Taxmann’s MSME Ready Reckoner – 2nd Edition July 2021

Micro Small & Medium Enterprises (‘MSME’) Ready Reckoner is a comprehensive book on laws governing MSMEs in India. It provides an analysis of all the provisions of the MSME Act, 2006, along with relevant Circulars & Notifications, illustrations, case studies, etc. This book is divided into eights divisions, namely:

• MSMEs – Definition, Classification and Registration
• Benefits to Registered MSMEs
• Benefits to Small Businesses, whether Registered MSMEs or not
• Legal Forms of Organisation MSMEs Can Adopt and Pros and Cons of Choice of various Legal Forms
• Micro Enterprises
• Small Enterprises
• Medium Enterprises
• Start-Ups

The Present Publication is the 2^nd Edition, authored by Taxmann’s Editorial Board and amended up to 2^nd July 2021. The noteworthy features of the book are as follows:

• Ready Reckoner (subject-wise practical guide) for the following:
  • Micro Enterprises
  • Small Enterprises
  • Medium Enterprises
• MSME Reckoner on Turnover-Limit Linked Compliances/Exemptions for the following:
  • Private Company
  • Limited Liability Partnerships
  • Tradition/General Partnership Firms/HUFs/Individuals
• Coverage of COVID-19 Relief Packages, such as:
  • Guaranteed Emergency Credit Line (GECL Scheme)
  • Loan Guarantee Scheme for COVID affected Sectors (LGSCAS)
  • Emergency Credit Lime Guarantee Scheme (ECLGS)
  • Credit Guarantee Scheme for MFIs (CGSMFI)

The detailed contents of this book are as follows:

• MSMEs – Definition, Classification and Registration
  • What is the new definition of ‘Micro Enterprises’, ‘Small Enterprises’ and ‘Medium Enterprises’?
  • How to compute the investment?
  • How to compute turnover
  • Classification of MSMEs based on new composite criteria (with illustrations and case studies)
  • Udyam Registration – How to file Udyam Registration
  • How and when MSMEs will be reclassified
  • What is ‘manufacturing’/‘production’ MSME, and what is ‘service MSME’?
• Benefits to Registered MSMEs
  • What are the benefits available to registered MSMEs under the MSMED Act in respect of protection/remedies against delayed payments by buyers
  • TReDS – Trade Receivables Discounting System
  • Public Procurement Policy
  • What are other benefits available to registered MSME under Central Schemes?
  • Distressed Asset Fund – Subordinated Debt for Stressed MSMEs (DAF-SDSM)/Credit Guarantee Scheme for Subordinate Debt (CGSSD)
• Benefits to Small Businesses, whether Registered MSMEs or not
  • Benefits available to Small Businesses under the Income-tax Act, 1961
  • Presumptive Tax Regime available under Income-tax Act to businesses which are micro-enterprises
  • Presumptive Tax Regime available under Income-tax Act to micro professional enterprises
  • Exemption from compulsory tax audit to micro-enterprises
  • Low tax rate without exemption regime applicable to companies irrespective of size
  • Concessional rate of tax for SME companies without foregoing any exemptions
  • Relaxations in compliances to small companies under Companies Act, 2013
  • Relaxations in compliances to small companies due to COVID-19 outbreak
  • MUDRA Scheme – Funding the Non-Corporate Small Business Sector (NCSBS)
  • PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi): A Special Micro-Credit facility for Street Vendors
  • Guaranteed Emergency Credit Line (GECL Scheme) (as clarified by NCGTC and PIB’s Press release, dated 28-6-2021)
  • 59 Minutes online loan approval for MSMEs
• Legal Forms of Organisation MSMEs Can Adopt and Pros and Cons of Choice of various Legal Forms
  • What legal forms of organisations can MSMEs adopt
  • Sole proprietorship
  • Traditional/General Partnership/Partnership Firm
  • Limited Liability Partnership (LLP)
  • Companies
  • Hindu Undivided Family
• Micro Enterprises
  • Definition of micro-enterprises
  • Legal forms of organisation that are suitable for micro-enterprises
  • Registration as a micro-enterprise
• Small Enterprises
  • Definition of small enterprises
  • Legal forms of organisation that are suitable for small enterprises
  • Registration as a small enterprise
• Medium Enterprises
  • Definition of medium enterprises
  • Legal forms of organisation that are suitable for medium enterprises
  • Registration as medium enterprise
• Start-Ups
  • Definition of Start-up
  • Benefits to DPIIT-recognised start-ups under Start-up India Scheme