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Plant and Machinery Data in Udyam Registration Certificate via ITR

Puja Sharma
July 23rd, 2020 · 2 min read

The Ministry of Micro Small and Medium Enterprises vide its Notification No. S.O. 2119(E) dated 26th June 2020 notified the new classification criteria for MSMEs and the new policy documents for registration of MSMEs now Udyam with the Government.

The Government of India stepped towards digitization long back with the introduction of MCA21 for incorporation of Company & LLP. Later the government introduced online e-filing/registration for all its major department. One such milestone in this direction was the introduction of Udyam Registration (earlier Udyog Aadhaar Memorandum). The Government introduced the concept of Udyam (or ‘Enterprises’) with effect from 1st July 2020 earlier known as Udyog Aadhaar Registration. In our previous blog, we discussed in detail about Udyam Registration and the registration process. We highlighted, how the MSMEs will now be classified not only on the basis of their investment in plant & machinery and equipment but also on the basis of their turnover. All enterprises who wants to register itself under the MSME Act, 2006 have to apply for Udyam Registration on the portal.

The Udyam Registration process is fully online, paperless and based on self-declaration. No documents or other proofs are required to be submitted for the registration. Aadhar number is mandatory for all category of enterprises.

Since, the classification of the enterprise will be dependant upon the value of plant & machinery and turnover, the Ministry of Micro, Small and Medium Enterprises (MoMSME) have developed fully integrated system with Income Tax and Goods & Services Tax portal. Any applicant registering with Udyam portal shall submit the following information:

  1. Aadhar Number (in case of Partnership Firm/LLP/Company Aadhaar number of authorised representative)
  2. Type of Organisation
  3. PAN
  4. If PAN is there then select the ITR Form filed for FY -2018-19.
  5. Do you have GST Registration?
  6. Mobile & Email ID
  7. Social Category, Gender
  8. Name of Enterprise & Plant location (This data will be enabled after verification from GSTN)
  9. Official address of Enterprise
  10. Status & Type of business of Enterprise
  11. Investment in Plant and Machinery or Equipment & Turnover (This data will be enabled after verification of Udyam Registration form Income Tax)
  12. District Industry Centre

Now, the classification of the enterprise will be reviewed by MoMSME on the basis of the data extracted from Income Tax and Goods and Services Tax department. When an Income Tax Return is filed by a business enterprise, balance sheet which includes assets and liabilities, is reported in the Income Tax Form. The value of investment in plant & machinery mentioned in this form will be extracted by the MoMSME for data analysis. To enable this data sharing process, an MOU(Memorandum of Understanding) was signed on 20th July 2020 between the Central Board of Direct Taxes (CBDT) and the Ministry of Micro, Small and Medium Enterprises, Government of India (MoMSME) for sharing of data by CBDT to MoMSME. This MOU will enable seamless sharing of Income-Tax Return (ITR) related information by the Income Tax Department to MoMSME. This information shared through this MOU will facilitate the MoMSME to check the classification of the MSME as per the new criteria notified with effect from 1st July 2020.

Thus, the government is marching towards the complete digital era where it will connect multiple data sources and check the compliances & eligibility of the business enterprises.

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