MSME Classifications and Registration Requirements w.e.f. 01.07.2020
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Ministry of Micro, Small and Medium
Enterprises have come out with notification no. [F. No.
21(5)/2019-P&G/Policy (Pt-IV)] dated 26th June 2020, wherein following
new criteria of classification of enterprises and new registration procedures
under MSMED Act,2006:-
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Classification
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Micro Enterprises
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·
Investment in Plant & Machinery or Equipment - Not more than 1 Crore
·
Turnover- Not more than 5 Crores
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Small Enterprises
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·
Investment in Plant & Machinery or Equipment- Not more than 10 Crores
·
Turnover- Not more than 50 Crores
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Medium Enterprises
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·
Investment in Plant & Machinery or Equipment- Not more than 50 Crores
·
Turnover- Not more than 250 Crores
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Criteria of investment and turnover for classification
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1.
Investment and Turnover
criteria shall be considered together for classification.
2.
All units with GSTIN under
same PAN shall be considered collectively i.e. Investment and turnover of all
the units shall be considered collectively
3.
For calculation of Investment
in Plant & Machinery: -
a.
Investment declared in
previous year Income Tax Return shall be considered.
b.
If there is no previous
year Income Tax Return, self-declaration shall be filed by promoter.
c.
Value in Purchase invoice excluding
GST shall be considered, where there is no Income Tax Return.
d.
Plant & Machinery or
Equipment shall be all tangible asset except Land & Building and
Furniture & Fittings.
e.
Definition of Plant &
Machinery or Equipment shall be considered as written in Income Tax Act,1961
4.
For calculation of Turnover:
-
a.
Export turnover shall be
excluded.
b.
Value of turnover and
export shall be linked with Income Tax and GST
c.
For Enterprises not having
PAN turnover shall be considered on self-declaration basis upto 31.03.2021.
After that obtaining of PAN shall be mandatory for enterprises
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Registration for New Enterprises
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1.
Aadhar Number shall be
required for registration at Udyam Registration portal.
2.
Criteria of usage of Aadhar
number shall be :
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Registration for Existing Enterprises
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1.
All enterprises registered
under EM–Part-II or UAM (i.e. existing Udyog Aadhar) shall register again on Udyam
Registration portal.
2.
Enterprises shall be
reclassified as per new criteria.
3.
Existing registration shall
be valid upto 31st March, 2021.
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Post- Registration procedures
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1.
Udyam Registration Number
(URN) shall be allotted to the enterprises.
2.
After URN is allotted
enterprises shall update the details of ITR and GST return relating to
previous year, on Udyam Registration portal.
3.
If details are not updated
in prescribed time, status of MSME may be suspended.
4.
After the details are
update by enterprise, status of enterprise shall get updated on portal.
5.
If there is any change in
status, as applied, communication shall be sent to enterprise.
6.
If status is shifted
upward, enterprise shall continue its existing status till one year from end
of year of registration.
7.
If status is shifted
downward, enterprise shall continue its status till the end of financial year.
And benefits of new status shall be applicable from 01st April of
new year.
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Disclaimer: The entire above
stated article is squarely based on our opinion, derived from the
interpretation of the respective notification. The observations are personal
view and authors do not take responsibility of the same and this cannot be
quoted before any authority. Users shall also refer to gazette notification
before arriving to any decision.
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Goods and Service Tax Act, 2017 (GST) and Income Tax Act,1961 and other ancillary matters
Friday, 17 July 2020
MSME Classifications and Registration Requirements w.e.f. 01.07.2020
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