CS Swati Nivalkar
The Union cabinet approved the modalities and road map for the micro, small and medium enterprises on 1st June ,2020. India is aiming to take next big leap. The initiative to skill India’s efforts directed towards economic infrastructural changes, has ramped up micro entrepreneurship models and boosted start up culture. The young Indian entrepreneur will require knowledgeable workers and skilled technical staff who are flexible, analytical and who can be driving force for gaining market share. The Micro, Small and medium enterprise not only contributes significantly to the Indian Economy in terms of Gross Domestic Products (GDP) but also to exports and employment generation.
In this article tried to throw light on following :
2. MSME Definition,
3. Revised MSME classification,
4. Calculation of Investment
5. Calculation of Turnover,
6. Criteria of Composite Investment and Turnover,
7. Registration process,
8. Registration of Existing Enterprises,
9. Registration Benefits,
10. Services offered on UDYAM Portal.
1. UDYAM :
As per notification of MSME dated 26.06.2020, Udyam Registration is the new process of MSME/UDYOG AADHAAR Registration launched by the Ministry of Micro, Small and Medium Enterprises effective from July 1, 2020.
2. MEANING OF MSME :
MSME stands for Micro, Small, and Medium Enterprises. In accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006, the enterprises are classified into two divisions. a. Manufacturing enterprises – engaged in the manufacturing or production of goods in any industry b. Service enterprises – engaged in providing or rendering services.
3. REVISED MSME CLASSIFICATION
Composite Criteria : Investment and Annual Turnover
|Manufacturing & Services||Investment < Rs 1Cr and turnover < 5Cr||Investment < Rs 10Cr and turnover < 50Cr||Investment < Rs 50Cr and turnover < 250Cr|
(Note : for turnover calculation Export of Goods and Services will be excluded)
4. CALCULATION OF INVESTMENT :
5. CALCULATION OF TURNOVER
6. COMPOSITE CRITERIA OF INVESTMENT AND TURNOVER FOR CLASSIFICATION
7. REGISTRATION PROCESS :
8. REGISTRATION FOR EXISTING ENTERPRISES :
9. UPDATION OF INFORMATION AND TRANSITION PERIOD IN CLASSIFICATION :
10. FACILITIES AND GREIVANCE REDRESSAL OF ENTERPRISES :
11. REGISTRATION BENEFITS :
The Credit Guarantee Fund Scheme (CGS) for Micro and Small Enterprises was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sectors. This initiative guarantees funds to micro and small sector enterprises. Under this scheme, both the old as well as the new enterprises can claim the benefits.
Under the MSME registration benefits, a buyer is expected to make a payment for the goods/services within 15 days of the purchase. If the buyer delays, the payment for more than 45 days, the enterprise is eligible to charge compound interest which is 3 times the rate notified by RBI. At times, the buyers of services or products from the MSME’s or SSIs tend to delay the payment. The settlement of such disputes must be done in minimum time through conciliation and arbitration.
Businesses or enterprises registered as MSME/SSI under the MSME Act are eligible to avail a benefit of 1% on the overdraft as part of the Credit Guarantee Trust Fund Scheme. Although this can vary from bank to bank.
Business enterprises registered under the MSME Act are given a hefty subsidy of 50 per cent for patent registration. This can be availed by sending an application to the respective ministry. In addition to this, one of the great MSME registration benefits is to get subsidy for industrial promotion suggested by the Government.
can avail concession on electricity bills. Registered MSME have to submit the bill along with the application and copy of registered Certificate.
Registered MSME‘s can claim the expenses for reimbursement that were spent on ISO certification.
Registered MSME‘s can get Government tenders easily.
Registered MSME‘s get exemptions under direct tax laws
12. SERVICES OFFERED UNDER UDYAM
Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength.
Objectives of the CHAMPIONS
B. MSME SAMADHAAN- Delayed Payments to Micro and Small Enterprises under Micro, Small and Medium Enterprise Development (MSMED) Act, 2006
Ministry of MSME has taken an initiative for filing online application by the supplier MSE unit against the buyer of goods/services before the concerned MSEFC of his/her State/UT.
