MSME-LARRS & WEB SITE LINKS - VIRTUAL CPE MEETING OF HYDERABAD BRANCH OF SIRC OF ICAI ON 07-09-2020 CA CH.THIRUVAYU KUMAR CHARTERED ACCOUNTANT ...
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MSME–LaRRS & Web Site Links
Virtual CPE Meeting of Hyderabad Branch of SIRC of ICAI on 07-09-2020
CA Ch.Thiruvayu Kumar
Chartered Accountant
Ongole
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 1
Law Regn.
Rights Schemes
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 2
History of Regulation of Industries in
India (Law)
1952 - 1984
All
Industries
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 3
History of Regulation of Industries
(Law)
“The Industries (Development & Regulation)
Act, 1951”
http://legislative.gov.in/sites/default/files/A195
1-65.pdf
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 4
Birth of SSI
1984 - 2006
Ancilliary
Other
& SSI
Industries
Industries
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 5
Renaming SSI as MSME
2006 till now
MSM Other
Enterprises Enterprises
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 6
MSME History
Units/
Industries
Enterprises
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 7
Need for MSME categorization • Under Industries (Development & Regulation) Act, manufacturing licence will be given only after “full and complete investigation” • It regulates all aspects such as type of goods, production capacity etc. • Because of many Government controls & regulations it had become a difficult task to set up an industry. Only big people were able to set up big industries in those days. • Small scale units were way behind. 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 8
Need for MSME categorization • First time in 1984, Government recognized the difficulties faced by the small industries and introduced Section 11B in “The Industries (Development and Regulation) Act, 1951” which gives favorable treatment to small units when compared to large units. 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 9
Need for MSME categorization
• The said Section 11B enables the Government
to take various measures for the viability of
small industries such as:
– Supportive Measures
– Exemptions
– Favorable treatment
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 10Importance of small industries in India
• Small Industries play a major role in:
– Break the monopoly of the big industries
– Distribution of resources and wealth to all in the Society
– Easing the unemployment problem
• From time to time various supportive measures are
announced by the Government through Department of
Industrial Policy and Promotion.(Renamed as
Department for Promotion of Industry and Internal
Trade (DPIIT) in January 2019 under Ministry of
Commerce and Industry)
• No separate Act -- No separate Ministry exclusively for
small industries
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 11MSME Act, 2006
• For the first time a comprehensive separate
central act was enacted on 16-06-2006 for small
industries. The Act is called-
• “The Micro, Small and Medium Enterprises
Development Act, 2006”
http://legislative.gov.in/sites/default/files/A2006-
27.pdf
• A separate ministry called “Ministry of Micro,
Small and Medium Enterprises” was set up.
https://msme.gov.in/
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 12MSME Act, 2006
• Execution agency is
Development Commissioner MSME
http://dcmsme.gov.in/
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 13Eligibility Criteria u/s Sec7(1) of
MSMED Act, 2006
• All
Ownership Type • Proprietorship, Partnership etc
Nature of • Manufacturing or Service
Business • Trading not allowed
Type of Goods • All except notified goods
Type of Services • All
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 14Classification of Enterprises as MSME
u/s Sec7(1) of MSMED Act, 2006
INVESTMENT CRITERIA
• Sec 7(1) specifies maximum investment limits under which
Government can notify the criteria.
• Ministry of Small Scale Industries notified the limits vide
Gazette Notification No.S.O.1642(E) dated 29-09-2006.
