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CS Executive · Setting Up of Business, Industrial and Labour Laws · Startups and its Registration

Tarang Foods Pvt Ltd, incorporated three years ago, has had an annual turnover of Rs 45 crore in one past financial year and Rs 30 crore in others. It seeks DPIIT startup recognition. Which statement is correct on the turnover condition?

Tarang meets the turnover condition because DPIIT requires that turnover has not exceeded Rs 100 crore in any financial year since incorporation. Its highest turnover of Rs 45 crore is within that ceiling, so turnover does not bar its recognition.

  1. AIt is ineligible, since turnover must not have exceeded Rs 100 crore in any financial year since incorporation, and Rs 45 crore is above that
  2. BIt is eligible on this condition, as turnover has not exceeded Rs 100 crore in any financial year since incorporationCorrect
  3. CIt is ineligible, since turnover must never have exceeded Rs 25 crore
  4. DIt is eligible only if turnover was below Rs 10 crore in the last year

Explanation

The condition is that annual turnover has not exceeded Rs 100 crore in any financial year since incorporation. Rs 45 crore is well within that ceiling, so the condition is met. The Rs 25 crore figure is the older limit.

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