Frequently Asked Questions
-
Q 1 . What kind of business comes under MSME?
Ans : All Business activities – Services and Manufacturing are covered in MSME sector except activities as mentioned in O.M. 5/2(1)/2020-P&G/Policy dated 17.07.2020.
Q 2 . Is GST mandatory for MSME?
Ans : As per para 5(3) of the Notification no. S.O. 2119(E) dated 26.06.2020, the turnover related figures of such enterprise which do not have PAN will be considered on self-declaration basis for a period up to 31st March, 2021 and thereafter, PAN and GSTIN shall be mandatory.
Q 3 . Are traders eligible for MSME?
Ans : As per the current definition of MSME, wholesale and Retail trade (vide O.M. 5/2(1)/2020-P&G/Policy dated 17.07.2020) are not eligible to register as MSMEs.
Q 4 . How many days it will take to get MSME certificate?
Ans : To facilitate the procedure of MSME registration in accordance with the revised MSME definition, Ministry of MSME launched a new portal – Udyam Registration Portal (udyamregistration.gov.in), on 1st July 2020.
It is a unified portal with registration process that is free of cost, paperless and digital. The portal is aimed at reducing transaction time and costs for entrepreneurs and promote Ease of Doing Business. Generally it takes 2-3 days, in cases wherein GST/PAN details are part of registration. Those without PAN details, the certificate is available on the same day.
Q 5 . Which services are covered under MSME?
Ans : All services are covered under MSME except activities as mentioned in O.M. 5/2(1)/2020-P&G/Policy dated 17.07.2020.
Q 6 . What is difference between MSME, MSE and SME?
Ans : MSME stands for Micro, Small, and Medium Enterprises whereas MSE stands for Micro and Small Enterprises and SME stands for Small and Medium Enterprises. In some countries SME is more frequently in use.
Q 7 . What is the eligibility for MSME?
Ans : MSMEs have been defined vide Notification No. S.O.2119(E) dated 26.06.2020.
Q 8 . Does travel agency come under MSME?
Ans : All services are covered under MSME except activities as mentioned in O.M. 5/2(1)/2020-P&G/Policy dated 17.07.2020. Accordingly, Travel Agency is covered under
-
Q 1 . What are the measures announced by the government under “Atmanirbhar Bharat 3.0” to mitigate unemployment due to COVID 19 pandemic?
Ans : In order to incentivize job creation during COVID-19 recovery phase, the government has launched “AatmaNirbhar Bharat Rozgar Yojana”which aims to provide benefit to both enterprise and jobseeker registered under EPFO.
Q 2 . Are firm/establishment also eligible to avail benefits under “AatmaNirbhar Bharat Rozgar Yojana”?
Ans : Yes, the Central Govt. has announced to provide subsidy for two years in respect of new eligible employees drawing monthly wages less than Rs. 15,000, engaged on or after 01.10.2020 at following scale:
- Establishments employing up to 1000 employees: Employee’s contributions (12% of Wages) & Employer’s contributions (12% of wages) totaling 24% of wages
- Establishments employing more than 1000 employees: Only Employee’s EPF contributions (12% of EPF wages)
Q 3 . Till when is the Emergency Credit Line Guarantee Scheme been extended?
Ans : The Emergency Credit Line Guarantee Scheme has been extended till March 31, 2021.
Q 4 . Who are eligible to avail benefits under the extended term of ECLG scheme?
Ans : Under the ECLG 2.0 scheme, MSMEs, businesses, individual loans for business purposes and MUDRA borrowers are eligible under the scheme.
Q 5 . Are there any additional benefits extended under Emergency Credit Line Guarantee Scheme 2.0?
Ans : With a view impetus to the economic activity during COVID 19 recovery phase, the government has announced Emergency, Credit Line Guarantee Support Scheme 2.0 (ECLGS 2.0) for Healthcare sector and 26 stressed sectors with credit outstanding of above Rs. 50 crore and up to ₹ 500 Crores on 29.2.2020 stressed due to COVID-19.
Q 6 . What are the additional measures announced for MSMEs under Emergency Credit Line Guarantee Scheme?
Ans : Under the Scheme, Entities will get additional credit up to 20% of outstanding credit with a tenor of five years, including 1-year moratorium on principal repayment. This scheme will be available till 31.3.2021.
Q 7 . Which sectors have been added under Production-Linked Incentives Scheme?
Ans : The government has announced 10 more Champion Sectors which will be covered under the Production Linked Incentives Scheme with a total amount of nearly 1.5 Lakh Crore to help boost competitiveness of domestic manufacturing. The ten sectors are – Advance Cell Chemistry Battery, Electronic/Technology Products, Automobiles & Auto Components, Pharmaceuticals Drugs, Telecom & Networking Products, Textile Products, Food Products, High Efficiency Solar PV Modules, White Goods (ACs & LED), and Specialty Steel.
Q 8 . What are the additional benefits announced under PM Awaas Yojana – Urban to deal with the current COVID 19 crisis?
Ans : Under the scheme, the government has allotted ₹18,000 crore additional outlay over and above Rs. 8000 Crore already allocated this year.
Q 9 . What relief measures have been announced for Construction & Infrastructure sector ?
Ans : To provide ease of doing business and relief to contractors whose money otherwise remains locked up, performance security on contracts has been reduced from 5-10% to 3%. It will also extend to ongoing contracts and Public Sector Enterprises.
Q 10 . What relief measures have been taken under Real estate sector?
Ans : With a view to provide income tax relief to both developers and buyers, the differential between circle rate and agreement value in real estate income tax under Section 43 CA of IT Act has been increased from 10% to 20%. Consequential Relief up to 20% shall also be allowed to buyers of these units under section 56(2)(x) of IT Act till June 30, 2021.
Q 11 . What relief measures have been taken under Agriculture sector?
Ans : As fertilizer consumption is going up significantly, ₹65,000 Crore is being provided to ensure increased supply of fertilizers to farmers to enable timely availability of fertilizers in the upcoming crop season.
Q 12 . Is there any support announced for strengthening rural economy?
Ans : With a view to revive and strengthen rural economy and provide employment opportunity, the government has allocated additional outlay of ₹10,000 Crore under PM Garib Kalyan Rozgar Yojana.
Q 13 . What measures are being taken under the “AtmaNirbhar Bharat 3.0” to boost export from the country?
Ans : ₹3,000 Crore boost is being provided to EXIM Bank for promoting project exports under Indian Development and Economic Assistance Scheme (IDEAS Scheme). This will help EXIM Bank facilitate Lines of Credit development assistance activities and promote exports from India.
Q 14 . What is the budget allocated for capital and industrial expenditure under the “AtmaNirbhar Bharat 3.0”?
Ans : ₹10,200 Crore additional budget stimulus is being provided for capital and industrial expenditure on domestic defence equipment, industrial infrastructure and green energy.
Q 15 . What steps are being taken to ensure production of COVID 19 Vaccine?
Ans : Giving due importance to the current global pandemic and to ensure focused effort to arrest the spread, the government has allocated Rs. 900 crores under COVID Suraksha Mission for Research and Development of Indian COVID Vaccine to Department of Biotechnology.
-
Q 1 . What are the measures announced by the government under “Atmanirbhar Bharat” for MSMEs?
Ans : Ans : Keeping in view the hardship faced by MSMEs during COVID 19 pandemic crisis, the government has announced several measures intended to provide the necessary support to deal with the current economic crisis such as:
Rs 3 lakh crore Collateral-free Automatic Loans
Rs 20,000 crore Subordinate Debt for Stressed MSMEs
Rs 50,000 croreEquity infusion for MSMEs through Fund of Funds
Global tenders to be disallowed up to Rs 200 crore
Revised definition of MSMEs
All receivables of MSMEs will be cleared by Government and PSU in 45 days
Q 2 . What is the Credit Guarantee Scheme for MSEs (CGTMSE)?
Ans : The Ministry of MSME, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) with a view to facilitate flow of credit to the MSE sector without the need for collaterals / third party guarantees. The main objective of the scheme is that the lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed. The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of a MSE unit, which availed collateral – free credit facilities, failing to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 85 per cent of the outstanding amount in default.
The CGTMSE would provide cover for credit facility up to Rs. 200 lakh which have been extended by lending institutions without any collateral security and /or third-party guarantees. A guarantee and annual service fee is charged by the CGTMSE to avail of the guarantee cover. For more details you may visit www.cgtmse.in.
Q 3 . What is Trade Receivables Discounting System (TReDS)?
Ans : The objective of TReDS is to create Electronic Bill Factoring Exchanges which could electronically accept and settle bills so that MSMEs could encash their receivables without delay. This will not only give them greater access to finance but will also put greater discipline on corporates to pay their dues on time. For more details you may refer to RBI guidelines for setting up and operating TReDS on their website https://www.m1xchange.com/treds.php.
Q 4 . What is Trade Receivables Discounting System (TReDS)?
Ans : The objective of TReDS is to create Electronic Bill Factoring Exchanges which could electronically accept and settle bills so that MSMEs could encash their receivables without delay. This will not only give them greater access to finance but will also put greater discipline on corporates to pay their dues on time. For more details you may refer to RBI guidelines for setting up and operating TReDS on their website https://www.m1xchange.com/treds.php.
Q 5 . Who are the participants in TReDS?
Ans : Sellers, buyers and financiers are the participants on a TReDS platform.
Q 6 . Who can participate as a seller in TReDS?
Ans : Only MSMEs can participate as sellers in TReDS.
Q 7 . Who can participate as a buyer in TReDS?
Ans : Corporates, Government Departments, PSUs and any other entity can participate as buyers in TReDS.
Q 8 . Who can participate as a financier in TReDS?
Ans : Banks, NBFC – Factors and other financial institutions as permitted by the Reserve Bank of India (RBI), can participate as financiers in TReDS.
Q 9 . How does TReDS work?
Ans : Broadly, following steps take place during financing / discounting through TReDS:
– Creation of a Factoring Unit (FU) – standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange – containing details of invoices / bills of exchange (evidencing sale of goods / services by the MSME sellers to the buyers) on TReDS platform by the MSME seller (in case of factoring) or the buyer (in case of reverse factoring);
– Acceptance of the FU by the counterparty – buyer or the seller, as the case may be;
– Bidding by financiers;
– Selection of best bid by the seller or the buyer, as the case may be;
– Payment made by the financier (of the selected bid) to the MSME seller at the agreed rate of financing / discounting;
– Payment by the buyer to the financier on the due date.
Q 10 . What is a Factoring Unit (FU)?
Ans : A Factoring Unit (FU) is a standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange. Each FU represents a confirmed obligation of the corporates or other buyers, including Government Departments and PSUs.
Q 11 . Who can participate as a financier in TReDS?
Ans : Banks, NBFC – Factors and other financial institutions as permitted by the Reserve Bank of India (RBI), can participate as financiers in TReDS.
Q 12 . How does TReDS work?
Ans : Broadly, following steps take place during financing / discounting through TReDS:
– Creation of a Factoring Unit (FU) – standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange – containing details of invoices / bills of exchange (evidencing sale of goods / services by the MSME sellers to the buyers) on TReDS platform by the MSME seller (in case of factoring) or the buyer (in case of reverse factoring);
– Acceptance of the FU by the counterparty – buyer or the seller, as the case may be;
– Bidding by financiers;
– Selection of best bid by the seller or the buyer, as the case may be;
– Payment made by the financier (of the selected bid) to the MSME seller at the agreed rate of financing / discounting;
– Payment by the buyer to the financier on the due date.
Q 13 . What is a Factoring Unit (FU)?
Ans : A Factoring Unit (FU) is a standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange. Each FU represents a confirmed obligation of the corporates or other buyers, including Government Departments and PSUs.
Q 14 . Who can create a FU?
Ans : In TReDS, FU can be created either by the MSME seller or the buyer. If MSME seller creates it, the process is called factoring; if the same is created by corporates or other buyers, it is called as reverse factoring.
Q 15 . Whether TReDS could deal with reverse factoring?
Ans : Yes. The TReDS could deal with both receivables factoring as well as reverse factoring.
Q 16 . Whether the MSME seller would have to pay to the financier in case the buyer defaults in repayment?
Ans : No. The transactions processed under TReDS are “without recourse” to the MSMEs.
Q 17 . Whether any authorization is required to set up and operate a TReDS platform?
Ans : Yes, authorization is required to be obtained from RBI under the Payment and Settlement Systems (PSS) Act, 2007.
Q 18 . Whether TReDS entities undertake KYC (Know Your Customer) of participants?
Ans : Yes. The KYC process adopted by the TReDS entities shall adhere to the “Master Direction – Know Your Customer (KYC) Direction, 2016” dated February 25, 2016 (as amended from time to time) issued by RBI.
-
Q 1 . What benefits do the MSME Technology Centres of Ministry of MSME provide to MSMEs?
Ans : MSME Technology Centres are equipped with state-of-the-art machinery & equipment. They are engaged in designing and manufacturing of quality tools, which are necessary for producing quality products and improve the competitiveness of MSMEs in national and international markets. They also conduct training programmes to provide skilled manpower to industries specially MSMEs. The placement of trainees trained in Tool Room is more than 90%. There are 18 Technology Centres under DC (MSME), a list of MSME Technology Centres and their details is available in the website http://dcmsme.gov.in/Toolroom_tdcs.htm .
Q 2 . What support is provided by the Ministry for improving manufacturing competitiveness?
Ans : To enhance the competitiveness amongst the MSMEs, there are six components for capacity building, technology upgradation, design interventions, products, IP rights to improve the productivity and handhold to deliver top quality productivity using lean technologies, to nurture ideas from professional beyond the traditional and to make MSME digitally powered under the umbrella program of Credit linked Capital subsidy Scheme and Technology Upgradation (CLS-TUS)
Lean Manufacturing Competitiveness Scheme for MSMEs: Financial assistance up to Rs. 36 lakh(Max. per mini cluster of 10 units, minimum 4 units for a period 10 months or till the completion)
Zero Defect and Zero Effect: Reimbursement for obtaining National and International standard certification
Digital MSME: Assistance is being provided for business solution software i.e ERP, etc. though e-platforms
Intellectual Property Rights: Reimbursement for registration of patent, trade mark, geographical indication (GI) are:
Domestic Patent: up to Rs. 1 lakh
Foreign Patent: up to TRs. 5 lakh
GI Registration: up to Rs. 2 lakh
Trademark: up to 0.10 lakh
Financial support up to 1.00 Cr. for setting up IP facilitation centres for a period of 5years.
Design Expertise to Manufacturing MSME Sector: Financial assistance to MSMEs for engagement of design consultants for design interventions (for the project range Rs. 15 lakhto Rs. 40 lakh)
Financial assistance of Rs. 1.5 lakh for final year student project done for MSMEs
Support for Entrepreneurs and Managerial Development of MSMEs through incubators: Financial support for untiring for developing of idea: maximum up to Rs. 15.00 lakh Details may be seen at http://www.dcmsme.gov.in/schemes/clcs-tus_scm.htm
The applicant may apply through online portal https://my.msme.gov.in/MyMsme/Reg/Home.aspx
Q 3 . Whether there is any scheme for assisting MSMEs for Intellectual Property Rights?
Ans : Under the National Manufacturing Competitiveness Programme (NMCP) to enhance the competitiveness of the SMEs sector, O/o DC (MSME) is implementing a scheme “Building Awareness on Intellectual Property Rights (IPR)” for the MSME. The objective of the scheme is to enhance awareness of MSME about Intellectual Property Rights (IPRs) to take measure for the protecting their ideas and business strategies Accordingly, to enable the MSME sector to face the present challenges of liberalization, various activities on IPR are being implemented under this scheme. For further details please visit https://my.msme.gov.in/MyMsme/Reg/Home.aspx
Q 4 . What is CLCSS?
Ans : Credit Linked Capital Subsidy Scheme (CLCSS) is for technology upgradation of Micro and Small enterprises (MSEs) in the country.
Q 5 . Whether the CLCSS is in operation at present?
Ans : The scheme is continued w.e.f.01.04.2017 and implemented as per pre-revised guidelines, the revised guidelines will be effective from 13.08.2019 and its amendments from time to time, the present validity of the CLCS Component of CLCSTU scheme is extended up to 31st March 2020. For more details please visit on the URL: http://dcmsme.gov.in/CLCS-TUS-Revised-Guidelines.pdf
Q 6 . When CLCSS was launched?
Ans : The Scheme was launched in the financial year 2000-2001.
Q 7 . What were the salient features of the CLCSS?
Ans : Under the scheme, 15 per cent capital subsidy, limited to maximum of Rs 15 lakh is provided to the eligible MSEs for upgrading their technology with the well-established and improved technology as approved under the scheme.
Q 8 . How many products/ sub-sectors have been approved under the CLCSS?
Ans : 51 products/sub-sectors have been approved under the CLCSS till date.
Q 9 . How can I get benefit under the Scheme?