(http://dcmsme.gov.in/publications/circulars/GazNot/Recommendation_of_Advisory_Committee.pdf)
• This was superseded by Gazette Notification No.S.O.1702(E)
dated 01-06-2020 issued by Ministry of Micro, Small and
Medium Enterprises and announced new criteria
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 15INVESTMENT LIMITS IN MSME
ACT Amount in Crores
Maximum Limits as
Per Act Micro Small Medium
Manufacturing 0.25 5.00 10.00
Services 0.10 2.00 5.00
Notified limits from
16-06-06 to 30-06-20 Micro Small Medium
1642Manufacturing 0.25 5.00 10.00
Services 0.10 2.00 5.00
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 16BIG CHANGE
01-07-2020
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 1701-07-2020
Udyog Adhar Udyam
Memorandum Registration
(UAM) Number (URN)
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 1801-07-2020
Single Criteria Double Criteria
Only Investment
Investment and Turnover
Criteria Criteria
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 1901-07-2020
Separate limits
Same limits for
for Manufacturing
both types
& Services
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 20REGISTRATION OF MSME
w.e.f 01-07-2020
• S.O.2119(E) dated 26-06-2020
(https://msme.gov.in/sites/default/files/IndianGazzate_0.pdf)
• Supersede earlier notifications 1702(E) etc
• It is a master notification
• Contains:
– Classification criteria
– Registration Process
– Updation Process
– Grievance redressal
https://udyamregistration.gov.in/ or
https://udyogaadhaar.gov.in/
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 21INVESTMENT & TURNOVER CRITIERIA
w.e.f 01-07-2020
Investment and Turnover Limits - S.O.2119(E) dated 26-06-2020
Notified limits
w.e.f 01-07-2020 Micro Small Medium
Investment Limits 1.00 10.00 50.00
Turnover Limits 5.00 50.00 250.00
• 90% Industries fall in this category – this space now crowded
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 22How to compute Investment value in P&M
• Plant & Machinery is neither defined under the MSMED Act
nor in The Industries (Development & Regulation) Act.
• Defined in S.O.2119(E)
– Adopted the definition as contained in Income Tax Rules
– Includes all tangible assets
– Excludes
• Land & Buildings S.O.2119(E)
• Furniture & Fixtures
• Pollution Control Equipment
• Research & Development Sec 7 of MSMED Act
• Industrial Safety Devices
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 23How to calculate investment in P&M • ITR filed cases -- Value auto drafted from ITR • ITR not filed cases – Self Declaration – GST component to be excluded 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 24
How to calculate turnover limit
• Turnover is not defined in MSMED Act or S.O.2119(E)
Method as prescribed in S.O.2119(E):
• Auto drafted from GST Portal (not from IT Portal)
• Export turnover of goods & services shall be excluded
• No PAN cases – self declaration basis up to 31-3-2021.
• After 31-3-2021 PAN & GSTIN mandatory
?? PAN available but GST not registered ??
GST not registered because not required to be registered under GST Act.
But notification mandates both PAN & GST is compulsory after 31-3-2021
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 25How to register MSME
• MSME registration not compulsory.
• Need based and can be registered at any point of time
https://udyamregistration.gov.in/
• Already registered enterprises before 1-7-2020 should again
be registered in the above website.
• One PAN – One Udyam Registration Number only
• Any number of activities can be added.
• URN number will be issued immediately.
• But URN certificate will be issued after validating the turnover
and investment from I.T. & GST websites
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 26Udyam Registration Portal 07-09-20 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 27
Requirements for Udyam Registration 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 28
Requirements for Udyam Registration
• Aadhar of proprietor/partner/director/kartha.
(Aadhar not available cases may approach DIC)
• PAN
• Form Number of ITR filed
• GSTIN
• Bank A/c No & IFSC code
• Phone Number & Email id
• Address of all units
• No fee for registration
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 29Re-Registering at Udyam Portal 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 30
Udyog Adhar Updation 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 31
Forgot Udyog Adhaar or Udyam 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 32
Activities excluded from MSME
• Following activities are not allowed for Udyam Registration
Office memorandum F.No.UAM/MC/01/2017-SME dt.27-06-2017
– Forestry & Logging
– Fishing & Aqua culture
– Wholesale and Retail Trade
– Domestic help such as cook etc
– Household production for own use such as cloth and farming
– Activities of extraterritorial bodies such as UN, IMF
– Certain activities of Crop, animal production in Division 01 of NIC
(National Industrial Classification)
– https://udyamregistration.gov.in/Web/doc/Activities_NIC_CodesNotAl
lowed.PDF
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 33Whether CA can register as MSME • Yes NIC Code: Section – M –Professional, Scientific and Technical Activities Division 69 – Legal and accounting activities Group 692 – Accounting, book keeping and auditing activities; tax consultancy 692201 : Accounting, book keeping and auditing activities 692202: Tax Consultancy 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 34
URN – Important Points
• Time limit for re-registration: Already registered enterprises under
Udyogaadhar or EM-Part –II are required to register again in Udyam
Registration portal on or before 31-3-2021.
