Frequently Asked Questions

Micro Small & Medium Enterprises

This is an act for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto

An enterprise, engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the Industries (Development and Regulation) Act, 1951, (IDR Act, 1951) is said to be : (a) a micro enterprise, where the investment in Plant and Machinery does not exceed Rs.25 lakhs; (b) a small enterprise, where the investment in Plant and Machinery is more than Rs.25 lakhs but does not exceed Rs.5 crore; (c) a medium enterprise, where investment in Plant and Machinery is more than Rs.5 crore but does not exceed Rs.10 crores. An enterprise, engaged in providing or rendering of services is said to be : (a) a micro enterprise, where the investment in equipment does not exceed Rs.10 lakhs; b) a small enterprise, where the investment in equipment is more than Rs. 10 lakhs but does not exceed Rs.2 crore; (c) a medium enterprise, where the investment in equipment is more than Rs.2 crore but does not exceed Rs.5 crore.

"Sec. 15 talks about Liability of the buyer to make payment to Micro and Small Enterprise for goods supplied or services rendered by them to buyer. As per this section payment has to be made within such period as agreed between buyer and seller which should not exceed 45 days in any case. Again as per Sec. 16 if a buyer fails to make payment as per Sec. 15 he is liable to pay interest which will be computed at monthly rate and compounded int. at the rates which will be three times of bank rate notified by RBI. Further as per Sec. 23, interest paid or payable as per Sec. 16 will be disallowed as deduction while computing income under Income Tax Act, 1961. Sec. 23 is an overriding section. "

"The investment in Plant and Machinery should be the original value irrespective of whether the Plant and Machinery are new or second hand. In respect of imported machinery, the following is to be included in calculating the value: a. import duty (excluding miscellaneous expenses such as transportation from the port to the site of the factory, demurrage paid at the port); b. shipping charges; c. customs clearance charges and d. sales tax or value added tax The following are excluded while calculating the investment in Plant and Machinery: (i) equipments such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores; (ii) installation expenditure for Plant and Machinery; (iii) research and development equipment and pollution control equipment; (iv) power generation set and extra transformer installed by the enterprise as per the regulations of the State Electricity Board; (v) bank charges and service charges paid to the National Small Industries Corporation or the State Small Industries Corporation. (vi) Procurement or installation of cables, wiring, bus bars, electrical control panels (not mounted on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the Plant and Machinery or for safety measures. (vii) gas producer plants; (viii) transportation charges (excluding sales-tax or value added tax and excise duty) for indigenous machinery from the place of their manufacture to the site of the enterprise. (ix) charges paid for technical know-how for erection of Plant and Machinery. (x) such storage tanks which store raw materials and finished products only and are not linked with the manufacturing process, and (xi) fire fighting equipment. "

If the buyer fails to make payment of the amount to the supplier as required under section 15, then the buyer is liable to pay compound interest with monthly rests on the amount at three times of the bank rate notified by the RBI.

‘Buyer’ means whoever buys any goods or receives any services from a supplier.

Sub-section (n) of section 2 of the Act, defines a supplier. As per the definition, a supplier means a micro or small enterprise, which has filed a memorandum with the District Industries Centre. Further, “supplier” also includes: (i) the National Small Industries Corporation Ltd.; (ii) a company under the Small Industries Development Corporation of a state or a Union territory. (iii) any company, co-operative society, society, trust or body, engaged in selling goods produced by micro or small enterprises and rendering services which are provided by such enterprises.

"As per section 22 of the MSMED ACT, 2006, a buyer in its audited annual statements is required to furnish the following additional information : (a) the principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier as at the end of accounting year; (b) the amount of interest paid by the buyer in terms of section 16 along with the amount of the payment made to the supplier beyond the appointed day during each accounting year; (c) the amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Act. (d) The amount of interest accrued and remaining unpaid at the end of each accounting year; and (e) The amount of further interest due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23. "

"Section 27, of the MSMED Act, 2006 deals with fines/ penalties: Where a person intentionally contravenes or attempts to contravene or abets the contravention of the following: a. where a person fails, to file memorandum, as required under sub-section (1) of section 8 of the MSMED Act, 2006.b. fails to furnish such information as called by an officer appointed under section 26(1) of the MSMED Act, 2006. In case of first conviction, the fine may extend up to Rs.1,000 and in case of second and subsequent conviction, fine shall not be less than Rs.1,000 and can extend up to Rs.10,000. c.where a buyer contravenes the provisions of section 22 of the Act, 2006 i.e. fails to furnish additional information in his annual statement of accounts, sub section(2) of section 27 states that the fine shall not be less than Rs.10,000/-"

