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UNION BUDGET 2022 – Tax and Policy Highlights

by InCorp Advisory

Reading Time: 6 minutes

The Finance Minister (FM) presented the Union Budget of 2022 with a focus on – PM Gati Shakti plan, productivity enhancement, financing investments, and climate action. We have compiled the key points highlighting the tax and policy updates.

The government has announced the following provisions in the Union Budget 2022:

Reliefs in Direct Tax Provisions:
  • Reduction in AMT rates for Co-operative Societies from 18.5% to 15%.
  • Reduced surcharge applicable for Co-operative Societies with total income of INR 1cr to 10Cr from 12% to 7%.
  • Start-ups established before 31.03.2023 (earlier on 31.03.2022 has now been extended by 1 year) will be able to enjoy tax benefits u/s 80IAC.
  • Last date for commencement of manufacturing activities for claiming lower tax regime u/s 115BAB to be 31.03.2024 (earlier on 31.03.2023 has now been extended by 1 year).
  • Exemption on amount received for medical treatment and on account of Death due to COVID-19.
Rationalization of Direct Tax Provisions:
  • Tax relief for persons with disability: Allow annuity payment to differently abled dependents when parents attaining age of 60 years.
  • Deduction for National Pension Scheme for State Government Employees u/s 80CCC made at par with Central Govt. NPS which is currently @10% of Salary for State govt. Employee which has been increased to 14% of salary.
  • TDS on sale of immovable property u/s 194-IA is now applicable on agreement value or stamp duty value whichever is higher @ 1% for value exceeding INR 50 Lakhs.
  • Extension of bonus & dividend stripping Section 94 provisions to new pooled investments such as InvIT, REIT, AIFs.
  • Rationalization of various provisions pertaining to Penalties, Assessment & Re-assessment proceedings under Income Tax Act.
  • Rationalization of various provisions pertaining to Trust & its exemption.
Withdrawal of Relief/Benefits under Direct Tax provisions:
  • Withdrawal of various exemption provided u/s 10 available to specific employee class of assessee.
  • Virtual Digital Assets (VDA) have been defined as Cryptocurrency, NFT & other tokens.
    • Income from transfer of virtual digital assets to be taxed at 30%.
    • No deduction for expenses other than cost of acquisition.
    • Loss from transfer of VDA not allowed to be set off against any other income. Even carry forward of such losses not permissible.
    • TDS @ 1% on consideration above specific threshold.
    • Gift to be taxed u/s 56(2)(x).
  • No repetitive appeals for common question of laws.
  • Specified businesses to be eligible for benefit in Gift City – IFSC where there are certain income tax exemptions & benefits.
  • Surcharge on Long Term Capital Gains on any assets to be capped at 15%.
  • No set off of losses against undisclosed income detected during search & survey.
  • Provision for filing ‘Updated Income Tax returns’ within 2 years from end of relevant AY in specific cases.
  • Introduction of section 194R for TDS deduction on benefit/perquisite of business or profession.
  • Extension of Specified financial transaction reporting to producers of cinematograph films or persons engaged in specified activities.
  • Source of funds in hands of creditor needs to be proved in case of loan or borrowing in lines with share capital as per provisions of section 68.
The Government Further Provided Certain Clarifications in Direct Tax Provisions:
  • Health and education cess & surcharge not allowable as business expenditure u/s 37.
  • Section 14A disallowance even if exempt income is not accrued or received during the year.
  • Any deduction for payment made on account of offense in or outside India is not allowable u/s 37.
  • In case of businesses reorganized under IBC laws, section 156A is introduced to give effects of order of Competent Authority like National Company Law Tribunal (NCLT) and modification of demand.

INTERNATIONAL TAX PROVISIONS

The Finance Minister proposed the below Tax Incentives to International Financial Services Centre (IFSC) in the Union Budget 2022:
  • Exemption in respect of income of a non-resident from transfer of non-deliverable forward contracts entered into with an Offshore Banking Unit (OBU) of an IFSC, now extended to offshore derivative instruments or over-the-counter derivatives.
  • Exemption in respect of income of a non-resident by way of royalty or interest paid by an unit of IFSC on account of lease of an aircraft now extended to lease of ship.
  • Deduction in respect of income arising from transfer of an aircraft leased by a unit of an IFSC, now extended to ship.
  • Exemption in respect of income of a non-resident from portfolio of securities or financial product or funds managed by a portfolio manager in an account maintained with OBU in an IFSC.
  • The benefit of exclusion from provisions of section 56(2)(viib) extended to Category I and Category II AIF regulated under IFSC.
Other amendments to Foreign Income:
  • Tax relief for persons with disability: Allow annuity payment to differently abled dependents when parents attaining age of 60 years.
  • Claim of refund of withholding tax deposited under section 195 can now be made by filing an application before the assessing officer which earlier required filing of an appeal before the CIT(Appeals).
  • Withdrawal of concessional tax rate of 15% on dividend income received by an Indian company from a foreign company, where the Indian company holds 26% or more in such foreign company .

