Taxmann Micro Small & Medium Enterprises (MSME) Ready Reckoner Edition May 2023

Taxmann Micro Small & Medium Enterprises (MSME) Ready Reckoner

Taxmann Micro Small & Medium Enterprises (MSME) Ready Reckoner

Description

Micro Small & Medium Enterprises (‘MSME’) Ready Reckoner is a comprehensive book on laws governing MSMEs in India. It analyses all the provisions of the MSME Act, 2006 in an easy-to-read FAQ format, along with relevant Circulars & Notifications, illustrations, case studies, etc.

This book is a handy referencer for MSMEs and professionals associated with the MSME sector.

This book is divided into eight divisions, namely:

• MSMEs – Definition, Classification and Registration
• Benefits to Registered MSMEs
• Benefits to small businesses, whether registered MSMEs or not
• Legal forms of organisation MSME can adopt and pros & cons of choice of various legal forms
• Micro Enterprises
• Small Enterprises
• Medium Enterprises
• Start-Ups

The Present Publication is the 4^th Edition and has been amended by the Finance Act 2023. This book is authored by Taxmann’s Editorial Board, with the following noteworthy features:

• [New Definitions & Classification of MSMEs] into Micro, Small and Medium enterprises based on composite criteria of investment and turnover
• [Investment] How to Compute Investment
• [Turnover] How to Compute Turnover
• [Udyam Registration] How to file Udyam Registration
• [Udyam Assist Registration] for informal micro enterprises
• [Promotion of Timely Payments by Buyers to Micro/Small Enterprises] u/s 43B(h) of the Income-tax Act, 1961 is included in this book
• [Vivad Se Vishwas I] scheme for providing reliefs to MSMEs from performance/bid security for non-performance of government contracts during COVID-19
• [Central Government Schemes] for MSMEs
• [Pre-Pack Insolvency Resolution Process] for debt-stressed corporate MSMEs
• [Time-Bound Recovery of Dues by Micro and Small Enterprises through Samadhan Portal] including the recent Supreme Court decision interpreting Chapter V of the MSMED Act
• [Online Loan Approval in 59 Minutes] for MSMEs
• [MUDRA Scheme] for funding the Non-corporate Small Business Sector (NCSBS)
• [TreDS] Trade Receivables Discounting System
• [Ready Reckoner(s)] (subject-wise practical guide) for the following:
• Micro Enterprises
• Small Enterprises
• Medium Enterprises
• [MSME Reckoner on Turnover-Limit Linked Compliances/Exemptions] for the following:
• Private Company
• Limited Liability Partnerships
• Tradition/General Partnership Firms
• HUFs/Individuals
• Public Company

The detailed contents of this book are as follows:

MSMEs – Definition, Classification and Registration

• What is the new definition of ‘Micro Enterprises’, ‘Small Enterprises’ and ‘Medium Enterprises’?
• How to compute the investment?
• How to compute turnover
• Classification of MSMEs based on new composite criteria (with illustrations and case studies)
• Udyam Registration – How to file Udyam Registration
• MSME Formalisation – Udyam Assist Portal
• How and when MSMEs will be reclassified
• What is ‘manufacturing’ or ‘production’ MSME, and what is ‘service MSME’?

Benefits to Registered MSMEs

• Benefits from MSME Fund
• What are the benefits available to registered MSMEs under the MSMED Act in respect of protection/remedies against delayed payments by buyers
• Factoring & TReDS – Trade Receivables Discounting System
• What are other benefits available to registered MSMEs under Central Schemes?
• Relief for MSMEs from forfeiture of bid/performance security for non-performance of contract during the COVID period
• Vivad se Vishwas II – Settling Contractual Disputes
• Entity Digital Locker
• Skill India Digital Platform
• Pre-packaged insolvency resolution process for MSMEs who are corporate (i.e., Companies/LLPs)

Benefits to Small Businesses, whether Registered MSMEs or not

• Benefits available to Small Businesses under the Income-tax Act, 1961
• Exemption from compulsory tax audit to micro-enterprises
• Low tax rate without exemption regime applicable to companies irrespective of size
• Concessional rate of tax for SME companies without foregoing any exemptions
• Relaxations in compliance to small companies under the Companies Act, 2013
• MUDRA Scheme – Funding the Non-Corporate Small Business Sector (NCSBS)
• PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi): A Special Micro-Credit facility for Street Vendors
• 59 Minutes online loan approval for MSMEs

Legal Forms of Organisation MSMEs Can Adopt and Pros and Cons of Choice of Various Legal Forms

• What legal forms of organisations can MSMEs adopt
• Sole proprietorship
• Traditional/General Partnership/Partnership Firm
• Limited Liability Partnership (LLP)
• Companies
• Hindu Undivided Family

Micro Enterprises

• Definition of micro-enterprises
• Legal forms of organisation that are suitable for micro-enterprises
• Registration as a micro-enterprise

Small Enterprises

• Definition of small enterprises
• Legal forms of organisation that are suitable for small enterprises
• Registration as a small enterprise

Medium Enterprises

• Definition of medium enterprises
• Legal forms of organisation that are suitable for medium enterprises
• Registration as a medium enterprise

Start-Ups

• Definition of Start-up
• Benefits to DPIIT-recognised start-ups under Start-up India Scheme