DIC Registration Mumbai | District Industries Center Registration Mumbai | MSME Registration Mumbai | Small Scale Industry Registration Mumbai | Micro Small Medium Enterprise Mumbai | District Industries Centre Maharashtra | Enterprenuer Memorandom Mumbai | Company Registration Mumbai | Firm Registration Mumbai | Trademark Registration Mumbai |
SSI Registration in Thane | SSI registration in Maharashtra | MSME Registration in Mumbai | MSME Registration in Maharashtra | SSI Registration in Mumbai | SSI Registration in Thane | SSI Registration in Aurangabad | SSI Registration in Pune | SSI Registration in Nasik | SSI Registration in Amrawati | SSI Registration in Akola | MSME Registration in Mumbai | MSME Registration in Pune | Small Scale Industry in Maharashtra | Small Scale Industry in Mumbai | NSIC Registration in Mumbai | NSIC Registration Mumbai | SSI Registration | SSI Registration | SSI Registration | SSI Registration | MSME Registration | MSME Registration | MSME Registration | MSME Registration | DIC Registration | DIC Registration | DIC Registration | DIC Registration | Industrial Registration | Industrial Consultant | SSI Registration | MSME Registration | Small Scale Industries Registration | DIC Registration | NSIC Registration | Import Export Code | Small Scale Industry Registration | IEC Code | Importer Exporter License | Import Export Code | Industrial Registration Gujarat | Industrial Consultant Gujarat | SSI Registration Gujarat | MSME Registration Gujarat | Small Scale Industries Registration Gujarat | DIC Registration Gujarat | NSIC Registration Gujarat | Import Export Code Gujarat | Small Scale Industry Registration Gujarat | IEC Code Gujarat | Importer Exporter License Gujarat | Import Export Code Gujarat | Industrial Registration maharashtra | Industrial Consultant maharashtra | SSI Registration maharashtra | MSME Registration maharashtra | Small Scale Industries Registration maharashtra | DIC Registration maharashtra | NSIC Registration maharashtra | Import Export Ce maharashtra | Small Scale Industry Registration maharashtra | IEC Code maharashtra | Importer Exporter License maharashtra | Import Export Code maharashtra | Industrial Registration mumbai | Industrial Consultant mumbai | SSI Registration mumbai | MSME Registration mumbai | Small Scale Industries Registration mumbai | DIC Registration mumbai | NSIC Registration mumbai | Import Export Code mumbai | Small Scale Industry Registration mumbai | IEC Code mumbai | Importer Exporter License mumbai | Import Export Code mumbai | Industrial Registration consultant | Industrial Consultant consultant | SSI Registration consultant | MSME Registration consultant | Small Scale Industries Registration consultant | DIC Registration consultant | NSIC Registration consultant | Import Export Code consultant | Small Scale Industry Registration consultant | IEC Code consultant | Importer Exporter License consultant | Import Export Code consultant |
. . . . . . .

Wednesday, April 8, 2009

SSI Registration

Historically, SSIs or Small Scale Industries related concessions and regulations have been dealt with under multiple laws with each provision having varied degree of success. Though there have been concessions in some of the Indirect Tax Acts, the achievements of SSI and their contribution to the economy have been reduced to Statistics for the Budgets and Economic Surveys.

With the emergence of The Micro, Small and Medium Enterprises Development Act in June 2006, things are set to change for Micro, Small and Medium Enterprises (MSMEs). Perhaps the most important provision in this Act and probably the first of its kind relates to help improve cashflows for MSMEs by providing for a penal interest for delayed payments by buyers.

Features

* Classifies Enterprises (instead of Industries) which gives due recognition to the Service Sector

* Simplified Registration process with the District Industries Center. Registration is optional in most cases except for enterprises already registered as SSI Units.

* Statutory National Board for MSMEs and Advisory Board Setup to assist implementation of the Act

Classification of MSMEs under the Act

Classification         Manufacturing (Investment              Service (Investments                                       in Plant & Machinery)                               in Equipments)                       

Micro                                     Rs.25 Lakhs                                                   Rs. 10 Lakhs             

Small                                          Rs.500 Lakhs                                                     Rs. 200 Lakhs             

Medium                                      Rs.1000 Lakhs                                                 Rs. 500 Lakhs

Concessions & benefits to MSMEs under the Act

* Smoother and Competitive Credit flow to MSMEs. RBI through various measures has instructed banks to allow concessional credit to MSMEs including dispensation of collateral for loans upto certain limits, Single window clearance for loans to MSMEs and specialized branches for MSMEs.

* Preference policies for Central and State Government contracts.

* The Act provides that buyers from MSMEs should pay before the date agreed upon between the Buyer and the MSME or 45 days whichever is earlier. Where there is a delay in payment the act provides for payment of interest at three times the RBI rate, compounded on a monthly basis. The 45 days is said to begin from the date of acceptance or deemed acceptance of the bill by the buyer. It has also been made mandatory for all companies to disclose the amounts payable to MSMEs with the interest due. Another interesting feature is that the interest so provided shall not be allowed as a deduction under the Income Tax Act.

* State Governments are to constitute a Facilitation Council to facilitate the collection provision and to act as a dispute resolution mechanism.

It still needs to be seen if the implementation matches the benefits projected in the Act, but atleast now we have an exclusive Act and more than anything else this might induce buyers to pay up on time, every time!

Action has started with many companies requesting information from their Vendors to make adequate disclosures in their books. So, if you fall into the Category of MSME, as a measure to improve your cashflows, go ahead and register now.

 

No comments: