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UDYAM REGISTRATION
Effective from 1 July, 2020
Prepared By:
PALANKARTA LLP
www.Palankarta.com
#1 : +91 95095 83991
#2 : +91 89767 57381
#3 : +91 95790 52956
#4 : contactus@palankarta.com
SCOPE OF THE PRESENTATON
 Brief Intro about Palankarta LLP
 Evolution of Udyam Registration
 Definition of MSME
 Criteria of Investment and Turnover for Classification
 Calculation of Investment in Plant and Machinery or
Equipment
 Calculation of Annual Turnover
 Registration process for new and existing enterprises
 Changes in Classification
 Benefits of registering as an Udyam.
 Q &A Session
2
contactus@palankarta.com 2 www.palankarta.com
Brief Intro about Palankarta
 We have our own office in Mumbai, Rajasthan and Gujarat and
associates present across India
 Palankarta is originated from the word Palan meaning compliance and
Karta meaning who does the compliance. Thus, the objective of our
organization is to create awareness ensuring compliance at the same
time.
 The same has been promoted by group of professional having
Chartered accountant, Company Secretary, Lawyer, retired Government
employees and other professionals
 All Financial Services are provided by us. For more details please visit at
www.palankarta.com
3
contactus@palankarta.com 3 www.palankarta.com
Recognized for Govt of India
4
contactus@palankarta.com 4 www.palankarta.com
POLL
QUESTION – 1
Are you aware Udyam?
5
contactus@palankarta.com 5 www.palankarta.com
Evolution
EM – Part I – Entrepreneurs Memorandum
EM – Part II - Entrepreneurs Memorandum
SSI – Small Scale Industry
UAM - Udyog Adhar Certificate
U R - Udyam Registration
6
contactus@palankarta.com 6 www.palankarta.com
Definition
The Central Government has notified certain criteria for classifying the
enterprises and has specified the form and procedure for filing the
memorandum(known as “Udyam Registration”), with effect from the 1st day
of July, 2020.
Classification Eligibility
MICRO Investment < Rs 1 cr
and Turnover< Rs 5 cr.
SMALL Investment< Rs 10 cr and
Turnover< Rs 50 cr.
MEDIUM Investment< Rs 50 cr and
Turnover< Rs 250 cr.
7
contactus@palankarta.com 7 www.palankarta.com
CRITERIA OF INVESTMENT &
TURNOVER FOR CLASSIFICATION
 A composite criterion of investment and turnover
shall apply for classification of an enterprise as micro,
small or medium.
 All units with Goods and Services Tax Identification
Number (GSTIN) listed against the same Permanent
Account Number (PAN) shall be collectively treated as
one enterprise and the turnover and investment
figures for all of such entities shall be seen together
and only the aggregate values will be considered for
deciding the category as micro, small or medium
enterprise.
8
contactus@palankarta.com 8 www.palankarta.com
CALCULATION OF INVESTMENT
IN P&M OR EQUIPMENT
The calculation of investment in ‘plant and machinery or equipment‘
including all tangible assets other than land & building, furniture &
fittings and as defined under Income tax Act and rules there under will
be linked to the ITR of the previous years filed under the Income Tax
Act, 1961.
 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.
The purchase value of a plant and machinery or equipment, whether
purchased first hand or second hand, shall be taken into account
excluding Goods and Services Tax (GST), on self-disclosure basis, if the
enterprise is a new one without any ITR.
contactus@palankarta.com 9 www.palankarta.com
9
CALCULATION OF TURNOVER
Exports of goods or services or both, shall be
excluded.
 Information as regards turnover and exports
turnover for an enterprise shall be linked to the
Income Tax Act or the Central Goods and Services Act
(CGST Act) and the GSTIN.
 The turnover related figures of such enterprise which
do not have PAN will be considered on self-declaration
basis for a period up to 31st March, 2021 and
thereafter, PAN and GSTIN shall be mandatory.
10
contactus@palankarta.com 10 www.palankarta.com
SCOPE OF THE PRESENTATON
POLL
QUESTION – 2
Are you Registered?
11
contactus@palankarta.com 11 www.palankarta.com
REGISTRATION PROCESS
The form for registration shall be as provided in the Udyam
Registration portal and opens with the URL
https://udyamregistration.gov.in.
There will be no fee for filing Udyam Registration and no requirement
to upload documents, papers, certificates or proof.
The Aadhaar number of the proprietor in the case of a proprietorship
firm, of the managing partner in the case of a partnership firm and of
the karta in the case of an HUF shall be required for registration. In
case of a Company/ Limited Liability Partnership or a Cooperative
Society/Society /Trust, the organisation or its authorised signatory
shall provide its GSTIN and PAN along with its Aadhaar number.
“Udyam Registration Number” and an e-certificate “Udyam
Registration Certificate” shall be assigned on completion of the
registration process.
12
contactus@palankarta.com 12 www.palankarta.com
REGISTRATION OF EXISTING
ENTERPRISES
All existing enterprises registered under EM–Part-II or
UAM shall register again on the Udyam Registration
portal on or after the 1st day of July, 2020.