• Invalid: If not registered again on or before 31-3-2021 , old registration
become invalid.
• Suspension of URN: Updation of Udyam Registration every year based on
the ITR and GST Returns other wise registration(URN) liable for
suspension.
• Graduation: Auto graduation or reverse-graduation of status of MSME will
be done based on the IT & GST Returns.
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 35Need for new MSME Registration Process
• To capture the turnover of the enterprise from relevant department
websites.
• To capture the investment of the enterprise from relevant department
websites.
• In case of newly established enterprises, turnover and investment can be
self declared.
• Penalties for wrong information
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 36Udyog to Udyam
• Udyam automatically links to G-eM (Government emarket place) and
TReDS
• Every year based on the turnover and investment, the category of
enterprise will be decided i.e, whether Macro or Small or Medium
• Once maximum turnover limit is crossed, enterprise will lost its MSME
status.
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 37Rights & Benefits to MSME
Benefits to
MSME
I (D&R) MSMED PSU, Banks
Central Govt State Govt
Act Act etc
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 38Rights of MSEs
Exclusive Right to Manufacture
• Micro and Small enterprises (not medium enterprises) have got
exclusive right to manufacture certain type of goods. (Sec 7)
• Sec 29B of I(D&R) Act: List of items exclusively reserved are
notified first in 1967.
• This list contains 47 items and enlarged to 504 by 1978. As per NIC
Codes (National Industrial Classification Codes) this list expanded to
836.
• First in 1997 the items were de-reserved vide Notification
No.S.O.298(E) issued by Ministry of Industry.
• In the later years 16 notifications were issued over 18 years and last
notification S.O.998(E) was issued on 10-04-2015 de-reserving the
last 20 items in the list.
• As on date there is no exclusive right to manufacture for MSME.
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 39Rights of MSEs
Public Procurement Policy
• “Public Procurement Policy for Micro and Small
Enterprises (MSEs) Order 2012”
https://eprocure.gov.in/cppp/sites/default/files/msme/M
SE_Order_2012(3.3MB).pdf
• Amendment Order
http://www.dcmsme.gov.in/Gazette%20Notification.pdf
• Every Central Ministry / Department / Pubic Sector
Undertaking shall procure minimum of 25% of annual
requirement of goods & services.
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 40Rights of MSEs
Public Procurement Policy
Central Govt Central Govt
Ministries Departments
25%
Public Sector Procure Goods
Undertakings & Services
Not applicable to Medium Enterprises
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 41Rights of MSEs
Public Procurement Policy
358 Items Reserved for Purchase
from Micro and Small Enterprises
http://www.dcmsme.gov.in/schemes
/Listof358ItemsReserved.pdf
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 42https://sambandh.msme.gov.in/PPP_a
bout.aspx
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 43Rights of Micro & Small Enterprises
Payment of dues to MSEs (Chapter V of MSMED Act)
Credit period or
Credit Period
45 days
agreed
whichever is less
Time Limit
Credit Period not
15 days
mentioned
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 44Rights of MSEs
Payment of dues to MSME (Chapter V of MSMED Act)
Interest is payable if dues not paid within the stipulated
period.
Interest rate 3 times of bank rate notified by RBI.
(Bank Rate 4.25% as on 07-09-2020)
Interest is to be calculated monthly compounded.
Dispute may be referred to Micro and Small Enterprises
Facilitation Council which may pass appropriate order.
Buyer to deposit 75% if he goes to court against the order.
