Study on MSME – A Game Changer
All Business Enterprises, whether commercial or non-commercial, commence their activities in a bootstrapped manner. Over the years, with their vision, persistent conviction, dedication, and relentless efforts they unfold their wings to grow by leaps and bounds to establish themselves progressively as Larger and Bigger Companies. These Enterprises may be owned by HNIs, Companies, and Multinational Conglomerates, and could have operations that may stretch even beyond the Indian frontiers. Some can even be called Global Citizens of the world harnessing modern technology innovations and/or developments – participating competitively in the international arena.
The Ministry of Micro Small and Medium Industries vide Notification no SO 2119 (E) dated June 26, 2020, issued a Master Circular on the definition of MSME, which majorly revamped the old definition of MSME, 2006 by explicitly widening the eligibility criteria of registration for MSMEs viz. Manufacturing and Services – are both now considered on the same footing. By this, the Ministry has heeded the demands of Trade and Industry to consider both the activities for the purpose of eligibility for registration and also in terms of transitioning existing registered participants in the MSME category. Accordingly, the old criterion of either manufacturing or services has been done away with w.e.f July 1, 2020, and now registration has been designated as “Udyam” in place of Udyog Registration. The Ministry of MSME is of the view that “Udyam” Registration explicitly depicts both the manufacturing as well as service sectors of business, trade, commerce, etc. This shift recognises that over time, the eligibility models need to change by being broader and more inclusive. “Udyog” Registration was essentially tilted towards manufacturing, although the MSME Act 2006 recognised both the activities viz. Manufacturing activities and Services activities for eligibility of registration under its definition of enterprises.
Read & Download the Full Draft Scheme of Production Linked Incentive 2 (PLI-2) for Textiles pdf:
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Nitin Bhuta
Presently, he is actively involved with limited scale of doing Audits, Direct & Indirect Taxation, Management Advisory as well as handling of litigation matters, etc. of Corporate as Well as Non-Corporate persons. Presently, he is actively involved vetting out of drafted legal documents pertaining to business arrangements from the tax compliance perspective.