All enterprises registered till 30th June, 2020, shall be
re-classified as per the new criteria.
 The existing enterprises registered prior to 30th
June, 2020, shall continue to be valid only for a period
up to the 31stday of March, 2021. An enterprise
registered with any other organisation under the
Ministry of Micro, Small and Medium Enterprises shall
register itself under Udyam Registration.
13
contactus@palankarta.com 13 www.palankarta.com
CHANGES IN CLASSIFICATION
In case of graduation (from
a lower to a higher category)
i.e. upward change in terms
of investment in plant and
machinery or equipment or
turnover or both, and
consequent reclassification,
an enterprise will maintain its
prevailing status till expiry of
one year from the close of
the year of registration.
In case of reverse-
graduation the enterprise will
continue in its present
category till the closure 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.
GRADUATION REVERSE-GRADUATION
14
contactus@palankarta.com 14 www.palankarta.com
POLL
QUESTION – 3
Are you aware about the Benefit of
Udyam Registration?
15
contactus@palankarta.com 15 www.palankarta.com
BENEFITS OF REGISTERING
AS AN UDYAM
 Bank loans at cheaper interest rate (Upto 1.5%
lower than interest on regular loans
 Various tax rebates
 Easy to obtain licenses, approvals and registrations
 Easy access to credit at lower interest rates
 The cost of getting a patent or the cost of setting
up an industry reduces as many rebates and
concessions are available
16
contactus@palankarta.com 16 www.palankarta.com
SOME OTHER IMPORTANT BENEFITS OF
GETTING UDYAM REGISTERATION
•MSME Registered entity gets eligible for CLCSS
(credit linked capital subsidy scheme)
•Subsidy is available for Patent registration
•Industrial Promotion Subsidy (IPS) Subsidy
Eligibility
•One can avail 100% Collateral Free loans from all
banks
•Special consideration on International Trade fairs
•Bar Code Registration Subsidy
•Waiver in Security Deposit in Government Tenders
and Departments
•Concession in Electricity bills
17 contactus@palankarta.com 17 www.palankarta.com
POLL
QUESTION – 4
Do you think Udyam Registration
is Benefical to you?
18
contactus@palankarta.com 18 www.palankarta.com
To all those with Yes or with Query,
Palankarta will guide you in getting all
necessary help required to Get Udyam
Registration
Visit our website www.palankarta.com or
reach us at contactus@palankarta.com
to connect with our team .
19 contactus@palankarta.com 19 www.palankarta.com
THANK YOU
ALL
But its not
the end of
session…
20 contactus@palankarta.com 20 www.palankarta.com
21
We can be reached at
contactus@palankarta.com
POLL
QUESTION – 5
Did presentation gave you better
understanding of Udyam Registration?
22
contactus@palankarta.com 22 www.palankarta.com
K
1
For More Details:
PALANKARTA LLP
Location:
MUMBAI | AJMER | NAGPUR | SURAT
Website:
www.Palankarta.com
Contact Us:
Post your queries at:
contactus@palankarta.com

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Udyam registration

  • 1. UDYAM REGISTRATION Effective from 1 July, 2020 Prepared By: PALANKARTA LLP www.Palankarta.com #1 : +91 95095 83991 #2 : +91 89767 57381 #3 : +91 95790 52956 #4 : contactus@palankarta.com
  • 2. SCOPE OF THE PRESENTATON  Brief Intro about Palankarta LLP  Evolution of Udyam Registration  Definition of MSME  Criteria of Investment and Turnover for Classification  Calculation of Investment in Plant and Machinery or Equipment  Calculation of Annual Turnover  Registration process for new and existing enterprises  Changes in Classification  Benefits of registering as an Udyam.  Q &A Session 2 contactus@palankarta.com 2 www.palankarta.com
  • 3. Brief Intro about Palankarta  We have our own office in Mumbai, Rajasthan and Gujarat and associates present across India  Palankarta is originated from the word Palan meaning compliance and Karta meaning who does the compliance. Thus, the objective of our organization is to create awareness ensuring compliance at the same time.  The same has been promoted by group of professional having Chartered accountant, Company Secretary, Lawyer, retired Government employees and other professionals  All Financial Services are provided by us. For more details please visit at www.palankarta.com 3 contactus@palankarta.com 3 www.palankarta.com
  • 4. Recognized for Govt of India 4 contactus@palankarta.com 4 www.palankarta.com
  • 5. POLL QUESTION – 1 Are you aware Udyam? 5 contactus@palankarta.com 5 www.palankarta.com
  • 6. Evolution EM – Part I – Entrepreneurs Memorandum EM – Part II - Entrepreneurs Memorandum SSI – Small Scale Industry UAM - Udyog Adhar Certificate U R - Udyam Registration 6 contactus@palankarta.com 6 www.palankarta.com
  • 7. Definition The Central Government has notified certain criteria for classifying the enterprises and has specified the form and procedure for filing the memorandum(known as “Udyam Registration”), with effect from the 1st day of July, 2020. Classification Eligibility MICRO Investment < Rs 1 cr and Turnover< Rs 5 cr. SMALL Investment< Rs 10 cr and Turnover< Rs 50 cr. MEDIUM Investment< Rs 50 cr and Turnover< Rs 250 cr. 7 contactus@palankarta.com 7 www.palankarta.com