INDIRECT TAX PROVISIONS

With respect to GST, Customs Duty and Excise Duty the provisions announced in the Union Budget 2022 can be categorized as follows:

Reliefs in GST Laws
  • Relaxation in time limits for rectification of sale invoice and to issue GST credit note against any sale invoice has been proposed to be extended from 30th September to 30th November of next financial year.
  • Time limits to avail ITC on any invoice of any particular year has been extended from 30th September to 30th November of next financial year.
  • Due date to file GST return by Non- resident taxable person (Form GSTR 05) has been amended from 13th to 20th of next month.
Rationalization of GST Laws
  • In case of multiple GST registration of the same company, if tax of any particular state is mistakenly paid in any other state’s GST registration then mechanism can be transferred just by filing PMT 09 instead of applying refund.
  • If ITC is availed wrongly but not utilized and is lying in electronic credit ledger then no interest will be applicable.
  • Rate of interest on account of wrong ITC utilized reduced from 24% to 18% w.e.f. 01.07.2017.
  • Clarification provided that the relevant date applicable for refund applications from supplies to SEZ is 2 years from due date of filing of Form GSTR 3B return.
  • Grant of alcoholic liquor license against consideration in the form of license fee or application fee by State Governments shall be treated neither as a supply of goods nor a supply of service.

Rate changes in Customs and Excise

For Electrical and Electronic Items:
  • Rate increase in speakers, headphones, and raw materials from 5% to 10%.
  • Effective rate changes to be impacted by Phased Manufacturing Program.
  • Rate decrease in camera lens for mobile and chargers from 10%/15% to 2.5% & 5% respectively.
For Gems and Jewellery:
  • Rate increase in Imitation Jewellery from 20% to Higher of 20% on value or Rs. 400/kg.
  • Rate decrease in Cut & polished diamonds and natural gemstones from 7.5% to 5%.
For Solar Energy:
  • Rate increase in Solar Cells and Solar Modules from 20% to 25% & 40% respectively.
  • Effective rate to be ‘NIL’ till 31st March 2022.
For Miscellaneous Product:
  • Rate increase in Umbrellas from 10% to 20%.
  • Frozen Mussels and Squids – Rate decrease from 30% to 15%.
  • Asafoetida and Cocoa Beans, whole or broken, raw or roasted – Rate decrease from 30% to 5% & 15% respectively.
  • Methyl alcohol (methanol) and Acetic acid – Rate decrease from 10% to 2.5% & 5% respectively.
  • Textiles other than those whose effective basic customs duty is not changed – Rate decrease ranges from 10% to 5% and amounts calculated square meter-wise whichever is higher.
Concessions on Basic Customs Duty For The Following Sectors:
  • Rate increase in speakers, headphones, and raw materials from 5% to 10%.
  • Effective rate changes to be impacted by Phased Manufacturing Program.
  • Rate decrease in camera lens for mobile and chargers from 10%/15% to 2.5% & 5% respectively.
For Gems and Jewellery:
  • Rate increase in Imitation Jewellery from 20% to 20% or Rs. 400/kg whichever is higher.
  • Rate decrease in Cut & polished diamonds and natural gemstones from 7.5% to 5%.
For Solar Energy:
  • Rate increase in Solar Cells and Solar Modules from 20% to 25% & 40% respectively.
  • Effective rate to be ‘NIL’ till 31st March 2022.
Clarifications in Direct Tax Provisions:
  • Agricultural products, Chemicals and Plastics, Paper, Metals, Medical devices, Toys, Capital Goods.
Concessions for import to be provided to Bonafide exporters:
  • A duty-free scheme on goods meant to be used in goods meant for export by bonafide manufacturers to be introduced.
  • Industries that will gain from this are the handicraft industry, textile and leather garments industry, leather and synthetic footwear industry.

Note: Anti-dumping duty (ADD) / Countervailing Duty (CDD) to be revoked on various goods imported from China, Germany, Vietnam and Korea.

