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balaefx (Senior Executive)     11 November 2016

Udyog aadhar benefits

I want to know the benefits of MSME Act and also benefit of Udyog Aadhar Registration


Learning

 4 Replies

adv.bharat @ PUNE (Lawyer)     11 November 2016

Search it for google.

1 Like

Kumar Doab (FIN)     11 November 2016

Read the Act and publications made by state and kept on its website.

Pranali Sharma   06 June 2017

Aadhaar is a key used for authentic identification of a citizen . while there are areas especially those related to privacy and  security of data that needs to be improved. To track your aadhaar card online click here.

shuja shabbir (student)     11 July 2017

Benefits of an MSME Registration

Benefits from Banks: All banks and other financial institutions recognise MSMEs and have created special schemes for them. This usually includes priority sector lending, which means that the likelihood of your business being sanctioned a loan is high, and lower bank interest rates. There may also be preferential treatment in case of delay in repayment.

Tax Benefits: Depending on your business, you may enjoy an excise exemption scheme as well as exemption from certain direct taxes in the initial years of your business.

Benefits from State Governments: Most states offer those who’ve registered under the MSMED Act subsidies on power, taxes and entry to state-run industrial estates. In particular, there is a sales tax exemption in most states and purchase preference on goods produced.

Benefits from Central Government: The central government, from time to time, announces schemes to benefit MSMEs, such as the credit guarantee scheme:

Credit Guarantee Scheme (CGTMSE)
One of the major struggles that the small scale industries face is credit and input of income from various sources to support them.

The Credit Guarantee scheme, introduced to support MSME, comes with modifications to make it more beneficial for small traders:

The salient features of the scheme include:
1. Enhancing the optimal eligibility loan from Rs. 25 lakh to Rs. 50 lakh.
2. Reducing the one-time guarantee for loans availed of by the MSME in North-Eastern region of India from 1.5% to 0.75%.
3. Increasing the extent of guarantee cover from 75% to 80% for:
4. Women operated Medium and small scale enterprises
5. Micro enterprises, for loans upto 5 lakhs
6. Loans obtained in North Eastern region of the country
7. Reducing the one-time guarantee fee for all loans availed in North Eastern India from 1.5% to 0.75%.

Apart from these benefits, the government also continues, in a phased manner, to enhance the ‘List of products reserved for purchase from MSME’. A detailed list is available in the authorized website.

Accordingly, the MSME is aided by the government to make use of these product lists, and manufacture and supply these products to large scale industries, and make profit in the process.

Support services provided by State governments:

Extended credit facilities
Industrial extension support and services
Availability of developed sites for warehouse construction
Provision of training facilities
Hire-purchase of machineries for use in MSME
Assistance in marketing, both within the country and outside (exports)
Assistance for construction of industries in underdeveloped areas
Technical consultancy, assistance in capital, and so on, for enhancement of technology in MSME

MSME, hence, has several support systems in the state as well as the center, in terms of both starting a new project as well as its continued existence. The government also aims to supply trained professional, input resources and the flow of capital through assistance from venture capitalists, and through private equity funds.


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