UAM is a one-page registration form in a self- declaration format which can be filled online by a Micro, Small or Medium Enterprise (MSME). The MSME will be issued online, a unique identifier i.e. 12-digit Udyog Aadhaar Number which is called the Udyog Aadhaar Memorandum (UAM) Number. It replaces the earlier Entrepreneur Memorandum (EM-I / EM-II) which had a lengthy procedure.

UAM is applicable for Udyog Aadhaar (UA) is for running units only. There is no need to apply for upcoming units.

OTP will come to the Mobile (linked with Aadhaar) at the time of UAM registration

The introduction of UAM as an online user friendly form has reduced the time taken and efforts made in the entire process of applying and verification of the documents for MSME registration.

UAM will help the Micro. Small or Medium Enterprise (MSME) to self-certify its existence, provide bank account details, provide promoter/owner's Aadhaar details and other minimum basic information required for availing benefits

You can apply for Udyog Aadhar Memorandum (UAM) online by visiting the portal http://udyogaadhaar.gov.in

To understand a step-by-step process of applying for UAM, you can visit: https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx where the Guidelines for Fiiling the Online Udyog Aadhaar Form is mentioned

You can view or download the UAM form , which is in pdf format from https://udyogaadhaar.gov.in/Web/doc/English.pdf (Englsih form) and https://udyogaadhaar.gov.in/Web/doc/Hindi.pdf (Hindi form)

A UAM registered MSME will be eligible for all government scheme benefits like guarantor-free loan, easy loan, loan with low rate of interest, etc. The MSME registered enterprises get the financial support from the Government to participate in foreign expo. The enterprise is also entitled for the Government subsidies. Marketing assistance will be provided.

By filing for UAM, every enterprise is protected by MSMED Acr 2006 to ensure timely payment in respect of supply of goods or rendering of services to any buyer.

As per the MSMED Act, if the buyer has purchased goods or aviled services from an MSME which has filed UAM, then the buyer shall make payment on or before the date agreed upon between him and the supplier in writing. The Act further stipulates that if the period between the buyer and supplier is agreed in writing, such period shall not exceed 45 days from the day of delivery of goods or rendering of services.

The time taken to issue a UAM is instantaneous if all the mandatory fields in the form are filled correctly. This is because it is an online process based on self-certification

Yes. After the notification dated 18th September 2015, filing of Entrepreneur Memorandum (EM-I/EM-II) by States/UTs has been discontinued and filing of Udyog Aadhar Memorandum (UAM) is now to be done in the portal http://udyogaadhaar.gov.in

Filing of UAM has been notified from 18th Sept 2015. Cases of EM-I/II filed and under process till 18th Sept 2015 may be accepted.

After 18th Sept 2015, there is only one system i.e. UAM for the registration of new MSME units.

The NIC code can be selected once the aadhaar number is validated and major activity (manufacturing or service) is selected. In order to simplify the selection of appropriate NIC code, a three-stage drop-down list is available to the users. Please visit : https://udyogaadhaar.gov.in/UA/Document/nic_2008_17apr09.pdf

NIC has been advised to suitably provide this provision in a way that several e-procurement portals in the country, created by the government or private but being used by the government could benefit from the UAM portal in so far as online verification of a MSME unit is concerned.

In order to promote ease of doing business for MSMEs, it has been decided to seek lesser information than EM-I/II in the UAM.

The information sought is on self-certification basis and no supporting documents are required at the time of online filing of UAM.

Yes, since the new system constitutes self declaration format, the change in the line of productions accordingly may be incorporated.

At present Aadhaar Number is mandatory for registration under UAM. However, the DIC will find a way out for covering those cases where Aadhaar Number is not available.

To update your Udyog Aadhaar you can visit: https://udyogaadhaar.gov.in/UA/UA_EntrepreneurLogin.aspx

Legally, the EM-I does not exist after 18th Sept 2015. States/UTs will provide all benefits/concessions to MSMEs based on UAM only.

