May 13, 2005 at 0000 hrs IST
Updated: Friday, May 13, 2005 at 0000 hrs IST


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: to lead the process of change and share the responsibility of equipping SMEs. CSR ought not to be protectionist, but should have an inclusive approach.

We are a small industry, manufacturing leather shoes and sandals. We have been selling to the local market, but are now interested in exports. How can we start? Which organisations can help us?

—Parvesh, Gupta Leather Industries, Agra

The first steps are: get the Import Export Code number and apply to the Council for Leather Exports for membership. To get more details I would advise you to follow “How to Export: Guide for beginners” at http://www.sme network.net/marketing/ exportimport.htm. It will help you complete all the formalities. Second, you should get in touch with SISI, Agra. The Office of Development Commissioner of SSI participates every year in dozens of international trade fairs and display goods produced by SSIs. The SISI office would help you display your products without any cost. Further, you could also participate in trade fairs organised by the Council for Leather Exports. You may also avail market development assistance and participate in international fairs directly. However, you need to be a registered SSI unit to avail these benefits.

With reference to your column on April 29, we have a query regarding retail grocery stores. Earlier, we had to pay 0.5% turnover tax. But, after Vat, there is some confusion. Do we have to still pay the turnover tax? And also what would be our tax incidence now?

—Ramesh Nagda, Mumbai

You may avail of composition scheme (applicable in Maharashtra) if your turnover was below Rs 50 lakh. The rate of tax will be 8% on the difference of the total of all sales and of all purchases (including tax, if any) during the return period. But, you will not be able to claim set-off of any Vat you may pay on your business purchases, nor will you be able to issue tax invoices to your customers. You may kindly refer leaflet MVat 109 which provides full details about the composition scheme and also refer the web site of Maharashtra Sales Tax—http://salestax.maharashtra.gov.in.

Anil Bhardwaj is secretary-general, Fisme. Readers may send queries to fesmes@gmail.com...

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