The govt. of India has changed the definition of MSME. The criteria for MSME has also been changed. Earlier the criteria was Investment in Plant and Machinery or Equipment and now the composite criteria is Investment and Annual Turnover. Earlier the criteria for manufacturing and service enterprises was different and now the criteria is same for manufacturing and service enterprises.
Below is the change in definition of MSME:
Existing MSME Classification
Manufacturing Enterprises
Micro: Investment in Plant and Machinery or Equipment < Rs. 25 Lac
Small: Investment in Plant and Machinery or Equipment < Rs. 5 Crore
Medium: Investment in Plant and Machinery or Equipment < Rs. 10 Crore
Service Enterprises
Micro: Investment in Plant and Machinery or Equipment < Rs. 10 Lac
Small: Investment in Plant and Machinery or Equipment < Rs. 2 Crore
Medium: Investment in Plant and Machinery or Equipment < Rs. 5 Crore
Revised MSME Classification
Manufacturing and Service Enterprises
Micro: Investment < Rs. 1 Crore and Turnover < Rs. 5 Crore
Small: Investment < Rs. 10 Crore and Turnover < Rs. 50 Crore
Medium: Investment < Rs. 20 Crore and Turnover < Rs. 100 Crore
Compiled by :
CA IP Mukesh Mittal
B.Com., FCA
Insolvency Professional
Independent Director
Certified Concurrent Auditor
9215536951, 9813340495
ca.mukeshmittal@gmail.com
https://camukeshmittal.blogspot.com
DISCLAIMER: The Author have taken utmost care while drafting the article but it may occur that certain error creeps in. This article is for academic purpose and should not be treated as a professional advice. The readers are advised to refer the Bare Acts and Rules before making any judgment.
THE DEFINITION OF MSME IS USEFUL FOR VARIOUS GOVERNMENT SCHEMES
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