Q 1. What is all about MSME Ministry’s notification dated 26th June,2020?

Ans. The Notification notifies certain New criteria for classifying the Enterprises as Micro, Small and Medium Enterprises.

 The notification insists registration of all existing and new Micro, Small & Medium Enterprises in the UDAYAM registration portal (website: udayamregistration.gov.in).

This Notification comes into effect from 1st July, 2020.

Q 2. What is the New classification criteria for Micro, Small & Medium Enterprises?

Ans.

Type Investment in P&M or Equipment Turnover
MICRO Does not Exceed ₹ 1 crore Does not Exceed ₹ 5 crores
SMALL Does not Exceed ₹ 10 crores Does not Exceed ₹ 50 crores
MEDIUM Does not Exceed ₹ 50 crores Does not Exceed ₹ 250 crores

Q 3. What are the Assets included and excluded in calculating the investments in Plant & Machinery or Equipment?

Ans. Assets Included: Cost of all tangible assets such as P&M or equipment, Motor vehicles, Computers, Laptops etc.

Assets Excluded: Cost of Land & Buildings, Furniture & Fittings and Pollution control, Research & Development, Industrial safety devices.

Q 4. How do you arrive at the value of investment in P&M or equipment?

Ans. Only Purchase (Invoice) value of P&M or Equipment excluding Goods and Service Tax is taken into account to determine the investment in P&M or Equipment etc.

Q 5. How are the  turnover of Micro Small Medium  enterprises calculated?

Ans. Value of Goods sold or Services rendered in domestic market are only considered in calculating the turnover. Export of Goods or services or both shall be excluded.

Q 6. Explain the Registration process.

Ans. Online registration is to be done in the website: udayamregistration.gov.in

Aadhaar number shall be required for Udayam Registration.

Aadhaar number of Proprietor in case of Proprietorship firm.

Aadhaar number of Managing Partner in the case of Partnership Firm.

Aadhaar number of Karta in the case of Hindu Undivided Family (HUF).

In case of Company/ LLP/ Cooperative Society/ Society/Trust, GSTIN & PAN of the entity with Aadhaar number of Authorized signatory.

One Enterprise one Udayam Registration only

Q 7. Whether the existing Micro Small and Medium enterprises is required to register in Udayam Registration portal?

Ans. Yes. All existing enterprises registered under EM-Part-II or UAM ( Udyog Aadhaar Memorandum ) shall register again on the Udayam registration portal on or after the 1st July,2020.

The validity of registration of existing enterprises registered prior to 30th June, 2020 shall be up to 31st March, 2021.

Q 8. Is there any requirement to update any information in Udayam Registration portal periodically?

Ans. Yes. An enterprise having Udayam Registration Number shall update its information in the Udayam Registration portal including the details of Income Tax Return and the GST Return for the previous Financial Year on self-declaration basis.

Q 9. What will be the consequence if I fail to update the relevant information within the period specified in the online Udayam Registration portal?

Ans. Failure to update the relevant information within the period specified in the online Udayam Registration portal will result in suspension of MSME status.

Q 10. When does an enterprise move from one category to another category ( Micro to Small or Small to Medium or reverse )?

Ans. If an enterprise crosses the ceiling limit specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category. But no enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.

Author Bio

Qualification: CS
Company: PRACTICING COMPANY SECRETARY
Location: CHENNAI, Tamil Nadu, IN
Member Since: 03 Jul 2020 | Total Posts: 1
Practicing Company Secretary in Chennai . Also National Company Law Tribunal Practitioner appearing for IBC cases and Company Law related matters.Expert in establishing Internal Control Systems in organizations View Full Profile

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