MSME REVISED CLARIFICATION
The Government of India recently revised the criteria for classification of Micro, Small and Medium Enterprises (MSME) with effect from July 1, 2020 vide Gazette Notification No. 2119 (E) dated 26th June 2020. The important points to this effects are as follows -
-> MSMEs are listed on the basis of investment in plant and machinery or equipment and also turnover.
-> The revised classification of MSMEs as per the aforementioned Gazette Notification is as under -
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* investment in plant
and machinery or equipment
Enterprises to satisfy both Investment and Turnover
Limit to be in a Category. If either one condition is above limit, they will be
in next higher category.
3)
With regard to calculation of investment in plant and
machinery or equipment, Para 4(3) of aforementioned Gazette Notification states
the following -
The expression
“plant and machinery or equipment” of the enterprise, shall have the same
meaning as assigned to the plant and machinery in the Income Tax Act, 1962
framed under the Income Tax Act 1962 and shall include all tangible assets
(other than land and building, furniture and fittings)
•
All Enterprises (the new and the previous one) need to
be registered in Udyam Registration
Portal on or after 1st July 2020. Present existing MSME registrations
are valid till 31st March 2021
•
Exports of goods or services or both shall be excluded
while calculating the turnover of any enterprises whether micro, small or
medium for the purpose of classification.
The Notification also contains details procedure to be
followed for registration of existing and new enterprises in the Udyam
Registration portal for getting the
Udyam Registration Number .
As per information available, Udyam Registration portal is
under construction. For any help in registration in the portal, members may
approach the respective MSME – DI offices.
- G. GANESHA
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