New Delhi, Oct 19 (KNN) The Ministry of MSME notified on Tuesday that an enterprise shall continue to avail of all non-tax benefits of the category it was in before the re-classification, for a period of three years from the date of such upward change.

The notification replaces the old text with the new insertion: "(5) In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise shall continue to avail of all non-tax benefits of the category (micro or small or medium) it was in before the reclassification, for a period of three years from the date of such upward change."

This decision has been taken after due deliberations with MSME stakeholders and is in line with the Aatma Nirbhar Bharat Abhiyan, said the official statement.

It clarifies that if in case an enterprise sees an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, it can still avail all non-tax benefits of the category it was in before the re-classification.

Instead of one year the MSME Ministry has allowed those registered MSMEs to continue to avail of non-tax benefits for three years.

Non-tax benefits include benefits of various schemes of the Government, including Public Procurement Policy, Delayed Payments, etc.

Federation of Indian Micro and Small & Medium Enterprises (FISME) has welcomed the move and thanked the Government for positively responding to request of MSMEs .

“A large number of small enterprises suddenly became ineligible after reclassification. Some were in the middle of tendering process. The clarification will help clear the air,” said Prashant Patel, President FISME.     

View notification here: http://dcmsme.gov.in/Notification%20no%204926%20E%20dated%2018%20Oct%202022%20related%20to%20Non%20tax%20benefits.pdf

(KNN Bureau)