SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 08 Feb, 2018  

msme-THMB-2010.jpg Cabinet approves turnover based new definition of MSMEs

MSME.9.jpg
   Top Stories
» 49% Indian startups now from tier 2, 3 cities: Jitendra Singh
» 'India ranks 3rd in global startup ecosystem & number of unicorns'
» Tripura exported over 9K tonnes of pineapples in 2 years
» CPI inflation eases to 6.71% in July, IIP falls to 12.3%
» Rupee depreciates 12 paise to close at 79.64 against US dollar
SME Times News Bureau | 08 Feb, 2018

The Union Cabinet chaired on Wednesday approved change in the basis of classifying Micro, Small and Medium enterprises from 'investment in plant & machinery/equipment' to 'annual turnover'.

The MSME ministry said that section 7 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 will be amended to define units producing goods and rendering services in terms of annual turnover .

Under the new definition, a micro enterprise will be defined as a unit where the annual turnover does not exceed five crore rupees; a small enterprise will be defined as a unit where the annual turnover is more than five crore rupees but does not exceed Rs 75 crore; and a medium enterprise will be defined as a unit where the annual turnover is more than seventy five crore rupees but does not exceed Rs 250 crore.

Additionally, the Central Government may, by notification, vary turnover limits, which shall not exceed thrice the limits specified in Section 7 of the MSMED Act.

At present the MSMED Act (Section 7) classifies the Micro, Small and Medium Enterprises (MSMEs) on the basis of investment in plant and machinery for manufacturing units, and investment in equipment for service enterprises.

The criterion of investment in plant and machinery stipulates self declaration which in turn entails verification if deemed necessary and leads to transaction costs.

"Taking turnover as a criterion can be pegged with reliable figures available e.g. in GST Network and other methods of ascertaining which will help in having a non discretionary, transparent and objective criteria and will eliminate the need for inspections, make the classification system progressive and evolutionary, help in overcoming the uncertainties associated with the classification based on investment in plant & machinery/equipment and employment, and improve the ease of doing business," the ministry said in a statement.

In addition the amendment will provide flexibility to the Government to fine-tune the classification of MSMEs in response to changing economic scenario without resorting to the amendment of MSMED (Micro, Small & Medium Enterprises Development) Act.

"The change in the norms of classification will enhance the ease of doing business. The consequent  growth and will pave the way for increased direct and indirect employment in the MSME sector of the country," the MSME ministry said.



 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

Cabinet approves turnover based new definition of MSMEs
V K SHarma | Mon May 13 04:29:14 2019
Above will benefit many industires. Can anyone confirm about issue of circular to above effect.


Very appropriate decision
Bhagawath Prasad | Wed Jul 25 06:11:02 2018
We appreciate ministry for it's decision, it's really a good decision


MPCB CLASSIFICATION IS BASED ON TOTAL INVESTMENT
Subhash mutha | Thu Feb 15 06:43:00 2018
Will this will applicable to MPCB &CPCB Various categories powers to RO and SRO etc


Rate of Interest by Banks for MSME units
M A Mulla..Sangli. Maharashtra.. | Thu Feb 15 04:20:15 2018
To support the growth of MSEM industries the Govt should bring down the rate of bank interest less than 5 %.This will help MSME to be competitive in international markets as well.

  Re: Rate of Interest by Banks for MSME units
JON | Tue Jul 24 12:49:16 2018
YES


 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
PM Modi's recent US visit to redefine India-US bilateral relations
 Yes
 No
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter