The Haryana Government has implemented a scheme “Start-ups/First Generation Entrepreneurs” to encourage and give support to the prospective start-ups or first generation entrepreneurs of the state for setting up of Micro and Small Enterprises having poor financial position.
A spokesman of Industries and Commerce Department on Wednesday said that a notification to this effect has been issued.
Referring to the eligibility criteria for Start-ups, the spokesman said that professionals such as Engineers, MBA, CA with five years experience even without having any business background (first generation entrepreneurs) would be eligible under the scheme. Apart from this, the net worth of the promoters should be less than the required capital as per their project report.
He said that the gap in the promoters contribution would be bridged by provision of concessional funding from the scheduled banks. The State Government would allow interest subsidy at the rate of five per cent per annum. In addition, the facility for providing collateral free loan would also give tremendous support to the start-ups or first generation entrepreneurs, he added.
He said that exemption of 100 per cent Value Added Tax (VAT) or State Goods and Services Tax (SGST) would be provided upto turnover of Rs three crores for three years whichever is earlier in 'B', 'C' and 'D' Category Blocks. Besides, no other taxes including local municipal tax would be leviable till such time (Achievement of Rs three crore turnover or three years whichever is earlier).
Such enterprises would be exempted from inspection of the concerned departments except in the cases where it is mandatory by law. Apart from this , the entrepreneurs covered under this category would be given interest subsidy at the rate of five per cent for Micro and Small Enterprises on term loan for maximum upto Rs 10 lakh per year for three years in 'B', 'C' and 'D' categories Blocks. The entrepreneurs would have to apply for interest subsidy separately, he added.
The exemption from payment of VAT or SGST would be admissible to the units, which come into commercial production on taking effective steps for the setting up of industrial units such as filing of Entrepreneurs Memorandum (EM) Part-I or Udyog Aadhaar Memorandum (UAM), leasing, renting or construction of industrial building and purchase and installation of plant and machinery after August 14, 2015 and before August 14, 2020 would be admissible for exemption.
The spokesman said that the eligible entrepreneurs would submit their applications on the prescribed Performa on the e-biz portal of the department within three months of the date of going into commercial production. The commercial production would be considered as date of first sale bill issued by the unit. He said that the entrepreneurs should have also filed EM Part-II or UAM with concerned District Industries Centre.
The application would be processed and examined. The deficiencies, if any, would be communicated to the applicant on-line within a period of 10
working days and the applicant would be given a time period of eight weeks to rectify the deficiencies so pointed out, he added.
The spokesman said that the Director Industries and Commerce would be competent to issue eligibility certificate to Excise and Taxation Department for granting benefit of hundred per cent exemption from payment of VAT or SGST net paid upto turnover of Rs three crore for three years, whichever is earlier within 30 days from the completion of case.
The entrepreneur could file appeal to the Principal Secretary, Industries and Commerce against the decision of Director Industries and Commerce within 30 days of the communication of the decision. The decision of the Principal Secretary of Industries and Commerce would be final, he added.