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Benefits Of MSME or Udyog Aadhaar
Q1. Subsidy on NSIC Performance and
Credit ratings
Enterprises
that have MSME Registration can avail Subsidy on NSIC Performance and Credit
ratings as mentioned in the scheme.
Q2. Preference in procuring Government
Enterprises
that have MSME Registration or udyog aadhaar have preference in procuring government tenders.
Special treatment is given to MSME Registeration or udyog aadhaar organization while making
application for government tenders.
Q3. Excise Exemption Scheme
Enterprises
that have MSME Registration or udyog aadhaar can enjoy Excise Exemption in the initial year of
business, as mention in the Excise Exemption scheme by Government and depending
on business activity
Q4. 1% exemption on interest rate on OD
Enterprises
that have MSME Registration or udyog aadhaar can avail benefit of 1% exemption on interest rate
on OD as mentioned in the scheme
Q5. Waiver in Security Deposit in
Government
The Ministry
of Micro, Small and Medium Enterprises gives following benefits to enterprises
that has MSME Registration or udyog aadhaar while making application for Government Tenders:
1. Issue of tender sets free of cost
2. Exemption from payment of Earnest Money
3. Waiver of Security Deposit upto the Monetary Limit for which at the
unit is registered
Q6. Counter Guarantee from Government of
India through CGSTI
Enterprises
that have MSME Registrationor udyog aadhaar are eligible for Counter Guarantee from Government
of India through CGSTI.
Q7. Reimbursement of ISO Certification
Enterprises
that have MSME Registration or udyog aadhaar Certificate can reimburse ISO Certificate Expenses
by making application to respective authority along with MSME
Q8. Concession in electricity bills
Enterprises
that have MSME Registration or udyog aadhaar Certificate can avail Concession on electricity
bill by making application to electricity department along with MSME
Registration Certificate
Q9. 15% CLCSS subsidy to purchase fully
The Ministry
of Micro, Small and Medium Enterprises is operating a scheme namely “Credit
Linked CGSTI Subsidy Scheme ( CLCSS ) for technology upgradation of Micro and
Small Enterprises. The scheme was launched in October-2000 and revised from
29.9.2005. The revised scheme aims at facilitating technology upgradation of
Micro and Small Enterprises ( MSE ) by providing 15% capital subsidy ( limited to
maximum Rs.15 lakhs ) for purchase of Plant & Machinery. Maximum limit of
eligible loan for calculation of subsidy under the scheme is Rs.100 lakhs.
Presently, more than 1500 well established/improved technologies under 51
sub-sectors have been approved under the Scheme
Q10. Protection against delay in payment
The Ministry
of Micro, Small and Medium Enterprises gives protection to MSME Registered
Business against delay in payments from Buyers and right of interest on delayed
payment through conciliation and arbitration and settlement of dispute be done
in minimum time. If any micro or small enterprise that has MSME registration or udyog aadhaar ,
supplies any goods or services, then the buyer is required to make payment on
or before the date agreed upon between the buyer and the micro or small
enterprise. In case there is no payment date on the agreement, then the buyer
is required to make payment within fifteen days of acceptance of good or
services. Further, in any case, a payment due to a micro or small enterprise
cannot exceed forty-five days from the day of acceptance or the day of deemed
acceptance. In case of failure by the buyer to make payment on time, the buyer
is required to pay compound interest with monthly interest rests to the
supplier on that amount from the agreed date of payment or fifteen days of
acceptance of goods or service. The penal interest chargeable for delayed
payment to a MSME enterprise is three times of the bank rate notified by the
Reserve Bank of India
Q11. Collateral Free loans from banks
The Credit
Guarantee Fund Scheme from Micro Small and Medium Enterprises (CGS) was
launched by the Government of India to avail collateral-free credit to Micro
Small and Medium Enterprise ( MSME ) sector. Both the prevailing and therefore
the new enterprises are eligible to be covered under the scheme. The Ministry
of Micro, Small and Medium Enterprises, Government of India and Small
Industries Development Bank of India ( SIDBI ), established a Trust named Credit
Guarantee Fund Trust for Micro and little Enterprises ( CGTMSE ) to implement the
Credit Guarantee Fund Scheme for Micro and little Enterprises.
