Union Ministry of Micro, Small and Medium Entities (MSME), vide its Notification Dated 26.06.2020 notifies the new definition of MSME along with its new name i.e., “UDYAM Registration”, and introduced a new portal named “UDYAM Registration Portal”.
Ministry also issued a clarification regarding new criteria for the classification of MSMEs.
Our previous articles on UDYAM Registration: —
1. Elucidation of new UDYAM Registration:
https://taxguru.in/corporate-law/UDYAM-registration-new-existing-msmes-wef-01-07-2020.html
2. Practical points of differences between new and old MSME registration:
https://taxguru.in/company-law/practical-aspects-udyam-registration-w-e-f-01-07-2020.html
3. Clarification on existing EM PART-II/UAM:
https://taxguru.in/corporate-law/udyam-registration-clarification-existing-em-part-ii-uam.html
Q.1 What is the validity of the existing EM–Part-II or UAM?
Ans. All the existing EM Part II and UAMs register till 30/06/2020 are only valid upto 31/03/2021.
If an entity does not register itself with UDYAM Portal before 31/03/2021 then after that its status shall stand suspended.
Q.2 What is the time limit of registration for existing registered (EM Part II and UAMs) entities?
Ans. As per notification dated 26/06/2020, the time limit for registration is 01/07/2020 to 31/03/2021.
However, the UDYAM portal has not started this service yet. And all the existing EM Part II and UAMs are valid till 31/03/2021.
Q.3 Is the re-classification of entities as per new defining criteria for the classification of MSMEs applicable to the registration of existing entities?
Ans. Yes, all entities registered till 30/06/2020 shall be re-classified following the new definition. Ministry will send a communication to entities in both scenarios whether it is upward change (from a lower to a higher category) or reverse-graduation (sliding down to lower category).
Provided that re-classification is also applicable to new entities taking afresh UDYAM Registration.
Q.4. What are the consequences of Upward change due to re-classification?
Ans. An entity will maintain its prevailing status until the expiry of one year from the close of the year of registration.
Ex. If registration is done on the last date i.e. 31/03/2021 then on the upward change in prevailing status (Micro, Small or Medium), the prevailing status will be valid till the expiry of one year from the close of the year of registration i.e., 31/03/2022.
Q.5. What are the consequences of reverse-graduation due to the re-classification?
Ans. An entity will maintain its prevailing status until the closure of the financial year and it will be given the benefit of the changed status only with effect from 1st April of the financial year following the year in which such change took place.
Ex. If registration is done on the last date i.e. 31/03/2021 then on the reverse-graduation in prevailing status (Micro, Small or Medium), the benefit of the changed status will only be available with effect from 1st April of the financial year following the year in which such change took place i.e., 01/04/2022.
Q.6. Do PAN and GSTIN are mandatory for UDYAM Registration?
Ans. Ministry has given relaxation to entities that do not have a PAN or GSTIN until 31/03/2021. They can take registration on self-declaration basis upto 31/03/22021 and thereafter, PAN and GSTIN shall be mandatory.
Q.7. What is the last date available to entities not having PAN and GSTIN, who had taken UDYAM Registration on a self-declaration basis, for taking registration of PAN and GSTIN?
Ans. The last date is 31/03/2021.
The UDYAM Registration of above-mentioned entities shall be liable for suspension if before 31/03/2021, they:
a) Does not take PAN and GSTIN registration, or
b) Failed to update the same on UDYAM Portal on a self-declaration basis.
Q.8. Do existing entities having Udyog Aadhaar Memorandum (UAM) have to take GSTIN compulsorily irrespective of the fact that the turnover is below the limit for GST Registration?
Ans. Yes, as stated earlier GSTIN is mandatory irrespective of the fact that the entities are covered under eligible entities definitions for taking registration under GST or not.
Q.9. Whether traders will now be allowed to register under MSMEs?
Ans. As of now, traders are not allowed to take registration under MSME.
