Tuesday, September 8, 2009

DATA STRUCTURE OF QUARTERLY E-TDS/TCS STATEMENTS-MODIFIED

Dear Sir / Madam


We would like to inform that the data structure of quarterly e-TDS / TCS statements have been modified by the Directorate of Income Tax (Systems).

Key changes:
· The classification of deductors; Govt. and others as existing now is enhanced to State Govt., Central Govt., Company, Firm, etc. in line with deductor categories in TAN database .
· In case of Govt. deductors they have to specify Ministry name, PAO / DDO code, PAO / DDO registration no., state name. Necessary fields for the same have been added.
· Field to specify the software used for preparation of return has also been added.

Accordingly, necessary validations have been built in the FVU with a view to improve the data quality.

The changes in FVU are as below:
1. Fields have been added in regular and correction e-TDS / TCS file format.
2. Validations have been tightened in some existing fields in case of regular and correction e-TDS / TCS file format.
3. Verification of challan details in e-TDS / TCS returns with challan details uploaded by banks. In case of verification failure, warning file containing details of challan mismatch will be generated.
4. Statistic report generated by FVU will also contain details of verification of challans and bifurcation of payment by Government deductors as transfer voucher and challan.

Quarterly e-TDS / TCS returns filed from October 1, 2009 should be as per the new data structure. If the returns do not conform to the new data structure they will be rejected by TIN.

e-TDS / TCS correction on regular returns filed as per the old data structure (validated with FVU version upto 2.126) should be validated with FVU version 2.126 only.

New data structure (changes highlighted) version 4.0 for quarterly e-TDS/TCS statement (Regular and correction) is available at the NSDL TIN website ( www.tin-nsdl.com) under the link Modifications in the e-TDS/TCS data structure and new File Validation Utility applicable from October 1, 2009.

FVU for new data structure will be available at NSDL website ( www.tin-nsdl.com) by mid September, 2009.

In view of the above, kindly make the necessary changes in your quarterly e-TDS/TCS return preparation software.

Regards
NSDLby the Directorate of Income Tax (Systems).

Key changes:
· The classification of deductors; Govt. and others as existing now is enhanced to State Govt., Central Govt., Company, Firm, etc. in line with deductor categories in TAN database .
· In case of Govt. deductors they have to specify Ministry name, PAO / DDO code, PAO / DDO registration no., state name. Necessary fields for the same have been added.
· Field to specify the software used for preparation of return has also been added.

Accordingly, necessary validations have been built in the FVU with a view to improve the data quality.

The changes in FVU are as below:
1. Fields have been added in regular and correction e-TDS / TCS file format.
2. Validations have been tightened in some existing fields in case of regular and correction e-TDS / TCS file format.
3. Verification of challan details in e-TDS / TCS returns with challan details uploaded by banks. In case of verification failure, warning file containing details of challan mismatch will be generated.
4. Statistic report generated by FVU will also contain details of verification of challans and bifurcation of payment by Government deductors as transfer voucher and challan.

Quarterly e-TDS / TCS returns filed from October 1, 2009 should be as per the new data structure. If the returns do not conform to the new data structure they will be rejected by TIN.

e-TDS / TCS correction on regular returns filed as per the old data structure (validated with FVU version upto 2.126) should be validated with FVU version 2.126 only.

New data structure (changes highlighted) version 4.0 for quarterly e-TDS/TCS statement (Regular and correction) is available at the NSDL TIN website ( www.tin-nsdl.com) under the link Modifications in the e-TDS/TCS data structure and new File Validation Utility applicable from October 1, 2009.

FVU for new data structure will be available at NSDL website ( www.tin-nsdl.com) by mid September, 2009.

In view of the above, kindly make the necessary changes in your quarterly e-TDS/TCS return preparation software.

Regards
NSDL

Sunday, August 26, 2007

THE MICRO, SMALL & MEDIUM ENTERPRISES ACT, 2006

THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

NO.27 OF 2006
An

ACT
to provide for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto.

WHEREAS a declaration as to expediency of control of certain industries by the Union was made under section 2 of the Industries (Development and Regulation) Act, 1951;

AND WHEREAS it is expedient to provide for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto;

BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:-


Chapter I

Preliminary

1. (1) This Act may be called the Micro, Small and Medium Enterprises Development Act, 2006.

(2) It shall come into force on such date as the Central Government may, by notification, appoint; and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.






Short title and commencement.







































65 of 1951.


















61 of 1981









2 of 1934.











1 of 1956.



1 of 1956.












39 of 1989.


2. In this Act, unless the context otherwise requires, -

(a) “Advisory Committee” means the committee constituted by the Central Government under sub-section (2) of section 7;

(b) “appointed day” means the day following immediately after the expiry of the period of fifteen days from the day of acceptance or the day of deemed acceptance of any goods or any services by a buyer from a supplier.
Explanation – For the purpose of this clause,-
(i) “the day of acceptance” means,-

(a) the day of the actual delivery of goods or the rendering of services; or

(b) where any objection is made in writing by the buyer regarding acceptance of goods or services within fifteen days from the day of the delivery of goods or the rendering of services, the day on which such objection is removed by the supplier;

(ii) “the day of deemed acceptance” means, where no objection is made in writing by the buyer regarding acceptance of goods or services within fifteen days from the day of the delivery of goods or the rendering of services, the day of the actual delivery of goods or the rendering of services;
(c) “Board” means the National Board for Micro, Small and Medium Enterprises established under section 3;

(d ) “buyer” means whoever buys any goods or receives any services from a supplier for consideration;

(e) “enterprise” means an industrial undertaking or a business concern or any other establishment, by whatever name called, engaged in the manufacture or production of goods, in any manner, pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 or engaged in providing or rendering of any service or services;

(f) “goods” means every kind of movable property other than actionable claims and money;

(g) “medium enterprise” means an enterprise classified as such under sub-clause (iii) of clause (a) or sub-clause (iii) of clause (b) of sub-section(1) of section 7;

(h) “micro enterprise” means an enterprise classified as such under sub-clause (i) of clause (a) or sub-clause (i) of clause (b) of sub-section (1) of section 7;

(i) “National Bank” means the National Bank for Agriculture and Rural Development established under section 3 of the National Bank for Agriculture and Rural Development Act, 1981;

(j) “notification” means a notification published in the Official Gazette;
(k) “prescribed” means prescribed by rules made under this Act;

(l) “Reserve Bank” means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934;


(m) “small enterprise” means an enterprise classified as such under sub-clause (ii) of clause (a) or sub-clause (ii) of clause (b) of sub-section (1) of section 7;
(n) “supplier” means a micro or small enterprise, which has filed a memorandum with the authority referred to in clause (a) of sub-section (1) of section 8, and includes, –
(i) the National Small Industries Corporation, being a company, registered under the Companies Act, 1956;
(ii) the Small Industries Development Corporation of a State or a Union territory, by whatever name called, being a company registered under the Companies Act, 1956;
(iii) any company, cooperative society, society, trust or a body, by whatever name called, registered or constituted under any law for the time being in force and engaged in selling goods produced by micro or small enterprises and rendering services which are provided by such enterprises;

(o) “Small Industries Bank” means the Small Industries Development Bank of India established under sub-section (1) of section 3 of the Small Industries Development Bank of India Act, 1989;

(p) “State Government”, in relation to a Union territory, means the Administrator thereof appointed under article 239 of the Constitution.

Definitions.






CHAPTER II

NATIONAL BOARD FOR MICRO, SMALL AND MEDIUM ENTERPRISES

3. (1) With effect from such date as the Central Government may, by notification, appoint, there shall be established, for the purposes of this Act, a Board to be known as the National Board for Micro, Small and Medium Enterprises.

(2) The head office of the Board shall be at Delhi.

