Pune, Maharashtra, 15th Feb 2021:
The
Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSME Sector contributes around 40% to the GDP of India and counting with the aim at facilitating the promotion and development of small and medium Enterprises. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country

Finance Minister of India, Nirmala Sitharaman announces various measure to extend financial support to small, micro and medium Industries in Budget 2021, such as doubling the allocations for MSME of Rs 15,700 Crore from FY 2019-20 figure of Rs 7572 Crore. Which has been badly affected by the COVID-19 pandemic. According to the Federation of Indian Micro and Small & Medium Enterprises (FISME), reduction in Customs Duties on steel and ferrous and non-ferrous scrap is a major direct benefit to the MSMEs as it will help reduce the raw material prices. This was one of the main demands of the sector.

According to Section 7 of the MSMED Act, 2006, the government has prescribed specific turnovers and investment limits to reckon whether an enterprise falls under the micro, small or medium category.
In terms of this Act definition of micro, small and medium (MSME) enterprises is as under:

1. A micro enterprise is an enterprise where, Manufacturing Enterprises and Enterprise Rendering Services - Investment in plant and machinery for equipment’s: not more than Rs. 1 Crore and Annual Turn Over: not more than 5 Crore.
2. A small enterprise is an enterprise where, Manufacturing Enterprises and Enterprise Rendering Services - Investment in plant and machinery for equipment’s: not more than Rs. 10 Crore and Annual Turn Over: not more than 50 Crore.
3. A medium enterprise is an enterprise where, Manufacturing Enterprises and Enterprise Rendering Services - Investment in plant and machinery for equipment’s: not more than Rs. 50 Crore and Annual Turn Over: not more than 250 Crore.


BENEFITS OF GETTING MSME REGISTRATION…

1. Protection against Payments (Delayed Payments) MSME Samadhan

At times, the buyers of services or products from the MSME’s or SSIs tend to delay the payment. The Ministry of Micro, Small and Medium Enterprise lend a helping hand to such enterprises by giving them the right to collect interest on the payments that are delayed from the buyer’s side. The settlement of such disputes must be done in minimum time through conciliation and arbitration.

In case, if any MSME registered enterprise supplies any goods or services to a buyer then the buyer is required to make the payment on or before the agreed date of payment or within 15 days from the day they had accepted the goods and services from MSME or SCI registered business (if there is no mention of the date of payment).

If the buyer delays the payment for more than 45 days after accepting the products or services then the buyer has to pay compound interest along with interests (monthly) on the amount that was agreed to be paid. The interest rate is three times the rate that is notified by the Reserve Bank of India.

2. Income Tax exemption

There are several MSME registration benefits that can save lakhs of the amount that may be assessable to tax in the absence of this certificate. The benefit of a presumptive basis of taxation is available to enterprises, which relieves one from maintaining detailed books of accounts and undergoing audit procedures.

3. Fewer interest rates and availability and access to greater credit:

In the absence of collateral security (any property/cash given as a security against a loan), many business owners may find it extremely hard to secure a loan for starting in their industry. However, with an MSME Registration, all banks are specifically instructed to offer loans at interest rates lower than the usual and one may be able to avail this benefit from several banking institutions for their financing needs.

4. Priority Lending:

Our first MSME benefit is priority lending. Whether you’re the proud owner of a cutting-edge technology business or a masala packing company, employing rural women, credit and loan is something that your business will inevitably require for long- and short-term financing. Banks, by virtue of the directions issued by the Reserve Bank of India, have certain earmarked funds that have to mandatorily be given to MSME businesses. Producing MSME certificate benefits entitle one to avail of this loan on a priority basis with fewer hassles.

5. Reimbursement of ISO Certification

To promote the standards and certifications received by MSMEs in a bid to enhance their performance across sectors, all registered micro and small industries can avail an exemption of all expenses incurred for obtaining ISO 9000, ISO 14001, and HACCP certifications.

Just take a Few Simple steps to make an Enterprise of your Dream.

Register your Business @ https://www.msmeregistration.org/