The link of the notification for the same is:
https://taxguru.in/corporate-law/activities-codes-msmed-act-udyog-aadhaar-registration.html
Q.10. Can more than one UDYAM registration be done on the same PAN?
Ans. One can not take more than one UDYAM registration with a single PAN.
Q.11. In the earlier registration process, based on one Aadhar more than one UAM can be taken is that be same for UDYAM also?
Ans. No, under the new registration process only one UDYAM registration can be generated with single Aadhar.
Q.12. How to amend the UDYAM already taken?
Ans. An enterprise having UDYAM Registration Number can update its information online in the UDYAM Registration portal on a self-declaration basis.
Q.13. How to add a new plant or new branch of business in already taken UDYAM registration?
Ans. A new plant or new branch of business can be added by updating the UDYAM registration. An enterprise having UDYAM Registration Number can update its information online on the portal on a self-declaration basis.
Q.14. While registering for UDYAM, Turnover Field is not auto-filled in the registration form?
Ans. Information as regards to turnover for an enterprise is linked to the GSTIN No. and last year filed GST Return.
The boxes for the same are not filled at the time of submission, the amount of turnover is to be checked by the portal at back end after submission of the application.
Further, Applicant file application on a self-declaration basis who do not have filed even one return under GST can fill the details on self- declaration basis and shall file the application on or before 31.04.2021 with filed GST details.
Q.15. What Value of Plant and Machinery or Equipment is to be taken for registration purposes?
Ans. As per notification dated 26/06/2020, the purchase (invoice) value of a plant and machinery or equipment is stated to be taken for registration purposes.
But UDYAM Portal has been capturing the depreciated cost as on 31st March of the relevant year and based on the same entities are classified and the certificate is generated.
Therefore, ministry issues a clarification for the same dated 06/08/2020. Now the value of Plant and Machinery or Equipments shall mean the Written Down Value (WDV) as at the end of the Financial Year as reflected in the last year filed ITR and not the acquisition cost or original price.
With the above clarification ministry also requested RBI to revisit it’s circular dated 02/07/2020 in respect to the calculation of Plant and Machinery or Equipments:
https://taxguru.in/rbi/reclassify-msmes-new-definition-w-e-f-july-1-2020-rbi-banks.html
Q.16. How many NIC codes one can add to one UDYAM registration?
Ans. Maximum 10 NIC codes can be added in one UDYAM registration.
Q.17. Have NIC codes which are prohibited earlier for registration are now available for UDYAM registration?
Ans. No, NIC codes which are prohibited earlier are still not available for registration.
Ministry of MSMEs, in that, regards amended its Office Memorandum dated 27/06/2017 and substitute the word “Udyog Aadhaar Memorandum” with “UDYAM Certificate”, vide notification dated 17/07/2020.
Link of the official notification:
https://UDYAMregistration.gov.in/docs/OM_UAN_17_7_2020.pdf
Q.18. Is the portal started working for registrations of existing MSMEs having EM-II or UAM?
Ans.. No, the UDYAM portal has not started this service yet.
Q.19. Is the old Udyog Aadhaar Memorandum (UAM) portal is still working?
Ans. Yes, on the UDYAM registration portal itself a new tab is added named Udyog Aadhaar which redirects to the old portal.
The old portal is enabled for some specific purpose only and in that regards four new tabs are inserted for redirection namely:
1. Update Udyog Aadhar,
2. Print Application,
3. Print Certificate,
4. Verify Udyog Aadhar
However, this service is available until 31/03/2021 only.
Q.20. Can old UAM be updated?
Ans. Yes, old Udyog Aadhaar Memorandum (UAM) can be updated using the new tab available on the UDYAM registration portal. But this service is available until 31/03/2021 only.
Q.21. Can we add new NIC codes and, or, plants in old Udyog Aadhaar Memorandum (UAM)?