(3) The Board shall consist of the following members, namely:-

(a) the Minister in charge of the Ministry or Department of the Central Government having administrative control of the micro, small and medium enterprises who shall be the ex officio Chairperson of the Board;

(b) the Minister of State or a Deputy Minister, if any, in the Ministry or Department of the Central Government having administrative control of the micro, small and medium enterprises who shall be ex officio Vice-Chairperson of the Board, and where there is no such Minister of State or Deputy Minister, such person as may be appointed by the Central Government to be the Vice-Chairperson of the Board;

(c) six Ministers of the State Governments having administrative control of the departments of small scale industries or, as the case may be, micro, small and medium enterprises, to be appointed by the Central Government to represent such regions of the country as may be notified by the Central Government in this behalf, ex officio;

(d) three members of Parliament of whom two shall be elected by the House of the People and one by the Council of States;

(e) the Administrator of a Union territory to be appointed by the Central Government, ex officio;

(f) the Secretary to the Government of India in charge of the Ministry or Department of the Central Government having administrative control of the micro, small and medium enterprises, ex officio;

(g) four Secretaries to the Government of India, to represent the Ministries of the Central Government dealing with commerce and industry, finance, food processing industries, labour and planning to be appointed by the Central Government, ex officio;

(h) the Chairman of the Board of Directors of the National Bank, ex officio;

(i) the chairman and managing director of the Board of Directors of the Small Industries Bank, ex officio;
(j) the chairman, Indian Banks Association, ex officio;

(k) one officer of the Reserve Bank, not below the rank of an Executive Director, to be appointed by the Central Government to represent the Reserve Bank;

(l) twenty persons to represent the associations of micro, small and medium enterprises, including not less than three persons representing associations of women’s enterprises and not less than three persons representing associations of micro enterprises, to be appointed by the Central Government;

(m) three persons of eminence, one each from the fields of economics, industry and science and technology, not less than one of whom shall be a woman, to be appointed by the Central Government;
(n) two representatives of Central Trade Union Organisation, to be appointed by the Central Government; and

(o) one officer not below the rank of Joint Secretary to the Government of India in the Ministry or Department of the Central Government having administrative control of the small and medium enterprises to be appointed by the Central Government, who shall be the Member-Secretary of the Board, ex officio.

(4) The term of office of the members of the Board, other than ex officio members of the Board, the manner of filling vacancies, and the procedure to be followed in the discharge of their functions by the members of the Board, shall be such as may be prescribed;

Provided that the term of office of an ex officio member of the Board, shall continue so long as he holds the office by virtue of which he is such a member.

(5) No act or proceedings of the Board shall be invalid merely by reason of-

(a) any vacancy in, or any defect in the constitution of, the Board; or

(b) any defect in the appointment of a person acting as a member of the Board; or

(c) any irregularity in the procedure of the Board not affecting the merits of the case.

(6) The Board shall meet at least once in every three months in a year.

(7) The Board may associate with itself, in such manner and for such purposes as it may deem necessary, any person or persons whose assistance or advice it may desire in complying with any of the provisions of this Act and a person so associated shall have the right to take part in the discussions of the Board relevant to the purposes for which he has been associated but shall not have the right to vote.

(8) Without prejudice to sub-section (7) the Chairperson of the Board shall, for not less than two of the meetings of the Board in a year, invite such Ministers of the State Governments having administrative control of the departments of small scale industries or, as the case may be, the micro, small and medium enterprises, or the Administrators of Union territories and representatives of such other associations of micro, small and medium enterprises, as he may deem necessary for carrying out the purposes of this Act.

(9) It is hereby declared that the office of member of the Board shall not disqualify its holder for being chosen as, or for being, a member of either House of Parliament.







Establishment
of Board.


4. (1) The Central Government may remove a member of the Board from it, if he –

(a) is, or at any time has been, adjudged as insolvent; or

(b) is, or becomes, of unsound mind and stands so declared by a competent court; or

(c) refuses to act or becomes incapable of acting as a member of the Board ; or

(d) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or

(e) has so abused, in the opinion of the Central Government, his position as a member of the Board as to render his continuance in the Board detrimental to the interests of the general public.

(2) Notwithstanding anything contained in sub-section (1), no member shall be removed from his office on the grounds specified in clauses (c) to (e) of that sub-section unless he has been given a reasonable opportunity of being heard in the matter.

Removal of member from Board.




































65 of 1951











65 of 1951





















































































































65 of 1951














65 of 1951



5. The Board shall, subject to the general directions of the Central Government, perform all or any of the following functions, namely:-

(a) examine the factors affecting the promotion and development of micro, small and medium enterprises and review the policies and programmes of the Central Government in regard to facilitating the promotion and development and enhancing the competitiveness of such enterprises and the impact thereof on such enterprises;

(b) make recommendations on matters referred to in clause (a) or on any other matter referred to it by the Central Government which, in the opinion of that Government, is necessary or expedient for facilitating the promotion and development and enhancing the competitiveness of the micro, small and medium enterprises; and

(c) advise the Central Government on the use of the Fund or Funds constituted under section 12.

6. Subject to other provisions of this Act, the Member-Secretary of the Board shall exercise such powers and perform such functions as may be prescribed.


CHAPTER III

CLASSIFICATION OF ENTERPRISES, ADVISORY COMMITEE AND MEMORANDUM OF MICRO, SMALL AND MEDIUM ENTERPRISES

7.(1) Notwithstanding anything contained in section 11B of the Industries (Development and Regulation) Act, 1951, the Central Government may, for the purposes of this Act, by notification and having regard to the provisions of sub-sections (4) and (5), classify any class or classes of enterprises, whether proprietorship, Hindu undivided family, association of persons, co-operative society, partnership firm, company or undertaking, by whatever name called, -

(a) in the case of the enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the Industries (Development and Regulation) Act, 1951, as –
(i) a micro enterprise, where the investment in plant and machinery does not exceed twenty five lakh rupees;
(ii) a small enterprise, where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees; or
(iii) a medium enterprise, where the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees;
(b) in the case of the enterprises engaged in providing or rendering of services, as –
(i) a micro enterprise, where the investment in equipment does not exceed ten lakh rupees;
(ii) a small enterprise, where the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or
(iii) a medium enterprise, where the investment in equipment is more than two crore rupees but does not exceed five crore rupees

Explanation 1 For the removal of doubt, it is hereby clarified that in calculating the investment in plant and machinery, the cost of pollution control, research and development, industrial safety devices and such other items as may be specified, by notification, shall be excluded.


Explanation 2 It is clarified that the provisions of section 29B of the Industries (Development and Regulation) Act, 1951, shall be applicable to the enterprises specified in sub-clauses (i) and (ii) of clause (a) of sub-section (l) of this section.

(2) The Central Government shall, by notification, constitute an Advisory Committee consisting of the following members, namely:-

(a) the Secretary to the Government of India in the Ministry or Department of the Central Government having administrative control of the small and medium enterprises who shall be the Chairperson, ex officio;
(b) not more than five officers of the Central Government possessing necessary expertise in matters relating to micro, small and medium enterprises, members, ex officio;

(c) not more than three representatives of the State Governments, members, ex officio; and

(d) one representative each of the associations of micro, small and medium enterprises, members, ex officio;

(3) The Member- Secretary of the Board shall also be the ex officio Member-Secretary of the Advisory Committee.

(4) The Central Government shall, prior to classifying any class or classes of enterprises under sub-section (1), obtain the recommendations of the Advisory Committee.
(5) The Advisory Committee shall examine the matters referred to it by the Board in connection with any subject referred to in section 5 and furnish its recommendations of the Board.
6) The Central Government may seek the advice of the Advisory Committee on any of the matters specified in section 9, 10, 11, 12 or 14 of Chapter IV.

(7) The State Government may seek advice of the Advisory Committee on any of the matters specified in the rules made under section 30.

(8) The Advisory Committee shall, after considering the following matters, communicate its recommendations or advice to the Central Government or, as the case may be, State Government or the Board, namely:-

(a) the level of employment in a class or classes of enterprises;

(b) the level of investments in plant and machinery or equipment, in a class or classes of enterprises;

(c) the need of higher investment in plant and machinery or equipment for technological upgradation, employment generation and enhanced competitiveness of the class or classes of enterprises;

(d) the possibility of promoting and diffusing entrepreneurship in micro, small or medium enterprises;

(e) the international standards for classification of small and medium enterprises.

(9) Notwithstanding anything contained in section 11B of the Industries (Development and Regulation) Act, 1951 and clause (h) of section 2 of the Khadi and Village Industries Commission Act, 1956, the Central Government may, while classifying any class or classes of enterprises under sub-section (1), vary, from time to time, the criterion of investment and also consider criteria or standards in respect of employment or turnover of the enterprises and include in such classification the micro or tiny enterprises or the village enterprises, as part of small enterprises.