Withdrawal of exemptions or concessional rates and levy of additional rates:
  • Gradual phasing out of exemptions for capital goods and project imports of the following major sectors: Textile sector, Power sector, Petroleum sector, Leather sector, Food packaging sector and Project imports in Coal, Gas, Iron Ore, and Water supply projects.
  • Concessional rates of basic customs duty provided in notification no. 50/2017 dated 30.06.2017 and certain stand-alone notifications to be withdrawn for various goods or exemptions provided to be given an end date. Social Welfare Surcharge (SWS) to be levied on various goods falling under chapters 08, 15, 25, 52, 54, 55, 58, 60, 61 and 62.

Changes in Excise Duty:

  • Fuel blends being Ethanol Blended Petrol with the percentage of ethanol up to twelve (E12) and fifteen (E15) percent respectively to be included Fourth Schedule to the Central Excise Act, 1944.
  • Blended Motor Spirit with ethanol/methanol or High-Speed Diesel with Bio-diesel will see a levy of Basic Excise Duty of Rs. 2/litre from 1st October 2022.

Trademark vs Patent vs Copyright: Which One Suits You The Best?

by InCorp Advisory

Reading Time: 4 minutes

Entrepreneurs in India slowly but steadily recognise the importance of intellectual property. This article discusses intellectual properties such as copyright, patents, and trademarks, as well as how they can help you protect your entrepreneurial ideas. Continue reading to find out which of the three options best suits your company’s needs.

What is Intellectual Property?

Intellectual property (IP) includes scientific discoveries, literary and creative works, designs, and so on. The three most commonly known types of intellectual properties that you should be aware of are:

  • Trademarks
  • Patents
  • Copyrights

What are Intellectual Property Rights (IPR)?

Intellectual Property Rights (IPRs) are legal rights that allow you to safeguard your intellectual inventions. These rights aid in the development of your company’s brand.

What is a Trademark, and what are its advantages?

A trademark is any word, symbol, or logo that helps consumers distinguish a product from its competitors. Trademark registration is an essential part of your company’s branding since they keep it distinct and distinctive. The exclusive right to use, sell, and alter your brand or goods in any way is granted by trademark registration.

Trademark registration is necessary since it aids in the development of your company’s brand image. Trademarks in India are divided into 45 different types or divisions. For example, a class could be footwear, metal export, or face cream manufacture. Your trademark can be registered in any of the above-mentioned classes.

Advantages of owning your Trademark:

Input tax credit denial to your customers The registered trademark informs the consumer/customer and any third parties that the product(s) or service(s) delivered under that brand belongs to the trademark applicant.
Blocking of E-waybillA registered trademark allows you to use, promote, and market the goodwill associated with the mark. It also aids in the avoidance of trademark infringement and the retention of your client’s loyalty.

Related read: Everything You Need To Know About The Trademark Registration Process In India

CLICK HERE

What is a Patent, and what are its advantages?

The purpose of a patent is to gain a competitive advantage. A patent gives you the exclusive right to create, use, trade, or import what you’ve invented after it’s been granted. The patent owner is the sole owner of the rights to sell or utilise the patent.

Patents are particularly significant in the industrial and pharmaceutical industries. The creator/company is the exclusive owner of the right to use the process with a patent in place.

Advantages of obtaining your Patent:

Input tax credit denial to your customers You can choose who may and who may not use the patented invention for the length of the patent’s protection.
Blocking of E-waybillPatent protection, bans anyone from commercialising, manufacturing, distributing, importing, or selling your invention without your permission.

Related read: How To Avoid Trademark Infringement?

CLICK HERE

Copyright corresponds to the exclusive right to produce, reproduce, promote, and sell your original work. Musical, literary, artistic, architectural, or theatrical works make up the majority of these pieces.

Programs, compilations, databases, and tables are examples of electronic works considered literary works. Furthermore, registering copyright serves as a deterrent to copycats misrepresenting or exploiting your original work.

Advantages of acquiring your Copyright:

Input tax credit denial to your customers Anyone with similar business interests cannot copy or use your brand. Someone with a different commercial interest, on the other hand, could copy or use it.
Blocking of E-waybillOnly the creator or whoever has registered copyright has the right to sell/copy or use a part of the work for any reason.
Blocking of E-waybillProtection is granted for 60 years from the year in which your work is made available to the public (e.g. cinematograph films and photographs)


What is the difference between a Trademark vs. Patent vs. Copyright?