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 45Rights of MSEs
Disclosure requirements of unpaid dues to MSME
• Disclosures in annual audited statement of
accounts (audit may be under any law)
• Principal & interest payable at the year end
• Principal & interest paid during the year in
case of delayed payments
• Interest payable but not paid
• Interest paid to MSME for delayed payments is
not allowable as expenditure under I.T. Act
(Sec 23 of MSMED Act)
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 46Schemes 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 47
CLCS
Credit Linked Capital Subsidy
• This scheme is for technology up gradation of
MSEs. Available for existing as well as new units.
• Capital subsidy of 15% on bank loan amount for
purchase of machinery.(max of Rs.15 lacs).
• Available in relation to 51 products. Click here for
the list SCLCS_FOR_TU_MSME
• Existing scheme closed on 31-3-2020 and new
scheme can be announced at any time.
• http://dcmsme.gov.in/CLCS-TUS-Revised-
Guidelines.pdf (issued in December 2019)
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 48Digital MSME • To improve digital competitiveness of MSMEs • To adopt ICT tools and applications • Under this scheme, financial assistance will be given to implementation agencies and MSMEs for various programs • Link for complete scheme details: • http://www.dcmsme.gov.in/schemes/DigitalM SME-Guideline-CLCS-TUS-2019-2020.pdf 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 49
Lean Manufacturing Competitiveness Scheme • Lean Manufacturing helps to reduce waste in manufacturing process • Better utilization of resources • Increase productivity and competitiveness • Lean Manufacturing Consultants will work with MSMEs • Link for complete scheme details: • http://www.dcmsme.gov.in/schemes/DigitalMSM E-Guideline-CLCS-TUS-2019-2020.pdf 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 50
Intellectual Property Rights for MSMEs • To create and enhance awareness about IPR among MSMEs • To help in commercialization of IPRs • IPR includes Patents, Geographical Indication and Trader Marks • Financial Assistance will be given to the Implementation Agency up to Rs.1.00 Crore • Link for complete scheme details: • http://www.dcmsme.gov.in/schemes/IPR- Guidelines-CLCS-TUS-2019-2020.pdf 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 51
Design Expertise to MSMEs • To improve the design of the products manufactured by MSMEs • To create their own brand • 1. Design Awareness 2. Design Projects • Financial assistance will be given • Detailed guidelines can be accessed here: • http://www.dcmsme.gov.in/schemes/Design- Guidelines-CLCS-TUS-2019-2020.pdf 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 52
Development of MSMs through incubators • Entrepreneurial and Managerial Development of MSMEs. • Awareness Programs, workshops etc will be conducted by Host Incubators. • Grant in aid / financial assistance will be given to Host Institute. • Detailed guidelines can be accessed here: • http://www.dcmsme.gov.in/schemes/Incubat or-Guidelines-CLCS-TUS-2019-2020.pdf 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 53
ZED
Zero Defect Zero Effect
• To improve the quality of the products manufactured by
MSME
• ZED certification at 5 levels
• ZED certification benefits:
– Internal Benefits (improvement of quality etc)
– Benefits by Banks (concession in interest rate etc)
– Benefits by State Government (reimbursement of certain expenses
etc)
• https://zed.org.in/
• http://dcmsme.gov.in/schemes/clcs-
tus/Operational_Guidelines_ZED.pdf
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 54TReDS
Trade Receivables Discount Scheme
• TReDS is an electronic platform for discounting the bills issued
by MSME since 2014
www.treds.in
Supplier
www.m1excha
nge.com
Financiers Buyer
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 55CGTMSE Credit Guarantee Trust for Micro and Small Enterprise • This scheme not available for Medium Enterprises • Under this scheme loans upto Rs.2.00 crores can be obtained without collateral security from financial institutions • Useful for the young entrepreneurs who have good business idea but no collateral security • https://www.cgtmse.in/ 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 56