8. (1) Any person who intends to establish,-

(a) a micro or small enterprise, may, at his discretion; or

(b) a medium enterprise engaged in providing or rendering of services may, at his discretion; or

(c) a medium enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951,
shall file the memorandum of micro, small or, as the case may be, of medium enterprise with such authority as may be specified by the State Government under sub-section(4) or the Central Government under sub-section (3):

Provided that any person who, before the commencement of this Act, established—

(a) a small scale industry and obtained a registration certificate, may, at his discretion; and
(b) an industry engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951, having investment in plant and machinery or more than one crore rupees but not exceeding ten crore rupees and, in pursuance of the notification of the Government of India in the erstwhile Ministry of Industry (Department of Industrial Development) number S.O.477(E), dated the 25TH July, 1991 file an Industrial Entrepreneurs’ Memorandum,
shall within one hundred and eighty days from the commencement of this Act, file the memorandum, in accordance with the provisions of this Act.

(2) The form of the memorandum, the procedure of its filing and other matters incidental thereto shall be such as may be notified by the Central Government after obtaining the recommendations of the Advisory Committee in this behalf.

(3) The authority with which the memorandum shall be filed by a medium enterprise shall be such as may be specified, by notification, by the Central Government.

(4) The State Government shall, by notification, specify the authority with which a micro or small enterprise may file the memorandum.

(5) The authorities specified under sub-sections (3) and (4) shall follow, for the purposes of this section, the procedure notified by the Central Government under sub-section (2).

Functions of Board.












Powers and functions of Member-Secretary of Board







Classification of enterprises.










































Advisory Committee















































65 of 1951
65 of 1951







MemMemorandum of micro, small and medium enterprises




















































CHAPTER IV

MEASURES FOR PROMOTION, DEVELOPMENT AND ENHANCEMENT OF COMPETITIVENESS OF MICRO, SMALL AND MEDIUM ENTERPRISES

9. (1) The Central Government may, from time to time, for the purposes of facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises, particularly of the micro and small enterprises, by way of development of skill in the employees, management and entrepreneurs, provisioning for technological upgradation, providing marketing assistance or infrastructure facilities and cluster development of such enterprises with a view to strengthening backward and forward linkages, specify, by notification, such programmes, guidelines or instructions, as it may deem fit.










Measures for promotion and development.


10. The policies and practices in respect of credit to the micro, small and medium enterprises shall be progressive and such as may be specified in the guidelines or instructions issued by the Reserve Bank, from time to time, to ensure timely and smooth flow of credit to such enterprises, minimise the incidence of sickness among and enhance the competitiveness of such enterprises.


Credit facilities.

11. For facilitating promotion and development of micro and small enterprises, the Central Government or the State Government may, by order notify from time to time, preference policies in respect of procurement of goods and services, produced and provided by micro and small enterprises, by its Ministries or departments, as the case may be, or its aided institutions and public sector enterprises.

Procurement preference policy.

12. There shall be constituted, by notification, one or more Funds to be called by such name as may be specified in the notification and there shall be credited thereto any grants made by the Central Government under section 13.

Funds.

13. The Central Government may, after due appropriation made by Parliament by law in this behalf, credit to the Fund or Funds by way of grants for the purposes of this Act, such sums of money as that Government may consider necessary to provide.

Grants by Central Government.



14. (1) The Central Government shall have the power to administer the Fund or Funds in such manner as may be prescribed.

(2) The Fund or Funds shall be utilised exclusively for the measures specified in sub-section (1) of section 9.

(3) The Central Government shall be responsible for the coordination and ensuring timely utilisation and release of sums in accordance with such criteria as may be prescribed.

Administration and utilisation of Fund or Funds.



CHAPTER V

DELAYED PAYMENTS TO MICRO AND SMALL ENTERPRISES

15. Where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day:

Provided that in no case the period agreed upon between the supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance.







Liability of buyer to make payment.

16. Where any buyer fails to make payment of the amount to the supplier, as required under section 15, the buyer shall, notwithstanding anything contained in any agreement between the buyer and the supplier or in any law for the time being in force, be liable to pay compound interest with monthly rests to the supplier on that amount from the appointed day or, as the case may be, from the date immediately following the date agreed upon, at three times of the bank rate notified by the Reserve Bank.

Date from which and rate at which interest is payable.



17. For any goods supplied or services rendered by the supplier, the buyer shall be liable to pay the amount with interest thereon as provided under section 16.

Recovery of amount due.















26 of 1996










26 of 1996
18 (1) Notwithstanding anything contained in any other law for the time being in force, any party to a dispute may, with regard to any amount due under section 17, make a reference to the Micro and Small Enterprises Facilitation Council.

(2) On receipt of a reference under sub-section (1), the Council shall either itself conduct conciliation in the matter or seek the assistance of any institution or centre providing alternate dispute resolution services by making a reference to such an institution or centre, for conducting conciliation and the provisions of sections 65 to 81 of the Arbitration and Conciliation Act, 1996 shall apply to such a dispute as if the conciliation was initiated under Part III of that Act.

(3) Where the conciliation initiated under sub-section (2) is not successful and stands terminated without any settlement between the parties, the Council shall either itself take up the dispute for arbitration or refer it to any institution or centre providing alternate dispute resolution services for such arbitration and the provisions of the Arbitration and Conciliation Act, 1996, shall then apply to the dispute as if the arbitration was in pursuance of an arbitration agreement referred to in sub-section (1) of section 7 of that Act.

(4) Notwithstanding anything contained in any other law for the time being in force, the Micro and Small Enterprises Facilitation Council or the centre providing alternate dispute resolution services shall have jurisdiction to act as an Arbitrator or Conciliator under this section in a dispute between the supplier located within its jurisdiction and a buyer located anywhere in India.

(5) Every reference made under this section shall be decided within a period of ninety days from the date of making such a reference.
Reference to Micro and Small Enterprises Facilitation Council.


19. No application for setting aside any decree, award or other order made either by the Council itself or by any institution or centre providing alternate dispute resolution services to which a reference is made by the Council, shall be entertained by any court unless the appellant (not being a supplier) has deposited with it seventy-five per cent of the amount in terms of the decree, award or, as the case may be, the other order in the manner directed by such court:

Provided that pending disposal of the application to set aside the decree, award or order, the court shall order that such percentage of the amount deposited shall be paid to the supplier, as it considers reasonable under the circumstances of the case subject to such conditions as it deems necessary to impose.

Application for setting aside decree, award or order.





.
20. The State Government shall, by notification, establish one or more Micro and Small Enterprises Facilitation Councils, at such places, exercising such jurisdiction and for such areas, as mahy be specified in he notification.
Establishment of Micro and Small Enterprises Facilitation Council

21. (1) The Micro and Small Enterprise Facilitation Council shall consist of not less than three but not more than five members to be appointed from among the following categories, namely:-
(i) Director of Industries, by whatever name called, or any other officer not below the rank of such Director, in the Department of the State Government having administrative control of the small scale industries or, as the case may be, micro, small and medium enterprises; and
(ii) one or more office-bearers or representatives of associations of micro or small industry or enterprises in the State; and
(iii) one or more representatives of banks and financial institutions lending to micro or small enterprises; or
(iv) one or more persons having special knowledge in the field of industry, finance, law, trade or commerce.

(2) The person appointed under clause (i) of sub-section (1) shall be the chairperson of the Micro and Small Enterprise Facilitation Council.

(3) The composition of the Micro and Small Enterprise Facilitation Council, the manner of filling vacancies of its members and the procedure to be followed in the discharge of their functions by the members shall be such as may be prescribed by the State Government.




22. Where any buyer is required to get his annual accounts audited under any law for the time being in force, such buyer shall furnish the following additional information in his annual statement of accounts, namely:-

(i) the principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier as at the end of each accounting year;

(ii) the amount of interest paid by the buyer in terms of section 18, along with the amounts of the payment made to the supplier beyond the appointed day during each accounting year;

(iii) the amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under this Act;
(iv) the amount of interest accrued and remaining unpaid at the end of each accounting year; and

(v) the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23.

Requirement
to specify
unpaid amount
with interest in
the annual
statement of
accounts.





43 of 1961.

23. Notwithstanding anything contained in the Income-tax Act, 1961, the amount of interest payable or paid by any buyer, under or in accordance with the provisions of this Act, shall not, for the purposes of computation of income under the Income-tax Act, 1961, be allowed as deduction.

Interest not to be allowed as deduction from income.

24. The provisions of sections 15 to 23 shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.
Over-riding
effect.

1 of 1996
25. Notwithstanding anything contained in any law for the time being in force, the Central Government may, with a view to facilitating closure of business by a micro, small or medium enterprise, not being a company registered under the Companies Act, 1956, notify a scheme within one year from the date of commencement of this Act.
Scheme for closure of business of micro, small and medium enterprises


CHAPTER VI

MISCELLANEOUS





.