Particulars Trademark Patent Copyright
Meaning It is a unique identity or expression used to identify your specific company or its goods or services It is a perfect way to protect your creations and gives you the sole right to our design  It is a legal right that protects the copying of your creative work
Term of registration It can be registered for a term of 10 years, after which you can renew it for another ten years. It is awarded for 20 years from the date of application. It is dependent on the nature of your work. It lasts throughout the author’s lifetime and even after their death in literary, musical, or artistic work.
Protection covers products/ ideas such as  Any word, symbol, or other characteristic that differentiates one rival from another in the same field. Inventions such as a specific procedure, the composition used to create an element, and so on. Books, articles, songs, sound recordings, and other original works of authorship.
Rights granted Right to use the mark and prevent others from using the same mark to identify goods or services based on your brand. Right to stop others from producing, selling, or importing your patented invention. Control over the replication and distribution of your original work is a legal right.


How Can InCorp Help You?

Thousands of business ideas pass through our heads every day, and a few of them may be exceptional or noteworthy. Your idea may or may not be protected by intellectual property law. However, your final creation with that exceptional idea could be protected under Intellectual property laws. Copyrights, patents, and trademarks can all be used to protect or preserve your work. They safeguard you (goods and service providers) by allowing you to control how your products/designs are used.

India offers a wide range of intellectual property rights to business owners. Choosing which intellectual property to use, on the other hand, can be a lengthy and complicated process.

That’s where our knowledgeable team of experts with years of experience can assist you.

Protect What Is Rightfully Yours

Get in touch with us right away!

Trademark Infringement – Meaning & Tips On How To Avoid It

by InCorp Advisory

Reading Time: 5 minutes

Any business that wants to succeed in today’s competitive market must-have brand recognition and value. Trademarks are the most straightforward way for you to accomplish this. The Trademarks Act protects registered trademarks in India and specifies the rules for trademark registration and penalties for infringement. 

In India, trademark infringement is a cognizable offense, meaning that the offender could face criminal and civil charges. In this article, we discuss about the types of contraventions and how to avoid trademark infringement:.

What Is Trademark Infringement?

The Trademarks Act establishes the laws governing trademark registration, protection, and penalties for infringement in India. Trademarks are treated as intellectual property all around the world. 

Trademark  or brand infringement occurs when a third party has not been granted permission to use the intellectual property, specifically a trademark of a company/business related to the service or product that the company provides. This may confuse the general public when purchasing that service or product.

Related read: Everything You Need To Know About The Trademark Registration Process
In India

CLICK HERE

What are the types of Trademark Infringement?

When investigating trademark infringement in an offline business or an online marketplace, it’s important to understand that there are two categories of infringement:

Direct infringementDirect Trademark Infringement
  • Direct Infringement occurs when a registered trademark’s exclusive rights are used without permission. It is a type of trademark infringement under the Trademark Act. It includes the following elements:
    • Unauthorised access:
      • It is considered trademark infringement when a registered mark is used by someone not authorised by the registered trademark owners.
      • It is not considered infringement if the mark is utilised with the permission of the registered trademark proprietor.
    • Identical or deceptively similar:
      • The unauthorized person’s trademark must be identical to or deceptively similar to the registered trademark. The word “deceptively similar” simply suggests that the average customer may be confused by the marks and mistake them for one another.
      • The keyword here is ‘may,’ it only has to be demonstrated that this is a possibility, not that it will happen. It is sufficient to prove infringement if there is a likelihood of misrecognition of the marks.
    • Registered trademark:
      • The Act protects only trademarks that have been registered under India’s trademark registration.
      • To resolve disputes when an unregistered mark is infringed, the common law of passing off is utilised. It is a tort law applied when a person or group of people suffers hurt or damage to their goodwill due to their actions.
    • Class of goods or services:
      • Trademark law states that to be considered a trademark infringement, the unauthorised use of the mark must be to promote products or services in the same class as the registered brand.
Indirect infringementIndirect Trademark Infringement
  • In comparison to direct infringement, there is no specific provision in the Act dealing with indirect infringement. This isn’t to say that there’s no risk of indirect infringement. Indirect violation can be divided into the following two categories:
    • Contributory infringement:
      It is made up of simply two elements:-

      • When the person is aware of the brand infringement but takes no action to avoid infringing.
      • When the person contributes meaningfully to the direct infringement.
        There is no exception in the situation of contributory infringement since the contributing infringer has no prospect of acting in good faith.
    • Vicarious liability:
      A person will be vicariously liable:

      • When the person can control the actions of the direct infringer.
      • When a person gains from the infringement.
      • When a person knows about the infringement and contributes to it.

