The Union government has increased the Cash Credit (CC) limit for Micro, Small and Medium Enterprises (MSMEs) to 30% of turnover from the existing 20% to encourage them to conduct businesses digitally.
Through digital means of conducting the business, the balance sheet of companies would be clean and this would help MSMEs to get loans from banks and promote Ease of Doing Business.
Presently the taxes for MSMes are calculated at 8% for revenue of up to Rs 2 crore. With digital transaction, tax liability will be reduced from 8% to 6%.
What can be the possible questions of above news
Q1. How much percent the Govt has increased the Cash Credit limit for MSME from 20%, recently?
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Source- The Indian Express