NCGTC
National Credit Guarantee Trustee Company
• Established in 2004
• Gives guarantee to Rs.3.00 Lacs Crore loans under
ECLGS (Emergency Credit Line Gurantee Scheme) for
MSME under Atmnirbhar Bharath
• Others:
– Credit Gurantee for education loans
– Credit Guarantee for factoring
– Credit Guarantee for Skill Development
– Credit Guarantee for Standup India Loans
– Credit Guarantee for Micro Units
• https://www.ncgtc.in/en
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 57MSE - CDP
Cluster Development Program
• This scheme is for technology upgradation of
MSME
• Central Government give grants for following:
– Setting up of common facility centers
– Infrastructure Development Projects
– Marketing Hubs / Exhibition Centers by Associations
– Thematic Interventions
– Support to State Innovative Cluster Development
Program
• http://www.dcmsme.gov.in
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 58ESDP
Up-scaled Entrepreneurship and Skill Development
Program
• Industrial Motivation Campaigns (IMCs)
• Entrepreneurship Awareness Programmers
(EAPs)
• Entrepreneurship-cum-Skill Development
Programme (E-SDP)
• Management Development Programmes
(MDPs)
• https://msmedi.dcmsme.gov.in/
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 59SIDBI
Small Industries Development Bank of India
• Direct Finance
• Re-Finance
• Subsidy
• Guarantee Schemes
• https://www.sidbi.in/en
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 60NABARD National Bank for Agriculture and Rural Development • Various schemes and support measures for rural industries in agriculture and allied activities • https://www.nabard.org 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 61
CHAMPIONS • Web based Grievance redressal and advice program • Launched on 01-06-2020 • https://champions.gov.in/MyMsme/grievance /COM_Grievance_Welcome.aspx 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 62
MY.MSME • One website giving links to many schemes of MSME • This website is launched as part of ease of doing business • https://my.msme.gov.in/MyMsme/Reg/Home. aspx 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 63
MSME Data Bank • Central PSU and Large Units procure certain goods and services from MSMEs registered in MSME Data Bank • Registration is completely online and it is free • http://www.msmedatabank.in/ 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 64
The National Small Industries Corporation Ltd.
(NSIC)
• A MSME Ministry
Enterprise.
• Mission : To support and
promote MSME sector
• https://www.nsic.co.in/Hom
e.aspx
• Schemes & Support
measures can be seen here
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 65http://ideas.msme.gov.in/ 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 66
Schemes of Various Ministries
• http://ideas.msme.gov.in/Ministry.aspx
• VIEW SCHEMES OF CENTRAL
GOVERNMENT
• MINISTRY OF AGRICULTURE
• MINISTRY OF CHEMICALS AND FERTILIZERS
• Ministry of Food Processing Industries etc
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 67Ministry of Food Processing Industries • Pradhan Mantri Kisan SAMPADA Yojana • Rs.6,000 Crore allocated • Mega Food Parks • Cold Chain • Agro Processing Clusters etc • https://mofpi.nic.in/ 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 68
• Primarily training institute for trainers:
– Individuals --- Professionals --- MSME
• Consultancy, Research
• Information Services
• https://www.nimsme.org/
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 69• Women • DPIIT recognizes the startups
• SC / ST for benefits in areas such as
assistance in Intellectual
• Loans & Subsidies Property Rights, relaxation in
• https://www.standupmitr public procurement norms etc
a.in/ • Income Tax Exemption for 3
out of 7 years - 80IAC
• https://www.standupmitr
• Startup India Hub
a.in/Home/SubsidySche
• https://www.startupindia.gov.i
mesForAll n/
STAND-UP START-UP
INDIA INDIA
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 70MSME Development Institutes
All over the
30 MSME DIs 28 Branch DIs
country
Balanagar, http://msmehyd.
