Ministry of Commerce & Industry
The Ministry of Commerce and Industry is responsible for regulation, development and promotion of India’s international trade and commerce through formulation of appropriate international trade & commercial policy and implementation of the various provisions thereof.
It administers two departments:
Department of Commerce & Department of Industrial Policy & Promotion (DIPP) : The department is entrusted with formulating and implementing the foreign trade policy and responsibilities relating to multilateral and bilateral commercial relations, state trading, export promotion measures, and development and regulation of certain export oriented industries and commodities.
Website URL: http://www.commerce.gov.in/
DEPARTMENT OF INDUSTRY POLICY & PROMOTION (DIPP) : This department is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector, keeping in view the national priorities and socio-economic objectives.
While individual administrative ministries look after the production, distribution, development and planning aspects of specific industries allocated to them, Department of Industrial Policy & Promotion supervises overall Industrial Policy.
It is also responsible for facilitating and increasing the FDI flows to the country & determining the country’s WPI (I.e. Wholesale Price Index). DIPP is also accountable for intellectual property rights relating to patents, designs, trademarks, and geographical indication of goods and oversees the initiative relating to their promotion and protection.
Website URL: http://dipp.nic.in/
Officeholder: Suresh Prabhu (Minister of Commerce & Industry )
1. Section 80-IAC of the DIPP Act limits the profit-linked deduction to a company and a limited liability partnership only. We recommend that the benefit under Section 80 IAC should be extended to partnership firm as well.
2. The aggregate of paid up share capital and share premium does not consider losses which are incurred by a Start-up. Therefore, a loss making start-up which is in need of funding from resident investors may not be able to claim benefit under section 56(2)(viib) of the Act if the threshold of INR 10 crores does not consider losses. Typically, most of the start-ups incur heavy losses during the initial years of business. Hence, IVCA proposed to re-frame the condition specified in clause 4(1)(i) of the DIPP notification to state that the “net worth” of the start-up after proposed issue of shares does not exceed INR 10 crores.