TMI BlogCredit flow to Micro, Small and Medium Enterprises SectorX X X X Extracts X X X X X X X X Extracts X X X X ..... Small and Medium Enterprises as per Section 7 (I) of the Micro Small and Medium Enterprises Development Act, 2006. 2. In this connection, we inform that Government of India (GoI), vide Gazette Notification S.O. 2119 (E) dated June 26, 2020 , has notified new criteria for classifying the enterprises as Micro, Small and Medium enterprises. The new criteria will come into effect from July 1, 2020. The details are as under: 2.1 Classification of enterprises An enterprise shall be classified as a Micro, Small or Medium enterprise on the basis of the following criteria, namely: (i) a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees; (ii) a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn (ITR) of the previous years filed under the Income Tax Act, 1961 . (ii) In case of a new enterprise, where no prior ITR is available, the investment will be based on self-declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which it files its first ITR. (iii) The expression plant and machinery or equipment of the enterprise, shall have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and shall include all tangible assets (other than land and building, furniture and fittings). (iv) The purchase (invoice) value of a plant and machinery or equipment, whether purchased first hand or second hand, sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osure of the financial year and it will be given the benefit of the changed status only with effect from 1st April of the financial year following the year in which such change took place. Other aspects relating to registration of enterprises, grievance redressal, etc. are mentioned in the Gazette Notification S.O. 2119 (E) dated June 26, 2020. 3. The above instructions supersedes our earlier guidelines dated April 4, 2007, except paragraph 6 relating to delayed payment to micro and small enterprises. 4. We advise you to initiate necessary action for reclassification of enterprises as per the new definition w.e.f July 1, 2020 and issue necessary instructions to your branches/controlling offices in this regard, at the earliest. Yours faithfu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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