Q12. Very easy to get Licenses, approvals
and registrations
It has made
very easy for enterprises that are having MSME Certificate to get Licenses,
approvals and registrations on any field for his or her business from the
respective authorities as they will produce the Certificate of MSME
Registration or udyog aadhaar while making application.
Q13. Octroi benefits
The scheme
of refund of octroi provided under the Package Scheme of Incentives, 1993 will
be included in the new Scheme up to 31-3-2006 on the same pattern. Where
account-based cess or other levy is charged instead of or in lieu of octroi,
such change will also be eligible for refund as in the case of octroi.
Q13. Exemption under Direct Tax Laws
Enterprises
that have MSME Registration or udyog aadhaar can enjoy Direct Tax Exemption in the initial year
of business, as mention in the scheme by Government and depending on business
activity.
Q14. Reservation policies to manufacturing
/ production sector
Reservation
of things for exclusive manufacture in SSI sector statutorily provided for
within the Industries ( Development and Regulation ) Act, 1951, has been one
among the important policy measures for promoting this sector.
The
Reservation Policy has two objectives
A) Ensure
increased production of commodity within the small scale sector
B) Expand
employment opportunities through fixing of small scale industries
Q15. Special consideration on
international trade fairs
Under the
International Cooperation Scheme, financial assistance is provided on
reimbursement basis to the State/Central Government organizations,
industries/enterprises Associations and registered societies/trusts and
organizations related to MSME for deputation of MSME business delegation to other
countries for exploring new areas of MSME, participation by Indian MSME in
international exhibitions, trade fairs, buyer seller meet and for holding
international conference and seminars which are within the interest of MSME
sectors.
Q16. Waiver of Stamp Duty and Registration
Fees
At present,
IT units in public IT Parks are exempted from stamp Duty and Registration fees
upto 31st March 2006. Now all new industrial units having MSME Registration or udyog aadhaar and
expansions will be exempted from payment of Stamp Duty and Registration fees
Q17. Bar Code registration subsidy
Enterprises
that have MSME Registration or udyog aadhaar can avail Bar Code Registration subsidy as
mentioned in the scheme
Q18. Eligible for IPS subsidy
Enterprises
that have MSME Registration or udyog adhaar are eligible for Industrial Promotion Subsidy (IPS)
as mentioned in the scheme
Q19. 50% subsidy for patent registration
Enterprises
that have MSME Registration Certificate or udyog aadhaar can avail 50% subsidy for patent registration
by making application to respective authority
Q20. P15% weightage in price Preference
Enterprises
that have MSME Registration or udyog aadhaar can avail 15% weightage in price Preference as
mentioned
Q21. Reduction in rate of Interest from
banks
The rate of
Interest for enterprise that has MSME registration or udyog aadhaar are lower as compare to
other enterprises. Certain targets are set for banks’ lending to the Micro and
Small Enterprises. The banks’ have to achieve a 20% growth in credit to micro
and small enterprises and 10% annual growth in the number of micro enterprises
accounts and 60% of total lending to Micro and Small Enterprises sector. The
banks have to follow the following:
1. 40%
of the total advances must go to micro and small enterprises involved in
manufacturing having investment in plant and machinery up to Rs.10 lakh and for
service enterprises having investment in equipment up to Rs.4 lakh.
2. 20% of the total advance to micro and small enterprises should go to
manufacturing enterprises that have above Rs.10 lakh till Rs.25 lakh investment
in the plant and machinery and for service enterprises that have investments in
equipment above Rs.4
3. To simplify, 60% of the advances must go to micro enterprises.
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