Ans. Yes, one can add or delete NIC codes and, or, add or delete Plants as per their need. The old UAM will be updated accordingly.
However, this service is available until 31/03/2021 only.
Q.22. Whether a Wholly-Owned Subsidiary of a foreign company or Foreign Subsidiary or Multi-National Companies(MNCs) can take MSME registration in India?
Ans. Yes, any entity which is registered in India and has a place of Business in India can take MSME registration.
There is no restriction on taking MSME registration by a wholly-owned subsidiary of a foreign company or foreign subsidiary or multi-national companies(MNCs).
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Please feel free to contact the undersigned in case you require any further information/ clarification on the above article.
Garima Bansal & Atul Singh- [email protected] – [email protected]
Author Bio
A person having 2 different proprietorship firms registered with his PAN, can he make Udyam Registration for both the Firms.
Sir,
How many days the MSME website take to auto-update for ITR for current year i.e FY-2022-23. because in the FY-2021-22 we was under medium Category of enterprise but after filling the ITR for FY-2022-23 we comes under Small category(T.O.<50Cr) and there are no option on website to update ITR.
Please suggest Asap.
We have trading Unit (Proprietory concern) and Manufacturing unit (Partnership firm) in different name but same registered address.We have udyam certificate on proprietory concern later i.e on 30/06/2021 we have registered for udyam for partnership firm paying registration fees .Now the number of Udyam is same .When we verify on udyam site.Is there any problem occurs in future??? What actions should be taken to avoid further difficulties??
My friend has udyam registration for proprietership . Now he wants to add another business having partnership.
Is it possible to add proprietership n partnership in one udyam registration
1)How to update partnership in udyam registration.
2) howto add new bank current account
Mr. A is sole proprietor of xyz also he is managing director of a pvt ltd company ABC Pvt ltd . so he needs to have 2 udyam registration or 1?
Issue regarding Udyam Registration
As per the instructions for Udyam registration on website, I did the registration procedure.
1] Aadhar Card validated
2] On 2nd Page when i entered the PAN number it was showing that PAN already registered.
I tried thru the forget link but neither my phone nor my email id registered on the same website.
I have been never generated MSME certificate before.
Please guide me for further process.
How to migrate from old UAM registration to new Udyog registration, incase someone failed to migrate before 31.03.2021
If we forget UAM number or Udyam Registration number, then we have option to go site (https://udyamregistration.gov.in/UAM-convert-udyam-msme-free-registration.htm) but to retrieve the UAM number we are required to submit OTP, what if we also do not remember mobile number and email id which has been registered with UAM certificate, then how can we retrieve the UAM number?
please reply…
A person having sole-proprietorship as well as a partnership firm needs Udyam Registration under same PAN. How to get udyam registration for same PAN for a person having different types of businesses??
Raf: OM.DATED 06/08/2020 pls the meaning
Can we add two Udyog Aadhaar Memorandum (UAM) using same pan card
Hello Sir,
Can we re-register of Udyam Registration after cancellation of Udyam Registration certificate when the PAN and GST is the same as cancelled Udyam Registration Certificate.
Please comment sir it is urgent.
Is it possible to migrate Udyag Aadhaar to Udyam Aadhaar after 31/03/2021 ?
please suggest.
Regards
Udyog aadhar name change is 1 July 2020 is udyam aadhar
If we forget UAM number or Udyam Registration number, then we have option to go site (https://udyamregistration.gov.in/UAM-convert-udyam-msme-free-registration.htm) but to retrieve the UAM number we are required to submit OTP, what if we also do not remember mobile number and email id which has been registered with UAM certificate, then how can we retrieve the UAM number?
While doing UDYAM REGISTRATION UPDATE DETAILS, ITR LAST YEAR DATA SHOWING INSTEAD OF CURRENT YEAR DATA WHICH IS ALREADY FILED.
