The Union cabinet approved the guidelines and action plan for micro, small, and medium-sized businesses on June 1, 2020. India wants to make the following important advancement. Microentrepreneurship has increased and the start-up culture has been strengthened as a result of the initiative to skill India’s measures aimed at economic infrastructural advances. The young Indian entrepreneur would need knowledgeable employees and talented technical staff who are versatile, analytical, and can be a driving force for gaining market share. Micro, small, and medium-sized enterprises (MSME) provide a significant contribution to the Indian economy in terms of exports, GDP, and job creation.
Also, Read- update udyam certificate
In this blog, I attempted to shed some light on the following:
2. Definition of MSME
3. Investment Calculation
4. Turnover Calculation
5. Process of registration
According to an MSME statement dated June 26, 2020, Udyam Registration is a new MSME/UDYOG AADHAAR Registration procedure announced by the Ministry of Micro, Small, and Medium Enterprises on July 1, 2020.
2. DEFINITION OF MSME:
Micro, Small, and Medium Enterprises (MSME) is an acronym for Micro, Small, and Medium Enterprises. According to the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006, businesses are divided into two categories. a. Manufacturing businesses — businesses that manufacture or produce things in any industry. a. Service businesses — those that provide or render services.
3. CALCULATION OF INVESTMENT:
The investment will be based on the promoter’s self-declaration in the event of a new firm with no prior ITR, and this relaxation will end after the 31st March of the financial year in which the business files its first ITR.
The word “plant and machinery or equipment” should have the same meaning as “plant and machinery” in the Income Tax Rules, 1962, adopted under the Income Tax Act, 1961, and should refer to the company’s whole physical assets (other than land and building, furniture and fittings).
If the company is new and does not have an ITR, the acquisition (invoice) value of a plant, machinery, or equipment, whether new or used, shall be taken into account on a self-disclosure basis, omitting GST (GST).
4. TURNOVER CALCULATION:
- Prior years’ Income Tax Returns (ITRs) submitted under the Income Tax Act of 1961 will be used to calculate the investment in plant and machinery or equipment.
- The GSTIN must be linked to information about an enterprise’s turnover and export turnover under the Income Tax Act or the Central Goods and Services Act (CGST Act).
- Self-declaration will be used to evaluate the turnover-related data of such businesses that do not have a PAN until March 31, 2021, after which a PAN and GSTIN will be required.
5. PROCESS OF REGISTRATION:
- The registration process on the UDYAM Registration Portal is paperless, self-declaratory, and free of charge.
- In the event of a proprietorship firm, the proprietor’s Aadhaar number will be used, while in the case of a partnership firm, the controlling partner’s Aadhaar number would be used.
- In the event of a Company, a Limited Liability Partnership, a Cooperative Society, a Society, or a Trust, the organization or its authorized signatory must supply its GSTIN and PAN, as well as its Aadhaar number.
- If an entity is correctly registered as an Udyam with a PAN, any information gaps from prior years when it did not have a PAN must be filled out on a self-declaration basis.
- No business may submit for more than one UDYAM registration; however, one UDYAM registration may include a variety of activities such as production or service.
- When a business registers, it will be given a permanent identity number known as the “Udyam Registration Number.”
- After completing the registration process, you will receive an e-certificate titled Udyam Registration Certificate.
REDRESSAL OF ENTERPRISES’ FACILITIES AND GRIEVANCE:
- The Champions Control Rooms, which are located in various Ministry of Micro, Small and Medium Enterprises institutions and offices, including the Development Institutes (MSME-DI), will serve as Single Window Systems for facilitating the registration process and assisting micro, small and medium enterprises in any way possible.
- In respective districts, the District Industries Centres (DICs) will also serve as Single Window Facilitation Systems.
- Any person who is unable to file the Udyam Registration for any reason, including a lack of Aadhaar number, may approach any of the above Single Window Systems for Udyam Registration purposes with his Aadhaar enrolment identity slip or copy of Aadhaar enrolment request, bank photo passbook, voter identity card, passport or driving license, and the Single Window Systems will facilitate the filing of the Udyam Registration.
- In the event of a discrepancy or complaint, the General Manager of the District Industries Centre of the concerned District shall conduct an investigation to verify the details of the Udyam Registration submitted by the enterprise and then forward the matter with necessary remarks to the State Government’s Director, Commissioner, or Industry Secretary, who will issue a notice.