Micro, small, and medium Enterprise contribute significantly to the Indian economy by producing job opportunities and encouraging enterprise. They have made a significant contribution to the country’s socioeconomic development. Advice on calculating the cost of an investment in plant, machinery, or equipment.
1. The income tax return for the previous year, filed under the Income Tax Act of 1961, will be used to calculate the investment in plants, machinery, or equipment.
In the case of a new enterprise, where no prior income tax return is available, the investment will be based on the self-declaration of the promoter of the enterprise, and such relaxation shall end after March 31 of the financial year in which it files its first income tax return.
The cost of pollution control, research and development, industrial safety equipment, and other items that may be specified by notification is separate from the calculation of plant and machinery investment.
Exports of goods or services shall be excluded while calculating the turnover for classification; every enterprise, whether micro, small, or medium, qualifies.
Currently, the registration is divided into the following ways.
New entrepreneurs still need to register as micro, small and medium enterprises. Or those with enterprise memorandum.
For those who already have. Registration as udyog aadhaar memorandum.
There is no cost or price associated with registering for Adam.
The following are the requirements for registration.
Sole proprietary. In this case, radar would be the proprietor.
Partnership firm. In this case, radar would be the managing partner.
Hindu undivided family. In this case, the radar would be of the Karta.
A company, trust, society, limited liability partnership, or cooperative society would be the authorized signatory.
The social category of the authorized person.
Name and type of the enterprise. Type proprietary partnership firm company or likewise.
Permanent account number of the enterprise.
Registered business address.
Plant name and address if available.
Bank details include bank name, account number, and Indian financial system Code.
The number of employees that is male, female and others.
National industry classification code bases the activity of the enterprise.
Amount of investment in plant and machinery and equipment substantially.
The amount of turnover was calculated perfectly.
Once all the pre-requisite details are filled in, and after successful registration, a reference number will get generated, using which the Adam certificate can be saved or downloaded.
As per notification dated June 26, 2020, issued by the ministry of micro, small and medium enterprise, all existing businesses that were registered before June 30, 2020, will be reclassified based on a composite of investment and turnover requirements for categorization as a micro, small, or medium business. Existing businesses must register under the Adam registration system. Existing businesses written before June 30, 2020, will only be valid for one year, from March 31, 2021, to June 30, 2020.
3. Benefits of micro, small and medium enterprise Adam registration.
Following is an illustrative list of benefits available to enterprises registered as micro, small and medium enterprises.
Defend yourself from late payments.
If a buyer delays the payment for more than 45 days, the micro, small, or medium enterprise is eligible to charge compound interest.
Electricity bills are discounted very much or substantially.
By submitting an application and a copy of their registration certificate, micro, small, and medium businesses can get a discount on their electricity bills.
Overdraft interest rate exemption totally.
Enterprises registered under micro, small and medium enterprises can avail of a benefit of 1 percent on the overdraft, as described in a system that varies per bank.
International standards organization certification charges reimbursement.
The registered micro, small, and medium firm can claim the expenses for the international standards organization certification.