Why it is necessary to register as MSME?

This Post has been Contributed By
CS Amit Todkar
Founder of AT and Associates

India is managing the effects of the global Covid-19 pandemic using unprecedented public health and economic measures.  Among the many parts of the economy that require immediate attention and succour, are the micro, small and medium enterprises. These MSMEs contribute nearly 30 percent of India’s gross domestic product and close to half of the country’s total exports.

Amongst the other supportive measures to MSME the reserve bank of India (RBI) decided to provide special refinance facilities for a amount of ₹15,000 crore to Small Industries Development Bank of India (SIDBI) which plays an important role in meeting the long-term funding requirements of small industries. SIDBI serves as the principal financial institution in the Micro, Small and Medium Enterprises (MSME)

Governments worldwide have been using various policy measures to soften the economic blow rendered to their MSME sectors. Likewise it is likely that Ministry of MSMEs draws up a policy framework with multiple scenarios .

What is MSME ?

Definition :

The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under:

(a) Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:

(i) A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh;

(ii) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and

(iii) A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

Other Benefits available to MSME

FinanceEasy finance availability from Banks, without collateral requirement.
Preferential TreatmentPreference in procuring Government tenders.
Electricity billsMSME can avail concessional payments of electricity bills
Stamp duty and Octroi benefits, MSME can avail special benefits in Stamp Duty and Octori benefits.
Special Status for payments towards goods and services rendered by MSME unitsThere is Obligation on the  buyers availing services or goods from MSM Enterprises to pay within credit limit agreed upon between them.   Default : Interest shall be pay to the MSME unit from Day of acceptance which may extend to 3 times the bank rate.
Dispute SettlementTime-bound resolution of disputes with Buyers through conciliation and arbitration.
Disallowance of interest under Income Tax Act, 1961  The amount of interest payable or paid by any buyer, for delayed payments to MSME  shall not be allowed as deduction.
Closure of BusinessSpecial scheme to facilitate closure  of business 

Malvertising

In the 21st century, advertising forms a key method of marketing for commodities. With the advent of technology, it has expanded to the online world. Advertisements are regularly seen on any website for various goods and services. Clicking on the advertisement link leads to direction to the page of the company showing the ad. However, advancements in technology have also led to advancements in cybercrime utilizing advertisements. One such crime is “Malvertising”.

Malvertising, also known as malicious advertising, refers to advertisements, which are criminally controlled, and harm people and organizations via malwares, scams, unwanted programs and unlawful activities on the internet. It does not involve creating specific advertisements, but involves perpetrators adding malicious codes onto legitimate everyday advertisement networks. The malicious codes often redirect unsuspecting individuals to other malicious websites. Types of crimes committed via malvertising include identity theft, theft of personal information, financial theft, illegal encryption, spying on activities done by the victim and many others.

Those who profit from malvertising rely on two main methods to infect a system. The first one is where malicious code inserted into an advertisement which induces people to click on the ad. This may be in the form of alerts stating that there is malware in the system, or offering to try a free program. Clicking the ad link causes redirection or malware to be downloaded into the system. The second method is known as “drive by download”. Here, an infected ad uses background web pages to perform illegal activities. Any web page that hosts the infected ad serves as a background web page. Loading such web pages results in redirection to other pages, which access the system of the victim.

Prevention and mitigation of the risk of malvertising can be done by both individuals and organizations. Individuals can take measures such as installing antivirus software (which can offer some protection against certain drive by downloads), enabling ad blockers on browses, and frequently updating their browsers and plugins when the option to update comes up. Organizations can take measures such as scanning their advertisements so as to discover any malware or unwanted codes, or enforcing policies to show only certain file types in the advertisement.

It is in this author’s view that malvertising is an issue that needs to be combatted both at the individual level as well as the organization level. As stated before, preventive strategies can be undertaken by both individuals and organizations, as they can both be targets of malvertising. Taking preventive actions against the threat of malvertising not only protects the user from malvertising in itself, but also protects the user against other cybercrimes that can occur as a result of malvertising.

JEI SHRINIVAS SRIDHAR

1st YEAR STUDENT

SYMBIOSIS LAW SCHOOL, HYDERABAD

Citations:

https://www.imperva.com/learn/application-security/malvertising/

https://www.malwarebytes.com/malvertising/

What structure makes the most sense?

This Post has been Contributed By
CS Amit Todkar
Founder of AT and Associates

Of all the choices you make when starting a business, one of the most important is the type of legal structure you select for your company. Not only will this decision have an impact on how much you pay in taxes, it will affect the amount of paperwork your business is required to do, the personal liability you face and your ability to raise money.          

The Legal structure depends  on the individual circumstances of each business owner. It’s important for business owners to seek expert advice from business professionals when considering the pros and cons of various business entities.