Ans : If you are an MSE manufacturing a product and want to upgrade the technology of manufacturing the product with the well-established and improved technology as approved under the Scheme, the unit can approach to the nodal Banks/Agencies /Eligible financial institution for sanction of term loan for purchase of eligible machinery. The financial institutions /nodal banks/agency will sanction & recommend the subsidy eligible applicant to this office. To know more about this scheme, please follow the link http://dcmsme.gov.in/CLCS-TUS-Revised-Guidelines.pdf
Q 10 . Which are the Nodal Agencies for implementation of CLCSS?
Ans : Small Industries Development Bank of India (SIDBI), National Bank for Agriculture and Rural Development (NABARD), Canara Bank, Bank of Baroda, Bank of India, The Tamilnadu Industrial Investment Corporation Limited, Chennai (TIICL), Andhra Bank, State Bank of India, Punjab National Bank, Corporation Bank and Indian Bank are the nodal Bank/Agencies for implementation of the CLCSS. Contact details for Nodal Banks/Agencies are available on the official website of this office link i.e. http://www.dcmsme.gov.in/schemes/Faqs.pdf
Q 11 . Whether the Scheme is applicable for new MSEs?
Ans : Yes.
Q 12 . Is CLCSS applicable for medium and large-scale Enterprises?
Ans : No, till date only Micro and Small-Scale Enterprises (MSEs) (existing & new) are eligible under CLCSS.
Q 13 . What are new steps will have been taken by the Ministry for effective implementation of CLCSS?
Ans : Management Information System (MIS) is being developed for online submission of application.
Q 14 . Is there any web-site where from I can get more details of the CLCSS?
Ans : Yes, “www.dcmsme.gov.in” under Technology Up- gradation – CLCSS.
Q 15 . What is the mechanism for disbursement of subsidy to the unit?
Ans : Subsidy is being released to the concerned Nodal bank/agency and subsidy is to be kept in the form of Term Deposit Receipt (TDR) for 3 years by bank after release by Office of DC (MSME) in the concerned unit account and interest amount on the term loan should be reduced accordingly. The beneficiary unit shall remain in commercial production for a period of at least three years after installation of eligible plant & machinery on which subsidy under CLCSS has been availed. If the unit fulfils the condition, the TDR will be transferred to unit’s account after three years. Further, it is to clarify that there are two different conditions one is about the commercial production for a period of at least three years after installation of the eligible plant machinery on which subsidy under CLCSS has been availed and another is that Subsidy is to be kept in the form of TDR for 3 years. These two conditions and other conditions stipulated in the extant guidelines are to be fulfilled by the beneficiary/PLIs before release of subsidy in the beneficiary’s account.
Q 16 . What are the objectives of Procurement and Marketing Support scheme?
Ans : Procurement and Marketing Support scheme has following objectives:
To promote new market access initiatives like organizing / participation in National /International Trade Fairs / Exhibitions I MSME Expo etc.
To create awareness and educate the MSMEs on topics relevant for market access development.
To create more awareness about trade fairs, digital advertising, e-marketing, GST, GEM portal, Public Procurement policy and other related topics etc.
For more details: https://msme.gov.in/sites/default/files/Guidelines_PMS.pdf
Q 17 . What are the eligibility criteria of the PMS scheme?
Ans : Any Individual Manufacturing/Service MSEs registered at Udyog Aadhar Memorandum (UAM) portal.
Q 18 . Who is the implementing agency for the scheme?
Ans : The implementing agencies are:
Office of DC MSME through its field organizations namely MSME Development Institutes and Technology Centers.
Other field organizations of Ministry of MSME namely NSIC, KVIC, Coir Board.
State Governments through its department’s /organizations/ corporations/ autonomous bodies and agencies.
Other central Govt. Ministries through its departments /organizations / corporations /autonomous bodies and agencies.
Q 19 . What is the procedure to apply for the scheme?
Ans : Pl. refer at https://my.msme.gov.in/MyMsme/Reg/COM_Matu.aspx
Q 20 . What are the components of the PMS schemes?
Ans : The components of the PMS scheme are mentioned below:
- No. Scheme Components
- Participation of individual MSEs in domestic trade fairs/ exhibitions
- Organizing Domestic Trade Fairs/ Exhibition and participation in trade fairs / exhibitions by the Ministry / Office of DC (MSME) / Government organizations
- Capacity building of MSMEsin modern packaging technique
- Development of Marketing Haats
- Vendor Development Programmes
- International/National Workshops/Seminars
- Awareness Programs
Under each scheme component, eligible items and the scale of assistance are defined. It can be accessed at: https://msme.gov.in/sites/default/files/Guidelines_PMS.pdf
Q 21 . What support is provided by the Ministry for participation of MSMEs in international events?
Ans : Under the International Cooperation Scheme, financial assistance is provided on reimbursement basis to the State/Central Government organizations, industries/enterprises Associations and registered societies/trusts and organizations associated with MSME for deputation of MSME business delegation to other countries for exploring new areas of MSMEs, participation by Indian MSMEs in international exhibitions, trade fairs, buyer seller meet and for holding international conference and seminars which are in the interest of MSME sectors. Eligible beneficiary organizations can apply to the Ministry directly to avail the assistance under IC Scheme as per Scheme Guidelines. For further details please visit at http://www.dcmsme.gov.in/
Q 22 . Who can apply under this scheme
Ans : Government Institutions and Registered Industry Associations associated with promotion and development of MSME sector.
Q 23 . How to apply under this scheme?
Ans : Applications for financial assistance can be sent in the prescribed form to the Director (International Cooperation), Ministry of MSME, Udyog Bhawan, New Delhi-110011. The detailed guidelines of International Cooperation Scheme including application form and claim form are available on the website of the Ministry at https://my.msme.gov.in/MyMsme/Reg/welcome.htm
Q 24 . What is Cluster?
Ans : A cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area or a value chain that goes beyond a geographical area and producing same/similar products/complementary products/services, which can be linked together by common physical infrastructure facilities that help address their common challenges. The essential characteristics of enterprises in a cluster are (a) Similarity or complementarity in the methods of production, quality control & testing, energy consumption, pollution control, etc., (b) Similar level of technology & marketing strategies/practices, (c) Similar channels for communication among the members of the cluster, (d) Common market & skill needs and/or (e) Common challenges & opportunities that the cluster faces.
Q 25 . What is MSE-CDP?
Ans : Micro & Small Enterprises – Cluster Development Programme (MSE-CDP), MSE-CDP approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country.
Q 26 . What are the objectives of MSE-CDP?
Ans : Following are objectives offset-CDP:
To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills & quality, market access, etc.
To build capacity of MSEs for common supportive action through formation of self-help groups, consortia, upgradation of associations, etc.
To create/upgrade infrastructural facilities in the new/existing Industrial Areas/Clusters of MSEs.
To set up Common Facility Centers (for testing, training, raw material depot, effluent treatment, complementing production processes, etc.).
Promotion of green & sustainable manufacturing technology for the clusters to enable units switch to sustainable and green production processes and products.
Q 27 . Which are the components covered under MSE-CDP?
Ans : Following are the components for which GoI assistance is provided under MSE-CDP:
Setting up of Common Facility Centers (Common Production/Processing Centre, Design Centre, Testing Centre etc.).
Creation/upgradation of infrastructural facilities in the new/existing industrial areas/ clusters of MSEs.
Establishing Marketing Hubs/Exhibition Centers at central places for display and sale of products of Micro and Small Enterprises.
Implementation of Thematic Interventions in approved/completed CFCs for following activities:
Training Programs
Exposure Visits.
Strengthening the Business Development Service (BDS) provision through a panel of service providers.
Any other activity related to creating business eco-system in clusters
Support to State Innovative Cluster Development Programme, this component would provide co-funding of the CFC projects of State Cluster Development Programme on matching share basis.
For further details please visit http://www.dcmsme.gov.in/MSE-CDProg.htm.
Q 28 . How many items are reserved for exclusive purchase from MSEs?
Ans : There are 358 items reserved for exclusive purchase from MSE Sector.
purposes and MUDRA borrowers are eligible under the scheme.
-
Q 1 . What relief measures RBI has taken for MSMEs during COVID-19 pandemic?
Ans : To mitigate the impact on this vital sector, the Reserve Bank of India (RBI), Ministry of Finance, GoI has announced set of relief measures on March 27, 2020. A second set of measures was also announced on April 17, 2020. For more information on these measures, please visit the website of RBI: Click here ;https://champions.gov.in/MyMsme/FaqspdfURL/Q14.pdf
Q 2 . What is the Credit Guarantee Scheme for MSEs (CGTMSE)?
Ans : The Ministry of MSME, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) with a view to facilitate flow of credit to the MSE sector without the need for collaterals / third party guarantees. The main objective of the scheme is that the lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed. The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of a MSE unit, which availed collateral – free credit facilities, failing to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 85 per cent of the outstanding amount in default.
The CGTMSE would provide cover for credit facility up to Rs. 200 lakh which have been extended by lending institutions without any collateral security and /or third-party guarantees. A guarantee and annual service fee is charged by the CGTMSE to avail of the guarantee cover. For more details you may visit www.cgtmse.in.
Q 3 . What is Trade Receivables Discounting System (TReDS)?
Ans : The objective of TReDS is to create Electronic Bill Factoring Exchanges which could electronically accept and settle bills so that MSMEs could encash their receivables without delay. This will not only give them greater access to finance but will also put greater discipline on corporates to pay their dues on time. For more details you may refer to RBI guidelines for setting up and operating TReDS on their website https://www.m1xchange.com/treds.php.
Q 4 . Who are the participants in TReDS?
Ans : Sellers, buyers and financiers are the participants on a TReDS platform.
Q 5 . Who can participate as a seller in TReDS?
Ans : Only MSMEs can participate as sellers in TReDS.
Q 6 . Who can participate as a buyer in TReDS?
Ans : Corporates, Government Departments, PSUs and any other entity can participate as buyers in TReDS.
Q 7 . Who can participate as a financier in TReDS?
Ans : Broadly, following steps take place during financing / discounting through TReDS:
Creation of a Factoring Unit (FU) – standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange – containing details of invoices / bills of exchange (evidencing sale of goods / services by the MSME sellers to the buyers) on TReDS platform by the MSME seller (in case of factoring) or the buyer (in case of reverse factoring);
Acceptance of the FU by the counterparty – buyer or the seller, as the case may be;
Bidding by financiers;
Selection of best bid by the seller or the buyer, as the case may be;
Payment made by the financier (of the selected bid) to the MSME seller at the agreed rate of financing / discounting;
Payment by the buyer to the financier on the due date.
Q 8 . What is a Factoring Unit (FU)?
Ans : A Factoring Unit (FU) is a standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange. Each FU represents a confirmed obligation of the corporates or other buyers, including Government Departments and PSUs.
Q 9 . Who can create a FU?
Ans : In TReDS, FU can be created either by the MSME seller or the buyer. If MSME seller creates it, the process is called factoring; if the same is created by corporates or other buyers, it is called as reverse factoring.
Q 10 . Whether TReDS could deal with reverse factoring?
Ans : Yes. The TReDS could deal with both receivables factoring as well as reverse factoring.
Q 11 . Whether the MSME seller would have to pay to the financier in case the buyer defaults in repayment?
Ans : No. The transactions processed under TReDS are “without recourse” to the MSMEs.
Q 12 . Whether any authorization is required to set up and operate a TReDS platform?
Ans : Yes, authorization is required to be obtained from RBI under the Payment and Settlement Systems (PSS) Act, 2007.
Q 13 . What is the eligibility criteria for setting up and operating TReDS?
Ans : Eligibility criteria for the purpose of setting up and operating a TReDS platform is provided in the guidelines (as amended from time to time) for TReDS issued by RBI. These guidelines are available at the following path: www.rbi.org.in →“Payment and Settlement Systems” dropdown →“Guidelines”. RBI’s Press Release dated October 15, 2019 may also be read in this regard. The same can be accessed at the following web links: https://champions.gov.in/MyMsme/FaqspdfURL/Q27_1.pdf and https://champions.gov.in/MyMsme/FaqspdfURL/Q27_2.pdf
Q 14 . Are all sick units put under rehabilitation bybanks?
Ans : No. If a sick unit is found potentially viable it can be rehabilitated by the banks. The viability of the unit is decided by banks. A unit should be declared unviable only if such a status is evidenced by a viability study.
Q 15 . What is the definition of a sickunit?
Ans : As per the extant guidelines, a Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if – Any of the borrower account of the enterprise remains NPA for three months or more OR There is erosion in the net worth due to accumulated losses to the extent of 50% of its net worth during the previous accounting year. This criterion enables banks to detect sickness at an early stage and facilitate corrective action for revival of the unit.
Q 16 . Whether defaults on TReDS platform are the responsibility of TReDS entities?
Ans : No. Default handling is outside the purview of TReDS platforms.
Q 17 . What is a settlement file and who generates it in TReDS?
Ans : A settlement file provides information as to how much amount has to be debited from and credited to the accounts of participants (sellers, buyers and financiers), due on a date / time. In other words, it indicates how much a financier has to pay to an MSME seller, and how much a buyer owes to the financier on a date / time. The TReDS entities generate the settlement file and send the same to existing payment systems (for instance, National Automated Clearing House) for actual payment of funds.
Q 18 . Whether TReDS entities undertake KYC (Know Your Customer) of participants?
Ans : Yes. The KYC process adopted by the TReDS entities shall adhere to the “Master Direction – Know Your Customer (KYC) Direction, 2016” dated February 25, 2016 (as amended from time to time) issued by RBI.
Q 19 . Where can I find the details of TReDS entities authorised by RBI?
Ans : List of all authorized Payment System Operators (PSOs), including TReDS, is available at the following path: www.rbi.org.in →“Payment and Settlement Systems” dropdown →“Information Useful to Customer”→“List of Authorised Entities – Payment System Operators”. Following is the web link for accessing the same: https://champions.gov.in/MyMsme/FaqspdfURL/Q28.pdf
-
1 . What is MSME Samadhaan Portal?
Ans : MSME Samadhaan is a Portal created by Office of DC(MSME), Ministry of Micro, Small and Medium Enterprises (MSME) where Micro and Small Enterprises (MSEs) can file their applications online regarding delayed payments.
Q 2 . Do Ministry of MSME take action on applications filed on MSME Samadhaan Portal?
Ans : No, MSME SAMADHAAN online portal is developed by Ministry of MSME only to facilitate MSEs filing of their applications regarding delayed payments online. The application once filed is forwarded automatically online to the concerned Micro and Small Enterprise Facilitation Council (MSEFC) established by the State/UTs as per the provisions of MSMED-Act 2006. Action on the applications regarding delayed payment is taken by the concerned MSEFC only.
Q 3 . Can Ministry of MSME intervene in matters of MSEFC.
Ans : No. Only the MSEFCs have been empowered as per MSMED Act, 2006 for taking decisions regarding its reference made with them. This office does not intervene in the matters of MSEFC. In short Ministry of MSME cannot interfere with judicial functioning of MSEFC.
Q 4 . Is filing of Udyog Aadhaar Memorandum (UAM) Mandatory to file applications on MSME Samadhaan Portal?
Ans : Yes, UAM is mandatory to file applications online on MSME Samadhaan Portal.
Q 5 . How can I get Udyog Aadhaar Memorandum (UAM) Number?
Ans : Registration for Udyog Aadhaar can be done online on the official website of Ministry of MSME free of cost at following address :
Q 6 . Is it mandatory to file Delayed Payment Applications online on MSME Samadhaan Portal only?
Ans : No. MSME Samadhaan Portal has been created only to facilitate online applications regarding delayed payments. Physical applications can also be filed at the concerned MSEFC.
Q 7 . Who can convert the application into Regular Reference Petition/claim case?
Ans : The applications are converted into case by the concerned MSEFC.
Q 8 . If there is no action on an application filed by MSEs, whom to contact?
Ans : After submission, the application is automatically forwarded online to concerned MSEFC. Therefore, concerned MSEFC is to be contacted after filing the application online on MSME Samadhaan Portal. The contact address of concerned MSEFC is mentioned on the acknowledgement sent on the registered email of the applicant.
Q 9 . Is work order compulsory to file application on MSME Samadhaan Portal?
Ans : Yes, work order is compulsory. In case purchase order is oral an affidavit to that effect is to be submitted.
Q 10 . How to upload multiple invoices?
Ans : Multiple invoices can be combined into single PDF and can be uploaded. The affidavit of oral purchase order is to be included in single PDF.
Q 11 . Is it mandatory to file Delayed Payment Applications online on MSME Samadhaan Portal only?
Ans : No. MSME Samadhaan Portal has been created only to facilitate online applications regarding delayed payments. Physical applications can also be filed at the concerned MSEFC.
Q 12 . Who can convert the application into Regular Reference Petition/claim case?
Ans : The applications are converted into case by the concerned MSEFC.
Q 13 . If there is no action on an application filed by MSEs, whom to contact?
Ans : After submission, the application is automatically forwarded online to concerned MSEFC. Therefore, concerned MSEFC is to be contacted after filing the application online on MSME Samadhaan Portal. The contact address of concerned MSEFC is mentioned on the acknowledgement sent on the registered email of the applicant.
