The Ministry of micro, small and medium enterprises
vide its
notification dated 26th June, 2020 has notified certain criteria
for classifying the enterprise as micro, small and medium enterprises and
specified the form and procedure for filing the memorandum, for both new and
existing, with effect from 1st July, 2020.
As far as classification is concerned, the enterprise,
where
the investment in plant and machinery or equipment does not exceed one crore
rupees and turnover does not exceed five crore rupees, will be considered as
Micro Enterprise. Further, the enterprise, where the investment in plant and
machinery or equipment does not exceed ten crore rupees and turnover does not
exceed fifty crore rupees, will be considered as Small Enterprise. Moreover, the
enterprise, where the investment in plant and machinery or equipment does not
exceed fifty crore rupees and turnover does not exceed two hundred and fifty
crore rupees, will be considered as Medium Enterprise.
The calculation of
investment in plant and machinery or equipment will be based upon the Income
Tax Return (ITR) of the previous year filed under the Income Tax Act, 1961. It
is also clarified in the aforesaid notification that the plant and machinery
will include all tangible assets other than land and building & furniture
and fittings.
All units with Goods
and Services Tax Identification Number (GSTIN) listed against the same
Permanent Account Number (PAN) shall be collectively considered as one
enterprise for the computation of turnover and investment for deciding the
category as micro, small or medium enterprise.
Registration will be
done through Udyam Registration Portal. All existing enterprises registered
under EM-Part-II or UAM shall register again on the Udyam Registration Portal
on or after 1st July, 2020. However, the existing enterprises
registered prior to 30th June, 2020 shall continue to be valid only
for a period upto 31st day of March, 2021.
Further, one enterprise
shall be allowed to have only one Udyam Registration, wherein it may include
any number of activities in the said registration.
LEGAL
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