What is MSMEs?
In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:- The investment in plant and machinery for those engaged in manufacturing or production, processing or preservation of goods and
- 2. The investment in equipment for enterprises engaged in providing or rendering of services.
Who is eligible get MSME registration?
- Proprietorships,
- Hindu Undivided Family,
- Partnership Firm,
- One Person Company,
- Limited Liability Partnership,
- Private Limited Company,
- Limited Company,
- Producer Company,
- any association of persons,
- co-operative societies or any other undertaking .
What is the revised definition of MSME? What are the criteria for MSMEs eligibility?
As per the new definition of MSMEs announced in May 2020, the investment limit has been revised upwards and an additional criterion of turnover introduced.What are the Benefits of MSME Registration?
MSME Benefits from “AtmaNirbhar Bharat” relief package to revive the COVID-19-hit Economy:
1) Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs
2) Rs 20,000 crores Subordinate Debt for Stressed MSMEs
Stressed MSMEs need equity supportPointer and Section of MSME benefits from MSMED Act, 2006
Section 15. Liability of buyer to make payment.
Where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day:
Provided that in no case the period agreed upon between the supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance.
Section 16. Date from which and rate at which interest is payable.
Where any buyer fails to make payment of the amount to the supplier, as required under section 15, the buyer shall, notwithstanding anything contained in any agreement between the buyer and the supplier or in any law for the time being in force, be liable to pay compound interest with monthly rests to the supplier on that amount from the appointed day or, as the case may be, from the date immediately following the date agreed upon, at three times of the bank rate notified by the Reserve Bank.
Section 17. Recovery of amount due.
For any goods supplied or services rendered by the supplier, the buyer shall be liable to pay the amount with interest thereon as provided under section 16.
Section 23. Interest not to be allowed as deduction from income.
Notwithstanding anything contained in the Income-tax Act, 1961 (43 of 1961), the amount of interest payable or paid by any buyer, under or in accordance with the provisions of this Act, shall not, for the purposes of computation of income under the Income-tax Act, 1961, be allowed as deduction.
Please connect with infinzi at +91-9820194559 or email at [email protected]
We can provide free consultation on whichever benefits are applicable to you and how to apply to get the same benefits.