No. However, GM DICs , on the UAM portal, shall be able to enter their remarks on the respective information provided by the entrepreneurs while filing the UAM online.

The UAM Portal shall have suitable provisions to allow officials of the State Governments including GM DICs to have password protected access to data of their jurisdiction.

Presently the NIC Codes are only available in English. However, the same may be made available in Hindi in due course.

Since the UAM is being filing on self certification basis and the Udyog Aadhaar Number is generated instantly, there cannot be any monitoring of the registration process. However, the enterprises filing the UAM online are liable to provide documentary proof of information provided in the UAM, wherever necessary, to the Central Government, State Government or such person as may be authorized.

Power load indicates the requirement of energy to the MSME unit. This has no relevance to the activity of the enterprise and the subject matter is dealt by the State/UT Governments.

It may not be made obligatory for the closing unit to inform about it to the State/UT concerned or the UAM portal.

The Udyog Aadhaar Registration can be done online by individuals themselves in case they have an Aadhaar Number. However, in all exceptional cases, including those of not having Aadhaar number, can still file Udyog Aadhaar Memorandum ,in offline mode(i.e. on paper form), with the General Manager(GM) of the concerned District Industries Centre(DIC). The same has also been notified in the gazette dated 18-09-15.  The persons having Aadhaar numbers, by virtue of having provided the demographic as well as biometric details to the state, once and for all, indeed enjoy a greater ease of registration at the UAM portal.

The Ministry of MSME had in September 2015 notified Udyog Aadhaar, where the objective would be to simplifying procedures to start a business with a single-page registration form. A large number of enterprises in India were not registered due to the cumbersome paperwork involved in the process and, therefore, could not tap the government schemes for them. The concept of Udyog Aadhaar and ease of registration ensures wider coverage of MSMEs to avail the benefits under various Schemes of Central/ State governments.

For nay complaint, an entrepreneur can visit: https://udyogaadhaar.gov.in/UA/Complaint_regtister.aspx

Depending upon the pollution and hazard potential of industrial activities, the industries are categorized as red, orange, green, white and exempted.

West Bengal Pollution Control Board (WBPCB) in line with the directions of Central Pollution Control Board (CPCB) has issued new categorization of industries vide Memo No. Memo No.: 1512/4A-18/2010 (Pt.I) Date: 14.06.2016. To categorize your enterprise, please visit the following URL:http://www.wbpcb.gov.in/writereaddata/files/Category-Order%2030-6-2016.pdf

Application is required to be submitted before setting up of industry and for expansion/ upgradation of the industry.

You will have to apply online through : http://emis.wbpcb.gov.in/

For details please visit http://www.wbpcb.gov.in/pages/display/45-consent-to-establish.

"Yes, please go through the Memo No.1749-4A-6/2015 (Part I) Dated: 17/06/2015 of WBPCB. For details please visit http://www.wbpcb.gov.in/writereaddata/files/Order_auto_renewal_Consent_establishment.pdf "

You will have to apply online through : http://emis.wbpcb.gov.in/emis/citizen/noc/emis040101prev_pre.do

Running units and the units starting operation after establishing as per NOC issued by the Board have to apply for consent to operate.

You will have to apply online through : http://emis.wbpcb.gov.in/

For details please visit http://www.wbpcb.gov.in/pages/display/46-consent

"Yes, please go through the Memo No. 1644-4A-6/2015 (Part I) Dated: 17/06/2015 of WBPCB. For details please visit http://www.wbpcb.gov.in/writereaddata/files/Order_auto_renewal_Consent_establishment.pdf "

You will have to apply online through : http://emis.wbpcb.gov.in/emis/citizen/co/emis040201prev_pre.do

"The conditions for auto renewal of Consent to Operate is as under i) The auto renewal of consent to operate will be applicable for the activities where there is no change in production capacity and pollution load as recorded through the last on-line application for consent. ii) The auto renewal of consent will be applicable if capital investment remains same or changes provided there is no change in production capacity and pollution load. iii) Applicant / industry shall submit a self-certification on compliance of earlier consent conditions. This self-certification shall be duly authorized by the Owner / Board of Directors. iv) The renewal applications shall be filed at least 120 days prior to expiry of the consent to operate validity period. "

"There is no necessity of obtaining consent for White Category of industries and an intimation to WBPCB is sufficient. Visit URL:http://www.wbpcb.gov.in/writereaddata/files/Category-Order%2030-6-2016.pdf "

"Industry / industrial activity mentioned in the Exempted category need not apply for either „Consent to Establish‟ or „Consent to Operate‟ from the Board. Visit URL:http://www.wbpcb.gov.in/writereaddata/files/Category-Order%2030-6-2016.pdf "

For both 'Consent to Establish' and 'Consent to Operate' application fee depends on the Gross Capital Investment on land, building and plant machinery of the project.

