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

Udyam Registration

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).

****

Disclaimer : This article is for informational purposes only and is intended, but not promised or guaranteed, to be correct, complete, and up-to-date. Whitespan Advisory does not warrant that the information contained in this article to be accurate or complete, and hereby disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.

Please feel free to contact the undersigned in case you require any further information/ clarification on the above article. 

Garima Bansal & Atul Singh- garima@whitespan.in – atul@whitespan.in

Author Bio

More Under Company Law

12 Comments

  1. Soumya says:

    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?

    1. Whitespan Advisory says:

      As per the notification of Ministry dated 26.06.2020, GSTIN is now mandatory for taking UDYAM registration. However, relaxation is provided upto 31.03.2021 for taking registration under UDYAM without GSTIN. But after 31.03.2021 it is mandatory for to take GSTIN and update on the portal accordingly.

  2. Whitespan Advisory says:

    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.

  3. Whitespan Advisory says:

    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.

  4. Sathisdas says:

    New udyam registration number is not accepted for registration with GeM portal. GeM portal still requires the old UAM number. Pl. Advice.

    1. Whitespan Advisory says:

      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.

  5. klnfca says:

    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

    1. Whitespan Advisory says:

      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.

  6. Whitespan Advisory says:

    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.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031