MSME Ministry issues much needed clarification on Work Contract

New Delhi, Jan 5 (KNN) Setting aside the confusion whether work contract is covered under MSMEs Act or not, Office of the Development Commissioner MSME under Union Ministry of MSME has clarified that all economic activities covering manufacturing and services under NIC code 2008 are eligible to access MSME benefits.

While the ‘work contract’ per se is not included in the NIC code, specific activities are covered which are generally assigned as work contract such as welding, polishing, fabrication etc.

The official communique dated Jan 4, 2023 notes, “The Udyam Registration Portal is based on "Economic Activities" taken from NIC Code 2008. So far as Udyam Registration is concerned, for every activity in the dropdown menu of the portal, Udyam Registration can be done.”

There is no activity named "Work Contract" in NIC code 2008.

Some activities on the portal are under major activity “manufacturing” while others come under “Services”. An enterprise might be performing purely manufacturing activities or Services or a combination of both.

It has further clarified that if an enterprise has Udyam Registration, it can avail the benefit(s) of schemes/programmes of this Ministry subject to the prevailing Guidelines/ Circular/ Order/ Notification of that particular scheme/programme.  (KNN Bureau)