Hyderabad ap.nic.in/
Some more schemes can be found in this website
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 71KVIC Khadi & Village Industries Commission Act, 1956 For tiny and cottage industries in rural area: Definitions: • Village Industry any industry located in a rural area producing goods or renders service in which per head investment of an artisan or worker does not exceed Rs. 1.00 Lakhs in plain area and Rs. 1.5 Lakhs in Hilly Area • KHADI……..a fabric that breaths “Warm in Winter, Cool in Summer” Khadi is a handspun and hand woven cloth which acquired patriotic status during Indian freedom struggle and it gave a “SWADESHI SPIRIT”. • http://www.kvic.gov.in/kvicres/index.php • Subsidy will be given for investment in fixed assets & stocks. 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 72
KVIC
Khadi & Village Industries Commission Act, 1956
• 344 Sample project reports of various industries available at:
• https://www.kviconline.gov.in/pmegp/pmegpweb/docs/jsp/n
ewprojectReports.jsp
• Schemes of KVIC
– PMEGP (Prime Minister Employment Generation Program)
– SFURTI (Scheme of Fund for Regeneration of Traditional Industries)
– ISEC (Interest Subsidy Eligibility Certificate)
– MPDA (Market Promotion Development Assistance)
– Bee Keeping – The Honey Mission
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 73Atmnirbhar Bharath Abhiyan • Many measures were announced. • Brief details are available at: • http://support.champions.gov.in/ • Some of the important schemes for MSME discussed hereafter 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 74
1. Additional 20% Loan
• This loan is for existing borrowers.
• 20% of the balance outstanding as on 29-02-
2020.
• Tenure 4 years – 1 Yr repayment holiday for
principal
• This loan is available to Business enterprises /
MSME units:
– Having less than Rs.25.00 crores limits
– Turnover up to Rs.100.00 crores
– Account should not be NPA
– Should not overdue beyond 60 days
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 751. Additional 20% Loan (Cond..) • The loan will be guaranteed by Central Government. • No Guarantee fee • No need to provide any additional collateral security. • Scheme is open upto 31-10-2020 or sanction of Rs.3.00 Lac Crores which ever is earlier. • As of 03-08-2020 Rs.1.37 Lacs Crore sanctioned. • https://www.eclgs.com/ 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 76
2. Loans to promoters of NPA accounts • This loan will be given to promoters of NPA or stressed units. • In turn promoters infuse that amount as equity in the units. • These loans will be partially guaranteed by CGTMSE to an extent of 25%. • Liquidity Rs.20,000 crore (subordinate debt) • https://udyamregistration.gov.in/docs/Subdeb t_Booklet_version2.pdf 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 77
3. Purchase of 15% equity • Government will invest upto 15% of the equity of good MSME units maximum of Rs.75.00 Lacs • Rating will be given to MSME units based on the turnover, exports, profits and gst payments. • Govt. will setup up a fund with Rs.10,000cr. • It will become easier for the units to raise equity from capital markets Rs.40,000cr. (1:4 criteria) • Total liquidity Rs.50,000cr (Fund of funds) 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 78
4. No global tenders upto Rs.200Cr. • This rule is applicable for all Central Government projects. • Foreign companies are not allowed to participate in the projects worth upto Rs.200Cr. • General Financial Rules will be amended accordingly. 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 79
5. e-market linkage • Fairs and Exhibitions may not happen in the near future. • As an alternative e-market linkage for MSME units will be promoted. • Based on the sales in the e-market, banks will lend. 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 80
6. EPF support for 3 more months • 12% of employer and 12% of employee total 24% of small business will be paid by the Government. • Earlier this benefit is given for 3 months i.e., March, April & May 2020. • Now this benefit will be extended for another 3 months June, July & August 2020. • Conditions: Total employees less than 100 and 90% employees salary less than Rs.15000/- • Liquidity Relief Rs.2,500Cr 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 81
7. EPF 10% for others • EPF contribution rate reduced from 12% to 10% each for both employer and employee. • This benefit will be available for May June July 2020. • Conditions: This benefit is available for units other than those enjoying 24% benefit. • 12% also can be paid 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 82
