Clarification on new definition of Micro, Small and Medium Enterprises

In view of the Gazette notification dated June 26, 2020 on new criteria for classifying the enterprises as micro, small and medium enterprises, Reserve Bank of India (RBI) vide its notification dated 21 August 2020, has clarified the following:

    1. All enterprises as per Gazette notification are required to obtain ‘Udyam Registration Certificate’ (“URC”).
    2. The existing Entrepreneurs Memorandum Part II and Udyog Aadhaar Memorandum of the MSMEs is valid till March 31, 2021 and further enterprises which are registered till June 30, 2020, shall file new registration before March 31, 2021. URC issued on self-declaration basis are exempted from filing GSTR and / ITR returns is valid up to 31 March 2021 for now.
    3. The value of Plant and Machinery or Equipment for all purposes and for all the enterprises shall mean the Written Down Value (“WDV”) as at the end of the Financial Year as per the Income Tax Act and not as per the cost of acquisition or original price, which was applicable before.

The notification can be accessed from here

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