Payment can be made through online payment system i.e. i) through Net Banking; ii) through debit card/ credit card in addition to the offline payment system i.e. over the counter payment at any branch of United Bank of India in West Bengal through system generated challan only.

Under Memo No. 1114-4A-6/2015(Part I) dt. 09.05.2016 of WBPCB, validity period of Consent to Establish (NOC) has been extended to 7 years from 5 years.

5 Years for ‘Red’ Category and 'Orange' category enterprises and 7 years for 'Green' category enterprises (order no. 1646-4A-7/2016 dtd. 28/06/2016 of WBPCB).

"The Department of Environment, Govt. of West Bengal, has been decided to allow Third Party verification towards environmental compliance of medium risk (Orange Category) industries in the State vide memo no. 3126-4A-6/2015 dated. 18.11.2016 of WBPCB. The list of such organizations as empanelled are available in the Board’s website at the link- http://www.wbpcb.gov.in/pages/display/118-laboratory-recognition "

"The time limits fixed for processing applications for Consent to Establish : 1. Red -60 days 2. Orange- 30 days 3. Green- 15 days "

You have to apply again for new category. For online application visit URL : http://emis.wbpcb.gov.in/

Pollution Certificate is location specific. Hence you have to apply again for fresh registration for new / changed location. For online application visit URL : http://emis.wbpcb.gov.in/

You have to intimate the certificate issuing authority regarding the change of organization structure and the authority will amend the same in the certificate.

Hazardous Waste Authorisation is required for the generation, collection, reception, storage, transportation, treatment, disposal or any other manner of handling of hazardous and other wastes listed in Schedules I, II and Parts B & D of Schedule III of the Hazardous Wastes (Management and Transboundary Movement) Rules, 2016

"• Industrial units generating, collecting, receiving, storing, transporting, treating, disposing or handling hazardous and other wastes • Units/godowns/warehouses of hazardous substances (i.e. pesticides, medicines, etc.) having regular generation of contaminated, discarded or off-specification materials • Laboratories/vehicle service stations, etc. storing or using hazardous substances and having regular generation of hazardous wastes like spent chemicals and solvents, chemical or oil contaminated filters or cloth, chemical or oil bearing residues, etc. • Units engaged in the recycling or reprocessing of hazardous and other wastes • Units providing service of collection/ reception/ storage/ transport/ treatment/ disposal of hazardous wastes and bio-medical wastes. "

You will have to apply online through : http://emis.wbpcb.gov.in/emis/JSP/citizen/hwa/citizen_hwa.jsp

For details please visit http://www.wbpcb.gov.in/pages/display/47-hazardous-waste-authorisation

"The time limits fixed for processing applications for Hazardous Waste Authorisation : 1. Red -60 days 2. Orange- 30 days 3. Green- 15 days"

Bio-medical Waste Authorisation is required for the generation, collection, reception, storage, transportation, treatment, disposal or any other manner of handling of biomedical wastes listed in Schedule 1 of the Bio-medical Wastes Management Rules, 2016.

"• As per Section 10 of the Bio-medical Waste Management Rules, 2016, every occupier or operator handling bio-medical waste, irrespective of quantity, is required to obtain Authorisation. • As per Section 3(m) of the said rules, an occupier is a person having administrative control over the institution and premises generating bio-medical wastes, which includes a hospital, nursing home, clinic, dispensary, vetrinary institution, animal house, pathological laboratory, blood bank, health care facility and clinical establishment, irrespective of their system of medicine and by whatever name they are called. • As per Section 10(n) of the said rules, operator means a person who owns or controls a Common Bio-medical Waste Treatment Facility (CBMWTF) "

"You will have to apply online through : http://emis.wbpcb.gov.in/emis/JSP/citizen/bwa/citizen_bwa.jsp "

The time limit fixed for processing applications for Bio-medical Waste Authorisation is 60 days