22 May 2020, 17:30 — 2 min read
The Government of India as part of economic reforms modified the definition of the Micro Small & Medium Enterprises (i.e. MSMEs) while announcing 20 Lakh Crore package in the name of Atmanirbhar Bharat Abhiyan or Self Reliant India Movement to revive the economy from the clenches of Covid-19.
Also read: FM announces measures to boost MSMEs; change in definition of ‘MSME’
The new definition of MSMEs is as follows:
What is Micro Enterprise?
Investments less than Rs 1 Cr and turnover of less than Rs 5 Cr
What is Small Enterprise?
Investment less than Rs 10 Cr and turnover less than Rs 50 Cr
What is Medium Enterprise?
Investment less than Rs 20 Cr and turnover less than Rs 100 Cr
Note: There is another amendment for Medium Enterprise which is yet to notified by the Government of India. The new definition is "Investment less than Rs 50 Cr and turnover less than Rs 200 Cr".
What are the changes in the new definition?
Monitory limits are increased and segregation of Manufacturing & Service sector are no more. Definitions are same for any sector.
What is investment?
Investment means amount invested in plant and machinery, equipment, office equipments etc. This shall be actual value of purchase.
Image source: shutterstock.com
To explore business opportunities, link with me by clicking on the 'Connect' button on my eBiz Card.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker.
Posted byAnil Kumar Ganga
"Ananya legal LLP" is a full service, dynamic, and trustworthy Corporate Advisory and Legal Consultancy Limited Liability Partnership (LLP) Firm that specializes in a...
Recommended articles for you
By Nidhi mehra
By Ravi Kariya
25 Jul 2020, 10:00
14 Jul 2020, 15:36