      If a corporation violates the Act, the entire corporation is accountable. Everyone in the company will be liable for indirect infringement, not only the lead infringer. The only exception is someone who acts in good faith and without knowledge of the infringement.

What are the different penalties under Trademark Infringement?

In India, trademark infringement is a serious offence, which means that the offender could face both criminal and civil prosecution. The registration of a trademark is also not necessary by Indian law for the institution of civil or criminal proceedings. This is related to the common law idea of passing off, as previously stated. The court may award the following remedies in the case of trademark infringement:

  • Temporary injunction
  • Permanent injunction
  • Damages
  • Account of profits (damages equal to the earnings made as a result of the infringement)
  • Destruction of goods using the infringing mark
  • Cost of legal proceedings

In the event of a criminal case, the court will impose the following penalties:

  • Imprisonment for a minimum of six months and a maximum of three years.
  • A punishment of not less than Rs 50,000 and up to Rs 2 lakh may be imposed.

Trademark Infringement Case Studies:

Amul DairyAmul Dairy

The Kaira District Cooperative Milk Producers Union, also known as Amul Dairy, and the Gujarat Cooperative Milk Marketing Foundation (GCMMF), which markets the Amul brand, have filed a complaint in the Federal Court of Canada against Amul Canada and four other companies. The dairy learned in January 2020 that Amul Canada had duplicated its trademark “Amul” and the emblem “Amul—The Taste of India.” On the social media platform LinkedIn, a false profile was also created.

Amul has won a trademark infringement dispute outside of India after the Federal Court of Canada recently ruled in its favour. The Intellectual Property Appellate Board of Canada recently granted Amul trademark recognition as a result of the order. After winning a trademark violation case in the Federal Court of Canada, the country’s largest dairy cooperative society will also be rewarded 32,733 Canadian dollars.

StarbucksStarbucks vs Sardarbuksh

Starbucks filed a lawsuit against Sardarbuksh for using a logo that is strikingly similar to Starbucks’ and using a name that provides a sense of similarity between the two. Starbucks won the case. The court ordered the defendant to change their name but not their emblem because Starbucks had changed theirs.

It was noted that the judgement pronounced also took into account the fact that the similarity in the names and logos had caused economic hurdles for Starbucks. Starbucks, a global brand that has accumulated goodwill due to its long history in the coffee business, and that the defendants were aware of this and did what they did to gain attention.

Coca Cola Company v. Bisleri InternationalThe Coca Cola Company v. Bisleri International Pvt. Ltd.

Bisleri was the defendant in this case due to an agreement that allowed the transfer and assignment of MAAZA trademark rights. It provided Coca-Cola with the formulation rights, intellectual property rights, and know-how, as well as the goodwill associated with bottling and distributing a mango fruit drink called MAAZA in India.

The defendant firm has filed a trademark application in Turkey for the term MAAZA and has begun exporting the identical fruit drink under that name. Coca-Cola sought a permanent injunction and infringement damages for passing off and trademark infringement after the defender, Bisleri, gave it to them.

In the end, Bisleri was found to have violated the interim injunction by utilising the brand MAAZA in India and even offering it for export, which was a clear example of trademark infringement.

Conclusion

Every business must understand that once a trademark is registered, it gets the privilege to avail legal protection against trademark infringement under the Trademark Act of India. Indulging in trademark infringing can hamper the company’s growth. Most of the trademark infringement cases consider proof of prior use even if the trademark is not registered.

It is best to hire professional business services to ensure protection against such futuristic compliance issues. Make sure to have a trademark search before you unknowingly use some other brand’s intellectual property. Using identical or similar marks, knowingly or unknowingly, will be considered as Trademark Infringement..

Why Choose Incorp?

Our expert team of professionals have the expertise and skills to guide you in any way possible, from protecting your brand to registering your Trademark. Whether you are the plaintiff or the defendant, Incorp can assist you with legal advice in the following:

  • Registering your Trademark
  • Drafting agreements
  • Avoiding legal issues

Know more on How to Avoid Trademark Infringement

Get in touch with an Expert/Apply for Trademark Registration Today

Your Guide For Trademark Registration Process In India

by InCorp Advisory

Reading Time: 5 minutes

Creating a brand requires consistent effort and hard work. In today’s competitive market, it’s challenging to make your products or services stand out from the crowd. To ensure the success of your business, you must create a distinct identity for your product or service.

