Udyam Registration

Udyam Registration

Main Features :

  1. Udyam registration, as of now, is applicable to manufacturing &/or processing enterprises & to service providing enterprises – Trading activity is not covered under Udyam registration.
  2. Udyam registration is applicable w. e. f. 01.07.2020.
  3. All existing enterprises registered under EM–Part-II or Udyog Aadhar Memorandum shall re-register themselves on the Udyam Registration portal before 31.03.2021.
  4. All enterprises registered till 30thJune, 2020, shall be re-classified in accordance with the new notification specifying revised limits of recognition of an enterprise as a micro, small or medium scale units / enterprises.
  5. In the case of businesses linked to a single PAN with different GST Numbers, collective investment in plant & machinery as well as collective turnover of an enterprise in various businesses linked to a single PAN shall be considered in order to decide category of unit as micro, small or medium enterprise.
  6. Re-classified limits of micro, small & medium scale manufacturing / service providing units :

Scale of unit

Investment limit in plant machinery & turnover limit

(both limits are applicable to a single PAN Number of business)

Micro unit

Investment in plant & machinery (w. d. v.) < Rs. 1.00 Cr.

& turnover in business (excluding exports) < Rs. 5.00 Cr.

Small unit

Investment in plant & machinery (w. d. v.) < Rs. 10.00 Cr.

& turnover in business (excluding exports) < Rs. 50.00 Cr.

Medium unit

Investment in plant & machinery (w. d. v.) < Rs. 50.00 Cr.

& turnover in business (excluding exports) < Rs. 250.00 Cr.

  1. Investment in Plant & Machinery shall be linked to Income Tax Return (ITR) of latest previous year filed under Income Tax Act. This means, investment in plant & machinery shall be on written down method & not on gross investment basis.
  2. In the case of new enterprises, self-declaration of category of an enterprises (till the time its 1stIncome Tax Return gets filed) shall be base for its Udyam Registration.
  3. Cost of plant & machinery for Udyam registration shall be invoice value less GST applied thereon.
  4. Turnover of export of goods &/or services shall be excluded while determining category of the unit. Also, the amounts of export turnover shall be cross checked & verified with Income Tax return & GST returns filed by an applicant unit.
  5. An enterprise can file its all manufacturing & / or service activities in a single Udyam registration.
  6. Aadhar number of proprietor / Karta of HUF / authorized signatory is mandatory for Udyam registration.
  7. Plant & Machinery :

Items covered :

As per prevailing Appendix I of Income Tax Rules, 1962.

  • Machinery & Plant
  • Motor cars, aeroplanes, motor buses, motor lorries, motor taxies, other commercial vehicles
  • Moulds
  • Specified air pollution control equipment, water pollution control equipment & solid waste control equipment
  • Specified life-saving medical equipment
  • Computers including computer software
  • Specified energy saving devices
  • Specified renewable energy devices
  • Other specified assets as per Appendix I of I-Tax Rules.
  1. Items not covered :

As per Appendix – I of I. T. Rules :

  • Electrical fittings (Electrical wiring, switches, sockets, other fittings & fans etc.) (These items are covered under `furniture & fittings’)
  • Wells & tubewells, water treatment systems (These items are covered under ‘building’)
  • Intangible assets (Know-how, patents, copyrights, trademarks, licenses, franchises or any other business or commercial rights of similar nature.
  • Ships & likes mainly used for dredging purposes & fishing vessels & vessels operating in inland waters.

As per Sec. 7(1) – Explanation 1 of MSMED Act :

  • Cost of pollution control devices,
  • Cost of research & development devices
  • Cost of industrial safety devices
  • Cost of such other items, as may be specified by notification.
  1. The existing enterprises registered under EM-Part II or Udyog Aadhar prior to 30th June, 2020, shall continue to be valid only for a period up to the 31.03.2021.
  2. An enterprise having Udyam Registration Number shall update its information online in the Udyam Registration portal, including the details of the ITR and the GST Return for the previous financial year and such other additional information as may be required, on self-declaration basis.
  3. Failure to update the relevant information within the period specified in the online Udyam Registration portal will render the enterprise liable for suspension of its status.
  4. Subject to prevailing terms & conditions, an upward graduation (from a lower to a higher category) or reverse-graduation (sliding down to lower category) of an enterprise is permissible.
  5. With new facility, an enterprise can update / cancel its Udyog Aadhar as well as Udyam Registration.

Disclaimer :

With dynamic changes taking place in applicable Acts & Rules related thereto, visitors / users are advised to verify prevailing applicable rules & regulations before taking any action for Udyam registration.

#udyam #udyamregistration #MSMEregistration #udyogaadhar

To obtain list of data / documents required for Udyam registration, pl. provide your contact details :

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