MSME Benefit for Manufacturing & Service Unit

CA Vinay parmar , Last updated: 27 June 2013  

Hello Friends, today i would like to share with you the various benefits which are available to Manufacturing Unit & Service Unit from the State government & Central Government. But unfortunately most of us are not aware of this subsidiaries & benefits are available from the government and by time we come to know the time period might get over to claim that benefits.

All the Manufacturing & Service Unit are Classified as Micro, Small, Medium and Large Unit, there are no benefits available to Large scale Units. i.e the company having an Plant & Machinery of more than 10 crore, Medium Scale Unit i.e. having an Plant & machinery between 5 - 10 crores will get the benefits available by the central government only, and Micro & Small scale Industries enjoy lots of Subsidiaries & benefits from the government, and the same I would like to share with you:-



Sept, 2012









Dear MSME Unit,

The MSME Registration is a more dominant media to avail number of benefits under MSMED Act:

1. State Level Registration of Small Scale Industries under MSMED Act of unique EM no. with Commencement Date

2. 1% exemption on interest rate in OD

3. Easy finance availability of Bank & 2% concession on interest rate of term loan

4. Reimbursement of ISO Certification Expense

5. Preference in procuring Government tenders

6. It's even easier to get Licenses, permissions, approval & Registrations

7. The registration scheme has no statutory basis. Unit would normally get registered to avail some benefits, incentive or support given either by the Central or State Govt.

8.  15% CLCSS Subsidy on fully automatic machinery bought under bank term loan.

9. Manufacturer will be eligible for IPS Subsidy.

10.  All new industrial units (including IT & BT units) & expansions will be exempted from payment of stamp duty, registration fees in C, D, D+ areas & No industry unit.

11.  Up to 80-90% refund of Octroi under B, C, D, D+ & No industry zone

12.   Electricity duty exemption for 15 years under C, D, D+ & No industry zone.

13.  Protection against delay in payment from buyers & right of interest on delayed payment.

14.   Special consideration in International Trade Fairs/ Exhibitions for MSME unit

15.  New small scale industries (including IT & BT units) will be eligible for Capital subsidy.  

16.  50% subsidy on the expenses incurred for patent registration.




Apart from this to which Zone your factory or Registered Office belongs also matters to get the subsidiaries from Government the place with Zone D & Zone C- enjoy's maximum benefits, Zone B - enjoys some benefits, and no benefits is available for the area covered under Zone A. The Zone list is for the same, i am share with you in my share file list please go through it, to find whether your or your Client companies comes under this clause to claim the above benefits.

Thank you

CA Vinay Parmar

Published by

CA Vinay parmar
(Chartered Accountant)
Category Others   Report



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