8. Relief to contractors • Government contractors are allowed 6 more months to complete all types of works. • Bank Guarantees will be released stage wise. 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 83
9. Real Estate RERA 6 months time • All real estate projects registered under RERA have to complete within the prescribed time frame • Now this time frame extended by 6 months for all registered projects expiring on or after 25-03-2020. • Another 3 months can be extended 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 84
10. 25% reduction in TDS/TCS rates • TDS/TCS rates decreased by 25% • from 14-05-2020 to 31-3-2021. • This reduction is not applicable for TDS on salaries. 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 85
11. Fisheries/Aqua • Validity of Sanitary Import Permits (SIP) for import of Shrimp Brood stock extended by 3 months. • 1 month delay allowed in arrival of brood stock. • No additional charges for rebooking cancelled quarantine cubicles. • Renewal of hatcheries extended by 3 months. 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 86
12. Micro Food Enterprises • Helps micro food enterprises to attain FSSAI food standards, build brands and marketing • Cluster based approach • Will help these units to export their produce. • Existing micro food enterprises, farmer producer organisations, self help groups and co-operatives will be benefited. • Rs.10,000 crore scheme launched on 29-06- 2020. Complete details available at 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 87
PM Formalisation of Micro food processing Enterprises Scheme (PM FME Scheme) • This scheme was launched on 29-06-2020 with 10000 crore outlay. • Valid upto 2024-25 • Complete details are available at • https://mofpi.nic.in/pmfme/#:~:text=Ministry %20of%20Food%20Processing%20Industries,u pgradation%20of%20existing%20micro%20foo d 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 88
13. Operation Greens
• “Operation Greens” covers presently 3 crops
i.e., Onion, Tomatoes & Potatoes.
• Now the scheme will be extended to all fruits
& vegetables.
• Scheme features:
– 50% subsidy on transportation
– 50% subsidy on storage including cold storage
• Maximum assistance to one unit Rs.50Cr
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 89https://dipp.gov.in/
Foreign Direct
Industrial National
Investment
Policy Design Policy
Policy
National Budgetary
Manufacturing Support under
Policy GST Regime
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 90Department for Promotion of Industry
& Internal Trade
The Industrial
The Explosives Inflammable
(Development & Boilers Act
Act Substances Act
Regulation) Act
Geographical
Copyright Act Patents Act Design Act Indications of
Goods
National Institute
Trade Marks Act of Design Act
2014
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 91Telangana State Government support
measures for MSMEs
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 92TS Government Industrial Policy
TS-iPASS
https://ipass.telangana.gov.in/
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 93TS Govt – T-IDEA • Incentives for setting up of New Industrial Enterprises in Telangana State • Telangana State Industrial Development and Entrepreneur Advancement Incentives Scheme 2014. • G.O.MS.No.77 dated 09-10-2015 • From 01-01-2015 to 31-03-2019 • Extended by G.O.Rt No.52 dated 28-03-2019 until further orders • http://industries.telangana.gov.in/ 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 94
TS Govt – T-PRIDE • Incentives for setting up of New Industrial Enterprises in Telangana State by SC & ST • Telangana State Program for Rapid Incubation of Dalit Entrepreneurs Incentives Scheme 2014. • G.O.MS.No.78 dated 09-10-2015 • From 01-01-2015 to 31-03-2019 • Extended by G.O.Rt No.52 dated 28-03-2019 until further orders • http://industries.telangana.gov.in/ 07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 95
Incentive under T-IDEA and T-PRIDE
• Reimbursement of
– Stamp Duty
– Land Cost
– Land Conversion charges
– Power Consumption charges
– GST
– Quality Certification (ISO etc)
– Skill upgradation and training cost
– Pavala Vaddi
– Cleaner Production Measure cost
• Capital Investment Subsidy
• Seed Capital Assistance
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 96Professional
Opportunities for CAs
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 97Dedicated to my friend
CA I.Surendra Kumar Ongole
02-09-2020
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 98“దోషములున్న మన్న ింపుమన్న ”
Thank You
07-09-2020 CA Ch.Thiruvayu Kumar, Ongole 99You can also read
