Investment in Plant and Machinery or Equipment
|< 1 Cr
|< 5 Cr
|< 10 Cr
|< 50 Cr
|< 50 Cr
|< 250 Cr
2. Composite Criteria for applicability of Classification
– If an enterprise crosses the ceiling limits 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.
Graduation :-Enterprise may place in higher category in suffice any of criteria of higher category,
Reverse Graduation:- Enterprise must satisfied both criteria for lower category.
3. Calculation of Investment and Turnover
– Linked to Income Tax Return of Previous period.
– If New enterprise – investment carry base on Self-declaration of promoter valid till first ITR.
– “Plant and Machinery or Equipment” shall have same meaning as define in Income Tax Rules, 1962
– Includes all Tangible Asset (Other than Land and Building, Furniture and Fixture)
– No Bifurcation between Manufacturing and Service Sector.
– Cost includes on Purchases cost no Cenvettable items.
– Shall be link to Income Tax or Goods or Service Tax Act,
– Export of Goods or Services or both are excluded.
Registration for Existing Enterprise:-
Enterprises whose classification have been changed due to New definition Shall have to update/re-register on portal and file Correct disclosure.
Updation of Information:-
– Provide ITR and GST Return Details along with other as required
– Failure to Update details Causes liable for Suspension of Status
– In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent reclassification, an enterprise will maintain its prevailing status till expiry of one year from the close of the year of registration.
– In case of reverse-graduation of an enterprise, whether as a result of re-classification or due to actual changes in investment in plant and machinery or equipment or turnover or both, and whether the enterprise is registered under the Act or not, the enterprise will continue in its present category till 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