Here’s a quick look at the differences between the most common forms of business entities

Sole Proprietorship
A sole proprietorship is  a business owned and operated by one individual   The shops or stores which you see in your locality-the grocery store, the vegetable store, the sweets shop, the chemist shop, the panwala, the stationary store, etc. comes under sole proprietor. 
Advantages Easy to StartNo registrationNo profit sharingEasy decision makingEasy to wind upNo Corporate taxesDisadvantages Unlimited liabilityRaising fundsLimited LifeLoss in absence
Suitability For the business where capital requirement is small and risk involvement is not heavy this type of firms is suitable.   It is also considered suitable for the production of goods which involve manual skill, e.g. handicrafts, filigree work, jewellery, tailoring, haircutting, etc.
Partnership
A partnership is a legal relationship formed by the agreement between two or more individuals to carry on a business as co-owners. Each member of such a group is individually known as ‘partner’ and collectively the members are know as “Partnership Firm” Maximum 20 persons can be partners to Partnership Firm except banking business.   These firms are governed by Indian Partnership Act, 1932   Registration of Partnership is not compulsory. But since registration entitled the firm to several benefits, it is considered desirable.  
Advantages Relative easy to startThe ability to raise fundsMore skilled persons Loss sharingNo loss in absenceDisadvantages Unlimited liabilityProfit SharingConflicts Limited LifeTransferability is difficult
Suitability Most suitable for comparatively small business such as Retail and Wholesale Trade, Professional Services, Medium size mercantile houses, Small manufacturing unit. 
Company
The company is a voluntary association of persons to carry on business the members of the company are know as Shareholders and the capital of the company is known as Share Capital.   The Companies are governed by The Companies Act, 2013.   The Company is the artificial person and having characteristics of separate legal entity, perpetual existence, limited liability and transferability of shares.   A private limited company have minimum two shareholders and maximum 200 while a public limited  company have minimum seven and maximum unlimited.   
Advantages Limited LiabilityContinuity of existenceBenefits of larger scale operationsProfessional ManagementSocial benefitSpecial preference in tax benefitsDisadvantages Compulsorily registration is required Control by groupExcessive government controlDelay in policy decisions.
Suitability The company is suitable where the volume of business is quite large and area of operation is wide spared.


Right To Forget

The 21st century is often referred to as the century of technology, with new types being created or modified everyday. One of such technologies that is constantly evolving is the internet and the online world. The evolution of the internet and the cyber world gives new interpretations to how business is conducted, how people are able to communicate and share information instantly via the internet.

The adaptation and evolution of the law with respect to the internet, giving rise to the domain of cyber law is important due to the fact that browsing, communicating and conducting transactions online is not limited to one’s own national territory.  An individual in the US can easily share, or communicate, or conduct transactions with another in the UK, as an example.  Cyber law focuses on aspects such as regulating behavior on the internet, regulating the sharing and communication of information, as well as regulating how transactions are conducted on the internet. Through these regulations, cyber law gives birth to new rights, arising out of new interpretations. One of these rights is the Right to Forget.

Right To Forget

The right to forget is a concept that has developed in the recent years. It focuses on the idea that individuals have the right to request that personal information about them on the internet is to be removed. This concept is also known as the right to Erasure in the European Union.

The origin of the concept of Right to Forget comes in 2014 when a Spanish man asked Google to remove links to a newspaper article highlighting his name. The individual put forward that in the present day, the article in question had no reason to be accessible via internet. The European court of Justice (ECJ) ruled that under EU law, online search engines were data controllers and as such had the responsibility to take into account all requests and complaints to remove outdated or irrelevant information.

The right to forget is formally addressed in article 17 of the European Unions General Data Protection Regulation (GDPR). The article states that all individuals have the right to request search engines for removal of personal data from the internet without any delay.

The EU law on right to forget is seen as controversial in countries like the US due to the fact that it contradicts the principles of free flow of information as well as the open nature of the web. Currently the laws on Right to Forget are only being enforced in the EU. 

Right To Forget In India

As of today, there is no formal law that addresses Right to Forget in India. However, there have been reports published on the same as well as bills drafted for the same. A report put forward by the BN Shrikrishna committee first addressed the concept of Right to Forget in the country, stating that obtaining the consent of individuals to process and display data is required as a part of Right to Forget. The consent must be such that it is easy to withdraw as well as put forward. The committee also stated that the consent of a person be “specific”, “informed” and “clear”.

The aspect of right to forget in India is addressed in the Personal Data Protection Bill 2018. It must be noted that the Personal Data Protection Bill 2018 has not been presented in the Parliament, and as such has not been passed into law as of yet.

This bill has also been proposed by the BN Shrikrishna committee. Section 27 of the aforementioned act gives 3 reasons under which Right to forget can be enacted. They are

  • When the content in question has served the purpose for which it is made
  •  Whether content was made on basis of consent which has been withdrawn
  • Content was made contrary to provisions of the act or other laws passed by the central or state governments of India

Section 27 also stipulates that an adjudicating officer would be responsible for deciding if any published article needs to be removed from the internet, on request of a citizen.  Furthermore, it states there are five factors that have to be determined for the same. They are:

  • Sensitivity of data
  • Disclosure of data and accessibility
  • Role of the data for the public
  • Relevance of data to the public
  • Nature of the disclosure of data.

It is in this individuals’ view that the Right to Forget is a benchmark interpretation in the field of cyber law. It grants individuals the freedom to decide when something has outlived its usefulness or purpose on the web. It serves as a means for individuals to exercise their right to freedom of speech and expression, as well as protect their person and reputation online.

JEI SHRINIVAS SRIDHAR

1st YEAR STUDENT

SYMBIOSIS LAW SCHOOL, HYDERABAD

Citations

https://indianexpress.com/article/opinion/columns/personal-data-protection-bill-2018-justice-bn-srikrishna-committee-5355284/

https://www.livelaw.in/first-indian-court-upholds-right-forgotten-read-order/

https://www.livemint.com/Money/yO3nlG7Xj4vo2VJsmo8blL/What-is-the-right-to-be-forgotten-in-India.html