Q 14 . Is work order compulsory to file application on MSME Samadhaan Portal?
Ans : Yes, work order is compulsory. In case purchase order is oral an affidavit to that effect is to be submitted.
Q 15 . How to upload multiple invoices?
Ans : Multiple invoices can be combined into single PDF and can be uploaded. The affidavit of oral purchase order is to be included in single PDF.
Q 16 . On which email OTP is sent?
Ans : The OTP is sent to the registered email ID in Udyog Aadhaar.
Q 17 . Whether the claim from a supplier engaged in services/trading sector can be admitted by Council ?
Ans : Categories admitted in MSEFCs are in respect of good manufacturing and service rendering sector for which UAM has been obtained. These categories cannot be challenged by the respondent/buyer.
Q 18 . Whether an appellate court can allow an appeal against Award of Council without depositing of 75% of Award amount? How the amount is released?
Ans : Application under Section 19 of the MSMED Act, 2006 cannot be entertained by any court. Deposited amount can be released to the applicant as per the directions to the Court.
Q 19 . Is there any legal disqualification, if a case is decided after 90 days as stipulated in the Act?
Ans : No. It is the act of court for which applicant cannot suffer.
-
Q 1. What measures have been taken towards filling of income tax returns considering COVID-19 situation?
Ans: The Union Finance & Corporate Affairs Minister has announced several important relief measures taken by the Government of India in view of COVID-19 outbreak, especially on statutory and regulatory compliance matters related to several sectors. Following measures has been taken w.r.t GST:
-Those having aggregate annual turnover less than Rs. 5 Crore Last date can file GSTR-3B due in March, April and May 2020 by the last week of June 2020. No interest, late fee, and penalty to be charged.
-Others can file returns due in March, April and May 2020 by last week of June 2020 but the same would attract reduced rate of interest @9 % per annum from 15 days after due date (current interest rate is 18 % per annum). No late fee and penalty to be charged, if complied before till 30th June 2020.
-Date for opting for composition scheme is extended till the last week of June 2020. Further, the last date for making payments for the quarter ending 31st March 2020 and filing of return for 2019-20 by the composition dealers will be extended till the last week of June 2020.
-Date for filing GST annual returns of FY 18-19, which is due on 31st March 2020 is extended till the last week of June 2020.
-Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.
-Necessary legal circulars and legislative amendments to give effect to the aforesaid GST relief shall follow with the approval of GST Council.
-Payment date under Sabka Vishwas Scheme shall be extended to 30th June 2020. No interest for this period shall be charged if paid by 30th June 2020.
-The taxpayers who are already in composition scheme, in previous fiscal year are not required to opt in for composition again for FY 2020-2021.
-E-way bills (EWB), whose expiry date lies between 20th March 2020, and 15th April 2020, would also be deemed to be valid till 30th April, 2020.
For regular updates and more information, you may refer the website of Ministry of Finance and Corporate Affairs.
Q 2 . On what supply is GST levied?
Ans : GST is levied on all types of supplies which are – (i) made for a consideration and (ii) are for the purpose of furtherance of business. There are some exceptions when these conditions are not met, yet supply is considered to have been made, for example, interstate stock transfer of goods even without consideration or importation of services even if not in the furtherance of business.
Q 3 . Will GST be levied on all goods or services or both?
Ans : No, GST will not be levied on alcohol for human consumption. GST on Crude, Motor Spirit (Petrol), High Speed Diesel, Aviation Turbine Fuel and Natural Gas will be levied with effect from a datetobedecidedbytheGSTCouncil.Electricityandsaleoflandandbuildingareexemptedfrom levy of GST. Securities are neither good nor services for the purposes of the WBGST Act, 2017 and therefore supply of securities is not taxable.
Q 4 . I was registered under VAT but not under Central Excise. Do I need to apply for new registration?
Ans : No. Existing registrants of VAT having valid PAN have been issued Provisional ID and password. If you have not received provisional ID, please contact your tax administration to obtain the same. This Provisional Identity Number (PID) would eventually be your GSTIN, when the migration process is completed.
Q 5 . If I have obtained provisional GSTIN (PID), can I use the same on the invoice to make supply without waiting for final GSTIN?
Ans : Provisional GSTIN (PID) would eventually be your final GSTIN. The number would remain the same. Yes, you can use this PID on invoice for making supply without waiting for final GSTIN.
Q 6 . How will taxpayer get the certificate of registration?
Ans : The taxpayer can himself download the certificate of registration online from the GST common portal
Click Here
Q 7 . Are all manufacturers necessarily required to be registered under GST?
Ans : No, there is no provision requiring that a manufacturer irrespective of threshold or nature of supply to register himself under GST. For example, a manufacturer dealing only in exempted goods or where his turnover is only intra-State and below Rs. 20 lakh is not required to be registered.
Q 8 . In case of supply of exempt goods or when tax is paid under Composition Scheme, is the registered person required to issue a tax invoice? How a bill of supply is different from a tax invoice?
Ans : No. In such cases, the registered person shall issue a Bill of Supply and not a tax invoice. The bill of supply is different from a tax invoice both in name and details contained. While most of the details to be provided in a bill of supply are similar to tax invoice, the bill of supply does not contain the rate of tax and the amount of tax charged as the same cannot be collected.
Q 9 . If goods are transported in semi-knocked down condition, when shall the complete invoice be issued?
Ans : When goods are transported in semi-knocked down condition, the complete invoice shall be issued before dispatch of the first consignment. Delivery challan shall be issued for subsequent consignments. Original copy of invoice shall be sent along with the last consignment.
Q 10 . Is there any scheme for payment of taxes under GST for small traders and manufacturers?
Ans : Yes. Composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs. 75 lakhs (Rs.50 lakhs for special category States, excluding J&K and Uttarakhand). It is a kind of turnover tax. The objective of the scheme is to provide a simplified tax payment regime for the small taxpayers. The scheme is optional and is mainly for small traders, manufacturers and restaurants.
-
Q 1 . What is Intellectual Property (IP)?
Ans : Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce.
IP is divided into two categories:
(i) Industrial property, which includes inventions (patents), trademarks, industrial designs, and geographic indications of source; and Copyright, which includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs.
(ii) Rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and those of broadcasters in their radio and television programs.
Q 2 . What are the Types of Intellectual Property Rights (IPR)?
Ans : IPR includes following:
Patents
Copyrights
Trademark
Industrial Designs
Geographical Indications
Trade Secrets
Inventions (patents), trademarks, industrial designs, and geographical indications are referred to as Industrial property.
Q 3 . What is patent?
Ans : A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. In order to be patentable, the invention must fulfill certain conditions.
Q 4 . What are the benefits of Patents Registration?
Ans : Exclusive Right- allows to use and exploit the invention for 20 years from date of filling.
Strong Market position-prevent other from commercially using patented invention thereby reducing competition.
Higher returns on investment
Opportunity to license or sell the invention.
Positive image of enterprise
Q 5 . What are the benefits of Copy right registration?
Ans : Copyright is the body of law that grants authors, artists & other creator’s protection for their literary and artistic creations, which are referred to as Works.
Copyright protection (other than photographs) is for life of author plus sixty years after his death.
Q 6 . What is Trademarks?
Ans : A trademark is a distinctive sign which identifies certain goods or services as those produced or provided by a specific person or enterprise.
Q 7 . What are the Benefits of Trademarks Registration?
Ans : Helps consumer identify and purchase a product or service because it’s nature & quality, indicated by its unique trademark, meets their needs.
Registration of its trademark is prima facie proof of its ownership giving statutory right to the proprietor.
Trademark rights may be held in perpetuity. The initial term of registration is for 10 years; thereafter it may be renewed from time to time.
Q 8 . What is Industrial Designs?
Ans : An industrial design is the ornamental or aesthetic aspect of an article. The design may consist of three-dimensional features, such as the shape or surface of an article, or of two-dimensional features, such as patterns, lines or colour. Industrial designs are applied to a wide variety of products of industry and handicraft: from technical and medical instruments to watches, jewellery, and other luxury items; from house wares and electrical appliances to vehicles and architectural structures; from textile designs to leisure goods.
Q 9 . What are the Benefits of Industrial Design Registration?
Ans : Designs can be protected through registration, the objective is to protect new/ original designs so created to be applied or applicable to particular article to be manufactured by industrial process or means.
The initial term of protection is for 10 years from the date of filing, which can be extended for an additional term of five years. Altogether, the term of design protection is fifteen years from the date of filing.
Q 10 . What is Geographical Indications?
Ans : A geographical indication is a sign used on goods that have a specific geographical origin and possess qualities, reputation or characteristics that are essentially attributable to that place of origin. Most commonly, a geographical indication includes the name of the place of origin of the goods. Agricultural products typically have qualities that derive from their place of production and are influenced by specific local factors, such as climate and soil. Whether a sign is recognized as a geographical indication is a matter of national law. Geographical indications may be used for a wide variety of products, whether natural, agricultural or manufactured
Q 11 . What is the period of Geographical Indication Registration?
Ans : India, a GI may be statutorily protected either as a certification trademark under the Trademarks Act, 1999 or as a GI under the GI of Goods (Registration and Protection) Act, 1999.
The registration of GI is valid for a period of 10 years after which it may be renewed from time to time.
Q 12 . What are the Trade Secrets ?
Ans : Any confidential business information which provides an enterprise a competitive edge may be considered a trade secret. Trade secrets encompass manufacturing or industrial secrets and commercial secrets. The unauthorized use of such information by persons other than the holder is regarded as an unfair practice and a violation of the trade secret. Depending on the legal system, the protection of trade secrets forms part of the general concept of protection against unfair competition or is based on specific provisions or case law on the protection of confidential information.
Q 13 . What are the benefits of Trade Secrets?
Ans : • Contrary to patents, trade secrets are protected without registration.
- A trade secret can be protected for an unlimited period of time.
- A substantial element of secrecy must exist, so that, except by the use of improper means, there would be difficulty in acquiring the information
Q 14 . What are the legislations covering IPRs in India?
Ans : Patents: The Patents Act, 1970 as amended in 1999, 2002 and 2005
Design: The Designs Act, 2000
Trade Mark: The Trade Marks Act, 1999
Copyright: The Copyright Act, 1957 as amended in 1983, 1984 and 1992, 1994, 1999
Layout Design of Integrated Circuits: The Semiconductor Integrated Circuits Layout Design Act, 2000
Protection of Undisclosed Information: No exclusive legislation exists but the matter would be generally covered under the Contract Act, 1872
Geographical Indications: The Geographical Indications of Goods (Registration and Protection) Act, 1999
New Plant Varieties: The Protection of Plant Variety and Farmers’ Rights Act, 2001
Q 15 . Who are responsible for administration of IPRs in the country?
Ans : Patents, designs, trademarks and geographical indications are administered by the Controller General of Patents, Designs and Trademarks which is under the control of the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry. Copyright is under the charge of the Ministry of Human Resource Development. The Act on Layout-Design of Integrated Circuits is administered by the Ministry of Telecommunication and Information Technology. Protection of Plant Varieties and Farmers’ Rights Authority, Ministry of Agriculture administers the Act on Plant Variety
Q 16 . Whether there is any scheme Under the M/o MSME assisting MSMEs for Intellectual Property Rights?
Ans : Yes, O/o DC (MSME) is implementing a scheme “Building Awareness on Intellectual Property Rights (IPR)” for the MSME. The objective of the scheme is to enhance awareness of MSME about Intellectual Property Rights (IPRs), to take measure for the protecting their ideas and business strategies.
Q 17 . What are the activities / components under IPR Scheme of M/o MSME?
Ans : Under this scheme following broad areas of interventions are done by GoI:
- Awareness/ Sensitisation Programmes on IPR.
- Pilot Studies for Selected Clusters/ Groups of Industries.
- Interactive Seminars / Workshops/Exhibition/Conclave/Conference.
- Reimbursement of Patent/ GIs/Trademarks
- Setting up of ‘IP Facilitation Centre for MSME’.
- Interaction with International Agencies.
Q 18 . What is the reimbursement amount for Patent /GIs/Trademarks under the scheme of Ministry of MSME?
Ans : o Domestic Patent:- Upto Rs. 1.00 Lakh
o Foreign Patent:- Upto Rs. 5.00 Lakh
o GIs:- Upto Rs. 2.00 Lakh
o Trademarks:- Upto Rs. 0.10 Lakh
Q 19 . How to apply for the Patent /GIs/Trademarks Reimbursement?
Ans : It can be applied through online portal i.e. www.my.msme.gov.in
Q 20 . Whether there is any centre to support in counselling/ drafting & filing the Intellectual Property Rights?
Ans : Ministry of MSME has set up IP Facilitation Centre for the aforesaid purpose. They can be contacted through ministry website i.e. www.dcmsme.gov.in/scheme
Q 21 . Where guidelines of scheme are available?
Ans : Detailed guidelines of scheme are available at official website of O/o DC (MSME) http://www.dcmsme.gov.in/schemes/IPR-Guidelines-CLCS-TUS-2019-2020.pdf
Q 22 . What is the URL for online submission of proposal?
Ans : Click here. https://my.msme.gov.in/MyMsme/Reg/COM_IprReim.aspx
-
Q 1 . What measures Government has taken towards refund of pending income-tax of all business entities and individuals?
Ans : In the context of the COVID-19 situation and with a view to provide immediate relief to the business entities and individuals, it has been decided to issue all the pending income-tax refunds up to Rs. 5 lakhs, immediately. For more information, please refer to the website of Ministry of Finance.
Q 2 . What is the progress of IT refunds to MSMEs during the COVID – 19 lockdown?
Ans : The Central Board of Direct Taxes (CBDT) highlighted on 17.04.2020 that Income tax refunds to nearly 8.2 lakh small businesses (proprietors, firms, corporate and trusts) worth Rs 5,204 Crore have been issued since 8th April 2020. These income tax refunds would help MSMEs to carry on their business activities without pay cuts and layoffs in Covid-19 pandemic situations.
-
Q 1 . What are benefits being offered under Pradhan Mantri Garib Kalyan Yojana (PMGKY)?
Ans : Ministry of Labour & Employment has launched Pradhan Mantri Garib Kalyan Yojana (PMGKY) for the poor to help them fight the battle against Corona Virus Pandemic. Under the scheme, the entire employees EPF contributions (12% of wages) and employers’ EPF & EPS contribution (12% of wages), totaling 24% of the monthly wages for the next three months shall be directly paid by the Central Govt. in the EPF accounts (UAN) of employees, who are already members of EPF Scheme, 1952. For more information on the schemes, please refer the scheme guidelines at
Q 2 . Can my employee withdraw advance from EPF to meet financial requirement during COVID-19 pandemic?
Ans : As per the government announcement on March 26, 2020, an individual can withdraw a certain amount from their Employees’ Provident Fund (EPF) account, if he/she is facing financial problems due to the coronavirus-related lockdown.
-
Q 1 . What is ZED Scheme?
Ans : The scheme is an extensive drive to create proper awareness in MSMEs about ZERO DEFECT ZERO EFFECT manufacturing and motivate and incentivize them for ZED certification. Through the journey of ZED, MSMEs can reduce wastages substantially, increase productivity, expand their market as IOPs, have more IPRs, develop new products and processes etc. and adopt the work culture of standardization for their products, processes and systems to enhance global competitiveness.
Q 2 . What are the objectives of ZED scheme?
Ans : The scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs and ZED Assessment for their certification so as to:
- Encourage and Enable MSMEs for manufacturing of quality products using latest technology tools & to constantly upgrade their processes for achievement of high productivity and high quality with the least effect on the environment.
- Develop an Ecosystem for Zero Defect Zero Effect Manufacturing in MSMEs, for enhancing competitiveness and enabling exports.
- Promote adoption of Quality and recognizing the efforts of successful MSMEs.
- Increase public awareness on demanding Zero Defect and Zero Effect Products through the ZED Rating and Grievance Redressal Portal.
Q 3 . Where can I get guideline of the scheme?
Ans : Detailed guidelines of scheme is available in the official website of O/o DC (MSME) at http://dcmsme.gov.in/schemes/clcs-tus/Operational_Guidelines_ZED.pdf
Q 4 . What are the components of the scheme?
Ans : The major components are as follows:
- Industry Awareness Programmes by Implementing Agency
- Regional/ State/ National Workshop by Implementing Agency
- Training of officials of MSME- DIs, MSME-Testing Centres, Technology Centres, Design Incubation Centres, IPFC, etc.
- Consultants/ Master Trainers’ Training
- Assistance to MSME sector for Consultancy, Gap Analysis, Handholding & to move towards Zero Effect solutions by Consultants through NMIU/IAs.
- International Benchmarking and Learning Best Practices and Foreign Travels/Delegations, International Trainings relating to ZED including QMS/QTT, productivity etc.
Q 5 . What are the levels of ZED certification in the scheme?
