Union Ministry of Micro, Small and Medium Enterprises (MSME), vide its Notification Dated 26.06.2020:
A. Notifies the new definition of MSME,
B. Specifies the new form and procedure for registration under MSME, known as – “Udyam Registration”, and
C. Mandated the re-registration of existing MSMEs on the new Udyam Registration portal.
In that context, a new portal is introduced known as “UDYAM REGISTRATION PORTAL” which becomes effective from 01.07.2020, and accordingly, the old portal has become inoperative.
The site link for the new portal is https://udyogaadhaar.gov.in/
An enterprise will now be known as “Udyam” and its Registration Process will be known as “Udyam Registration”.
THE NEW DEFINITION OF MSMEs:
|COMPOSITE CRITERIA: *INVESTMENT AND ANNUAL TURNOVER|
|MANUFACTURING & SERVICES||Investment upto INR 1 crore
Turnover upto INR 5 crore
|Investment upto INR 10 crore
Turnover upto INR 50 crore
|Investment upto INR 50 crore
Turnover upto INR 250 crore
*Investment in plant and machinery or equipment
KEY POINTS FOR NEW REGISTRATION UNDER MSME
> Aadhaar Number shall be required for registration.> The registration process is fully online, paperless, and based on self-declaration.
√ In the case of a Company or LLP or a Cooperative Society or a Society or a Trust, GSTIN and PAN along with its Aadhaar number are mandatory.
√ In the case of the proprietor, you can continue with Aadhar only on a self-disclosure basis but before 03.2021 you must apply for PAN & GST number and have to update the same on the portal.
> All units with GSTIN listed against the same PAN shall be treated as one enterprise.
> A permanent identity number to be known as “Udyam Registration Number” is assigned and an e-certificate “Udyam Registration Certificate” shall be issued after a successful registration.
> E-certificate will have a dynamic QR Code from which the web page of Portal and details about the enterprise can be accessed.
> Registration will be valid for a lifetime.
|CALCULATION OF INVESTMENT IN
PLANT AND MACHINERY OR EQUIPMENT and TURNOVER
|Classification||Enterprises who have filed at least one ITR||New enterprises which have not filed even 1 ITR|
|A. The calculation of investment in plant and machinery or equipment will be linked to the Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961.||Name of enterprise, location of plants & enterprise, and date of commencement will auto-filled after verification from GSTN.
The values of investment in P&M or equipment will be auto-filled after verification of the same form of Income-tax.
|All information has to be filled on a self-declaration basis.
The values of investment in P&M or equipment will be based on the self-declaration of the promoter of the enterprise.
The invoice value will be accounted for on a self-disclosure basis excluding the amount of GST.
|B. Calculation of turnover and * export turnover shall be linked to the Income Tax Act or the CGST Act and the GSTIN.||Total, export, and net turnover will be auto-filled after verification from Income tax.||Total, export, and net turnover have to be entered on a self-declaration basis.|
|The certificate will only be issued after the successful verification of information from the relevant department.||Enterprise, on self-declaration basis, shall update the information of filed ITR on the portal after filing its 1st ITR before 31st march of the respective year.|
*Exports of goods or services or both shall be excluded calculating the turnover of any enterprise.
KEY POINTS FOR EXISTING REGISTERED MSMEs
> All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 01.07.2020 but before 31.03.2021.
> An enterprise registered with any other organization under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.
> All existing registered enterprises shall be re-classified following the new definition.
Note: No enterprise can file more than one Udyam Registration. However, any number of activities including manufacturing or service, or both may be specified in one Registration.
Query: I have registered by clinic under Udyam, I am now to start another clinic (under the same name, mainly a new branch) at a different location, How can I register this new clinic?
Answer: Under Udyam registration all branches of an enterprise are considered as one and they are issued a single Udyam on a consolidated basis. An enterprise having UDYAM Registration Number can update its information online on portal on a self-declaration basis. Therefore, you have to update your existing Udyam number on portal for registering new clinic of yours.
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.
Atul Singh – [email protected]
Garima Bansal – [email protected]