26(1). The Central Government or State Government may appoint
such officers with such designations and such other employees as it
thinks fit for the purposes of this Act and may entrust to them such
of the powers and functions under this Act as it may deem fit.

(2) The Officers appointed under sub-section (1) may, for the purposes of this Act, by order require any person to furnish such information, in such form, as may be prescribed.

Appointment of officers and other employees.

27. (1) Whoever intentionally contravenes or attempts to contravene or abets the contravention of any of the provisions contained in sub-section (1) of section 8 or sub-section (2) of section 26 shall be punishable -

(a) in the case of the first conviction, with fine which may extend to rupees one thousand; and

(b) in the case of any second or subsequent conviction, with fine which shall not be less than rupees one thousand but may extend to rupees ten thousand.

(2) Where a buyer contravenes the provisions of section 22, he shall be punishable with a fine which shall not be less than rupees ten thousand.

Penalties.


28. No court inferior to that of a Metropolitan Magistrate or a Magistrate of the first class shall try any offence punishable under this Act.
Jurisdiction of courts.

29. (1) The Central Government may, by notification, make rules to carry out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(a) the term of office of the members of the Board, the manner of filling vacancies, and the procedure to be followed in the discharge of functions by the members of the Board under sub-section (4) of section 3;

(b) the powers and functions of the Member-Secretary under section 6;

(c) the manner in which the Fund may be administered under sub-section (1) of section 14;

(d) the criteria based on which sums may be released under sub-section (3) of section 14;

(e) the information to be furnished and the form in which it is to be furnished under sub-section (2) of section 26; and

(f) any other matter which is to be or may be prescribed under this Act.

(3) Every notification issued under section 9 and every rule made by the Central Government under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or rule or both Houses agree that the notification or rule should not be made, the notification or rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification or rule.

Power to make rules.





30(1). The State Government may, by notification, make rules to
carry out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rule may provide for all or any of the following matters, namely:-

(a) the composition of the Micro and Small Enterprise Facilitation Council, the manner of filling vacancies of the members and the procedure to be followed in the discharge of their functions by the members of the Micro and Small Enterprise Facilitation Council under sub-section (3) of section 21;

(b) any other matter which is to be or may be, prescribed under this Act.

(3) The rule made under this section shall, as soon as may be after it is made, be laid before each House of the State Legislature where there are two Houses, and where there is one House of the State Legislature, before that House.
Power to make rules by State Government.


31(1). If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:

Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.

Power to remove difficulties.



32(1). The Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the Act so repealed under sub-section (1) shall be deemed to have been done or taken under the corresponding provisions of this Act.
Repeal of Act 32 of 1993.




Draft Rules of Micro & Small Enterprises Facilitation Council (MSEFC) underThe Micro, Small and Medium Enterprises Development Act, 2006(27 of 2006)

NO. Dated, the………..,2006
In exercise of the powers conferred by section 30 read with sub-section (3) of section 21 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the Government/Administration of …….(State/Union Territory ) hereby makes the following rules, namely:-
Preliminary
1. Short title and commencement.-
(1) These rules may be called the (State/Union Territory) Micro and Small Enterprises Facilitation Council Rules, 2006.
(2) They shall come into force with effect from the…day of ……(month),………(year).

(3) They shall extend to the whole of ……….(State/ Union Territory).

2. Definitions. -In these rules, unless the context otherwise requires-
(a) "Act" means the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006);
(b) "Section" means a section of the Act;
(c) "Arbitration and Conciliation Act” means the Arbitration and Conciliation Act, 1996 (26 of 1996);
(d) “Council” means the Micro and Small Enterprises Facilitation Council, established by the. (State/ Union Territory) of ……… under section 20 of the Act;
(e) "Institute" means any institution or centre providing alternate dispute resolution services referred to in sub-section (2) and (3) of section 18 of the Act;
(f) “Chairperson” means the Chairperson of the Council appointed under clause(i) of sub-section (1) of section 21of the Act;
(g) “Member” means a member of the Council;
(h) “Government” means the Government of ............( State) ;
(i) “Administrator” means The Lieutenant Governor or Administrator of the Union Territory of ........….All reference to Government hereinafter shall, in the case of the Union Territory of ………..,mean the Administrator.
(j) The words and expressions used and not defined, but defined in the Act shall have the meanings assigned to them in the Act.

3. Manner of appointment, etc. -
(a) The Government shall appoint the representatives, specified in clauses (ii), (iii) or (iv) of sub-section (1) of section 21,as member of the Council.
(b) When a member of the council dies or resigns or is deemed to have resigned or is removed from office or becomes incapable of acting as a member , the Government may by notification in the official gazette appoint a person to fill that vacancy.
(c) A member, other than the Chairperson, shall hold office for a period not exceeding two years from the date of his appointment.
(d) A member appointed under clauses (ii), (iii) and (iv) of sub-section (1) of section 21 shall cease to be a member of the council if he ceases to represent the category or interest from which he was so appointed.
(e) Any member of the Council may resign from the Council by tendering one month’s notice in writing to the Government. The power to accept the resignation of a member shall vest in the Government.
(f) The Government may remove any member from office:-
(i) if he is of unsound mind and stands so declared by a competent court; or
(ii) if he becomes bankrupt or insolvent or suspends payment to his creditors; or
(iii) if he is convicted of any offence which is punishable under the Indian Penal Code (Act XLV of 1860); or
(iv) if he absents himself from three consecutive meetings of the council without the leave of the Chairperson, and in any case from five consecutive meetings; or
(v) acquires such financial or other interest as is likely, in the opinion of the Government, to affect prejudicially his functions as a member.
4. Procedure to be followed in the discharge of functions of the Council.-
(i) The Council shall meet at least once a month.
(ii) At least seven days’ notice shall ordinarily be given for any meeting. However, in case of urgency a meeting may be called at such shorter notice as the Chairperson may consider sufficient.
(iii) The Council may appoint/or engage the services of one or more experts in terms of section 26 of the Arbitration and Conciliation Act, 1996.
(iv) The Council, or a party to the dispute with the approval of the Council, may apply to the court under section 27 of the Arbitration and Conciliation Act, 1996, for assistance in taking evidence.
(v) The reference/application of the aggrieved micro or small enterprise supplier shall contain full particulars of the supplier and its status, supplied goods or services, terms of payment, if any, agreed between the supplier and buyer, actual payment received with date, amount due and the interest duly calculated under section 16 of the Act, supported by an affidavit, with necessary court fee stamp affixed thereon. The Chairperson of the Council may require any petitioner to provide further particulars of the claim or any relevant documents in support of the claim as he may consider necessary for the purpose of the proceedings. If the petitioner fails or omits to do so within fifteen days of receipt of such communication or within such further time as the Chairperson may, for sufficient cause, allow, the Council may terminate the proceedings without prejudice to the right of the petitioner to make fresh reference if he is otherwise entitled so to do. The petitioner shall also simultaneously send a copy of the reference to the buyer or buyers against whom the reference is directed.
(vi) The reference/application shall be acknowledged forthwith if it is delivered at the office of the Council. Where the reference/application is received by registered post, its receipt shall be acknowledged on the same day. The Chairperson shall cause the buyer to furnish his detailed response to the reference within fifteen days of receipt of the reference by the buyer or within such further time not exceeding fifteen days, as he may, for sufficient cause, allow.
(vii) On receipt of a reference under section 18 of the Act, the Chairperson of the Council shall cause the reference and the buyers response thereto to be examined and, on being satisfied with the reference making a prima facie case of delayed payment, cause the reference to be placed before the Council at its next immediate meeting for consideration. The Chairperson shall also ensure that each reference received within two weeks of the date of the last preceding meeting of the Council is examined and, if found in order, is placed for consideration of the Council at its next immediate meeting.
(viii) The Council shall either itself conduct conciliation in each reference placed before it or seek the assistance of any institute or centre providing alternate dispute resolution services by making a reference to such an institution or centre, for conducting conciliation. The provisions of sections 65 to 81 of the Arbitration and Conciliation Act, 1996 shall apply to such a reference as if the conciliation was initiated under Part III of that Act.
(ix) The Council or the institute to which it has been referred for conciliation shall require the supplier and the buyer concerned to appear before it by issuing notices to both parties in this behalf. On the appearance of both parties, the Council or the institute shall first make efforts to bring about conciliation between the buyer and the supplier. The institute shall submit its report to the Council with in fifteen days of reference from the Council or with in such period as the Council may specify.
(x) When such conciliation does not lead to settlement of the dispute, the Council shall either itself act as an Arbitrator for final settlement of the dispute or refer it to an institute for such arbitration, in accordance with the provisions of the Arbitration and Conciliation Act,1996. The supplier or the buyer may, either in person or through his lawyer registered with any court, present his case before the Council or the institute during the arbitration proceedings . The institute shall submit its report to the Council with in such time as the Council may stipulate.

