Extension of Validity of Documents for Ascertaining MSME Classification
Extension of Validity of Documents for Ascertaining MSME Classification
Ministry of Micro, Small and Medium Enterprises (MSME), vides Gazette Notification no. S.O. 2134(E), dated May 6, 2022, has announced that the existing enterprises registered before June 30, 2020, shall continue to be valid only for a period up to June 30, 2022.
Because of the above amendment, the Reserve Bank of India has issued the Clarification on the New Definition of MSME vide a Notification dated May 19, 2022. The present article briefs the RBI Clarification on the New Definition of MSME. The present article briefs the Extension of Validity of Documents for Ascertaining MSME Classification.
RBI Clarification on New Definition of MSME
RBI now clarified that the validity of documents obtained to ascertain the investment in plant and machinery for classifying MSMEs is valid until June 30, 2022.
Extension of Validity of Documents for Ascertaining MSME Classification
Documents for Ascertaining MSME Classification
Ministry of Micro, Small & Medium Enterprise vides their Office Memorandum (O.M.) F. No. 12(4)/2017-SME, dated March 8, 2017, has clarified that for ascertaining the investment in plant and machinery for classification of an enterprise as Micro, Small, and Medium, the following documents could be relied upon:
- A copy of the invoice for the purchase of plant and machinery
- Gross block for investment in plant and machinery as shown in the audited accounts
- A certificate issued by a Chartered Accountant regarding the purchase price of plant and machinery
The Ministry has clarified that for the investment in plant and machinery for classifying an enterprise as Micro, Small or Medium, the purchase value of the plant and machinery is to be reckoned and not the book value (purchase value minus depreciation).
Aadhaar Card and PAN Card are the only documents required for MSME registration. MSME registration is entirely online, and no proof of documents is required. PAN and GST-linked details on investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the Government databases. The Udyam Registration Portal is fully integrated with Income Tax and GSTIN systems.
GST is not compulsory for enterprises that do not require a GST registration under the GST law. However, enterprises that need GST registration under the GST regime must have GST registration for Udyam Registration.
Those who have UAM registration or any other registration issued by any authority under the Ministry of MSME will have to re-register themselves in the Udyam Registration Portal by clicking on the “For New Entrepreneurs who are not registered yet as MSME or those with EM-II.”
Know more about the MSME – Udyam Registration
Extension of Udyog Aadhaar Memorandum (UAM) Validity
Ministry of Micro, Small and Medium Enterprises (MSME), vide Gazette Notification no. S.O. 2134(E), dated May 6, 2022, has amended the original Notification number S.O. 2119 (E), dated June 26, 2020.
Through this notification, Ministry has provided an amendment in Para 7, which deals with registering existing enterprises.
MSME announced that the existing enterprises registered before June 30, 2020, shall remain valid only from June 30, 2022.
- The enterprises having UAM registration need to migrate to Udyam Registration by 30/06/2022.
- Suppose the entrepreneurs having UAM registration do not migrate to Udyam Registration by 30/06/2022. In that case, the UAM registration will be invalid, and they will not be able to receive the benefits provided to the MSMEs.
For more details on MSME Registration Benefits in India, Click here.