How can you achieve this distinct identity? By registering for a Trademark!

In this article, we shall guide you through the trademark registration process in India and the advantages of the same. Scroll till the end to find out 7 easy steps to register for trademarks!

What Is A Trademark?

A trademark is a unique sign, design, or expression. It is used to identify a specific company or distinguish its goods or services from others.

In India, you can register the following as a trademark for your business:

Device Letter
Brand Word
Heading Numeral
Label Shape of Goods
Ticket Packaging
Name Combination of Colors
Signature Tagline
Jingle Any Such Combinations

Why Must You Register A Trademark?

  • A trademark can be associated with your brand or product. Owning a trademark improves the quality of your product or service. It promotes trust and encourages potential customers to remain loyal to your company.
  • A registered trademark is a company’s intellectual property as well as an intangible asset. In addition, the cost of registration is low.
  • Furthermore, you will be protected under the Trademark Act.
  • You can make establishing your brand hassle-free by opting for trademark registration online.

What Are The Advantages Of  Trademark Registration?

  • Once you finish the trademark registration process, the consumer and any third party shall be aware that the products or services provided under a registered trademark belong to the trademark applicant.
  • In addition, the registered trademark gives the exclusive right to use, sell, and modify the brand or goods in any way.
  • It is critical to register a trademark in India and other countries of commercial interest. It grants you the legal right to use your trademark exclusively in such countries.
  • It also prevents any third party from using your trademarked brand name or logo without your permission. It also safeguards your products or services against violation. Thus, a trademark helps you to protect your brand from third-parties.
  • Most importantly, your trademark registered in India is valid for ten years. It is renewable for another ten years. As long as you keep renewing the trademark, it will not expire and you will be able to continue to benefit from the trademark rights.
  • Furthermore, the owner has the option of transferring their registered trademark. When the business is sold, you can transfer a common law trademark.
  • The person who applies for trademark registration first will be given priority for registration.

What Are The Documents Required For Applying For Trademark Registration In India?

You need the following documents when applying for a trademark:

  • Logo or Brand name that you want to register.
  • Details about the classes in which the trademark will be registered
  • A Power of Attorney authorizes an attorney to file the trademark registration on your behalf.
  • If your company is a start-up or an MSME, you must have a certificate of registration. You can get a 50% discount on the government fee.
  • If you have been using a trademark in India for your business before applying for registration, you may register the trademark from the date of first use. In that case, you must provide an affidavit as well as documentary proof such as invoices, registration certificates, and so on.

Related Read: Trademark vs Patent vs Copyright: Which One Suits You The Best?

CLICK HERE

What Is The Trademark Registration Process In India?

To file a trademark, you need to be aware of the following steps:

5 steps to trademark registration

select a trademarkSelect a Trademark:
  • To differentiate your products and services in this market scenario, your trademark should be unique, non-descriptive, and different.
search for trademarkConduct search for Trademark:
  • This search lets you know if there are any similar trademarks out there. You can find out if they are registered or not. Thus, allowing you to avoid trademark lawsuits.
fill an applicationFill an application:
  • You must file a trademark registration application with the correct class and details. The necessary forms must be submitted to the Controller General’s Office of Patents, Designs, and Trademarks.
  • When a trademark application is filed, the Trade Marks Registry will assign an application number.
  • Using the online trademark search function, the application can then be tracked online.
  • You can also comply with the entire trademark registration process online as well.
  • Upon receiving the application number, the applicant may place the TM symbol next to the registered mark.
vienne codificationApply for Vienna Codification:
  • Once the application is filed, the Indian Trade Marks Registry assigns a Vienna code to the trademark if it contains symbolic elements/logos.
trademark inspectionConduct Trademark Inspection:
  • The Trademark Registry will then review your application to ensure that the basic requirements have been met.
  • The registry generates a trademark examination report based on the results of this inspection. The examiner may accept the application unconditionally, conditionally, or object to it.
  • If the application is accepted unconditionally, it is published in the trademark journal.
  • If it is accepted subject to conditions, then the applicant will be given one month to fulfill the condition before the trademark application is rejected.
  • If the application is still not accepted after fulfilling the conditions, a hearing can be requested. If the examiner believes the trademark should be registered, he will publish it.
  • If someone objects to the application, the applicant must file a response to the examination report. The response should state the reason for registering the trademark applied for and shall help overcome the objection.
  • If the examiner believes that the objection(s) are still pending, a hearing will be held to resolve the matter.
  • If the objections are overruled during the hearing, the trademark application is accepted and published in the journal.
trademark journalsPublish about your Trademark Registration in Indian Journals:
  • Following the registrar’s acceptance of the trademark application, the specified trademark will be published in the Journal.
  • Once published, there is a chance that the public will object because they believe such a trademark will harm their business.
  • Your trademark registration process will be completed if no objections are received within four months of publication.
  • A third party may file an objection to your registration application within four months of its publication in the journal. In this case, the trademark hearing officer will hold a hearing.
  • Both the applicant and the opponent will have the opportunity to attend the hearing. The hearing will determine whether or not the request is accepted by the hearing officer.
Receive Trademark Registration CertificateReceive Trademark Registration Certificate:
  • A trademark registration certificate will be prepared if there are no objections or contradictions to the requestor opposition.
  • Once a trademark registration certificate is issued, the trademark is considered the owner’s registered trademark, allowing the owner to use the trademark entirely.
  • The ® symbol can now be used next to a registered trademark.