(xi) Any decision of the Council shall be made by a majority of its members present at the meeting of the Council.
(xii) The Council shall make an arbitral award in accordance with section 31 of the Arbitration and Conciliation Act 1996 and within the time specified in sub-section (5) of section 18 of the Act. The award shall be stamped in accordance with the relevant law in force. Copies of the award shall be made available within seven days of filing of an application.
(xiii) The provisions of sections 15 to 23 of the Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.
(xiv) The Chairperson or any other officer authorised by the Chairperson shall forward the proceedings of every meeting of the Council including annual progress report of the Council to the Member –Secretary of the Advisory Committee constituted under sub-section (3) of the section 7 of the Act.
******

MSMED ACT-RULES

The Gazette of India
Extraordinary
Part II - Section 3-Sub-section (ii)
PUBLISHED BY AUTHORITY

Ministry of Small Scale Industries
NOTIFICATION

New Delhi, the .7th November 2006

S.O. 1909(E): - In exercise of the powers conferred by Sub-section (3) of section 8 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) herein referred to as the said Act, the Central Government hereby specifies the General Manager, District Industries Centre or any District level officer of equivalent rank in the Directorate or the Department dealing with Micro, Small and Medium Enterprises of the State Government or the Union Territory Administration, as the Authority with which the memorandum shall be filed, at his discretion, by a person who intends to establish or has already established a medium enterprise engaged in providing or rendering of services, as specified in clause (b) of Sub-section (1) of section 8 of the said Act.




[F.No.2(10)2006 MSME POL]
JAWHAR SIRCAR, Addl. Secy.
MINISTRY OF SMALL SCALE INDUSTRIES
NOTIFICATION
New Delhi, the 26th September 2006

G.S.R. 596(E).-- In exercise of the powers conferred by section sub-section (4) of Section 3 and Section 6, read with clause (a) and (b) of Sub-section (2) of Section 29 of the Micro ,Small and Medium Enterprises Development Act, 2006 (27 of 2006) , the Central Government hereby makes the following rules, namely :-
1.Short title and commencement.-
(1) These rules may be called the Micro, Small and Medium Enterprises Development (National Board for Micro, Small and Medium Enterprises) Rules, 2006.
(2) They shall come into force on the 2nd day of October,2006.
2. Definitions.-
(1) In these rules, unless the context otherwise requires,-
(a) "Act" means the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006);
(b) "Advisory Committee" means the committee constituted by the Central Government under sub-section (2) of section 7;
(c) "Board” means the National Board for Micro, Small and Medium Enterprises established under sub-section (1) of section 3;
(d) “Chairperson” means the Chairperson of the Board;
(e) “Member” means a member of the Board;
(f) "Section" means a section of the Act;
(g) “Vice-Chairperson” means the Vice-Chairperson of the Board.
(2) Words and expressions used and not defined in these rules but defined in the Act shall have the meanings respectively assigned to them in the Act.




3. Term of office of members.-

Save as hereinafter provided,-
(i) a member, other than an ex-officio member, shall hold office for a period not exceeding two years from the date of his appointment;
(ii) a member elected under clause (d) of sub-section (3) of section 3 shall cease to be a member of the Board if he ceases to be a member of the House of Parliament by which he was so elected; and
(iii) a member appointed under clauses (k), (l), (m) and (n) of sub-section 3 of section 3 shall cease to be a member of the Board if he ceases to represent the category or interest from which he was so appointed:
Provided that a member shall be eligible for re-appointment.
4. Resignation-
(i) The office of a member shall fall vacant from the date on which his resignation is accepted or on the expiry of thirty days from the date of receipt of intimation of resignation, whichever is earlier.
(ii) The power to accept the resignation of a member shall vest in the Chairperson who, on accepting the resignation, shall report that to the Board at its next meeting.
5. Change of Address: - If a member changes his address, he shall notify his new address to the Member Secretary of the Board who shall thereupon enter his new address in the official records:
Provided that If such a member fails to notify his new address, the address in the official records shall for all purposes be deemed to be the member's correct address.

6. Manner of filling vacancies among members-
(i) The Central Government may evolve such criteria and hold such consultations as it may think fit, before appointing members from among the representatives specified in clauses (l), (m) and (n) of sub-section (3) of section 3,each time the Board is constituted.
(ii) When a member dies or resigns or is deemed to have resigned or is removed from office or becomes incapable of acting, the Central Government may, by notification in Official Gazette, appoint a person to fill that vacancy:
Provided that where the vacancy occurs in a membership which was held by the outgoing member by virtue of his membership of Parliament under clause (d) of sub-section (3) of section 3, the appointment of the next incumbent of that vacancy shall be on the basis of fresh election by that House of Parliament to which the outgoing member belonged.
7. Procedure to be followed in the discharge of their function by the members of the Board.-

(i) Agenda.-

(a) The agenda to be considered at a meeting of the Board shall be approved by the Chairperson and shall ordinarily be issued by the Member-Secretary fourteen days before the approved day of the meeting and shall be left at or posted to the address of every member of the Board.

(b) The Board may take up any item outside the agenda with the permission of the Chairperson

(ii) The Board shall meet at least once in every three months at Delhi:

Provided that if it is deemed necessary and expedient to hold a meeting of the Board outside its headquarters at Delhi, the reasons for holding such meeting shall be recorded in writing with prior approval of the Chairperson.

(iii) The Chairperson may at any time call a special meeting of the Board in case of urgency, after informing the members in advance about the subject matter of discussion and the reasons of urgency.

(iv) The Chairperson or, in his absence the Vice-Chairperson, shall preside over the meetings of the Board.

(v) The quorum for any meeting of the Board shall be twelve.

(vi) The Central Government may debar any member, other than ex officio members, from taking part in the meetings of the Board if -
(a) he absents himself from two consecutive meetings of the Board without written information to and consent of the Chairperson and, in any case, from three consecutive meetings, or

(b) in the view of the Central Government, the act of a member is or is likely to be detrimental to the Government policies and programmes of the Government for promotion, development and enhancing competitiveness of micro, small and medium enterprises.
8. Powers and functions of Member-Secretary of the Board.-
The Member-Secretary shall -
(i) act as the Head of the secretariat of the Board;

(ii) sanction necessary expenditure on contingencies, supplies, services and articles required for the working of the Board and its secretariat, execution of the functions assigned to the Board and furtherance of the objects of the Act, subject to provisions being made in the annual budget for this purpose;

(iii) maintain or cause to be maintained an account of the receipts and expenditures of the Board in such form as may be notified by the Government in consultation with the Comptroller and Auditor General of India;

(iv) assist the Chairperson in all administrative matters relating to the Board;

(v) keep or cause to be kept a record of names of members and their addresses;

(iii) make arrangements for the meetings of the Board; and

(vii) issue the minutes of the meetings of the Board, as approved by the
Chairperson.




[F. No. 1(3)/2006-MSME POL]
JAWHAR SIRKAR, Addl. Secy.

MSMED-FORMS FOR MEMORANDUM & PROCEDURE

The Gazette of India
Extraordinary
Part II - Section 3-Sub-section (ii)
PUBLISHED BY AUTHORITY

Ministry of Small Scale Industries
NOTIFICATION

New Delhi, the 30th September, 2006


S.O. 1643 (E)- In exercise of the powers conferred by sub-section (2) of section 8 of the Micro, Small and Medium Enterprises Development Act 2006 (27 of 2006) herein referred to as the said Act, the Central Government, after obtaining the recommendations of the Advisory Committee in this behalf, hereby provides for the format of memorandum and procedure of its filing and other matters incidental thereto for the purpose of the said Act, namely:-
Schedule I
Form No. ------------
ENTREPRENEURS MEMORANDUM
FOR
SETTING UP MICRO, SMALL OR MEDIUM ENTERPRISE

GENERAL INSTRUCTIONS.

1. MEMORANDUM IS TO BE FILED WITH THE DISTRICT INDUSTRIES CENTRE* BY A MICRO, SMALL OR MEDIUM ENTERPRISE, AS THE CASE MAY BE, UNDER SUB-SECTION (1) OF SECTION 8 OF THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT (MSMED) ACT, 2006.

