Udyam Registration W.E.F. 1st July 2020

Summary of Notification issued stating revised guidelines on Udyam Registration and classification of MSME (W.E.F. 1st July 2020)

The ministry of micro, small and medium enterprises (MSME) had on June 1, 2020 notified new criteria for classification of MSMEs based on investment and turnover, to be effective from July 1, 2020.

Based on the same, the MSME ministry issued a detailed notification on Friday which gives the detailed criteria for classification of MSMEs and the procedure for registration and the arrangements made by the ministry for facilitation in this process.

To avail benefits of MSME like Low Interest Rate Loans / Collateral Free Loans/Subsidies etc., you must register under new Udyam Scheme. I have tried to summarize the details stated in notification.

(Link: https://taxguru.in/corporate-law/msme-classification-registration-process-calculation-investment-turnover.html )

Udyam Registration Portal (W.E.F. 1st July 2020)

Revised guidelines on Udyam registration and classification of MSME

1) Udyam Registration

Online registration based on Aadhar on Udyam Registration Portal

(Without any charges/fees)

Aadhar number shall be required for Udyam registration. (Aadhar number of Proprietor/Partner/Authorized signatory or Director)

On registration, Udyam will be assigned a permanent identity number known as “Udyam Registration Number”

An e-certificate, namely “Udyam Registration Certificate” shall be issued

Note: Registration of Existing Enterprise AND Updation of Information

All existing EM-Part-II or UAM registered enterprise shall register again on Udyam Registration Portal after 1st July 2020 An enterprise having Udyam Registration Number shall update its information online in the Udyam Registration portal, including the details of the ITR and the GST Return for the previous financial year and such other additional information as may be required, on self-declaration basis.

2) Classification of Enterprise

Note: All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise.

3) Calculation of Investment in Plant & Machinery or Equipment

It will be linked to filed ITR of previous years.

In case of new enterprise, Investment will be based on self-declaration of promoter and will be linked to ITR once first ITR is filed. (Purchase value shall be taken except GST)

The expression “Plant & Machinery or Equipment” shall have the same meaning as assigned to Plant and Machinery in The Income Tax Act,1961.

It shall include all Tangible assets (Other than Land & building and Furniture/Fixtures)

4) Calculation of Turnover

Turnover of export of goods or services or both shall be excluded while calculating the turnover of the enterprise.

Turnover shall be linked with The Income Tax Act or CGST Act or GSTIN

For New Enterprise, Turnover on self-declaration basis up to 31st March 2021, thereafter it will be linked with PAN/GSTIN Please feel free to contact me for any assistance – Namra Shah ( 7405394275 ) Legal

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