Related read: How To Avoid Trademark Infringement?

CLICK HERE

Conclusion

A registered trademark is an intellectual property asset that protects your company’s products and/or services from infringement by third parties. A trademark should increase the brand value of your products and services while also creating brand recognition.

By trademark registration in india, you can increase your overall business value, goodwill, reputation, and net worth in the industry.

Why Choose Incorp?

Our service range includes:

  • Conducting a thorough search on the website of the Controller General of Patents, Designs, and Trademarks.
  • This search helps to determine whether your firm is eligible to begin the trademark registration process in India.

We will advise you on which classes to apply for:

  • Creating and submitting a trademark registration application form
  • Creating an affidavit to claim prior use of the mark
  • Creating a response to a Trademark Registry objection or opposition from a third party
  • Attending hearings

Our other areas of service include:

  • Changes to the application or registration of a trademark
  • Assistance with Litigation
  • Assistance in the process of renewing registered trademarks
  • Assistance in the preparation of franchising and licensing agreements, assignment deeds, and other legal documents.

Allow Incorp to make your trademark registration process hassle-free. Enjoy complete ownership of your brand!

Get in touch with our experts

Schemes Proposed In Union Budget To Boost MSME Sector

by InCorp Advisory

Reading Time: 3 minutes

Industries and businesses, especially MSMEs, were severely hit due to the outbreak of COVID-19. The pandemic forced several MSME businesses to shut down while the others continued to struggle with liquidity and access to loans. To provide relief to the MSME, the government announced several measures in the Union Budget-2021.

This article will brief you about the MSME schemes that the government launched, their applicability, benefits as well as the reforms it introduces.

MSME stands for Micro, Small, and Medium Enterprises. Based on the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006, the enterprises are classified into two divisions.

  • Manufacturing enterprises – engaged in manufacturing or production of goods in any industry.
  • Service enterprises – engaged in providing or rendering services.

Classification Micro Small Medium Manufacturing & Services Investment* < Rs 1Cr and turnover < 5Cr Investment < Rs 10Cr and turnover < 50Cr Investment < Rs 50Cr and turnover < 250Cr

*Investment – The original value (Purchase Price) of Plant and Machinery or Equipment is to be considered while calculating the amount of Investment.

Each kind of business element is qualified to acquire the Udyam registration certificate.

Proprietorship Limited liability partnership (LLP)
Hindu Undivided Family (HUF) Private limited or limited company
One Person Company (OPC) Co-operative Societies or
Partnership firm Any association of persons

 

  • Exemption of 1% interest rate on Overdraft
  • 100% Collateral Free loans, easy mortgages, and cheaper business loans(1.5% lower than interest on regular loans)
  • Barcode registration subsidy
  • Electricity bills concession
  • Stamp duty and registration fees waiver
  • UDYAM Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme)
  • ISO certification fees reimbursement
  • Exemption under direct tax laws.
  • Avail subsidy from NSIC and credit ratings & Eligible for IPS subsidy.
  • The subsidy is available for Patent registration.
  • Recovery mechanism through MSME SAMADHAN for outstanding dues from customers
  • Corporate Guarantee Scheme for micro and small enterprises up to 200 Lakhs (CGSTMSE)