Ans : ZED certification can be attained in five levels:
Level 1: Self Certification | BRONZE
Level 2: Conformity with Standards | SILVER
Level 3: Striving for Excellence (Conformity to System Standards &compliance with Environment & Other Safeguards) | GOLD
Level 4: Achieving Excellence (Conformity to Lean Manufacturing)| DIAMOND
Level 5: ZED compliance parameters (World class MSME) | PLATINUM
Q 6 . Who are eligible as per scheme guideline?
Ans : All the Udyog Aadhar Memorandum (UAM) registered manufacturing MSMEs under MSME Act 2006 as amended from time to time and also MSMEs which are included as per executive orders issued by Office of DC (MSME) consistent with MSME Act are eligible to apply.
Q 7 . Who are the Implementing Agencies under ZED scheme as per scheme guidelines?
Ans : MSME-DIs, TCs, State governments and its organizations/agencies; Central government ministries and their connected agencies/organizations; technical institutions; Industry Associations; Social enterprises; in addition to the current QCI shall function as Implementing agencies for the programme.
Q 8 . Is there any subsidy/Financial assistance available to MSMEs under the scheme?
Ans : Yes, reimbursement of fees as per scheme guideline.
Q 9 . What is PMAC &NMIU?
Ans : A Project Monitoring and Advisory Committee (PMAC) is set up in the O/o DC (MSME), look after the planning, screening / identification of interventions / projects and such other functions as may be necessary to ensure effective implementation of the scheme. PMAC is empowered to take all key decisions related to the scheme and to approve minor modifications/procedural changes in the guideline for operational expediency.
A National Monitoring and Implementation Unit (NMIU) is setup in the O/o DC (MSME) for facilitation, implementation and monitoring of the scheme involving Implementing Agencies as per directions of PMAC.
-
Q1. Becoming a micro, small or medium enterprise.–
(1) Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.
(2) On registration, an enterprise (referred to as “Udyam” in the Udyam Registration portal) will be assigned a permanent identity number to be known as “Udyam Registration Number”.
(3) An e-certificate, namely ‘Udyam Registration Certificate” shall be issued on completion of the registration process.
Q2. Composite criteria of investment and turnover for classification.–
(1) A composite criterion of investment and turnover shall apply for classification of an enterprise as micro, small, or medium.
(2) If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category but no enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.
(3) All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise.
Q3. Calculation of investment in plant and machinery or equipment.–
(1) The calculation of investment in plant and machinery or equipment will be linked to the Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961.
(2) In case of a new enterprise, where no prior ITR is available, the investment will be based on self-declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which it files its first ITR.
(3) The expression “plant and machinery or equipment” of the enterprise, shall have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and shall include all tangible assets (other than land and building, furniture and fittings).
(4) The purchase (invoice) value of a plant and machinery or equipment, whether purchased first hand or second hand, shall be taken into account excluding Goods and Services Tax (GST), on self-disclosure basis, if the enterprise is a new one without any ITR.
(5) The cost of certain items specified in the Explanation I to sub-section (1) of section 7 of the Act shall be excluded from the calculation of the amount of investment in plant and machinery.
Q4. Calculation of turnover.-
(1) Exports of goods or services or both shall be excluded while calculating the turnover of any enterprise whether micro, small or medium, for the purposes of classification.
(2) Information as regards turnover and export turnover for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN.
(3) The turnover related figures of such enterprise which do not have PAN will be considered on self-declaration basis for a period up to 31st March 2021 and thereafter, PAN and GSTIN shall be mandatory.
Q5. Registration process.—
(1) The form for registration shall be as provided in the Udyam Registration portal.
(2) There will be no fee for filing Udyam Registration.
(3) Aadhaar number shall be required for Udyam Registration.
(4) The Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a Karta in the case of a Hindu Undivided Family (HUF).
(5) In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorized signatory shall provide its GSTIN and PAN along with its Aadhaar number.
(6) In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on a self-declaration basis.
(7) No enterprise shall file more than one Udyam Registration: Provided that any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration.
(8) Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or update process shall be liable to such penalty as specified under section 27 of the Act.
Q6. Registration of existing enterprises.—
(1) All existing enterprises registered under EM-Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July 2020.
(2) All enterprises registered till 30th June 2020, shall be re-classified in accordance with this notification.
(3) The existing enterprises registered prior to 30th June 2020, shall continue to be valid only for a period up to the 31stday of March 2021.
(4) An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.
Q7. Updation of information and transition period in classification.–
(1) 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.
(2) 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.
(3) based on the information furnished or gathered from Government’s sources including ITR oU GST return, the classification of the enterprise will be updated.
(4) In case of graduation (from a lower to a higher category) or reverse-graduation (sliding down to lower category) of an enterprise, a communication will be sent to the enterprise about the change in the status.
(5) In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both. If that change results in reclassification. An enterprise will maintain its prevailing status till the expiry of one year from the close of the year of registration.
(6) In case of reverse-graduation of an enterprise, whether as a result of re-classification or due to actual changes in investment in plant and machinery or equipment or turnover or both, and whether the enterprise is registered under the Act or not, the enterprise will continue in its present category till the closure of the financial year and it will be given the benefit of the changed status only with effect from 1st April of the financial year following the year in which such change took place.
Q8. Facilitation and grievance redressal of enterprises.–
(1) The Champions Control Rooms functioning in various institutions and offices of the Ministry of MSME including the Development Institutes (MSME-DI). It shall act as Single Window Systems. It is for facilitating the registration process and further handholding the micro, small and medium enterprises in all possible manner.
(2) The District Industries Centres (DICs) will also act as Single Window facilitation Systems in their Districts.
(3) Any person who is not able to file the Udyam Registration for any reason including for lack of Aadhaar number, may approach any of the above Single Window Systems for Udyam Registration purposes with his Aadhaar enrolment identity slip or copy of Aadhaar enrolment request or bank photo passbook or voter identity card or passport or driving licence and the Single Window Systems will facilitate the process including getting an Aadhaar number and thereafter in the further process of Udyam Registration.
(4) In case of any discrepancy or complaint-
A concerned person shall undertake an enquiry for verification of the details
The General Manager of the District Industries Centre of the concerned District can take the action.
Thereafter he can forward the matter with necessary remarks to the Director or Commissioner or Industry Secretary concerned of the State Government
A notice will be issued to the MSME Unit.
An opportunity of being heard will be provided.
The concerned office can amend the details or can cancel the registration
-
Q 1 . What is the total budget proposed for MSME sector in the Union Budget 2021-22?
Ans : 15,700 crore has been earmarked for the MSME sector in the Union Budget 2021-22, which is more than double the BE of 2020-21.
Q 2 . What measures have been introduced to expedite the resolution of cases (company matters) ?
Ans : The key steps taken in the Union Budget for faster resolution of cases are as under:
- Creation of a special framework for MSMEs for debt resolution
- Strengthen the National Company Law Tribunal
(NCLT) framework
- Implementation of e-Courts system
Q 3 . Are there any steps taken in iron and steel sector to provide benefits to MSMEs impacted by COVID-19?
Ans : The steps taken pertaining to iron and steel sector are as follows:
- Customs duty on semis, flat, and long products of non-alloy, alloy, and stainless steels has been reduced to 7.5 % uniformly for the benefit of the MSMEs hard hit by the coronavirus pandemic.
- To provide relief to metal recyclers, mostly MSMEs, the duty on steel scrap is exempted for a period up to March 31, 2022. Further, the ADD and CVD on certain steel products is revoked.
- Customs duty on copper scrap has been reduced from 5% to 2.5% for copper recyclers.
Q 4 . What are the steps taken to benefit the MSMEs working in textile sector?
Ans : For the textile industry and MSMEs in the industry, nylon chain has been made on par with polyester and other man-made fibers as part of rationalizing duty on raw material inputs to manmade textiles. The BCD rates on caprolactam, nylon chips and nylon fiber and yarn have been reduced uniformly to 5%.
Q 5 . What steps have been introduced to provide incentive to exporters and importers of garments and leather?
Ans : Following steps have been taken to encourage exporters and importers of garments and leather:
- To provide incentive to exporters of garments, leather and handicraft items that are primarily made by MSMEs domestically, there is rationalization of exemption on import of duty-free items.
- Withdrawal of exemptions on imports of some types of leathers as they are manufactured domestically, mostly by MSMEs, in good quantity and quality.
Q 6 . What steps have been included in the Union Budget for promoting the local manufacturing of products by MSMEs?
Ans : • Duty on steel screws and plastic builder wares has been increased from 10% to 15% while on prawn feed it has increased from 5% to 15%.
- Custom duty on finished synthetic gem stones has been increased to encourage its domestic processing.
-
Q 1 . What is SFURTI?
Ans : To make the traditional industries more productive and competitive and facilitating their sustainable development, the Govt. Of India announced in 2005-06, setting up of a fund for regeneration of traditional industries. Pursuant to this announcement, a Central Sector Scheme titled the ‘Scheme of Fund for Regeneration of Traditional Industries (SFURTI)’ was launched.
Q 2 . Why the SFURTI has been re-named as Revamped SFURTI?
Ans : Despite the success of the SFURTI scheme, an independent evaluation of the SFURTI clusters highlighted the need to improve the sustainability and competitiveness of these clusters. The recommendations include enhanced allocation per cluster, increased responsibility of the Technical Agencies (TAs), critical financial appraisal and development of robust business plans and convergence of programs at the cluster level. Therefore, the Revamped SFURTI scheme was framed accordingly which enhanced the sustainability of the programme beyond the project period through the creation of Special Purpose Vehicle (SPV) or deemed SPV. Further, the revamped guideline has added many new features for all-round development of SFURTI clusters.
Q 3 . What are the objectives of Revamped SFURTI?
Ans : As per the Revamped SFURTI guidelines notified on 01/08/2014 by Government of India, the objectives are as under:
- To organize the traditional industries and artisans into clusters to make them competitive and provide support for their long term sustainability and economy of scale; ii. To provide sustained employment for traditional industry artisans and rural entrepreneurs;
iii. To enhance the marketability of products of such clusters by providing support for new products, design intervention and improved packaging and also the improvement of marketing infrastructure;
- To equip traditional artisans of the associated clusters with the improved skills and capabilities through training and exposure visits;
- To make provision for common facilities and improved tools and equipment for artisans;
- To strengthen the cluster governance systems with the active participation of the stakeholders, so that they are able to gauge the emerging challenges and opportunities and respond to them in a coherent manner; vii. To build up innovated and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships, so as to gradually replicate similar models of cluster-based regenerated traditional Industries.
Q 4 . What is the financial assistance allowed under Revamped SFURTI?
Ans : The financial assistance provided for Revamped SFURTI shall be as under in various categories:
Type of Clusters Budget Limit per cluster
Regular (upto 500 artisans) Rs.2.50 crore
Major (more than 500 artisans) Rs.5.00 crore
The cost of project shall include hard interventions and soft interventions. The project cost shall also include the cost of services of a professional TA and costs incurred by the IA for engaging a competent CDE and other administrative expenses to be incurred by the IA.
Q 5 . What is the duration of Project?
Ans : The time frame for implementation of Project will be 12-18 months
Q 6 . What the activities covered under Soft Intervention?
Ans : Soft Interventions under the project would consist of activities such as
- General Awareness, counseling, motivation and Trust building
- Skill development and Capacity Building
iii. Institutional development
- Exposure visits
- Market Promotion initiatives
- Design and Product Development
vii. Participation in seminars, workshops and training programmes on technology up-gradations, etc.
Q 7 . What the facilities covered under Hard Intervention?
Ans : Hard interventions will include creation of following facilities:
- Creation of Common Facility Centres (CFCs)
- Raw Material Banks (RMBs)
iii. Up-gradation of Production Infrastructure
- Tools and Technological up-gradation such as Charkha upgradation, tool-kits distribution, etc
- Warehousing Facility
- Training Centre
vii. Value addition and processing centre
Note: The assistance for raw material bank (RMB) shall be leveraged with financial institution for enhanced credit.
Q 8 . How much financial assistance (Government subsidy) is applicable and required own contribution by I.A.?
Ans : 100% of Project cost except Hard Interventions. 95% of Hard Intervention is eligible for North Eastern Region, J & K and Hill States and 90% of Hard Intervention for Other areas.
Q 9 . Whether the working capital will be provided?
Ans : No. Working Capital has to be arranged by IA.
Q 10 . Whether the cost of land is included in the project cost?
Ans : No. Land should be brought by I.A.
Q 11 . Who can play the role of Implementing Agencies (I.A.)?
Ans : Implementing Agencies (IAs) would be non-Governmental Organisations (NGOs), Institutions of the Central and State Governments and Semi-Government Institutions, field functionaries of State & Central Government Panchayati Raj Institutions (PRIs), etc suitable expertise to undertake cluster development. One IA may normally be assigned only one cluster (unless it is an agency with State-wide coverage). The selection of IAs, based on their regional reputation and experience of working at the grass-roots level, will be done by the Nodal Agencies (NAs), on the basis of transparent criteria. Private sector participation shall also be encouraged for the implementation of the cluster projects. Corporate entities can also take up projects directly by forming cluster-specific SPVs. Corporates and Corporate Social Responsibility (CSR) foundations with expertise in cluster development will be encouraged to participate as IAs.
Q 12 . Can implementing agencies take up more than one traditional industry?
Ans : No. One IA may normally be assigned only one cluster (unless it is an agency with State-wide coverage).
Q 13 . Whether existing PMEGP units can take up the Revamped SFURTI as Implementing Agency?
Ans : No.
Q 14 . Whether Educational/Academic/Training Institutions can play the role of Implementing Agency?
Ans : Educational/Academic/Training Institutions are eligible if theyfulfill the criteria prescribed by N.A. as per the Revamped SFURTI guidelines.
Q 15 . Who can play the role of Technical Agencies (T.A.)?
Ans : Established national/ regional level institutions, with proven expertise in artisanal and small enterprise cluster development can act as Technical Agency (T.A).
Q 16 . What is the definition of “Traditional Industry”?
Ans : Broadly, “Traditional Industry‟ means an activity which produces marketable products, using locally available raw material and skills and indigenous technology. Traditional Industry Cluster, in the context of this document, refers to a geographical concentration of a sizable number of artisans or micro enterprises, suppliers of raw materials, traders, service providers, etc. producing, processing and servicing the same or similar types of products and facing common opportunities and threats.
Q 17 . What is Khadi?
Ans : Khadi means any Cloth woven on handlooms in India from cotton, silk or woolen yarn handspun in India or from a mixture of any two or all of such yarns.
Q 18 . What is Village Industries?
Ans : Any Industry located in rural area which produces any goods or renders any service with or without the use of power and in which the per-capita fixed capital investment does not exceed Rs. 1.00 lakh (except for hilly areas, wherein the limit is Rs. 1.50 lakh) provided that any industry specified in the Schedule and located in an area other than a rural and recognized as a Village Industry at any time before commencement of the Khadi & Village Industries Commission (KVIC), continue to be a village industry under the KVIC Act.
Q 19 . Whether the scheme can be implemented in urban/semi urban areas?
Ans : No.
Q 20 . Whether formation of Special Purpose Vehicle (SPV) is mandatory? What is the purpose of SPV?
Ans : Yes. Formation of SPV is mandatory to seek the final approval for hard interventions by IA. The purpose of SPV will be to develop and sustain the cluster after the project implementation period is over. An SPV will be formed for each cluster which may be any of the following entities:
- a Society registered under Societies (Registration) Act, 1860;
- a Co-operative Society under an appropriate statute;
iii. a Producer Company under section 581C of Companies Act, 1956;
- a Section 25 Company under Companies Act, 1956;
- Trust; or
- Any other legal entity, with the prior approval of SSC.
Q 21 . Whether artisans shall be the members of SPV?
Ans : Yes. Besides, at least 33% of Artisans shall be members of Management Committee of SPV.
Q 22 . Whether the training centre is available to undergo training in Skill upgradation?
Ans : Training is provided to the artisans under Soft Intervention initiatives through awareness camps, workshops, exposure visits, either on site or visit to domain specific training institutes.
Q 23 . What is the CFC?
Ans : Common Facility Centre is one of the Components in Hard Intervention.
Q 24 . Who will market the products produced by Artisans?
Ans : Implementing Agency (IA) will support for marketing of the products produced by Artisans. IA may have its own Sales outlets also.Besides, under Thematic intervention, e-commerce portals are being designed for promotion and sale of products from the SFURTI clusters.
Q 25 . Whether any format is devised for making proposal?
Ans : Yes. Implementing Agency can apply in the SFURTI portal sfurti.msme.gov.in orapply in the prescribed format designed by the Nodal Agency. The list of the Nodal Agencies is available in the SFURTI website.
-
Q 1 . What is Mudra?
Ans : MUDRA, which stands for Micro Units Development & Refinance Agency Ltd., is a financial institution set up by Government of India for development and refinancing of micro units enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs.
Q 2 . Why Mudra has been set up?