2. FOUR COPIES OF THE MEMORANDUM SHOULD BE FILED.

3. THERE IS NO FEE FOR PROCESSING THE MEMORANDUM.

4. EXISTING UNITS SHOULD FILL UP ONLY PART II OF THE MEMORANDUM.

5. IN CASE OF ANY CHANGE IN THE INFORMATION, AT ANY POINT OF TIME, PLEASE INFORM THE DETAILS WITHIN THREE MONTHS TO DISTRICT INDUSTRIES CENTRE.

6. WRITE / TYPE IN BLOCK (CAPITAL) LETTERS

7. LEAVE ONE BLANK BOX AFTER EACH WORD.

8. FILL UP WHICHEVER IS APPLICABLE.

9. ALL CODES OTHER THAN PIN CODE SHALL BE FILLED BY THE OFFICE.

10. FORM WILL BE MACHINE NUMBERED BY THE DISTRICT INDUSTRIES CENTRE.

* To be filed at the District Industries Centre under whose jurisdiction the enterprise is proposed to be located.
________________________________________________________________________


Form No. ------------

FOR OFFICE USE ONLY


D D M M Y Y Y Y
DATE OF ISSUE

CATEGORY OF ENTERPRISE
(MANUFACTURING-1, SERVICE-2)

(MICRO-1, SMALL –2, MEDIUM – 3)

ENTREPRENEURS MEMORANDUM NUMBER

(First two boxes are for State/Union Territory code, next three boxes are for District code, sixth and seventh boxes are for category of enterprise (sixth box for indicting manufacturing or service and seventh box for indicating micro or small or medium ) and last five boxes are for Entrepreneurs’ Memorandum number)

___________________________________________________________________________

Form No. ------------

PART I
(To be filled in as expression of intent)

NAME OF APPLICANT






(a) ADDRESS OF COMMUNICATION
PIN



(i) TELEPHONE NUMBER

(ii) FAX NUMBER

(iii) CELL PHONE NUMBER

(iv) E-MAIL


(v) WEB-SITE



(b) PERMANENT RESIDENTIAL ADDRESS (MAIN APPLICANT)

PIN




(i) TELEPHONE NUMBER

(ii) FAX NUMBER

(iii) CELL PHONE NUMBER

(iv) E-MAIL


(v) WEB-SITE




3. NAME OF PROPOSED ENTERPRISE (if decided)




4. PROPOSED LOCATION OF ENTERPRISE

(i) VILLAGE / TOWN


CODE



(ii )TEHSIL / TALUK /
MANDAL

CODE

(iii) DISTRICT

CODE

(iv) STATE

CODE

(v) PIN CODE

(vi) AREA ( RURAL -1 , URBAN –2)

5. CATEGORY OF ENTERPRISE

(MICRO-1, SMALL –2, MEDIUM – 3)

6. NATURE OF ACTIVITY [Tick Appropriate Box(es)]

(i) MANUFACTURE

(ii) SERVICE

(iii) OTHERS

In case of others, please specify
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7. NATURE OF OPERATION
(Perennial-1, Seasonal-2, Casual-3)

8. WHETHER THE UNIT WILL BE AN ANCILLARY
( Yes-1, No-2)
M M Y Y Y Y
9. PROPOSED SCHEDULE OF INSTALLATION OF PLANT AND
MACHINERY

10. TYPE OF ORGANIZATION
(PROPRIETARY-1, HINDU UNDIVIDED FAMILY –2, PARTNERSHIP-3,
CO-OPERATIVE –4, PRIVATE LIMITED COMPANY -5, PUBLIC LIMITED COMPANY-6, SELF-HELF GROUP-7, OTHERS-8)

11. (a) MAIN MANUFACTURING/SERVICE ACTIVITY

NAME

CODE (NIC 98*)

(b) PRODUCTS TO BE MANUFACTURED/SERVICE TO BE PROVIDED

(i) NAME

CODE (ASICC2000*)

(ii) NAME

CODE (ASICC2000*)

(iii) NAME

CODE (ASICC2000*)

(iv) NAME

CODE (ASICC2000*)

(v) NAME

CODE (ASICC2000*)

10. (*) Codes for activities and products/services as per classification specified from time to time by the Development Commissioner (Small Scale Industries), Government of India to be filled in by the District Industries Centre or the office where the Entrepreneurs’ Memorandum is submitted.
(ADD ADDITIONAL SHEET FOR MORE PRODUCTS)

12. (a) PROPOSED INVESTMENT IN FIXED ASSETS [Rupees in lakh]

(i) LAND (OWNED-01/RENTED-02/ LEASED-03)

APPROXIMATE VALUE*

(ii) BUILDING (OWNED-01/RENTED-02/
LEASED-03)
APPROXIMATE VALUE*

(iii) PLANT AND MACHINERY VALUE*
(In case of manufacturing enterprise)


(iv) EQUIPMENT VALUE*
(In case of service enterprise)

(v) FOREIGN EQUITY, IF ANY VALUE*
1
0 [ * The value in the boxes should be filled in from the right side, e.g., if the value is Rupees10 lakhs it should be written as . This will also apply to all other items (rows) where quantity, number, etc., to be given.]

13. INSTALLED CAPACITY (proposed) PER ANNUM QTY UNIT



14. POWER LOAD (ANTICIPATED) H.P / K.W.


15. (a) (i) OTHER SOURCE OF ENERGY/POWER
[IF REQUIRED]
(NO POWER NEEDED –1, COAL-2, OIL-3, LIQUID PETROLIUM GAS-4, ELECTRICITY FROM GRID-5, ELECTRICITY FROM GENERATOR- 6, NON-CONVENTIONAL ENERGY –7, TRADITIONAL ENERGY / FIREWOOD-8)
(ii) If no power required, specify reasons;


(b) INDICATE ANNUAL REQUIREMENT
SOURCE OF ENERGY QTY UNIT
.........................................

...........................................

...........................................

16. EXPECTED EMPLOYMENT (Nos.)

(i) MANAGEMENT AND OFFICE STAFF

(ii) SUPERVISORY

(iii) WORKERS

17. ENTREPRENEURS’ PROFILE (OF ALL PARTNERS/DIRECTORS OF THE ORGANISATION-USE SEPARATE SHEETS, IF NEEDED)

(a) NAME


(i) MALE (M) / FEMALE (F)

(ii) SC (1) / ST (2) / OBC (3) / OTHERS (4)
PHYSICALLY CHALLENGED (5)

(iii) KNOWLEDGE LEVEL
[TECHNICAL GRADUATE- 1, MANAGEMENT GRADUATE-2,
POST GRADUATE-3,OTHER GRADUATE-4, UNDER-GRADUATE-5,
ANY OTHER LOWER-6]

(iv) EQUITY PARTICIPATION (in Rupees)

(Percentage of total equity )

(v) STAKE IN OTHER MANUFACTURING ENTERPRISES
(Yes-1, No-2)
[ADD ADDITIONAL SHEET, IF NEEDED]

18. EXPECTED SCHEDULE OF COMMENCEMENT OF PRODUCTION / ACTIVITY
M M Y Y Y Y


DATE:
PLACE:
[SIGNATURE OF THE APPLICANT /AUTHORISED PERSON]

NAME OF THE PROPRIETOR/PARTNER/ MANAGING DIRECTOR

(a) Enclose a self-certified copy of Power of Attorney/Board Resolution/Society Resolution, wherever applicable, while signing as Partner/Managing Director or Authorised Person.
(b) Enclose a certified/notarized copy of the Partnership Deed/Memorandum of Association/Articles of Association in case of Medium Enterprises.


Undertaking

This is to certify that the information furnished in the memorandum in Form No. …………………. is true and correct to the best of my knowledge and belief.

