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MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT,2006

Radhika (CA Practice ) (87 Points)

05 August 2008

WHAT IS THIS MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT'2006?

Now days I receive letters from companies whether we are MICRO or SMALL Or MEDIUM entrprise.

what is the criteria ?

why this information required to fulfill?

what are the benefits or its merely creating data.

Whether it is mandotory to give information.

Our is a Hotel industry whether we are covered under this act.

PLEASE SEND ME INFORMATION IN THIS REGARD. IT IS URGENT

My Email.Id : rakes2004 @ gmail.com

regrads

Rakesh Srivastava

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7 Replies

Anurag Agarwal (Article) (24 Points)
Replied 21 January 2009

For Goods

1. a micro enterprise, where the investment in plant and machinery does not exceed Rs.25 lac

2. a small enterprise, where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees; or

3. a medium enterprise, where the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees;

For Services (Hotel Industry)

1. a micro enterprise, where the investment in equipment does not exceed ten lakh rupees;

2. a small enterprise, where the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or

3. a medium enterprise, where the investment in equipment is more than two crore rupees but does not exceed five crore rupees

It is not mandatory but it is beneficial for such enterprises to be covered under the said act

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ABHICA (CA) (64 Points)
Replied 20 March 2009

OK..BUT WHAT ARE THE BENEFITS IF ONE GETS REGISTERED IN THIS ACT..??

Anurag Agarwal (Article) (24 Points)
Replied 20 March 2009

The Registrant is benefitted in the form of Fiscal Support, Technical, Credit and Marketing Support from the Government during the initial phase of the business, which is very crtical for a new business entity.

Apart from getting other benefits, if a micro or small enterprise has filed a memorandum with District Industries Centre (DIC) of its area, then it stands to gain as to timely payment in respect of supply of goods or rendering of services to any buyer.

It must be noted that with the enactment of MSMED Act, 2006. The Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 is repealed, with effect from October 2, 2006.

As per this Act, if the buyer has purchased goods or availed services from micro or small enterprise, which has filed a memorandum with the authority, than the buyer shall make payment on or before the date agreed upon between him and the supplier in writing. If no agreement is there in writing then within a period of 15 days (30 days were mentioned in the repealed Act) from the day the goods are delivered or services are rendered. The Act further stipulates that even if the period between the buyer and supplier is agreed in writing, such period shall not exceed 45 days (120 days were mentioned in the repealed Act) from the day of delivery of goods or rendering of services. In short, any credit term from a micro or small enterprise stipulating payment terms beyond 45 days, shall be in violation of the MSMED Act, 2006

Radhika (CA Practice ) (87 Points)
Replied 21 March 2009

Originally posted by :Anurag Agarwal
"	For Goods 1. a micro enterprise, where the investment in plant and machinery does not exceed Rs.25 lac 2. a small enterprise, where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees; or 3. a medium enterprise, where the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees; For Services (Hotel Industry) 1. a micro enterprise, where the investment in equipment does not exceed ten lakh rupees; 2. a small enterprise, where the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or 3. a medium enterprise, where the investment in equipment is more than two crore rupees but does not exceed five crore rupees It is not mandatory but it is beneficial for such enterprises to be covered under the said act	"

Dear Anurag ,

Please tell me what is the definition of ËQUIPMENTS

Ravindra (Sr. Excecutive) (21 Points)
Replied 16 January 2010

plese send formate of Board resolution for applying for MSMED

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Neeraj Diwan (Partner) (22 Points)
Replied 23 March 2010

what is the procedure for registration under this act???

saurendra rautray (Advocate) (85 Points)
Replied 06 April 2020

Dear All,

There are many benefits if a Micro and SSI unit is registered under the MSMED Act i.e easier to get bank loan, waiver of EMD if the unit participates in a government tender but the most important benefit is to refer any disputes in respect to non payment/delayed payment as per the MSMED Act read with Arbitration Act 1996.

Regards

Saurendra Rautray

Rautray & Co

New Delhi

www.rautray.com

09437008255