An emerging threat to small Enterprises (MSMEs)

An emerging threat to small Enterprises (MSMEs)

www.carajput.com; MSME

www.carajput.com; MSME

Micro, small and medium-sized enterprises ( MSMEs) face an identity threat due to economic recession in the financial year (FY) 2021 in the midst of the Covid-19 pandemic.

-India was moving towards a 15-percent decline in revenue and a 25-percent decrease in earnings before interest, taxes. fortunately, for smaller firms, revenue will also fall by 17-21 percent, while the EBITDA margin would fall by 200-300 basis points ( bps) to 4-5 percent, with weak demand away from lower commodity prices.

-The downward trend at the operational level will also have an impact on creditworthiness. In the meantime, the average interest rate coverage ratio could fall to 1-1.5 times the 2.4-fold between the 2017 and 2020 fiscal years, “the study said.

As a summary to this issue, a three-pronged strategy is now crucial

-Improve job satisfaction with formal and informal employees to confident decisions.

-Speed up the execution of the Rs 3-Lakh Crore Aatmanirbhar scheme to ensure the continuous supply of liquidity to small and medium-sized enterprises.

-Lenders must go further than traditional credit processes because they have a key role to play in recovering.

What is MSME 

www.carajput.com;MSME

www.carajput.com; MSME

 Category of Micro/Small/Medium Enterprises – Type of Enterprises Micro-Enterprise Small Enterprise Medium Enterprise
Manufacturing OR Services Sector, Both Investment up to ₹ 1 Cr AND Turnover up to ₹ 5 Cr Investment up to ₹ 10 Cr AND Turnover up to ₹ 50 Cr Investment up to ₹ 50 Cr AND Turnover up to ₹ 250 Cr

Documents for Udyam Registration MSME –

www.carajput.com;MSME Registration

www.carajput.com; MSME Registration

  • Adhaar Card – of the prop. (in case of the prop.)
  • Of Managing Director/Partner(in case of company/partnership firm)
  • Must be linked with mobile no. and pan.
  • GSTIN and Pan Card.(RC copy of GST no.)
  • Annual Turnover as per Income Tax and GST.
  • Plant and Machinery details as per Income Tax Return.
  • Self-declared if Income Tax Return not filed.
  • Date of Incorporation of business (RC copy of company)
  • Income Tax Return Copy with the Balance sheet and Profit and Loss.
  • Email id/ Mobile No.

Benefits of Udyam Registration MSME

– Collateral Free Borrowings

– Subsidized Loan from banks with a low-interest rate

– Participate in the International Trade Fairs

– Benefits from Central Government Schemes

– Preference in the Government Tenders

– Get Subsidy on the Patent Registration

– Protection against delayed payment

– Get Subsidy on Trademark Registration

– Concession in electricity bills

– Easy to get licenses, approvals, and registrations

– Reimbursement of Foreign Exhibition Charges

Regards

Rajput Jain & Associates

www.carajput.com

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Brief note on -Payment security to MSME according to Law  as per the MSME provision

www.carajput.com; MSME Samadhaan

www.carajput.com; MSME Samadhaan

Section 15 of the MSME Act states that if the supplier supplies products or offers any services to any purchaser, the consumer shall make the payment on or before the date stated in the agreement and if there is no agreement before the date specified. The proviso to this Section states that the credit period provided by the seller shall not exceed 45 days from the date of acceptance or from the date of acceptance deemed.

  • “Approved date” means the day immediately following the expiry of the 15-day period from the date of acceptance or the date of considered acceptance by the purchaser of any products or services from the supplier;
  • ‘Day of acceptance’ means,-( a) the day on which goods are actually delivered or services are rendered; or (b) where the customer poses some complaint in writing concerning the acceptance of products or services within 15 days of the day on which products are delivered or services are rendered, the day on which the supplier eliminates such complaint;
  • ‘Day of deemed acceptance’ means that the buyer does not object in writing to acceptance of products or services within 15 days of the day on which the products are delivered or services are rendered, the day on which the goods are actually delivered or services are rendered;

Thus you are not entitled to pay interest under the MSMED Act in respect of delayed payment.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Micro, Small and Medium Enterprises

Overview on MSME’s Companies:

www.carajput.com; MSME

www.carajput.com; MSME

 

Definition of MSME:-

The Micro Small & Medium Enterprises (MSMEs) are defined in India in the MSME Act 2006 according to capital investment made in plant and machinery, excluding investments in land and building.

Manufacturing units having investment below Rs 25 lakh were termed Micro, those between Rs 25 lakh and Rs 5 crore termed as Small and from Rs 5 crore to Rs 10 crore as Medium. Similarly, for Service units, corresponding investment thresholds were upto Rs 10 lakh Micro, between Rs 10 lakh to Rs 2 crore Small and between Rs 2 crore to Rs 5 crore Medium.

Mandatory filling of MSME Companies:

According to the rules every specified company are required to file MSME Form I with Roc in in the situation mentioned below:

Two Type of Returns required filing by “Specified Companies” like:

  • One Time Return.
  • Half Yearly Return.

Every specified company shall file in MSME Form I details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order within thirty days from the date of publication of this notification which is 22nd January.

Every specified company shall file a return as per MSME Form I annexed to this Order, by 31st October for the period from April to September and by 30th April for the period from October to March.

Specified Company means Every Company “Public or Private” who Received Goods or Services ‘from’ Micro or Small Enterprises ‘of which’ Payment Due or Not Paid till 45 days.

HALF-YEARLY RETURN BY MICRO OR SMALL ENTERPRISES WITH REGISTRAR OF OUTSTANDING PAYMENTS:

All companies having outstanding payments to MSME for more than 45 days from the date of acceptance or deemed acceptance of goods or/and services, who are not required to file the MSME Form I.

The Companies who have no outstanding payments to MSME or such outstanding payments are for not more than 45 days are not required to file this form.

DUE DATES FOR FILLING “MSME FORM 1”

Every Company within 30 days from the date of the notification i.e. 22nd February, 2019 (22nd January, 2019 + 30 days) is required to file this form as Initial Return.

Every company within 30 days from the last day of half year shall file regular half yearly return.

  • October 31st for the period1st April to 30th September.
  • April 30th for the period01st October to 31st March.

DETAILS AND DOCUMENTS TO BE ENCLOSED WITH THE FORM

INITIAL RETURN:

Total outstanding amount, Details of suppliers and payments due (PAN of Suppliers)

REGULAR HALF YEARLY RETURN

Total outstanding due for the period and particulars of suppliers therein for the period, Reasons for delay in payment.

Penalty Provision as per Section 405 (4) of the Companies Act, 2013, if the said details are not submitted to MCA on or before 20/02/2019 or the information submitted is incorrect or incomplete.

Fine

Company – up to Rs. 25,000

Directors, CFO and CS

Imprisonment – up to 6 Months, or

Fine – not less than Rs. 25,000 up to Rs. 3, 00,000 per person

NOTE: Non-compliance of such provisions will lead to punishment and penalty under the provision of the Act.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)