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chillakuru chaitanya

chillakuru chaitanya (Querist)
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24 October 2012 in which act cottage industry is defined?

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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24 October 2012 I Think No Where Defined Specifically.

Ajay Mishra

Ajay Mishra (Expert)
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24 October 2012 Hi

An industry where the creation of products and services is home-based, rather than factory-based. While products and services created by cottage industry are often unique and distinctive given the fact that they are usually not mass-produced, producers in this sector often face numerous disadvantages when trying to compete with much larger factory-based companies.
For more go to the following link:

http://www.dcmsme.gov.in/publications/circulars/rbicirculars9.html

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Sanjiv Dandona

Sanjiv Dandona (Expert)
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24 October 2012
The Micro, Small and Medium Enterprses Development Act 2006 contains provisions relating to classification of Enterprises.

Under the said Act, Enterprises are classified on the basis of investment in plant in Plant and Machinery as follows:

a) Micro Enterprise
b) Small Enterprise
c) Medium Enterprise

The investment criteria is as follows:

A) For Enterprises in Manufacturing Sector

a) Micro Enterprise --- if the investment in plant and machinery does not exceed Rs 25 lacs

b) Small Enterprse ---- if the investment in plant and machinery exceeds Rs 25 lacs but does not exceed Rs 5 crores

c) Medium Enterprise ----- if the investment in plant and machinery exceeds Rs 5 crores but does not exceed Rs 10 crores.

A) For Enterprises in Service Sector

a) Micro Enterprise-- If investment in Plant and Machinery does not exceed Rs 10 lacs

b) Small Enterprise --- If investment in Plant and Machinery exceeds Rs 10 lacs but does not exceed Rs 2 crores

c) Medium Enterprise ---- If Investment in Plant and Machinery exceeds Rs 2 crores but does not exceed Rs 5 crores.

For further details please refer to this Act

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Sanjiv Dandona

Sanjiv Dandona (Expert)
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24 October 2012
In continuation to my ealier reply please note that the expression Cottage Industry has apprantly has not been defined in any Act. However there is an act called Khadi & Village Industries Comission Act 1956 which contains defination of village Indiustry

As per said Act “village Industry” means –
(i) any industry located in a rural area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment per head of an artisan or a worker does not exceed 6[one lakh rupees] or such other sum as may, by notification in the Official Gazette, be specified from time to time by the Central Government;
Provided that any industry specified in the Schedule and located in an area
Definitions
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other than a rural area and recognised as a village industry at any time before the commencement of the Khadi and Village Industries Commission (Amendment) Act, 1987 shall, notwithstanding anything contained in the sub-clause, continue to be a village industry under this Act;
7Provided further that in the case of any industry located in a hilly area, the provisions of this sub-clause shall have effect as if for the words "one lakh rupees", the words "one lakh and fifty thousand rupees" had been substituted.
(ii) any other non-manufacturing unit established for the sole purpose of promoting, maintaining, assisting, servicing (including mother units) or managing any village industry.