Subsequent to acquiring the suggestions of the Advisory Committee, Government of India (GOI) informed on 26th June 2020 certain measures for characterizing the ventures as Micro, Small and Medium Enterprises (MSME) and indicates the structure and system for documenting of Udyam Registration, w. e. f. first July 2020.
Through this notice GOI advised new meaning of MSME, enrollment process, computation of Investment and turnover which has been currently connected with Income Tax Return (ITR), refreshing of data by the current MSME Udyog Aahaar enlisted undertakings and other a lot more perspectives.
In this article we have examined about the aforementioned warning and other functional perspectives which are as per the following:
Treatment of Existing Enterprises whose generally Registered as MSME
New Definition of MSME
Estimation of Turnover
Estimation of Investment in Plant and Machinery or Equipment
Archives/Information expected for Registration
1. Treatment of Existing Enterprises whose generally Registered as MSME:-
All current endeavors enlisted under EM-Part-II or UAM will enlist again on the Udyam Registration entryway on or after the first day of July, 2020.
The current ventures enrolled up to 30th June, 2020, will keep on being substantial up to 31st March, 2021.
All endeavors enrolled till 30th June, 2020, will be renamed as per this notice.
GOI is as yet quiet on whether dealers will be enlisted as MSME.
Composite rules of speculation and turnover will apply for grouping of a venture as miniature, little or medium.
In the event that an undertaking crosses as far as possible indicated for both of the two measures for example venture or turnover, it will stop to exist in that class and be set in the following higher classification however no endeavor will be put in the lower class except if it goes underneath as far as possible determined.
All units enrolled with GSTIN on a similar PAN will be treated as one undertaking.
If there should arise an occurrence of up-degree, an endeavor can proceed with its current class till expiry of one year from the end of the time of enrollment.
If there should arise an occurrence of opposite degree, an undertaking will be proceeding with its current class till the conclusion that monetary year.
Inability to refresh the applicable data inside the period indicated in the internet based Udyam Registration entryway will deliver the venture responsible for suspension of its status.
3. Computation of Turnover:-
Turnover concerning commodities won’t be included in the restrictions of turnover for any class of MSME’s units whether miniature, little or medium.
Turnover of prompt going before monetary year will be considered with the end goal of computation.
Data as respects to turnover and products turnover for a venture will be connected to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN.
Just till 31st March, 2021, without a trace of PAN turnover will be considered on self-affirmation premise.
After 31st March, 2021, PAN and GSTIN will be compulsory.
Focuses to be noted:
GOI is as yet quiet about imagine a scenario in which an endeavor isn’t expected to get GSTIN according to the GST regulation.
4. Computation of Investment in Plant and Machinery or Equipment:-
Interest in plant and apparatus or hardware of prompt going before monetary year will be considered with the end goal of computation.
The computation of interest in plant and hardware or gear will be connected to the Income Tax Return (ITR) of the earlier year documented under the Income Tax Act, 1961.
If there should be an occurrence of another undertaking, where no earlier ITR is accessible, the speculation will be founded on self-presentation premise.
Buy worth of plant and hardware or gear will be taken barring GST.
Both direct or recycled plant and hardware or gear will be considered for estimation.
The articulation plant and apparatus or hardware of the endeavor, will have a similar importance as doled out to the plant and hardware in the Income Tax Rules, 1962 outlined under the Income Tax Act, 1961.
In the plant and apparatus or gear will incorporate all unmistakable resources other than land and building, furniture and fittings.
In the event of ITR documented under possible pay premise u/s 44AD or 44ADA of the annual assessment act-1961, there is no prerequisite to give venture subtleties, in such case GOI might keep on handing-off on self-revelation premise.
5. Records/Information expected for Registration:-
This is the absolutely self-announcement enrollment with no necessity to transfer reports, papers, declarations or evidence.
Any individual who plans to lay out a miniature, little or medium undertaking might record Udyam Registration online in the Udyam Registration entryway on self statement premise.
On enlistment, an undertaking (alluded to as Udyam in the Udyam Registration entryway) will be allocated a long-lasting personality number to be known as Udyam Registration Number.
An e-testament, specifically, Udyam Registration Certificate will be given on consummation of the enrollment interaction.
. Enlistment Process:-
The structure for enlistment will be as given in the Udyam Registration entrance, for example, udyamregistration.gov.in .
There will be no charge for documenting Udyam Registration.
Aadhaar number will be expected for Udyam Registration.
In the event that an undertaking is properly enrolled as a Udyam with PAN, any lack of data for earlier years when it didn’t have PAN will be topped off on self-announcement premise.
No venture will record more than one Udyam Registration, Provided that quite a few exercises including assembling or administration or both might be indicated or included one re- Udyam Registration.
Whoever deliberately distorts or endeavors to stifle oneself announced raw numbers showing up in the Udyam Registration or updation process will be obligated to such punishment as determined under area 27 of the Act.This is the absolutely self-revelation enrollment with no prerequisite to transfer archives, papers, declarations or confirmation.