Msme registration



what is the eligibility criteria for registration under msmed act. is it the criteria of investment in plant & machinery or turnover.  

 
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Chartered accountant - Dorma India Private Limited

Kindly refer below link

https://msme.gov.in/faqs/q1-what-definition-msme

The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under:

  • Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:
    • A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh;
    • A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore;
    • A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.
      In case of the above enterprises, investment in plant and machinery is the original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide
      its notification No.S.O.1722(E) dated October 5, 2006 .
  • Enterprises engaged in providing or rendering of services and whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006 are specified below.
    • A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh;
    • A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore;
    • A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.

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but govt had proposed amendments in definition of msme from investment in plant & machinery to turnover basis, whether this amendment has been approved or yet pending.

 
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Vice President (Corporate)

It is still pending.

 

 
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can anybody help me to define msme
 
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PRACTICING CS Jalandhar 9914558709

MSME-1 FORM: BASIC UNDERSTANDING AND DETREMINING FACTORS Wordings of Notification MCA vides its notification dated 22.01.2019 issued an Order may be called the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019 through which reporting was required to be made by Specified Companies before the ROC in MSME FORM 1 What are Specified Companies all companies, who get supplies of goods or services from micro and small enterprises and whose payments to micro and small enterprise suppliers exceed forty five days from the date of acceptance or the date of deemed acceptance of the goods or services as per the provisions of section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) Reporting Requirement Every specified Company shall submit a half yearly return to the Ministry of Corporate Affairs in MSME Form I stating the following: (a) the amount of payment due; and (b) the reasons of the delay; From April - September = 31st October From October - March = 30th April Why there is hue and cry in month of January then: Since, the notification has been issued by the Ministry regarding submission of information regarding their dues pending for more than 45 days to MSME sectors/ Firms within 30 days of issue of such notification by the Ministry. And, since the notification has been issued on 22.01.2019, hence, all companies need to file the information within 30 days of notification i.e. till 21.02.2018. Therefore, the companies need to have a thorough check on all such payments and to determine which are the pending payment for more than 45 days Can the companies file MSME 1 Form now: No., since the E Form MSME 1 is not available as on 02.02.2019. Hence, no form can be filed and accordingly the companies have only 20 days left and MCA is silent about launch of this MSME 1 E Form. Hopefully the date shall be extended as it already have been done in case of BEN-2, NFRA, Form 20A Commencement of Business certificate form. BUT SINCE THEN, THE CORPORATE MAY GET THEIR DATA UPDATED REGARDING THEIR PAYMENTS DUE TO THE MSME SECTOR How can a company determine that the firm to whom payment is due is a MSME or not Since, the criteria of Small and Medium concern is based on turnover, hence, no corporate can determine about the status of another firm being a small, medium or large concern, hence, the only way out to determine is to get a written declaration via post or via mail from the creditors about their status and should submit the declaration accordingly with Ministry. Moreover following is the reference chart from where one can determine whether a firm/. Company come under MSME sector or not: Manufacturing Sector Enterprises Investment in plant & machinery Micro Enterprises Does not exceed twenty five lakh rupees Small Enterprises More than twenty five lakh rupees but does not exceed five crore rupees Medium Enterprises More than five crore rupees but does not exceed ten crore rupees Service Sector Enterprises Investment in equipments Micro Enterprises Does not exceed ten lakh rupees: Small Enterprises More than ten lakh rupees but does not exceed two crore rupees Medium Enterprises More than two crore rupees but does not exceed five core rupees NOTE: The above chart is based upon the notification of Government issued vide notification ,vide S.O. 1642(E) dtd.29-09-2006 which has been prescribed by the Government of India by enacting the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises has been provided. Relation of Notification issued by Ministry of MSME on 02.11.2018 with notification of MCA dated 22.01.2019? The notifications issued by Ministry of MSME and MCA have not any relation. As per S.O.5621 (E) The central Government has issued a notification dated 02.11.2018 where by all the companies registered with Companies Act 1956/2013 having a turnover of more than 500 crores, have been instructed to get themselves on board of TReDS platform called as Trade Receivables Discounting System Platform, set up as per the notification of Reserve Bank of India. Hence, the above two notifications are since co-related to each other but still are independent one and the corporate falling under above two notifications need to comply accordingly. Regards CS Mohit Saluja Mohit Saluja & Associates Practicing Company Secretary Jalandhar Ph.: 99145-58709 E Mail: csmohitsaluja @ gmail.com

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Vice President (Corporate)

You can refer detailed PPT on this subject in Files Section:

https://www.caclubindia.com/share_files/roc-return-for-msme--77237.asp

 

 
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