Taxmann MSME Ready Reckoner – 3rd Edition May 2022

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 in an easy-to-read FAQ format, along with relevant Circulars & Notifications, illustrations, case studies, etc.

This book is a handy referencer for MSMEs and professionals associated with the MSME sector.

This book is divided into eight divisions, namely:

• MSMEs – Definition, Classification and Registration
• Benefits to Registered MSMEs
• Benefits to small businesses, whether registered MSMEs or not
• Legal forms of organisation MSME can adopt and pros & cons of choice of various legal forms
• Micro Enterprises
• Small Enterprises
• Medium Enterprises
• Start-Ups

The Present Publication is the 3^rd Edition, authored by Taxmann’s Editorial Board. The law stated in the book is amended up to 6^th May 2022, with the following noteworthy features:

• [Ready Reckoner(s)] (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
  • Public Company
  • Limited Liability Partnerships
  • Tradition/General Partnership Firms
  • HUFs/Individuals
• [Draft National Policy] for MSMEs in India
• [Udyam Registration] How to file Udyam Registration
• [Benefits available for Registered MSMEs under MSMED Act] in respect of the following for delayed payment by buyers:
  • Protection
  • Remedies
• [TreDS] Trade Receivables Discounting System
• Benefits from MSME Fund
• [Pre-Packaged Insolvency Resolution Process] for debt stressed corporate MSMEs
• Public Procurement Policy
• [Central Government Schemes] for MSMEs
• [MUDRA Scheme] for funding the Non-corporate Small Business Sector (NCSBS)
• [Online Loan Approval in 59 Minutes] for MSMEs
• [Guaranteed Emergency Credit Line (GECL)] for MSMEs

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’ or ‘production’ MSME, and what is ‘service MSME’?
• Benefits to Registered MSMEs
  • Benefits from MSME Fund
  • What are the benefits available to registered MSMEs under the MSMED Act in respect of protection/remedies against delayed payments by buyers
  • Factoring & TReDS – Trade Receivables Discounting System
  • What are other benefits available to registered MSMEs under Central Schemes?
  • Distressed Asset Fund – Subordinated Debt for Stressed MSMEs (DAF-SDSM)/Credit Guarantee Scheme for Subordinate Debt (CGSSD)
  • The pre-packaged insolvency resolution process for MSMEs who are corporate (i.e., Companies/LLPs)
• 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 the Companies Act, 2013
  • Relaxations in compliances to small companies due to the 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
  • Emergency credit line guarantee scheme of Rs. 4.5 lakh crore
  • 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 a medium enterprise
• Start-Ups
  • Definition of Start-up
  • Benefits to DPIIT-recognised start-ups under Start-up India Scheme