Ans : The biggest bottleneck to the growth of entrepreneurship in the Non–Corporate Small Business Sector (NCSBS) is lack of financial support to this sector. More than 90% of this sector does not have access to formal sources of finance. GoI is setting up MUDRA Bank through a statutory enactment for catering to the needs of the NCSBS segment or the informal sector for bringing them in the mainstream.
Q 3 . What are the roles and responsibilities of Mudra?
Ans : MUDRA would be responsible for refinancing all Last Mile Financiers such as Non-Banking Finance Companies, Micro Finance Institutions, Societies, Trusts, Section 8 Companies [formerly Section 25], Small Finance Banks and Regional Rural Banks which are in the business of lending to micro/small business entities engaged in manufacturing, trading and services activities as well as agri-allied activities. MUDRA would also partner with State/Regional level financial intermediaries to provide finance to Last Mile Financier of small/micro business enterprises.
Q 4 . What are the offerings of Mudra? How will Mudra function?
Ans : Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has already created its initial products / schemes. The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also to provide a reference point for the next phase of graduation / growth to look forward to. The financial limit for these schemes are:-
- Shishu : covering loans upto 50,000/-
- Kishor : covering loans above 50,000/- and upto 5 lakh
- Tarun : covering loans above 5 lakh to 10 lakh
MUDRA’s delivery channel is conceived to be through the route of refinance primarily to Banks/NBFCs/MFIs.
At the same time, there is a need to develop and expand the delivery channel at the ground level. In this context, there is already in existence, a large number of ‘Last Mile Financiers’ in the form of companies, trusts, societies, associations and other networks which are providing informal finance to small businesses.
Q 5 . Who are the target clients of Mudra, what kind of borrowers are eligible for assistance from Mudra?
Ans : Non–Corporate Small Business Segment (NCSB) comprising of millions of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas.
Q 6 . Are regional Rural Banks eligible for assistance from Mudra?
Ans : Yes, MUDRA will be extending refinance support to RRBs for enhancing their liquidity
Q 7 . What is rate of interest charged by Mudra?
Ans : MUDRA is a refinancing agency which will extend its funds to Last Mile Financiers to enable them to reach out to the sector. Access to finance in conjunction with rational price is going to be the unique customer value proposition of MUDRA. It will use a variety of innovative financing means including technology to bring down the cost of funding for the ultimate borrower.
Q 8 . I have a small business dealing in paper goods, can Mudra help me?
Ans : MUDRA loan is available through Banks/NBFCs/MFIs for such activities. All kind of manufacturing, trading and service sector activities can get MUDRA loan. Loans are categorised into Shishu, Kishor and Tarun. These products have been designed to cater to customers operating at the lower end of the enterprise spectrum. The loans will be extended through MFIs, NBFCs, Banks, etc.
Q 9 . Have graduated recently, I want to start my own business, can Mudra help me?
Ans : MUDRA loans are available in three categories. For small business, loans upto 50000/- /- is available under the ‘Shishu’ category and beyond 50,000 and up to 5 lakh under the ‘Kishor’ category. It also offers loans beyond 5 lakh and up to 10 lakh under the Tarun category. Depending on the nature of business and project requirement you can access finance from one of the intermediaries of MUDRA as per the norms.
Q 10 . Have diploma in food processing technology. I want to start my own unit. Please guide me?
Ans : Food Processing is an eligible activity for coverage under one of the MUDRA schemes. You can avail of assistance under MUDRA schemes for food processing from any financing banks/MFIs/NBFCs.
Q 11 . I am an artisan specializing in Jari work. I want to start my own work instead of doing job work for others. Can Mudra help me?
Ans : You can avail assistance under the ‘Shishu’ category through any banks/NBFCs/MFIs operating in your region, for setting up your own enterprise.
Q 12 . I intened to work on franchise model and open an ice cream parlour. Can Mudra help me?
Ans : MUDRA operates a special refinance scheme for traders and shopkeepers. You can avail the facilities under the scheme as per your requirements from any banks/MFIs/NBFCs in the area.
Q 13 . I want to expand my pottery business and adding more variety and designs, what help can I get from Mudra?
Ans : You can avail assistance under the ‘Shishu’ category through any banks/NBFCs/ MFIs operating in your region for setting up your own enterprise.
Q 14 . What is the scope of PMMY and various types of loan available and which are the agencies that will provide loan?
Ans : Pradhan Mantri Mudra Yojana (PMMY) loans will be extended by all Public Sector Banks such as PSU banks, Regional Rural Banks (RRBs), Small Finance Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions and Non-Banking Finance Companies. All loans sanctioned on or after April 08, 2015 up to a loan size of 10 lakh for non-farm income generating activities will be branded as PMMY loans.
Q 15 . Who will monitor the implementation of PMMY?
Ans : Monitoring of PMMY progress at the State level will be done through SLBC forum and at National level by MUDRA/Department of Financial Services, Government of India. For this purpose, MUDRA has developed a portal, wherein the Banks and other lending institutions directly feed their achievement details which are consolidated by the system and reports are generated for review.
Q 16 . Is there any scheme in Central/State Govt. which is applicable all over India, in which loan amount without guarantee is granted/the guarantors identity is cheeked?
Ans : Pradhan Mantri Mudra Yojana is a Government of India scheme, which enables a small borrower to borrow from banks, MFIs, NBFCs for loans upto 10 lakh for non farm income generating activities. Generally, loans upto ` 10 lakh issued by banks under Micro Small Enterprises is given without collaterals.
Q 17 . Are carpentry and RO water plant installation eligible for the loan?
Ans : Carpentary and RO water plant installation, on a business mode, are eligible activities under MUDRA loan, if the loan amount is up to 10 lakh The primary requirement for availing a MUDRA loan is to be an income generating activity under manufacturing, processing, trading and service sector as well as agri-allied activities and the loan amount is up to 10 lakh .
Q 18 . What is the eligibility of persons for availing mudra loans?
Ans : Any Indian Citizen who has a business plan for a non-farm income generating activity such as manufacturing, processing, trading or service sector whose credit need is up to 10 lakh can approach either a Bank, MFI or NBFC for availing of MUDRA loans under PMMY. The usual terms and conditions of the lending agency may have to be followed for availing of loans under PMMY. The lending rates are as per the RBI guidelines issued in this regard from time to time.
Q 19 . Is there any subsidy under pmmy? If so, details thereof?
Ans : There is no subsidy for the loan given under PMMY. However, if the loan proposal is linked to some Government scheme, wherein the Govt. if providing capital subsidy, it will be eligible under PMMY also
-
Q 1 . What is the share of procurement from MSEs out of the total procurement made by Central Government Ministries / Departments / Public Sector Undertakings?
Ans : Under amended Public Procurement Policy for MSEs, order 2012 a minimum 25 per cent share out of the total procurement by Central Government Ministries / Departments /Central Public Sector Undertakings are to be made from MSEs.
Q 2 . Whether there is any reservation for MSEs owned by SC/ST entrepreneurs?
Ans : Yes, out of 25% target of annual procurement from MSEs, a sub-target of 4% is earmarked for procurement from MSEs owned by Scheduled Caste (SC) / Scheduled Tribe (ST) entrepreneurs and 3%from MSEs owned by women entrepreneur. However, in event of failure of such MSEs to participate in tender process or meet tender requirements and L1 price, 4% sub-target for procurement earmarked for MSEs owned by SC/ST entrepreneurs and 3% earmarked to women entrepreneur will be met from other MSEs.
Q 3 . Who is eligible for availing benefits under the Public Procurement Policy?
Ans : The MSEs who are registered with District Industries Centers (DICs) / Khadi & Village Industries Commission (KVIC) / Khadi & Village Industries Board (KVIB) / Coir Board / NSIC / Directorate ofHandicrafts and Handloom or having Udyog Aadhaar Memorandum (UAM) or registered with any other body specified by Ministry of Micro, Small& Medium Enterprises (M/o MSME) areeligible for availing benefitsunder the Public Procurement Policy.
Q 4 . What is the date of implementation of this Policy?
Ans : The policy is applicable with effect from 1.4.2012. However, the policy has become mandatory with effect from 1.4.2015 onwards.
Q 5 . Whether Policy is transparent, competitive and cost effective?
Ans : The Policy rests upon core principles of competitiveness, adhering to sound procurement practices and execution of orders for supply of goods and services in accordance with a system which is fair, equitable, transparent, competitive and cost effective.
Q 6 . Whether Policy is transparent, competitive and cost effective?
Ans : The Policy rests upon core principles of competitiveness, adhering to sound procurement practices and execution of orders for supply of goods and services in accordance with a system which is fair, equitable, transparent, competitive and cost effective.
Q 7 . Whether the Policy is implemented in parts or fully from its inception?
Ans : As per Gazette Notification(S.O. 5670(E)dated 8th November,2018, It is mandatory for all CPSEs to procure at least 25% of their annual procurement from MSEs including 4% from MSEs owned by SC/ST entrepreneur and 3% from MSEs owned by women entrepreneur.
Q 8 . Whether there is any monitoring system for assessing the Government procurement from MSEs?
Ans : In tender, participating MSEs quoting price within band of L1+15% shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price is from someone other than an MSE. Such MSEs shall be allowed to supply at least 25% of total tendered value. In case of more than one such MSE, the supply will be shared proportionately (to tendered quantity).
Q 9 . Whether there is price match making facility for procurement from MSEs over large scale?
Ans : In tender, participating MSEs quoting price within band of L1+15% shall also be allowed to supply a portion of requirement by bringing down their price to L1 price in a situation where L1 price is from someone other than an MSE. Such MSEs shall be allowed to supply up to 20% of total tendered value. In case of more than one such MSE, the supply will be shared proportionately (to tendered quantity).
Q 10 . What steps are to be taken by the Government Ministries / Departments / CPSUs to develop MSE Vendors to achieve their targets for MSE procurement?
Ans : Central Ministries /Departments /PSUs must take necessary steps todevelop appropriate vendors by organizing Vendor Development Programmes / Buyer-Seller Meets and entering into Rate Contract withMSEs for a specified period in respect of periodic requirements.
Under the Procurement and Marketing Support scheme, State Level VDP and National Level VDPs are regularly organized by the Ministry to develop suitable MSE vendors.
Q 11 . What steps are to be taken by the Government Ministries / Departments / CPSUs to develop vendors from MSEs owned by SC/ST entrepreneurs?
Ans : For enhancing participation of MSEs owned by SCs / STs in Government procurement, Central Government Ministries / Departments / PSUs have to take following steps:
Special Vendor Development Programmes/ Buyer-Seller Meets would be conducted by Departments/ CPSUs for SC/STs;
Outreach programmes will be conducted by NSIC to cover more and more MSEs from SC/STs under its schemes of consortia formation; and
NSIC would open a special window for SCs / STs under its Single Point
Registration Scheme (SPRS).
A National SC/ST hub scheme has been launched in October 2016, for providing handholding support to SC/ST entrepreneur. which is being coordinated / implemented by the National Small Industries Corporation (NSIC) under this Ministry
Q 12 . What are the other benefits/ facilities to the MSEs available under the Policy?
Ans : To reduce transaction cost of doing business, MSEs will be facilitated by providing them tender sets free of cost, exempting MSEs from payment of earnest money, adopting e-procurement to bring in transparency in tendering process.
In addition to benefits mention above MSEs are also given relaxation in prior turn over and prior experience criteria without compromising in quality and technical specification of products or services.
Q 13 . Whether there is any review mechanism for monitoring and review of the Policy?
Ans : A Review Committee has been constituted under chairmanship of Secretary, Ministry of MSME for monitoring and review of Public Procurement Policy for MSEs. M/o MSME will review and/or modify the composition of the Committee as and when required. This Committee will, inter alia, review list of 358 items reserved for exclusive purchase from MSEs on a continuous basis, consider requests from Government Departments, CPSUs for exemption from 25% target on a case to case basis and monitor achievements under the Policy.
Q 14 . Whether there is any kind of purchases that have been kept out of the purview of the Procurements under the Policy and if yes, how monitoring of the goal set will be done?
Ans : Given their unique nature, Defense armament imports will not be included in computing 25% goal for Ministry of Defense. In addition, Defense Equipment like weapon systems, missiles, etc. will remain out of purview of such policy of reservation. Monitoring of goals set under the policy will be done, in so far as they relate to the Defense sector, by Ministry of Defense itself in accordance with suitable procedures to be established by them.
Q 15 . From where the detail of the Policy can be obtained?
Ans : Policy details are available on the website of this office at http://dcmsme.gov.in/
Q 16 . Whether this Policy is mandatory under any Act?
Ans : Yes, The Policy is mandatory and notified under the MSMED Act,2006.
Q 17 . Whether this policy is applicable for works / trading activities also?
Ans : Policy is meant for procurement of only goods produced and services rendered by MSEs. However, traders are excluded from the purview of Public Procurement Policy.
Q 18 . Whether policy is applicable for MSEs registered with NSIC?
Ans : The policy is also applicable for MSEs registered with NSIC.
Q 19 . Whether policy provides benefits for exemption from Security Deposits to MSEs?
Ans : No, there is no exemption on security deposit/performance guaranty under the PPP.
-
Q 1 . What is maximum project cost allowed under PMEGP?
Ans : Rs.25.00 lakhs for manufacturing unit and Rs.10.00 lakhs for Service Unit
Q 2 . Whether cost of land includes in the project cost?
Ans : No
Q 3 . How much Margin Money (Govt. Subsidy) admissible?
Ans : Categories of beneficiaries under PMEGP
Rate of (Margin Money) Subsidy(of project cost)
Area (location of project/unit) Urban Rural
General Category 15% 25%
Special (including SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc. 25%(Urban ) 35%(Rural)
Q 4 . What is the component of project cost?
Ans : Capital Expenditure Loan, one cycle of working capital and 10% of project cost as own contribution in case of General category and 5% of project cost in case of weaker section.
Q 5 . Who are the beneficiaries?
Ans : Individual Entrepreneurs, Institutions, Co-operative Societies, Self Help Groups, Trusts
Q 6 . Who are the financial agencies?
Ans : Public Sector Banks ,Regional Rural Banks(RRB), Co-operative Banks and Private Scheduled Commercial Banks approved by respective State Task Force Committee.
Q 7 . How the capital expenditure loan / Cash Credit Limit be utilized ?
Ans : Working Capital at least once should touch 100% limit of Cash Credit within three years of Lock-in period of Margin Money and not less than 75% of the utilization of the sanction limit on an average.
Q 8 . Where the beneficiary has to submit his/her application/ Project?
Ans : A Beneficiary can submit his/her application/Project online on kvic website www.kvic.org.in / kviconline.gov.in/pmegpeportal. List of office addresses of KVIC/KVIB/DIC are available at our website.
Q 9 . What is Village Industry ?
Ans : Any Village Industry (except those mentioned in the negative list) located in the Rural Area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment for head of a full time artisans or worker does not exceed Rs.1.00 lakh in plain area and Rs.1.50 lakhs in hilly areas and for A & N Island and Lakshadweep Rs.4.5 Lakhs.
Q 10 . What is rural area ?
Ans : Any area classified as Village as per the revenue record of the State, irrespective of the population. It also includes an area even if classified as town provided its population does not exceed 20000.
Q 11 . What is Age limit ?
Ans : Any adult beneficiary above 18 years is eligible for financing under PMEGP.
Q 12 . What are the main criteria of project?
Ans : It should fulfill the criteria of rural area (for Rural Area project), per capita investment, own contribution, negative list and the unit should be new one
Q 13 . Whether EDP training is compulsory?
Ans : Before Claim through PMEGP portal ,EDP training of 10 working days for Project cost. More than Rs. 5.00 lakhs and 6 Working days training for upto Project Cost Rs. 5.00 lakhs to the beneficiary is compulsory.
Q 14 . Whether collateral security is mandatory?
Ans : As per RBI guidelines the project costing upto Rs.10.00 lakhs under PMEGP loans are free from collateral security. The CGTSME provides collateral guarantee for the project beyond Rs.5.00 lakhs and upto Rs.25.00 lakhs under PMEGP scheme.
Q 15 . What is the helpline for the beneficiary in preparation of the project ?
Ans : 30 model projects uploaded on kvic.org.in website
Q 16 . Whether an entrepreneur can submit more than one project ?
Ans : No
Q 17 . Whether existing unit can avail funds under PMEGP ?
Ans : No, only new unit.
Q 18 . Whether model projects are available with KVIC.
Ans : yes, Industry wise model projects are available at kvic.org.in
Q 19 . where training centers are available to undertake EDP?
Ans : List of EDP training centers including 582 training center of RSETI/RUDSETIS are available at our websitekvic.org.in
-
Q 1 . When the Government of India launched the Central Government Stores Purchase Programme?
Ans : The Government of India launched the Central Government Stores Purchase Programme in 1955.
Q 2 . When the Single Point Registration Scheme was evolved by Government of India and what was the objective of Single Point Registration Scheme?
Ans : The Single Point Registration Scheme was introduced in 1976 with the objective to avoid the multiple registration.
Q 3 . What are the benefits available to Micro & Small Enterprises (MSE) registered with NSIC under Government Stores Purchase Programme?