DATE:
PLACE:

[SIGNATURE OF THE APPLICANT /AUTHORISED PERSON]





Form No. ------------
ACKNOWLEDGEMENT

M/s……………………………………………………………….HAS FILED MEMORANDUM EXPRESSING ITS INTENT TO SET UP AN………………………………………………………. (MANUFACTURING/SERVICE) ENTERPRISE AT THE ADDRESS…………….………… ………………………………………………………………………………………………………………………………………………………………………………………PIN……………………… STATED IN FORM NO.…………………... AND ALLOCATED ENTREPRENEURS’ MEMORANDUM NO. AS BELOW:

D D M M Y Y Y Y
DATE OF ISSUE

CATEGORY OF THE UNIT

(MANUFACTURING-1, SERVICES-2)

(MICRO-1, SMALL –2, MEDIUM – 3 )


ENTREPRENEURS’ MEMORANDUM NUMBER

(First two boxes are for State/Union Territory code, next three boxes are for District code, sixth and seventh boxes are for category of enterprise (sixth box for indicting manufacturing or service and seventh box for indicating micro or small or medium) and last five boxes are for Entrepreneurs’ Memorandum number)

DATE:
PLACE:


SIGNATURE
WITH OFFICE SEAL
________________________________________________________________________
PART II Form No. ------------


(To be filled up and submitted to the District Industries Centre after commencement of production / activity)
[THE ROWS WHICH HAVE BEEN REPEATED NEED TO BE FILLED ONLY TO THE EXTENT THAT THE ACTUAL DETAILS ON COMMENCEMENT VARY FROM THOSE IN PART I]

I. ENTREPRENEURS MEMORANDUM
NUMBER (Part I)

D D M M Y Y Y Y
II. DATE OF ISSUE

M M Y Y Y Y
III. MONTH OF COMMENCEMENT OF PRODUCTION /
ACTIVITY
1. NAME OF APPLICANT




2. (a) ADDRESS OF COMMUNICATION
PIN




(i) TELEPHONE NUMBER

(ii) FAX NUMBER

(iii) CELL PHONE NUMBER

(iv) E-MAIL


(v) WEB-SITE


(b) PERMANENT RESIDENTIAL ADDRESS (MAIN APPLICANT)
PIN






(i) TELEPHONE NUMBER

(ii) FAX NUMBER

(iii) CELL PHONE NUMBER

(iv) E-MAIL



(iv) WEB-SITE



3. NAME OF ENTERPRISE




4. LOCATION OF ENTERPRISE

(i) VILLAGE / TOWN



CODE

(ii )TEHSIL / TALUK /
MANDAL

CODE

(iii) DISTRICT

CODE

(iv) STATE

CODE

(v) PIN CODE

(vi) AREA ( RURAL -1 , URBAN –2)

5. CATEGORY OF ENTERPRISE
(MICRO-1, SMALL –2, MEDIUM – 3)



6. NATURE OF ACTIVITY [Tick Appropriate Box(s)]

(i) MANUFACTURE


(ii) SERVICE

(iii) OTHERS

In case of others, please specify:
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7. NATURE OF OPERATION
(Perennial-1, Seasonal-2, Casual-3)

8. WHETHER THE UNIT IS AN ANCILLARY
( Yes-1, No-2)
M M Y Y Y Y
9. MONTH OF INSTALLATION OF PLANT AND MACHINERY


10. WHETHER THE UNIT IS REGISTERED UNDER FACTORY ACT
( Under Section 2m(i)/2m(ii)-1, 85)I)/85(ii)-2, not registered –3)


11. TYPE OF ORGANIZATION
[PROPRIETORY-1, HINDU UNDIVIDED FAMILY –2, PARTNERSHIP-3, CO-OPERATIVE –4, PRIVATE LIMITED COMPANY -5, PUBLIC LIMITED COMPANY-6, SELF-HELP GROUP-7, OTHERS-8]

12. (a) MAIN MANUFACTURING/SERVICE ACTIVITY

NAME

CODE (NIC 98*)

(b) PRODUCTS TO BE MANUFACTURED/SERVICE TO BE PROVIDED

(i) NAME

CODE (ASICC2000*)

(ii) NAME

CODE (ASICC2000*)

(iii) NAME

CODE (ASICC2000*)

(iv) NAME

CODE (ASICC2000*)

(v) NAME

CODE (ASICC2000*)

(*) Codes for activities and products/services as per classification specified from time to time by the Development Commissioner (Small Scale Industries), Government of India to be filled in by the District Industries Centre or the office where the Entrepreneurs’ Memorandum is submitted.
(ADD ADDITIONAL SHEET FOR MORE PRODUCTS)

13. (a) INVESTMENT IN FIXED ASSETS [Rupees in lakh]

(i) LAND (OWNED-01/RENTED-02/ LEASED-03)

VALUE*

(ii) BUILDING (OWNED-01/RENTED-02/ LEASED-03)

VALUE*

(iii) PLANT AND MACHINERY VALUE*
(In case of manufacturing unit)

(iv) EQUIPMENTS VALUE*
(In case of servicing unit)

(v) FOREIGN EQUITY , IF ANY VALUE*

1
0 [ * The value in the boxes should be filled in from the right side, e.g., if the value is Rupees10 lakhs it should be written as . This will also apply to all other items (rows) where quantity, number, etc., to be given.]

14. INSTALLED CAPACITY PER ANNUM QTY UNIT




15. POWER LOAD H.P / K.W.


16 . (a) (i) OTHER SOURCE OF ENERGY/POWER
[IF REQUIRED]
(NO POWER NEEDED –1, COAL-2, OIL-3, LIQUID PETROLIUM GAS-4, ELECTRICITY
FROM GRID-5, ELECTRICITY FROM GENERATOR- 6, NON-CONVENTIONAL ENERGY –7,
TRADITIONAL ENERGY/FIREWOOD-8)
(ii) If no power required, specify reasons;

(b) INDICATE ANNUAL REQUIREMENT
SOURCE OF ENERGY QTY UNITS
…...........................................................

…..........................................................

…...........................................................

17. EMPLOYMENT
MALE FEMALE
(Nos.) (Nos.)

(i) MANAGEMENT AND OFFICE STAFF

(ii) SUPERVISORY

(iii) WORKERS

18. TOTAL ANNUAL TURNOVER (in Rupees)
(If less than one year of operation, then
expected turnover)

19. EXPORT (if any) (in Rupees )

20. ENTREPRENEURS’ PROFILE (OF ALL PARTNERS/DIRECTORS OF THE
ORGANISATION- USE SEPARATE SHEETS, IF NEEDED)

(a) NAME


(i) MALE (M) / FEMALE (F)

(ii) SC (1) / ST (2) / OBC (3) / OTHERS (4)
PHYSICALLY CHALLENGED (5)

(iii) KNOWLEDGE LEVEL
[TECHNICAL GRADUATE- 1, MANAGEMENT GRADUATE-2,
POST GRADUATE-3, OTHER GRADUATE-4, UNDERGRADUATE-5,
ANY OTHER LOWER -6]

(iv) EQUITY PARTICIPATION (in Rupees)

(in percentage of total equity )

(v) STAKE IN OTHER MANUFACTURING ENTERPRISES
(Yes-1, No-2)

[ADD ADITIONAL SHEET, IF NEEDED]


21. DATE OF COMMENCEMENT OF PRODUCTION / ACTIVITY
D D M M Y Y Y Y


DATE:
PLACE:
[SIGNATURE OF THE APPLICANT /AUTHORISED PERSON]

NAME OF THE PROPRIETOR/PARTNER/ MANAGING DIRECTOR

(a) Enclose a self-certified copy of Power of Attorney/Board Resolution/Society Resolution,
wherever applicable, while signing as Partner/Managing Director or Authorised Person.
(b) Enclose a certified/notarized copy of the Partnership Deed/Memorandum of
association/Articles of Association in case of Medium Enterprises.


Undertaking
This is to certify that the information furnished in the memorandum in Form No. …………………. is true and correct to the best of my knowledge and belief.

DATE:
PLACE:
[SIGNATURE OF THE APPLICANT /AUTHORISED PERSON]









Form No. ------------
ACKNOWLEDGEMENT


M/s……………………………………………………………….HAS FILED MEMORANDUM FOR A …………………………………. (MANUFACTURING/SERVICE) ENTERPRISE WHICH HAS BEEN SET UP AT THE ADDRESS…………………………………………… ………………………………………………………………………………………………………………………………………………………………………………………PIN……………………… STATED IN FORM NO.…………………... AND ALLOCATED EM NO. AS BELOW:

D D M M Y Y Y Y
DATE OF ISSUE

CATEGORY OF THE UNIT

(MANUFACTURING-1, SERVICES-2)

(MICRO-1, SMALL –2, MEDIUM – 3 )


ENTREPRENEURS MEMORANDUM NUMBER

(First two boxes are for State/Union Territory code, next three boxes are for District code, sixth and seventh boxes are for category of enterprise (sixth box for indicting manufacturing or service and seventh box for indicating micro or small or medium) and last five boxes are for Entrepreneurs’ Memorandum number)


DATE:
PLACE: SIGNATURE
WITH OFFICE SEAL








Schedule II
Procedure of Filing of Entrepreneurs Memorandum and other matters, incidental thereto

1. Form of the Entrepreneurs Memorandum can be downloaded from the internet, the address of which can be obtained from the Directorate dealing with Micro, Small and Medium Enterprises of the State Governments or the Union Territories or the hard copies of the same can be obtained from the District Industries Centres. This form can also be downloaded from the Small Industries Development Organisation website i.e. www.laghu-udyog.com or www.smallindustryindia.com

2. Any person who intends to establish a micro or small enterprise, at his discretion; or a medium enterprise engaged in providing or rendering of services may, at his discretion or a medium enterprise engaged in the manufacture or production of goods shall file the Memorandum of Micro, Small or as the case may be, of Medium Enterprise with District Industries Centre of its area.