    • MSME Union Budget 2021 Infographic

  • As per the MSME Credit Scheme, MSMEs registered under GST can get a 2% interest grant from the Government for incremental loans up to Rs. 1 crore. (Valid up to 31st March 2021)
  • There are specialized SME branches of PSU banks that enable MSMEs to raise funds.
  • To promote the “Make in India” initiative, only Indian companies (including MSMEs) could participate up to INR 200 crores for a government tender. This would eliminate competition from across the globe.
  • The Government agencies will help settle MSME receivables within 45 days to facilitate better liquidity and working capital management.
  • In order to ease the proceedings under the Insolvency and Bankruptcy Code, measures have been established as follows:-
    • The minimum threshold to initiate insolvency proceedings raised to INR 1 crore
    • Suspension of fresh initiation of insolvency proceedings up to 1 year
    • Exclusion of COVID-19 related debt from the definition of ‘default’ for triggering insolvency proceedings
  • Online market linkages to compensate for canceled trade fairs.
  • Various Government schemes and subsidies to boost the MSME Sector such as Zero defect Zero effect, Incubation, women entrepreneurship, and more, to modernize the sector, improve product quality and make it more competitive among its global peers.

    • To support the economy and MSMEs that were severely affected due to the outbreak of
    COVID-19:

    • The government announced an allocation of INR 15,700 crores for the MSME sector which is double the Budgeted Expenditure of 2020
    • A higher budget has been allocated towards the Prime Minister Employment Generation Programme (PMEGP) and Other Credit Support Scheme to help the pandemic that struck MSMEs. The previous year the budget was INR 2800 crore and currently, it has been increased to INR 12499.70 crore.
    • Customs duties have been reduced to 7.5 percent on semis, flat, and long products of non-alloy, alloy, and stainless steels (raw materials for certain MSME businesses) which would help them procure raw material at cheaper rates than were otherwise available in the domestic market at a higher rate.
    • To provide relief to metal recyclers, mostly MSMEs, the exemption in customs duty in steel scrap up to 31st March 2022. Also, ADD (Anti-dumping Duty) and CVD (Countervailing Duty) on certain steel products have been revoked.
    • In order to provide relief to copper re-cyclers, duty on copper scrap has been reduced from 5 percent to 2.5 percent.
    • On the other hand, on certain finished products produced by MSMEs players, custom duties have been increased to revive the domestic industry of garments, leather, handicrafts, and finished synthetic gems. The minister also announced increasing duty on steel screws and plastic builder wares from 10 percent to 15 percent.

    The above-mentioned MSME schemes will help the sector to revive from the impact of COVID-19 and help to create employment opportunities. Efforts have been made to revive small businesses.

    The focus has been given on operation reforms in MSME which will increase the confidence in MSME players such as:

    • Focus on alternate methods of debt resolution and a special framework for MSME shall be introduced.
    • National Company Law Tribunal (NCLT) framework will be strengthened keeping in mind MSMEs.
    • E-court shall be implemented for the early resolution of disputes. Ease in dispute resolution will also increase the lenders’ confidence and financing for MSMEs would be readily available.
    • Implementation of e-courts and ease in dispute resolution will also reduce litigation costs and enable faster resolution of the disputes.
    • Relaxation in One person company’s conditions, this, in turn, will lead to set up of business in a more structured way.
    • In the direction of ease of doing business and ease of compliances, there is an increase in the threshold limit of small companies, resulting in the formation of more companies rather than partnership firms or proprietorship firms. The government proposes to do this by increasing the thresholds limit of paid-up capital of small companies from ₹50 lakh to ₹2 crores, and turnover from ₹2 crores to ₹20 crores.
    • MSMEs can form companies under the category of small companies so that they can gain the confidence of lending institutions.

    Furthermore, the Government wants to focus on helping Covid-hit MSMEs through the MSME loan scheme. It helps by allocating The Emergency Credit Line Guarantee Scheme, which provides 100% guarantee coverage of up to Rs 3 lakh crore to eligible MSMEs, while the allocation for Interest Subvention Scheme for Incremental Credit to MSMEs is at Rs 199.66 crore this year.

    How Can InCorp Help You?

    Through some amazing reforms, the economy has an opportunity for the economy to grow sustainably. A lot of measures have been introduced to reduce the compliance burden on MSMEs. By way of various incentives to the MSME structure, the government aims to boost the local business and generate employment opportunities. 

    Incorp can help you with navigating MSME registration and regulations. Our team will guide you and ensure peace of mind from setting up your India company to staying compliant and managing your taxes on time with ease.

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