Ans : 1. Issue of Tender Free of Cost
- Exemption of payment of Earnest Money Deposit (EMD)
- In tender participation, MSEs quoting price within the price band of L1+15 percent shall also be allowed to supply a portion upto 20% of requirement by bringing down their price to L1 price where L1 is non MSEs.
- Every Central Ministries / Departments / PSUs shall set an annual goal of minimum 20% of the total annual purchases of the products or services produced or rendered by MSEs. Out of annual requirement of 20% procurement from MSEs, 4% is earmarked for units owned by Scheduled Castes / Scheduled Tribes.
- 358 items are reserved for exclusive purchase from MSEs.
Q 4 . Who is eligible to get registered with NSIC under Single Point Registration Scheme?
Ans : Micro & Small Enterprises are eligible to get registered with NSIC under SPRS.
Q 5 . How and to whom MSEs should apply for registration with NSIC under its Single Point Registration Scheme?
Ans : MSE units can apply either online on NSIC’s SPRS website www.nsicspronline.com OR in person by visiting nearest branch of NSIC.
Q 6 . Is NSIC issuing Provisional GP Registration Certificate to Micro & Small Enterprises; if yes what is the criteria?
Ans : Yes. NSIC issues Provisional Enlistment Certificate to those MSEs under SPRS who have started the production but not having the audited Balance sheet for the last one year.
Q 7 . How much Monetary Limit fixed in Provisional Registration under SPRS
Ans : Rs. 5 lac.
Q 8 . When MSMED Act introduced?
Ans : In the year 2006
Q 9 . What is the prescribed limit for investment in Plant & Machinery for Micro Enterprise in MSMED Act.?
Ans : Rs. 25 lac
Q 10 . What is the prescribed limit for investment in Plant & Machinery for Small Enterprise in MSMED Act
Ans : More than Rs. 25 lac but does not exceed Rs. 5 crore
Q 11 . What is the prescribed limit for investment in Plant & Machinery for Small Enterprise in MSMED Act
Ans : More than Rs. 25 lac but does not exceed Rs. 5 crore
Q 12 . Whether the Service Enterprises are eligible to get the benefit as prescribed in the Public Procurement Policy for Micro & Small Enterprise (MSMEs) Order 2012.
Ans : Yes, in the Public Procurement Order 2012 service industries are at par with the manufacturing industry.
Q 13 . What is the prescribed limit for investment in equipment for micro service industry?
Ans : Up to Rs. 10 lac
Q 14 . What is the prescribed limit for investment in equipment for small service industry?
Ans : More than Rs. 10 lac but does not exceed Rs. 2 crore
Q 15 . How can buying agency verify the GP Enlistment certificate, whether it is valid or not?
Ans : The Buying Agency can verify the GP Enlistment Certificate either from NSIC website www.nsic.co.in OR www.nsicspronline.com
Q 16 . What the validity period of Enlistment Certificate?
Ans : SPRS Enlistment Certificate is valid for Two Years from the date of issue.
Q 17 . Can traders can be registered under SPRS?
Ans : NSIC do not register the traders.
Q 18 . Can drugs and medicines manufacturing units be considered for registration under SPRS?
Ans : NSIC do not register MSEs engaged in manufacturing of drugs and medicines.
-
Q 1 . What is Raw Material Assistance Scheme?
Ans : In order to assist the Micro, Small and Medium Enterprises (MSMEs) in procuring the raw material(s), NSIC arranges to provide raw material as per specific needs and requirement of the unit(s).
The facilitation under the scheme is towards:
(a) Procurement of raw materials and other inputs viz., Aluminum, Zinc, Copper, Iron & Steel, Paraffin wax, Coal, Polymer products etc., by signing Memorandum of Understanding with the bulk manufacturers.
(b) Godown operation of bulk manufacturers.
(c) Procurement of other Raw Materials and other inputs from the suppliers / manufacturers (other than as mentioned at a & b above) on the specific request of MSMEs.
Q 2 . Who can avail assistance under the Scheme?
Ans : Any manufacturing MSME having Udyog Aadhaar Memorandum (UAM) can apply for the assistance under the Scheme.
Q 3 . Does NSIC facilitate procurement of raw materials for trading activities?
Ans : No.
Q 4 . Does NSIC facilitate MSMEs for raw material procurement against advance payment or on credit?
Ans : NSIC facilitates MSMEs in raw material procurement in both ways i.e. against advance payment and also on credit, as per the requirement of MSMEs
Q 5 . How to apply for raw material assistance on credit under the Scheme?
Ans : Any MSME needs raw material through NSIC may apply to any of the NSIC field office for Raw Material Assistance in the prescribed application forms, which can be downloaded from NSIC’s web site (www.nsic.co.in) or may be obtained from any of the field offices.
Q 6 . Where to submit application for raw material assistance?
Ans : The duly filled in application form along with prescribed documents can be submitted with the nearest branch office of NSIC. Details of NSIC offices are available on www.nsic.co.in.
Q 7 . How the limit is sanctioned for procurement of material on credit?
Ans : A limit is sanctioned keeping in view the raw materials requirements of the unit, financial position of the unit and available security of equivalent value in the form of bank guarantee.
Q 8 . Whether there is any ceiling of the limit to be sanctioned under the Scheme?
Ans : Yes. There is ceiling of Rs. 5 crores for a single unit and Rs. 15 crores for a group of units engaged in manufacturing activities. In case of MSMEs engaged in infrastructure activities, maximum ceiling is Rs 5.00 Crore, either individual unit or group of units.
Q 9 . What is the validity of the limits sanctioned under the Scheme?
Ans : One year. Thereafter, the limit can be renewed for one year provided conduct of the account was satisfactory during last year.
Q 10 . How does NSIC provide credit support to MSMEs for procurement of raw materials?
Ans : The unit has to submit proforma invoice/ original invoice/ material receipt note with specific request to release the payment. The maximum assistance is provided up to 95% of the BG value.
Q 11 . Whether payment is released to the MSME?
Ans : No. NSIC releases the payment to the supplier as requested by the MSME.
Q 12 . What is the credit period of the assistance provided?
Ans : The credit is allowed for 180 days. However, it can further be extended on the request of MSME with the consent of respective Zonal Head, provided the unit serves interest, total outstanding is within BG limit and BG remains valid till extended period.
Q 13 . What are the benefits to MSMEs under the Raw Material Assistance Scheme?
Ans : • Materials facilitated under Bulk supplies arrangements are provided at bulk supplier’s rate by eliminating the middlemen.
- Discounts received under bulk supplies arrangements are shared with MSMEs, enabling them to reduce cost of purchase of materials.
- Availability of raw material on credit and enabling MSMEs to execute the orders in hand.
-
Q 1 . What are the functions of MSME Testing Centres?
Ans : • To promote Standardisation in MSME sector: MSME TCs provides common testing facilities to ensure that the products manufactured by the MSME units are of national/international standards.
- To help the MSMEs for improving and maintaining the quality of Raw Materials/Intermediate/Final products etc.
- To help the MSMEs to improve their process by providing calibration facility for Measuring Instruments.
- To provide testing facility for export products though Export Facilitation Centres.
Q 2 . Where are these Testing Centers located ?
Ans : Ministry of MSME is having a network of 4 MSME Testing Centres & 7 MSME Testing Stations across the country. These MSME Testing Centres and Testing Stations are equipped with state-of-the-art testing and calibration facilities for helping MSMEs/Non-MSMEs and also Government, Ministries/Departments/Organisations to get their raw materials & products tested & instruments calibrated in the field of Mechanical, Chemical, Electrical and Metallurgy Engineering.
These MSME Testing Centres and Stations also offer different training courses in the field of testing for students of Science/Engineering Graduates/Diploma/ITI and employees of MSMEs & PSUs, etc.
The details of Testing Centres and Testing Stations are as below:
- TESTING CENTRES
- MSME TC, New Delhi web- (www.msme-tc-nr.gov.in)
- MSME TC, Kolkata web (www.rtcer.nic.in)
- MSME TC, Mumbai web- (www.msmetcmumbai.gov.in)
- MSME TC, Chennai web- (www.msmetc.com)
- TESTING STATIONS
- MSME-Testing Station, Hyderabad
- MSME-Testing Station, Bangaluru
- MSME-Testing Station, Kolhapur
- MSME-Testing Station, Puducherry
- MSME-Testing Station, Ettumanur
6.MSME-Testing Station, Bhopal
7.MSME-Testing Station, Jaipur
Q 3 . What is the additional benefit to MSEs ?
Ans : Small and Micro Enterprises (SMEs) can avail concession in testing charges upto 20 % on the normal test charges. SMEs can avail the concession on charges on submitting copy of the UAM/Udyam Registration certificate at the time booking the sample.
Q 4 . What is the test / calibration sample? Will Testing Centres draw the sample and test / calibrate?
Ans : The specimen and product submitted for testing / calibration is considered as sample. Drawing the sample from a lot (That is sampling) is not coming under the scope of the of NABL accreditation. Please note that all the Test Reports are issued to the specific sample submitted by the Customer.
Q 5 . What is needed for submitting the sample?
Ans : (a) A letter from the customer clearly stating the description of the product, identification marks (if any), tests to be performed or parameter to be calibrated, product specification(Indian Standards IS no). grade of the product.
(b) Copy of online Payment receipt. If customer is belonging to SMEs, a copy of UR.
(c) Required quantity of Sample
Q 6 . Can we send the sample by post or courier?
Ans : Yes, Sample can be sent by courier or post along with letter and receipt of payment as stated above.
Q 7 . How do customer know the Test / Calibration charges ?
Ans : 1Customers can obtain All the Test / Calibration charges by sending enquiry through email/ post to respective tESTING Centres/Testing Stations.
Q 8 . Should charges have to be paid in advance before submitting the samples ?
Ans : Yes. Full test charges have to be paid in advance before submitting the sample.
Q 9 . Charges given is inclusive of GST?
Ans : No. The Charges given are not inclusive of GST. GST levied on the total test charges including postal charges. The percentage of GST varies as and when Government issues notification. At present GST charged @ 18%.
Q 10 . Can I pay the test charges by Cash OR Demand Draft OR through Credit / Debit / Net Banking?
Ans : NO, as per central Govt policy not service charges shall be paid by Cash/DD/ Net Banking. All Charges shall be paid only through online Non-Tax Receipt Portal (NTRP) portal only (www.bharthkosh.gov.in).
Q 11 . Can I pay the test charges, compartmentally?
Ans : Yes. Customers are allowed to pay the charges compartmentally. But the payment should have been made fully, before the sample is booked for testing / calibration.
Q 12 . On submission of sample, what type of acknowledgement will be issued to me?
Ans : Customers are required to fill a contract form with the help of CSC officials where you will be informed a Customer reference ID. Customers shall enquire the status of their Test Report quoting the Reference ID.
Q 13 . How would I get ITC (Input Tax Credit)?
Ans : MSME-TCs files GST returns regularly on a monthly basis. So after the filing of GSTR – 2B, you can see the total Input Tax Credit available in your GST account_
Q 14 . How do I get the Test / Calibration Report?
Ans : We will send a Link for Downloading Test / Calibration Report in Softcopy to your Registered E- mail (Passwords & User Id Also provided into this mail).The original copy will be despatched through Speed Post of GoI.
Q 15 . Is there any provision to collect Test report / calibration Certificate directly from the office?
Ans : Yes. The visiting person should produce a proper authorization letter duly signed from the original Customer for collection of report at the Customer Service Cell. The test/calibration report shall be handed over to him immediately.
Q 16 . How do I collect Equipment’s (s)/Instrument (s)/ Testing Sample after completion of test/calibration?
Ans : To collect / return back the residual sample after testing and calibrated items after calibration, prior written request to be done at the time of submission of job. You have to submit an authorised letter to this office regarding collection of samples/items. Then we will issue you a gate pass which will allow you to take your material/equipment out from our Testing centre. You must collect the items mentioned in your letter within 3 months from completion of Test/Calibration.
Q 17 . What are testing / calibration facilities available in MSME Testing Centres ?
Ans : • Physical testing and Chemical Testing/Analysis of Ferrous/Non ferrous materials
- Paints and Chemicals
- Export food products for radionuclide
- Water (Potable & Construction purpose)
- Packaged Drinking Water and Packaged Natural Mineral Water (all tests including microbiology and Radiology Analysis as per Indian Standards)
- Building materials- Cement, Bricks, aggregate, plywood, wood, tiles, concrete cubes, paver blocks, Manhole cover, etc
- Cables & conductors
- Transmission line accessories
- Domestic Electrical appliances
- Leather Goods and Footwear
- Other products like -milk can, wash basin / SS Sink etc.
The above details are indicative, you may contact MSME Testing Centres for specific testing queries.
Q 18 . What Accreditations and recognitions MSME Testing Centres have got?
Ans : • NABL accreditation as per ISO/IEC 17025:2017 for all laboratories.
- AERB recognized testing for presence of radioactive material such as Alpha, Beta & Gamma emitters
- BIS recognition for testing of products
- Well recognized and acknowledged by IGCAR,Kalpakkam/RITES/AAI/ State &Central PWD/Railways/DefenceEstablishment, TANGEDCO, NTPC, NLC, etc
Above Accreditations will vary from TCs to Tcs.
Q 19 . I am a Contractor performing work for a Government Department / PSU. I am making the payment. Will you issue the Test Report in the name of assignee Govt. Department / PSU ?
Ans : If contractor produces a letter from the Government Department / PSU, the Report will be issued in the name as mentioned in their letter. However, if contractor does not have any such letter, he has to give a letter in his letter head or plain paper, requesting to issue the Test Report in another Name & Address. While issuing the Test Report, contractor’s letter reference will be mentioned in the Test Report. Q 20 . What is the lead time taken to test my sample and time taken to issue the Test Report ?
Ans : The time taken for completing of tests and issue of Test Report will be informed at the time of submitting the sample. Because, the lead time varies depending upon the number of test(s) / type(s) of tests requested at the time of booking the sample. The lead time completely depends on the Test Specification. In addition, issue of Test Reports will depend upon the work load of our laboratory personnel. It depends on other factors like, Power failure, Breakdown of testing machines, man power shortage etc. However, we will ensure our level best to deliver the Test Report in time.
Q 21 . How to challenge the Test Results?
Ans : Customers are allowed to witness the test method being performed at our Centre on payment of witness charges per person. In case the remains of the submitted samples can be taken for re-test, customers can witness the same by paying the test charges + witness charges, again. If the samples are perishable in nature, customer can again submit his sample for test and witness the same on payment of required charges. Please note that all the Test Reports are issued to the specific sample submitted by the Customer. Therefore, TCs will not be responsible for variation in test results, in case of submission of fresh samples
Q 22 . In case of correction required in the Test Report, how would it be done?
Ans : In case of Technical Error or due to typing error, the same may be reported to our CSC in writing. Necessary action will be taken in consultation with the concerned Lab, revised Test Report will be issued by us at no cost. Correction required from customer side like change of address etc. revised Test Reports will be given on written request. But issue of Revised Test Report for free of cost, cannot be claimed as a matter of right.
Q 23 . Whether MSME- TC can help a unit to export their products?
Ans : MSME-TC can help a unit with proper guidance about testing requirements for exporting of products through Export Facilitation Centre (EFC).
Q 24 . What is BIS
Ans : BIS Bureau of Indian Standards. BIS Certification is a means for providing third party guarantee of quality, safety and reliability of products to the customer. BIS Certification is voluntary in nature; however, the Government of India has made BIS certification mandatory for certain products taking into consideration public health.BIS is the nodal agency in India to represent at International level for formulation of standards’ of the products.
Q 25 . WHAT IS NABL
Ans : NABL is the National Accreditation Board for Testing and Calibration Laboratories. It is a self-governing body under the guidance of Science and Technology. India aims to provide certification for testing and calibration in Indian clinical laboratories.
It is the only government-approved certification body. NABL, which provides third-party assessments of laboratory quality and technical capabilities, also shares links with the Asia Pacific Laboratory Accreditation Collaboration and International Laboratory Accreditation Collaboration.
Q 26 . WHAT IS ILAC
Ans : ILAC is the International Organisation for Accreditation Cooperation operating in accordance with ISO/IEC 17011 and involved in the assessment and accreditation of calibration laboratories (using ISO/IEC 17025), testing laboratories (using ISO/IEC 17025), medical testing laboratories (using ISO 15189) and inspection bodies (using ISO/IEC 17020).
Q 27 . WHAT IS APLAC
Ans : APLAC is Asia Pacific Laboratory Accreditation Cooperation. APLAC is an organisation of laboratory accreditation bodies in the Asia Pacific area that have expressed a desire to cooperate in fostering the development of competent laboratories in member economies. Cooperation is to include: – Exchange of information. –
Q 28 . WHAT IS FPO
Ans : FPO stands for Fruit Products Order. Food process order or FPO mark is issued by the Ministry of Food processing Industry which also develops the standards for this mark. The mark was named after the law called Fruit Products offer.
Q 29 . What is EU STANDARDS?