3. The District Industries Centre shall fill all the codes in the form of the Memorandum and issue an acknowledgement after allotting an Entrepreneur Memorandum number, date of issue and category of the unit within five days of the receipt of the form of Memorandum by post or same day, if the form of Memorandum is submitted in person as well as online.

4. Before issuing the acknowledgement, the District Industries Centres shall make sure that the form is complete in all respect and particularly the form is signed and is accompanied with an undertaking, which is a part of the form of Entrepreneurs Memorandum.

5. The District Industries Centre shall maintain record of all the Entrepreneurs Memorandum so filed in respect of micro, small and medium enterprises engaged in providing and rendering services. District Industries Centres shall forward a copy of the Entrepreneurs Memorandum so filed with Entrepreneur Memorandum number allotted to the Small Industries Service Institutes of their State or their Jurisdiction.

6. The District Industries Centre shall maintain record of all the Entrepreneurs Memorandum so filed in respect of medium enterprises engaged in production or manufacturing of products and forward one copy each of the Entrepreneurs Memorandum with Entrepreneur Memorandum number allotted to Small Industries Service Institutes of their State or their Jurisdiction and to Joint Development Commissioner (Micro,Small and Medium Enterprise Policy) in the Office of the Development Commissioner (Small Scale Industries).

7. The form of Memorandum is in two parts. Any person who intends to establish a micro, small or medium enterprise engaged in providing or rendering of services may file or those who want to establish medium enterprise engaged in the production or manufacture of products shall file Part 1 of the Entrepreneurs Memorandum to District Industries Centre.

8. Once the above enterprises start production or start providing or rendering services, they shall file Part II of the Entrepreneurs Memorandum to District Industries Centre.

9. In case of non-filing of Part II of the Entrepreneurs Memorandum within two years of the filing of Part I, the Memorandum (Part I) filed by the entrepreneur will become invalid.

10. In case of change in the investment in plant and machinery or in equipment, the enterprises who have already filed Entrepreneurs Memorandum should inform the District Industries Centre of the same in writing within three month of the change in investment.

11. In case of change of products and that of services or addition in products or services, the enterprises which have already filed Entrepreneurs Memorandum shall inform the District Industries Centre of the same in writing within three months of the change.

12. The District Industries Centre shall, in addition of keeping a record, in writing, shall also maintain records electronically on computer.




[No.2(10)/2006 MSME Policy]



(JAWHAR SIRCAR)
Additional Secretary to the Government of India

Plant & Machinery for purpose of Definition

The Gazette of India
Extraordinary
Part II - Section 3-Sub-section (ii)
PUBLISHED BY AUTHORITY

Ministry of Small Scale Industries

NOTIFICATION

New Delhi, the 5 October, 2006

S.O. 1722(E):- In exercise of the powers conferred by sub-section (1) of section 7 of the Micro, Small and Medium Enterprises Development Act, 2006(27 of 2006) herein referred to as the said Act, the Central Government hereby specifies the following items, the cost of which shall be excluded while calculating the investment in plant and machinery in the case of the enterprises mentioned in section 7(1)(a) of the said Act, namely:-
(i) equipment such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores;
(ii) installation of plant and machinery;
(iii) research and development equipment and pollution control equipment;
(iv) power generation set and extra transformer installed by the enterprise as per the regulations of the State Electricity Board;
(v) bank charges and service charges paid to the National Small Industries Corporation or the State Small Industries Corporation;
(vi) procurement or installation of cables, wiring, bus bars, electrical control panels (not mounted on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures;
(vii) gas producer plants;

(viii) transportation charges (excluding sales-tax or value added tax and excise duty ) for indigenous machinery from the place of their manufacture to the site of the enterprise;
(ix) charges paid for technical know-how for erection of plant and machinery;
(x) such storage tanks which store raw materials and finished products only and are not linked with the manufacturing process; and
(xi) fire fighting equipment.
2. While calculating the investment in plant and machinery referred to in paragraph 1, the original price thereof, irrespective of whether the plant and machinery are new or second hand, shall be taken into account provided that in the case of imported machinery, the following shall be included in calculating the value, namely:
(i) Import duty (excluding miscellaneous expenses such as transportation from the port to the site of the factory, demurrage paid at the port);
(ii) Shipping charges;
(iii) Customs clearance charges; and
(iv) Sales tax or value added tax.

[F.No. 4(1)/2006-MSME POLICY]
JAWHAR SIRCAR, Addl. Secy.

MSMED ACT - Definition Micro/Small/Medium Enterprises

The Gazette of India
Extraordinary
Part II - Section 3-Sub-section (ii)
PUBLISHED BY AUTHORITY

Ministry of Small Scale Industries
NOTIFICATION
New Delhi, the 29th September 2006
S.O. 1642(E) :- The Central Government, in exercise of the powers conferred by Sub-section (1) of Section 7 of the Micro, Small and Medium Enterprises Development Act,2006 (27 of 2006), after having obtained the recommendations of the Advisory Committee under Sub-section (4) of Section 7 of the Act in this regard, hereby notifies the following enterprises, whether proprietorship, Hindu undivided family, association of persons, co-operative society, partnership or undertaking or any other legal entity, by whatever name called:-
(i) in the case of the enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951, as –
(a) a micro enterprise, where the investment in plant and machinery does not exceed twenty five lakh rupees;
(b) a small enterprise, where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees;
(c) or a medium enterprise, where the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees;
(ii) in the case of the enterprises engaged in providing or rendering of services, as –
(a) a micro enterprise, where the investment in equipment does not exceed ten lakh rupees;
(b) a small enterprise, where the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or
(c) a medium enterprise, where the investment in equipment is more than two crore rupees but does not exceed five crore rupees


[F.No.4(10)/2006-MSME Policy]

JAWHAR SIRCAR, Addl. Secy.

MICRO SMALL & MEDIUM ENTERPRISES-REGISTRATION

BSSIA/ASSN/171/2007-08 Date: 05-08-2007

To,
President,

Dear Sir,

Please distribute the copies of Entrepreneur Memorandum to all the members of your Association.
They should submit four set with the General Manager, District Industries Centre, and should obtain the acknowledgement.
This acknowledgement is legal number allotted under Micro, Small & Medium Development Act, 2006 (27 of 2006). Old SSI Registration, which was allotted, was not a legal number. It was being allotted under SIDO (Small Industries Development Organization) Scheme or under State’s own Scheme. This is going to be monitored by the Ministry of Micro, Small & Medium Enterprise, and Government of India.
Our Association has been selected as Member of National Board of Micro, Small & Medium Enterprises and we are representing the whole of Maharashtra. There are about 8,03,568 Units define as Small Scale Industrial Undertaking & now they are classified as Micro, Small & Medium Enterprises, which is based on Fixed Investment in Plant & Machinery. Below Rs. 25 Lakh – Micro above Rs. 25 Lakh but below Rs. 5 Crore Small above Rs. 5 Crore & below Rs. 10 Crore Medium.
Earlier definitions provided has been done away with if all the Association like your will persuade, we can demand a separate State Minister for Micro, Small & Medium Enterprises. We are about 8,03,568 persons providing maximum service & maximum employment in the State of Maharastra. We are assisting about 2.5 Crore People in the State to earn their livelihood, who are dependant on Government mercy
Please note that this Registration is a mere formality. It is not mandatory or compulsory. However, in the interest of the SSI (Now MSME) it is desired that each such unit should get themselves Registered, under this new Act.
Also, the issuing authorities are not empowered to ask for any other compliance or documentation (like, Pollution Control Clearance, Municipal Clearance, Factory Act Clearance, etc.)
Thanking you
Yours truly,
For Bombay Small Scale Industries Association,

RAKSHPAL ABROL
President
Encl. As above