  • 8. CRITERIA OF INVESTMENT & TURNOVER FOR CLASSIFICATION  A composite criterion of investment and turnover shall apply for classification of an enterprise as micro, small or medium.  All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise. 8 contactus@palankarta.com 8 www.palankarta.com
  • 9. CALCULATION OF INVESTMENT IN P&M OR EQUIPMENT The calculation of investment in ‘plant and machinery or equipment‘ including all tangible assets other than land & building, furniture & fittings and as defined under Income tax Act and rules there under will be linked to the ITR of the previous years filed under the Income Tax Act, 1961.  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. The purchase value of a plant and machinery or equipment, whether purchased first hand or second hand, shall be taken into account excluding Goods and Services Tax (GST), on self-disclosure basis, if the enterprise is a new one without any ITR. contactus@palankarta.com 9 www.palankarta.com 9
  • 10. CALCULATION OF TURNOVER Exports of goods or services or both, shall be excluded.  Information as regards turnover and exports turnover for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN.  The turnover related figures of such enterprise which do not have PAN will be considered on self-declaration basis for a period up to 31st March, 2021 and thereafter, PAN and GSTIN shall be mandatory. 10 contactus@palankarta.com 10 www.palankarta.com
  • 11. SCOPE OF THE PRESENTATON POLL QUESTION – 2 Are you Registered? 11 contactus@palankarta.com 11 www.palankarta.com
  • 12. REGISTRATION PROCESS The form for registration shall be as provided in the Udyam Registration portal and opens with the URL https://udyamregistration.gov.in. There will be no fee for filing Udyam Registration and no requirement to upload documents, papers, certificates or proof. The Aadhaar number of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of the karta in the case of an HUF shall be required for registration. In case of a Company/ Limited Liability Partnership or a Cooperative Society/Society /Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number. “Udyam Registration Number” and an e-certificate “Udyam Registration Certificate” shall be assigned on completion of the registration process. 12 contactus@palankarta.com 12 www.palankarta.com
  • 13. REGISTRATION OF EXISTING ENTERPRISES All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July, 2020. All enterprises registered till 30th June, 2020, shall be re-classified as per the new criteria.  The existing enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up to the 31stday of March, 2021. An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration. 13 contactus@palankarta.com 13 www.palankarta.com
  • 14. CHANGES IN CLASSIFICATION In case of graduation (from a lower to a higher category) i.e. upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent reclassification, an enterprise will maintain its prevailing status till expiry of one year from the close of the year of registration. In case of reverse- graduation the enterprise will continue in its present category till the closure 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. GRADUATION REVERSE-GRADUATION 14 contactus@palankarta.com 14 www.palankarta.com
  • 15. POLL QUESTION – 3 Are you aware about the Benefit of Udyam Registration? 15 contactus@palankarta.com 15 www.palankarta.com
  • 16. BENEFITS OF REGISTERING AS AN UDYAM  Bank loans at cheaper interest rate (Upto 1.5% lower than interest on regular loans  Various tax rebates  Easy to obtain licenses, approvals and registrations  Easy access to credit at lower interest rates  The cost of getting a patent or the cost of setting up an industry reduces as many rebates and concessions are available 16 contactus@palankarta.com 16 www.palankarta.com
  • 17. SOME OTHER IMPORTANT BENEFITS OF GETTING UDYAM REGISTERATION •MSME Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme) •Subsidy is available for Patent registration •Industrial Promotion Subsidy (IPS) Subsidy Eligibility •One can avail 100% Collateral Free loans from all banks •Special consideration on International Trade fairs •Bar Code Registration Subsidy •Waiver in Security Deposit in Government Tenders and Departments •Concession in Electricity bills 17 contactus@palankarta.com 17 www.palankarta.com
  • 18. POLL QUESTION – 4 Do you think Udyam Registration is Benefical to you? 18 contactus@palankarta.com 18 www.palankarta.com
  • 19. To all those with Yes or with Query, Palankarta will guide you in getting all necessary help required to Get Udyam Registration Visit our website www.palankarta.com or reach us at contactus@palankarta.com to connect with our team . 19 contactus@palankarta.com 19 www.palankarta.com
  • 20. THANK YOU ALL But its not the end of session… 20 contactus@palankarta.com 20 www.palankarta.com
  • 21. 21 We can be reached at contactus@palankarta.com
  • 22. POLL QUESTION – 5 Did presentation gave you better understanding of Udyam Registration? 22 contactus@palankarta.com 22 www.palankarta.com
  • 23. K 1 For More Details: PALANKARTA LLP Location: MUMBAI | AJMER | NAGPUR | SURAT Website: www.Palankarta.com Contact Us: Post your queries at: contactus@palankarta.com