Ans : European Standards (ENs) are documents that have been ratified by one of the three European Standardization Organizations (ESOs), CEN, CENELEC or ETSI; recognized as competent in the area of voluntary technical standardization as for the EU Regulation 1025/2012.
Q 30 . What is quality control orders?
Ans : Quality Control. A system for verifying and maintaining a desired level of quality in a product or process by careful planning, use of proper equipment, continued inspection, and corrective action as required
Q 31 . What is BEE Star rating scheme and how it is related with Testing
Ans : BEE rating is an energy efficiency standard for appliances sold in India. These star labels are issued by the Bureau of Energy Efficiency (BEE), which is an Indian government agency that falls under the Ministry of Power. Whenever you’re shopping for appliances such as refrigerators, air conditioners, or geysers, you might have noticed star rating stickers on the appliances. These are called BEE star labels and they show how much electricity the appliance consumes in a year.
Q 32 . How CHAMPIONS Portal can help a MSME Unit to produce / maintain its Quality Product?
Ans : MSME can get a guideline through the CHAMPIONS portal regarding testing of their products in MSME – TC / TS in the selection of right specification as well as to maintain their Equipment / Instruments up to the Standard by getting calibrated from TC/TS.
-
Q 1 . How is MSME-Sampark different?
Ans : • We are recruiter centric rather than job seeker centric. We offer free job postings to our esteem recruiters with authenticated and quality resume from our technology centers current & passed out student pools.
- We do one round of resume screening before it goes to our resume database & online portal. Key profile attributes of our students are validated before it goes to resume pool.
- Our recruiters do not have to pay for any number of resumes and job postings. Our technology centers specialists help you on job posting and resume sort listing through our 24*7 contact center service.
- We provide premium services like assistance in assessment, interview, sort listing and special training for your candidates from our experts with very minimal pricing.
Q 2 . Is there any restriction on the number resumes one can download?
Ans : There is no restriction of resumes downloads or search.
Q 3 . How soon the services will be activated post registration?
Ans : The Services will be activated between 60-90 mins during work hours. Monday-Sunday 9.30 am-6.30pm IST.
Q 4 . Will you sort the resume for me?
Ans : We provide fully automated interface which sorts resume based upon your inputs before sending it to you. However, our customer interface team will assist you for job search and sorting if required.
Q 5 . What is the filter available to shortlist the resumes?
Ans : Search fields available are – Key Skills, Experience (Min. to Max.), Location (current and preferred), Industry, Roles, Education (highest degree, specialization, passing year), Previous/Current Employer, Designation, Notice Period, Current Work Location, and Freshness of Resumes (one day old resumes).
Q 6 . Can I find the resume with Visa status?
Ans : No, at moment there is no option to filter the resume with Visa.
Q 7 . Are you giving access to new resumes?
Ans : Yes, you will access all new, updated resumes any time.
-
Q 1 . Is there any specific initiative that has been taken by GeM in terms of Public Procurement?
Ans : GeM has taken number of initiatives for procurement of goods and services by Government departments in the fight against COVID-19 Pandemic. A dedicated page for COVID-19 has been created on the portal. You can find more information by visiting here
Click Here
Q 2 . What are pre-requisite for primary user registration?
Ans : The prerequisites for primary user registration are:
- Aadhaar number of the user.
- Mobile number which is linked with Aadhaar.
- Email ids hosted by NIC, only NIC registered Email ids are allowed, this would facilitate users from all 1600+ domains to freely register and transact on GeM.
- Verifying authority details such as name, mobile number and NIC registered email id.
Note: In case the user does not have an email id which is hosted by NIC s/he would be directed to open GeM buyer id email.
Q 3 . Is Aadhaar card mandatory for primary user registration?
Ans : Yes, Aadhaar is mandatory for primary user registration. Note: Aadhaar details collected by GeM are solely for user verification.
Q 4 . What are the key tasks of a primary user?
Ans : The key tasks of a primary user are:
Self-registration
Filling organization details
Creation/modifications of secondary users
Monitoring of orders placed
Administration of GeM procurements
In case the primary user gets transferred or retires from the organization, he/she needs to transfer the primary user account
Q 5 . How can a user verify his/her email id during registration?
Ans : You must have a NIC registered email id to register, upon entering the NIC registered email id like gov.in/nic.in etc. during registration, the email will be verified by NIC. On successful validation by NIC, the user will get an email message with a one-time password for continuing with the registration process.
Q 6 . How can a user verify his/her email id during registration?
Ans : You must have a NIC registered email id to register, upon entering the NIC registered email id like gov.in/nic.in etc. during registration, the email will be verified by NIC. On successful validation by NIC, the user will get an email message with a one-time password for continuing with the registration process.
-
Q 1 . What is Guaranteed Emergency Credit Line (GECL)?
Ans : The GECL is a loan for which 100% guarantee would be provided by National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs), and which will be extended in the form of additional working capital term loan facility in case of Scheduled Commercial Banks (SCBs) and Financial Institutions (FIs), and additional term loan facility in case of Non-Banking Financial Companies (NBFCs), to eligible MSMEs/ Business Enterprises and interested Pradhan Mantri Mudra Yojana (PMMY) borrowers. Credit under GECL would be up to 20% of the borrower’s total outstanding credit up to Rs. 25 crore, excluding off-balance sheet and non-fund based exposures, as on 29th February, 2020, i.e., additional credit shall be up to Rs. 5 crore.
Q 2 . What is the objective of the Scheme?
Ans : The Scheme is a specific response to the unprecedented situation COVID-19. It seeks to provide much needed relief to the MSME sector by incentivizing MLIs to provide additional credit of up to Rs. 3 lakh crore at low cost, thereby enabling MSMEs to meet their operational liabilities and restart their businesses.
Q 3 . What is the Emergency Credit Line Guarantee Scheme?
Ans : The Emergency Credit Line Guarantee Scheme provides 100% guarantee coverage by NCGTC to MLIs on GECL of up to Rs. 3 lakh crore to eligible MSMEs. MSMEs for the purpose of this Scheme will include MSMEs/ Business Enterprises which are constituted as Proprietorships, Partnerships, Registered Companies, Trusts and Limited Liability Partnerships (LLPs), and also interested borrowers under PMMY.
Q 4 . Who are the MLIs under the Scheme?
Ans : All SCBs are eligible as MLIs. NBFCs which have been in operation for at least 2 years as on 29.2.2020, and FIs will also be eligible as MLIs under the Scheme.
Q 5 . What will be the definition of FIs for the purpose of this Scheme?
Ans : FIs for the purpose of this Scheme will be as defined under sub-clause (i) of clause (c) of Section 45-I of RBI Act.
Q 6 . What is the duration of the Scheme?
Ans : The Scheme would be applicable to all loans sanctioned under GECL during the period from May 23, 2020 to 31st October 2020, or till an amount of Rs. 3 lakh crore is sanctioned under GECL, whichever is earlier.
Q 7 . What would be the guarantee coverage under the Scheme?
Ans : The entire funding provided under GECL shall be provided with a 100% credit guarantee coverage by NCGTC under the Scheme.
Q 8 . What will be the eligibility criteria for MSMEs to avail the benefit of the Scheme?
Ans : The eligibility criteria under the Scheme are as under:
- All MSME borrower accounts with combined outstanding loans across all MLIs of up to Rs. 25 crore as on 29.2.2020, and annual turnover of up to Rs. 100 crore in FY 2019-20. In case accounts for FY 2019-20 are yet to be audited/finalized, the MLI may rely upon the borrower’s declaration of turnover.
- The Scheme is valid only for existing customers on the books of the MLI. Borrower accounts should be classified as regular, SMA-0 or SMA-1 as on 29.2.2020. Accounts classified as NPA or SMA-2 as on 29.2.2020 will not be eligible under the Scheme.
- The MSME borrower must be GST registered in all cases where such registration is mandatory
- This condition will not apply to MSMEs that are not required to obtain GST registration. • Loans provided in individual capacity will not be covered under the Scheme.
Q 9 . Will the Scheme also cover borrowers under PMMY?
Ans : Yes, loans under PMMY extended on or before 29.2.2020, and reported on the MUDRA portal shall be covered under the Scheme.
Q 10 . Will GECL be extended as a separate loan account, or as part of the existing loan account of the borrower?
Ans : A separate loan account shall be opened for the borrower for extending additional credit under GECL. This account will be distinct from the existing loan account(s) of the borrower
Q 11 . Will loans under the Scheme be automatically given without any application or solicitation from the borrower?
Ans : This is a pre-approved loan. An offer will go out from the MLI to the eligible borrowers for a preapproved loan which the borrower may choose to accept. If the MSME accepts the offer, it will be required to complete requisite documentation. Thus, an ‘opt-out’ option will be provided to eligible borrowers under the Scheme, i.e., if the borrower is not interested in availing the loan, he/she may indicate accordingly.
Q 12 . What would be the procedure followed in case a borrower has loan accounts with multiple lenders?
Ans : In case a borrower has existing limits with multiple lenders, GECL may be availed either through one lender or each of the current lenders in proportion depending upon the agreement between the borrower and the MLI.
- In case the borrower wishes to take from any lender an amount more than the proportional 20% of the outstanding credit that the borrower has with that particular lender, a No Objection Certificate (NOC) would be required from all other lenders.
- No NOC will, however, be required if the GECL availed from a particular lender is limited to the proportional 20% of the outstanding credit that the borrower has with that lender.
Q 13 . What would be the procedure followed in case a borrower has loan accounts with multiple lenders?
Ans : No.
Q 14 . To avail GECL, will it be necessary for existing loans of the borrower to be covered under existing guarantee schemes such as CGFMU or CGTMSE?
Ans : Yes, interest rates on GECL shall be capped as under:
- For Banks and FIs, one of the RBI prescribed external benchmark linked rates +1% subject to a maximum of 9.25% per annum
- For NBFCs, the interest rate on GECL shall not exceed 14% per annum
The Scheme may also be operated in combination with applicable interest subvention schemes, as far as feasible.
Q 15 . What would be the tenor of loans provided under GECL?
Ans : The tenor of loans provided under GECL shall be four years from the date of disbursement. No pre-payment penalty shall, however, be charged by the MLIs in case of early repayment.
Q 16 . Is there any moratorium period prescribed under the Scheme?
Ans : Yes, a moratorium period of one year on the principal amount shall be provided for GECL funding. Interest shall, however, be payable during the moratorium period. The principal shall be repaid in 36 instalments after the moratorium period is over.
Q 17 . Is any turnaround time prescribed for MLIs under the Scheme for sanction of GECL?
Ans : Indicative turnaround time for loans under the Scheme shall be the same as those prescribed by Department of Financial Services for credit support in the context of COVID-19 pandemic.
Q 18 . Will any guarantee fee be charged under the Scheme by NCGTC?
Ans : No, NCGTC will not charge any guarantee fee under the Scheme
Q 19 . Will any processing fee be charged by MLIs for sanction of loans under GECL?
Ans : Since additional credit under GECL is to be provided to existing customers, no additional processing fee shall be charged by lenders.
-
Q 1 . What is Distressed Asset Fund – Subordinated Debt for Stressed MSMEs?
Ans : The “Distressed Asset Fund – Subordinated Debt for Stressed MSMEs” is a scheme framed by Ministry of MSME under which credit facility would be provided to the Promoters of the stressed MSMEs by Scheduled Commercial Banks (SCBs) for infusing the same as equity/quasi equity/ sub-debt in the unit.
Q 2 . What is the Credit Guarantee Scheme for Subordinate Debt (CGSSD)?
Ans : Credit Guarantee Scheme for Subordinate Debt (CGSSD) (hereinafter referred to as “Scheme”) being operated by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides guarantee coverage to Member Lending Institutions (MLIs) for the credit facility extended to the to the eligible MSMEs under the above mentioned scheme.
Q 3 . What is the objective of the Scheme (CGSSD)?
Ans : The objective of the scheme is to provide credit facility through lending institutions to the promoters of stressed MSMEs viz. SMA-2 and NPA accounts who are eligible for restructuring as per RBI guidelines on the books of the Lending institutions. The promoter would infuse the credit in the MSME as quasi equity or sub-debt.
Q 4 . How do we define MSME?
Ans : Micro, Small and Medium Enterprises defined under the MSMED Act from time to time.
Q 5 . Which are the MSME’s constitution included under the Scheme?
Ans : MSME units such as Individuals / Proprietorship, LLP, Partnership, Private Limited Company or registered company are eligible to be covered under the scheme.
Q 6 . Who are the eligible Member Lending Institutions (MLIs) under the Scheme?
Ans : All Scheduled Commercial Banks are eligible as MLIs.
Q 7 . What is the maximum sub-debt amount eligible under the Scheme?
Ans : Under the Scheme, Promoter(s) of the MSME unit will be given credit facility equal to 15 % of his/her stake in the MSME entity (equity plus debt) or Rs 75 lakh whichever is lower as per last audited Balance Sheet.
Illustration 1 : If promoters have invested Rs.100 lakh as equity/debt in a company, then 15% of Rs.100 lakh, i.e. Rs.15 lakh is eligible amount under sub-debt.
Illustration 2 : If promoters have invested Rs.700 lakh as equity/debt in a company, then 15% of Rs.700 lakh is Rs.105 lakh. However, eligible amount under sub-debt would be Rs.75 lakh.
Q 8 . Can you please give some scenarios for computation of sub-debt amount eligible under the Scheme?
Ans : Computation methodology :
- refer at (host the attached document)
Q 9 . What is the guarantee coverage for the sub-debt under CGSSD?
Ans : The guarantee coverage of the sub-debt shall be 90%.
Q 10 . Whether any margin money is required to be brought in by the promoters for availing the sub-debt facility?
Ans : Yes. The promoters are required to bring in 10% of the sub-debt amount as collateral.
Q 11 . What is the duration of the Scheme?
Ans : The Scheme would be applicable to sub-debt sanctioned under CGSSD for a maximum period of 10 years from the guarantee availment date or March 31, 2021 whichever is earlier, or till an amount of Rs 20,000 crore of guarantee amount is approved.
Q 12 . What will be the eligibility criteria for MSMEs to avail the benefit of the Scheme?
Ans : All MSME borrower / entities who are stressed viz. SMA2 and NPAaccounts and are eligible for restructuring (as per RBI guidelines) and are commercially viable as per the assessment of the lending institutions.
Q 13 . Any cut-off date / eligibility is prescribed for MSMEs for availing the benefit under the Scheme?
Ans : MSMEs whose accounts have been standard as on 31.03.2018 and have been in regular operations, either as standard accounts, or as NPA accounts during financial year 2018-19 and financial year 2019-20 are eligible under the Scheme. The Scheme is valid for MSME units which are stressed viz. SMA2 and NPA accounts as on 30-04-2020.
Q 14 . Whether the MSME account where the legal / recovery proceedings are underway are eligible under the Scheme?
Ans : Yes. In cases where recovery proceedings are underway, such as through SARFAESI Sec. 13(2), 13(4), DRT, suit filed, restructuring, MLIs may carry out on the basis of viability of the MSMEs as per RBI’s restructuring guidelines
Q 15 . Whether Fraud / Willful default account are eligible under the scheme ?
Ans : Accounts declared as Fraud/ Willful defaulter will not be considered under the scheme.
Q 16 . On what basis restructuring is carried out?
Ans : Banks are required to carry out restructuring of MSME accounts as per extant RBI guidelines.
Q 17 . What would be the procedure followed in case a borrower has loan accounts with multiple lenders?
Ans : In case a borrower has existing limits with more than one lender, the CGSSD can be availed by the borrower through one lender only. A declaration from the borrower regarding its other banking arrangements and that it has not availed funding under the scheme from the other lenders to be obtained by the lending MLI.
Q 18 . To avail sub-debt under DAF-SDSM, will it be necessary for existing loans of the borrower to be covered under existing guarantee schemes such as CGFMU or CGTMSE?
Ans : No
Q 19 . Will the interest rate on DAF-SDSM be capped?
Ans : Yes. The interest rate applicable would be as per extant RBI guidelines.
Q 20 . What would be the tenor of loans provided under DAF-SDSM?
Ans : The tenor of sub-debt facility provided under DAF-SDSM shall be as per the repayment schedule defined by the lender, subject to a maximum tenor of 10 years.
Q 21 . What would be the tenor of loans provided under CGSSD?
Ans : Maximum tenor would be from the guarantee availment date or March 31, 2021, whichever is earlier.
Q 22 . Is there any moratorium period prescribed under DAF-SDSM?
Ans : Yes. There can be a moratorium of 7 years (maximum) on the payment of principal. Till the 7th year, only interest will be paid. While the interest on the credit facility provided under the scheme would be required to be serviced regularly (monthly), the principal shall be repaid within a maximum of 3 years after completion of moratorium.
Q 23 . Whether prepayment of sub-debt facilities is allowed?
Ans : Pre-payment of loan/credit facilities is allowed at no additional charge to the borrower.
Q 24 . Will any guarantee fee be charged under the Scheme by CGTMSE?