One manufacturing unit with investment in plant and machinery with WDV Rs. 40 crores based on Audited financial of 2019-20 and turn over of 140 crores registered with Udyam and submitted Udyam registration certificate dt. 5/10/2020.
As per existing MSME definitions , the unit was not issued udyog aadhar registration certificate earlier as the investment in plant and machinery exceeded 10 crores based on Audited financial of 2018-19, 2019-20. The unit was classified as large enterprises i.e NON-MSME.
As per new definitions the unit is included under MSME.
Please clarify
Whether this is a case of reverse graduation
If yes, as the unit has registered under Udyam on 5/10/20, from which date the unit will be entitled to get the MSME benefits.
We solicit your advice in this regard.
With warm regards
hello sir,
what is process to cancel Udyam Certificate ?
reason of cancellation instead of enterprise name by mistake i type my name.
i will re-apply with GST number after march 2021.
While registering my Proprietorship firm on Udyam portal, it is saying that registration is already exist for the given PAN. I don’t remember registering any kind of firm earlier. How can i find out that which firm is registered against my PAN number?
How to register 2 or more different Proprietorship Firms (different names and locations but same PAN) on UDYAM ?
Mr. A is sole proprietor of xyz also he is managing director of a pvt ltd company ABC Pvt ltd . so he needs to have 2 udyam registration or 1?
New Udyam registration number is not accepted for registration with GeM portal. GeM portal still requires the old UAM number. When will this problem be rectified?
Which all activities are covered under 74909 – Other professional, scientific and technical activities n.e.c.?
Hi
can same person register as sole proprietorship and also partnership firm ion udyam registration
In case of sale of only Exempt Services, whether GST registration would be required if Udhyam registration was being done?
1. New udyam registration number is not accepted for registration with GeM portal. GeM portal still requires the old UAM number. Pl. Advice.
Answer: The site of GeM is currently has technical issues related with PAN and ITR. It will be expected to be in operation of by the end of September.
2. My gross receipts are below Rs. 20 lakhs and while updating my udyog aadhar, they are asking that GSIN is compulsory. How can it be when i am exempted from registration and GST ? Any suggestion please
Answer: As per the notification of Ministry dated 26.06.2020, GSTIN is now mandatory for taking UDYAM registration, irrespective of the fact that you are not covered under GSTIN registration limits. However, relaxation is provided upto 31.03.2021 for taking registration under UDYAM without GSTIN and PAN. But after 31.03.2021 it is mandatory for to take GSTIN and update on the portal accordingly.
1. New udyam registration number is not accepted for registration with GeM portal. GeM portal still requires the old UAM number. Pl. Advice.
Answer: The site of GeM is currently has technical issues related with PAN and ITR. It will be expected to be in operation of by the end of September.
2. My gross receipts are below Rs. 20 lakhs and while updating my udyog aadhar, they are asking that GSIN is compulsory. How can it be when i am exempted from registration and GST ? Any suggestion please
Answer: As per the notification of Ministry dated 26.06.2020, GSTIN is now mandatory for taking UDYAM registration, irrespective of the fact that you are not covered under GSTIN registration limits. However, relaxation is provided upto 31.03.2021 for taking registration under UDYAM without GSTIN and PAN. But after 31.03.2021 it is mandatory for to take GSTIN and update on the portal accordingly.
New udyam registration number is not accepted for registration with GeM portal. GeM portal still requires the old UAM number. Pl. Advice.
My gross receipts are below Rs. 20 lakhs and while updating my udyog aadhar, they are asking that GSIN is compulsory. How can it be when i am exempted from registration and GST ? Any suggestion please
Query: I have Udyam Registration number for proprietorship firm. How to update GSTIN and PAN numbers on UDYAM Registration portal?
Conclusion: An enterprise having UDYAM Registration number shall update its information in respect to GSTIN and PAN on self-declaration basis before 31/03/2021. However, UDYAM portal has not started this facility yet due to technical difficulties faced to implement the service.