Page 49 - Banking Finance July 2020

ARTICLE

Questionnaire Answers
What is the process of o Enterprises shall register again on the Udyam Registration portal on or after
Registration of existing the 1st day of July, 2020.
enterprises under the o The existing enterprises registered prior to 30th June 2020, shall continue to
new rule? be valid only for a period up to the 31st day of March 2021.

What is the process of o Updation of details of ITR & GST Return for the previous year on self declaration
updation of information and basis.
transition period in o Failure to update the relevant information within due date - Suspension of
classification? registration.
o Based on information furnished- the classification of the enterprises will be
updated.
o In case of an upward change in term of investment in P&M or Equipment or
Turnover or both and consequent reclassification, enterprise will maintain its
prevailing status till expiry of one financial year from the close of year of
registration.
o In case of reverse graduation of enterprises- the enterprise will continue in its
present category till the closure of the FY.
What is the grievance o The Champion Control Room- Single window system for facilitation the
redressal process? registration process and handholding to MSMEs in all possible manners.
o The District Industrial Centers (DICs) - Single Window facilitation system in
districts.
o Person not having aadhaar no, may approach any of the above single window
system for getting an Aadhaar number and Udyam Registration thereafter.
o In Case of any discrepancy or complaint- General Manager of DICs shall
undertake an enquiry for verification of the details of Udyam Registration
submitted by enterprises.

Gratuity cut-off may be relaxed

Government is considering relaxing the minimum eligibility condition for gratuity payments to employees. The criteria
may be reduced between one and three years from five years amid increasing uncertainty in job security. The
development comes days after a report on social security code by the Parliamentary Committee on Labour recommended
that the eligibility period for gratuity payable to an employee on termination of his employment should be cut down to
one year from the current norm of five years. "There is demand from several quarters to lower the gratuity threshold.
How to take it forward and lower the five-year threshold is a subject on the table; it is likely to be lowered," Mint
reported citing unidentified government official.

"There are two options-pro-rata basis or proportional change for a few sectors, or a reduction in the five-year threshold
for all sectors. Demand for the second option has more takers in the normal discourse with experts and economists.
The standing committee has suggested to lower it to 1-3 years from the current five years," the report also quoted the
official as saying. The gratuity is received by a person only if he has completed a minimum of five years of continuous
service with an organisation. But, it can be paid before the completion of five years at the death of an employee. He
may also receive it in case of disability due to an accident or disease.
Meanwhile, the Parliamentary Committee report had also highlighted the concern that the threshold limit of twenty
or more employees for Employees' Provident Fund Organisation (EPFO) registration can be used by the employers to
exclude themselves from the EPFO coverage.

BANKING FINANCE | JULY | 2020 | 49