The buyer is liable to pay compound interest with the monthly rests to the supplier on the amount at the three times of the bank rate notified by RBI in case he does not make payment to the supplier for his supplies of goods or services within 45 days of the acceptance of the goods/service rendered.
All States/UTs have notified Authority for Filing Entrepreneur’s Memorandum, 33 States/UTs (i.e. except Arunachal Pradesh, Assam and Manipur) have Notified rules of MSEFC and all the 36 States/UTs have constituted MSEFCs, as per provisions laid down under MSMED Act 2006.
Every reference made to MSEFC shall be decided within a period of ninety days from the date of making such a reference as per provisions laid in the Act.
If the Appellant (not being the supplier) wants to file an appeal, no application for setting aside any decree or award by the MSEFC shall be entertained by any court unless the appellant (not being supplier) has deposited with it, the 75% of the award amount.
C. MSME SAMBANDH – Public Procurement Policy Monitoring Portal
The Public Procurement Policy for Micro and Small Enterprises (MSME) order 2012 has mandated Every Central Ministry/Department/PSU shall set an annual goal for procurement from the MSE sector at the beginning of the year, with the objective of achieving an overall procurement goal of minimum 25 per cent of the total annual purchases from the products or services produced or rendered by MSEs. Out of 25% target of annual procurement from MSEs.
In order to make the Public Procurement Policy more effective, a Public Procurement Portal “MSME SAMBANDH” was launched on 8th December, 2017. The Portal tracks the procurement made by CPSEs from MSEs including SC-ST MSEs on a quarterly basis and contains the necessary information relating to the requirement of CPSEs in terms of items required, quantity, specifications, last purchase price etc. Therefore, the portal helps in effective monitoring while also enabling MSEs to build their capacities and participate in Public Procurement market.
D. MSME SAMPARK – Placement Portal for MSME Technology Centre Trainee
The MSME Sampark portal is a digital platform, wherein, jobseekers (passed out trainees / students of 18 MSME Technology Centres) and recruiters (various reputed national & multinational companies) register themselves for getting employment and getting right kind of manpower respectively.
While major corporates have well-defined recruitment processes with a national reach, the challenge remains for small businesses and entrepreneurs to find the right person for the job with relevant experience and skill-set. On the other hand, the job seekers struggle to match their skill sets with the role, position, required experience, monetary expectation, location & industry verticals leaves with too many parameters to be matched in a limited opportunity map. To bridge this gap between the Recruiters and Job Seekers, The Ministry of MSME has launched – MSME SAMPARK.
E. Entrepreneurship and Skill Development Programme (ESDP)
The objective of the programme is to motivate youth representing different sections of the society including SC/ST/Women, differently-abled, Ex-servicemen and BPL persons to consider self employment or entrepreneurship as one of the career options. The ultimate objective is to promote new enterprises, capacity building of existing MSMEs and inculcating entrepreneurial culture in the country. As per scheme guidelines, in EAP and E-SDP there should be overall 40% women participation.
The program includes the following :-
Vocational and Educational Training:
The Regional Testing Centres, Field Testing Stations and Autonomous bodies like Tool Rooms and Technology Development Centres (TDCs) of the Ministry conduct long term, short term, trade/field-specific and industry-specific tailor-made courses as well as vocational training programmes.
11. PENALTY :
Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or updation process shall be liable to such penalty as specified under section 27 of the Act.
Punishment as given under Section 27 of MSME Act :
(a) in the case of the first conviction, with fine which may extend to rupees one thousand; and
(b) in the case of second or subsequent conviction, with fine which shall not be less than rupees one thousand but may extend to rupees ten thousand.
Government has made every effort to make India “Atmanirbhar” by providing this MSME – UDYAM platform by not only redefining MSME criteria but have also launched various schemes and services which will give a thrust to business of Small and Medium Entrepreneurs. Government vision of Atmanirbhar Bharat is not only to take care of our own country’s need by locally produced Goods and Services provided, but also to increase demand for our goods and services by improving standard of our goods produced and services provided in Global Market.
Reference :- https://udyamregistration.gov.in/ and MSME Notification date 26.06.2020
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