Ans : Yes. 1.50% per annum on the guaranteed amount on outstanding basis.
Q 25 . Whether service fee or any other fee would be charged in addition to the guarantee fee ?
Ans : No. There is no service fee or any other charge.
Q 26 . What will be the risk weight assigned to the credit extended under the scheme?
Ans : CGTMSE guaranteed portion to be assigned zero risk weight, as per extant guidelines.
Q 27 . What will be the security on credit facility extended under the Scheme?
Ans : The credit extended under the scheme will rank second charge on all the existing assets.
Q 28 . Will MLIs be required furnish any undertaking with CGTMSE for the purpose of this Scheme?
Ans : Yes, MLIs will be required to submit an Undertaking to CGTMSE for the purpose of this Scheme as per the prescribed formal.
Q 29 . Are Member Lending Institutions (MLIs) required to notify if the account has turned NPA, in CGTMSE Portal?
Ans : Yes, the MLIs are required to mark a particular case as NPA which is classified as NPA as per RBI guidelines in CGTMSE online portal. The NPA marking needs to be done by the MLIs within next quarter from the NPA date, in the online portal.
Q 30 . Whether Guarantee Fee is payable for NPA or claim lodged cases?
Ans : Yes, Guarantee Fee is payable for NPA cases / claim lodged cases, till the settlement of first claim.
Q 31 . What is the process to be carried out before lodgement of claim ?
Ans : Before lodgement of claim application with CGTMSE, the MLI needs to initiate legal action post NPA or default.
Q 32 . When can the Lending Institution invoke the guarantee?
Ans : For MLI to lodge a claim, the guarantee in respect of that credit facility should have been in force at the time of account turning NPA and after completion of lock-in period of 18 months (from the guarantee start date or last disbursement date whichever is later). MLI can invoke the guarantee for first instalment of claim (75%) only after initiation of legal action under various legal forums such as, SARFAESI (u/s 13 (4)), Revenue Recovery Authority (RRA), Civil Court, Debt Recovery Tribunal (DRT) or Lok Adalat.
Q 33 . How will the guaranteed amount be paid by CGTMSE to the MLIs on invocation of the guarantee?
Ans : After satisfying itself about the procedural aspects met by the lender, regarding lodgement / preferment of claim for guarantee, the Trust settle the claim in two instalments i.e. 75% of the eligible amount (i.e. 90% of amount in default) as First instalment and 25% of the eligible amount (i.e. 90% of amount in default) as Second instalment.
Note : Any recovery made by the lender after settlement of the claim has to be refunded back to CGTMSE as per the existing guidelines.
For Illustration: pl. refer at (host the attached document)
Q 34 . Is the Lending institution required to remit the recovery of amount received from the borrower, after settlement of first installment of claim.?
Ans : Yes. MLI needs to remit any recovery received, from the borrower, after the settlement of first instalment, to CGTMSE after deducting the legal expenses only.
Q 35 . Can a lending institution go for one-time settlement (OTS) in respect of defaulted cases, which are covered under the Scheme?
Ans : Yes. The lending institution is, however, required to keep the Trust informed. In order to avail claim, legal action must be initiated by the MLI even in the event of OTS.
Q 36 . Will there be inspection of cases covered under CGSSD Scheme?
Ans : Yes. Trust reserves the right to inspect cases covered under CGSSD Scheme at any given time.
Q 37 . What are the documents required for inspection?
Ans : During the inspection of cases, MLIs will be required provide copies of the books of account and other records (including any book of instructions or manual or circulars covering general instructions regarding conduct of advances) as maintained by the lending institutions or any such documents as requested by the TRUST.
Q 38 . What would be the purpose of the inspection of these cases?
Ans : The primary purpose of inspection of these case would be to check whether the Lending Institutions have followed the terms and conditions of the Scheme and that in case of NPA account where first claim has been settled by the Trust, any recovery received by the MLI has been appropriately passed on to the Trust.
Q 39 . Who will issue detailed operational guidelines for CGSSD
Ans : CGTMSE will issue the detailed operational guidelines for the Scheme.
Q40 . I was running a business and my account turned into NPA due to certain reasons. However, my unit is not running now and it is closed. Am I eligible under the scheme?
Ans : No. For availing this sub-debt, the unit must be in running condition and operational.
Q 41 . Whether NBFCs are allowed under the sub-debt scheme?
Ans : No. Presently, Scheduled Commercial Banks only are eligible.
Q 42 . When will the guarantee cover commence for the eligible credit facility?
Ans : The guarantee cover will commence from the date on which guarantee fee proceeds are credited to bank account of the Trust.
Q 43 . How long the guarantee cover is available for credit facilities extended to a particular borrower?
Ans : Guarantee will commence from guarantee start date and shall run through the agreed tenure of the facility subject to payment of guarantee fee on annual basis.
Q 44 . What is the process of issue of Guarantees under the scheme?
Ans : On sanction of sub-debt, the Banks login into CGTMSE Portal and apply for guarantee coverage. On receipt of application, Guarantee is approved by CGTMSE within 24 hours and on paying the Guarantee fee, the Guarantee becomes live. No documents are sought at the time of application lodgement of guarantee.
Q 45 . What is meant by conclusion of recovery proceedings?
Ans : The recovery proceedings would be stated as concluded after the decree has been enforced and recovery has been completed by the MLI and outstanding amount has been recovered by the MLI or decree to get time barred if no further recovery possible
Q 46 . Who can provide answers to any further queries?
Ans : Please address your queries/suggestions to querysubdebt@cgtmse.in.
-
Q 1 . What is MSME Samadhaan Portal?
Ans : MSME Samadhaan is a Portal created by Office of DC(MSME), Ministry of Micro, Small and Medium Enterprises (MSME) where Micro and Small Enterprises (MSEs) can file their applications online regarding delayed payments portal at https://samadhaan.msme.gov.in/MyMsme/MSEFC/COM_MSEFC_EntLogin.aspx
Q 2 . Do Ministry of MSME take action on applications filed on MSME Samadhaan Portal?
Ans : No, MSME SAMADHAAN online portal is developed by Ministry of MSME only to facilitate MSEs filing of their applications regarding delayed payments online. The application once filed is forwarded automatically online to the concerned Micro and Small Enterprise Facilitation Council (MSEFC) established by the State/UTs as per the provisions of MSMED-Act 2006. Action on the applications regarding delayed payment is taken by the concerned MSEFC only.
Q 3 . Can Ministry of MSME intervene in matters of MSEFC.
Ans : No. Only the MSEFCs have been empowered as per MSMED Act, 2006 for taking decisions regarding its reference made with them. This office does not intervene in the matters of MSEFC. In short Ministry of MSME cannot interfere with judicial functioning of MSEFC.
Q 4 . Is filing of Udyog Aadhaar Memorandum (UAM) Mandatory to file applications on MSME Samadhaan Portal?
Ans : Yes, UAM is mandatory to file applications online on MSME Samadhaan Portal.
Q 5 . How can I get Udyog Aadhaar Memorandum (UAM) Number?
Ans : Registration for Udyog Aadhaar can be done online on the official website of Ministry of MSME free of cost at following address https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
Q 6 . Is it mandatory to file Delayed Payment Applications online on MSME Samadhaan Portal only?
Ans : No. MSME Samadhaan Portal has been created only to facilitate online applications regarding delayed payments. Physical applications can also be filed at the concerned MSEFC.
Q 7 . Who can convert the application into Regular Reference Petition/claim case?
Ans : The applications are converted into case by the concerned MSEFC.
Q 8 . If there is no action on an application filed by MSEs, whom to contact?
Ans : After submission, the application is automatically forwarded online to concerned MSEFC. Therefore, concerned MSEFC is to be contacted after filing the application online on MSME Samadhaan Portal. The contact address of concerned MSEFC is mentioned on the acknowledgement sent on the registered email of the applicant.
Q 9 . Is work order compulsory to file application on MSME Samadhaan Portal?
Ans : Yes, work order is compulsory. In case purchase order is oral an affidavit to that effect is to be submitted.
Q 10 . How to upload multiple invoices?
Ans : Multiple invoices can be combined into single PDF and can be uploaded. The affidavit of oral purchase order is to be included in single PDF.
-
Q 1 . What are Consortia & Tender Marketing Scheme?
Ans : Micro & Small Enterprise in their Individual Capacity faces problems to procure and execute large order, which inhibit and restrict their growth. NSIC accordingly, adopts Consortia approach and forms consortia of units manufacturing the same products, thereby easing out marketing problems of MSEs.
Q 2 . Who are eligible to participate in Consortia & Tender Marketing Scheme?
Ans : The scheme will cover Micro & Small Enterprises registered with NSIC under its Single Point Registration Scheme (SPRS). It would also cover Micro & Small Enterprises who apply to get themselves registered with NSIC under the SPRS along with all required documents in terms of the scheme and their factory is inspected before filing of tender in terms of the Tender Marketing Scheme. The scheme shall not cover unit(s) engaging in ‘trading activities’ without value addition/packing/ branding.
Q 3 . Whether NSIC can take turnkey projects/services/annual maintenance under Consortia & Tender Marketing Scheme?
Ans : Yes, NSIC can take the followings: –
(i) Goods/ stores
(ii) Machinery/Technology
(iii) Turnkey Projects
(iv) Services (including fabrication works where the buyer provides material to be fabricated and installed at its site).
In cases of above wherever along with supply of items as at (ii) and (iii) above, and services at (iv) above, Annual Maintenance is also required, the same shall also be covered.
Q 4 . Whether pre-inspection of the unit is mandatory?
Ans : Yes, to physically verify the MSEs who wants to supply their goods / services are in production and having the infrastructure to execute the tender in which they want to supply their goods/services.
Q 5 . What is the minimum size of a consortia?
Ans : Minimum two number of MSEs
Q 6 . Whether commitment of the consortia leader with NSIC will be binding on the consortium members?
Ans : Yes, Consortium leader so elected would be empowered to interact with NSIC office for participation in tenders and related matters
Q 7 . Whether Security Deposit is exempted under Public Procurement Policy?
Ans : After issuing of Public Procurement Order 2012 for MSEs, the Security Deposit has been abolished.
Q 8 . What is the provision if Security Deposit/Performance Bank Guarantee, deposited by NSIC?
Ans : The participating MSEs will provide either Back-to-Back Bank Guarantee or deposit 100% value of Security Deposit for the period of which Bank Guarantee given by NSIC to the Buying Department.
Q 9 . Whether all the consortia members shall be jointly and severally responsible for penalty / damage or only defaulted unit?
Ans : Yes
Q 10 . How much %age of the Monetary Limit under SPRS will be fixed for limit under Consortia & Tender Marketing Scheme?
Ans : 300% of the monetary limit fixed for the unit under the Single Point Registration Scheme. While participating in a tender as consortia, the overall limit to be fixed for units operating as a consortium, the limits fixed in respect of individual unit, shall be clubbed.
Q 11 . The validity period of monetary limit fixed under Consortia & Tender Marketing Scheme
Ans : The limit fixed shall remain valid for a year and is subject to review/ renewal annually.
Q 12 . What are the enlistment charges under Consortia & Tender Marketing Scheme?
Ans : S. No Category Annual / Renewal Fee
1 If Monetary Limit under SPRS is up to Rs. 100 lacs Rs. 1000+GST
2 If Monetary Limit under SPRS is more Rs. 100 lacs and up to Rs. 500 lacs Rs. 2500+GST
3 If Monetary Limit under SPRS is above Rs. 500 lacs Rs. 5000+GST
Units owned by SC/ST entrepreneurs are exempted from the enlistment fee
There will be no fee for the formation of new / renewal of Consortia. However, while at the time of participation in tender by consortia members, enlistment fee mentioned above will be applicable.
Q 13 . Whether service charges are different for individual units and consortium?
Ans : (i) In case EMD and/ or security deposit are arranged by the unit or when EMD/SD are exempted by the purchaser, the Corporation shall be entitled to Service Charges of 1.5% of the Bill value in case of individual units, excluding duties, taxes and other charges and 1% of the Bill value in case of consortia, excluding duties, taxes and other charges;
(ii) In case EMD and/ or security deposit are arranged by the Corporation, the Corporation shall be entitled to Service Charges of 2% of the Bill value in case of individual units, excluding duties, taxes and other charges and 1.5% of the Bill value in case of consortia, excluding duties, taxes and other charges;
Q 14 . Whether service charges are different for individual units and consortium?
Ans : (i) In case EMD and/ or security deposit are arranged by the unit or when EMD/SD are exempted by the purchaser, the Corporation shall be entitled to Service Charges of 1.5% of the Bill value in case of individual units, excluding duties, taxes and other charges and 1% of the Bill value in case of consortia, excluding duties, taxes and other charges;
(ii) In case EMD and/ or security deposit are arranged by the Corporation, the Corporation shall be entitled to Service Charges of 2% of the Bill value in case of individual units, excluding duties, taxes and other charges and 1.5% of the Bill value in case of consortia, excluding duties, taxes and other charges;
Q 15 . What is the benefit of service charges (%age) to consortium members?
Ans : While participating in tenders the consortia members will get the benefit of 0.5% in service charges.
Q 16 . Please spell who will be bear the charges while participating in the tender under Consortia & Tender Marketing?
Ans : All the charges for Bank Guarantee, Security Deposit, Performance Bank Guarantee etc. will be borne by the unit.
Q 17 . Whether NSIC finance under Consortia & Tender Marketing?
Ans : Yes. MSEs willing to avail financial assistance for the supplies against each tender made by them can apply under the Bill Discounting Scheme of the Corporation.
Q 18 . What is the minimum percentage for overall procurement of Central Govt. Department/PSUs from MSEs?
Ans : Every Central Ministries / Departments / PSUs shall set an annual goal of minimum 20% of the total annual purchases of the products or services produced or rendered by MSEs.
Q 19 . How much percentage is earmarked for MSEs owned by SC/ST under Public Procurement Policy?
Ans : Out of annual requirement of 20% procurement from MSEs, 4% is earmarked for units owned by Scheduled Castes / Scheduled Tribes.
Q 20 . Whether Public Procurement Policy allow purchases through NSIC under consortia?
Ans : Yes. As per Public Procurement Order 2012 for MSEs which is mandatory from 2015, annual goal of procurement also includes consortia of MSEs formed by NSIC.
Q 21 . How many items are reserved for under Public Procurement Policy?
Ans : 358 items
Q 22 . Whether medium enterprises are eligible to avail the benefits under Public Procurement Policy?
Ans : No
Q 23 . What is the price preference (price band) available to MSEs under Public Procurement Policy?
Ans : In tender participation, MSEs quoting price within the price band of L1+15 percent shall also be allowed to supply a portion upto 20% of requirement by bringing down their price to L1 price where L1 is non MSEs.
Q 24 . What action can be taken by NSIC in case of default?
Ans : The enlistment certificate under the Tender Marketing Scheme can be revoked in case the unit failed to supply/comply order including specification, size, quantity, quality and/or wrong delivery, non-delivery, short-delivery, delayed delivery, defective delivery etc. of goods/services.
-
General FAQ
- What is ICAI MSME Ecosystem?
The ICAI MSME Ecosystem is conceptualized to facilitate a robust platform for value creation in various dimensions vital for the development and sustainability of MSMEs. The platform offers excellent networking, knowledge sharing, skill development, query resolution opportunities and expert guidance to the constituents of the MSME ecosystem.
2.What is ICAI MSME ExCHANGE?
The ICAI MSME ExCHANGE is conceptualized to facilitate a robust platform for value creation in various dimensions vital for the development and sustainability of MSMEs. The platform offers excellent networking, knowledge sharing, skill development, query resolution opportunities and expert guidance to the constituents of the MSME ecosystem. The three main pillars of the ICAI MSME Exchange:
CA Services Exchange ICAI MSME Helpdesk ICAI MSME Illumination
3. What is CA Services Exchange?
CA Service Exchange is a platform through which any Indian MSME can register with the ICAI MSME ECOSYTEM and search from an array of expert services offered by Chartered Accountants.
4. I am a MSME and want to register with ICAI MSME Ecosystem?
OR
How can any MSME register on ICAI MSME Portal?
OR
What is the process to register with ICAI MSME Portal?
Any MSME can register with ICAI MSME Ecosystem:
5. I am a Business Consultant, how can I get register with MSME Portal?
Any Member in practice can register with ICAI MSME Ecosystem:
6. What is ICAI MSME Helpdesk?
The ICAI MSME HELPDESK brings the expertise of the large pool of the ICAI members to the MSME doorstep in their local city.
The 164 branches and 5 Regional Councils which are extended wings of ICAI would facilitate the MSME HELP DESK in branch premises where dedicated experts (qualified and experienced Chartered Accountants) will address the issues of local MSME cluster.
Any MSME can register with ICAI MSME Ecosystem and seek for helpdesk services through its dashboard.
7. Is ICAI MSME Helpdesk chargeable?
No, it is free of cost.
8. How MSME can use ICAI MSME Helpdesk?
Any MSME can register with ICAI MSME Ecosystem and seek for ICAI MSME Helpdesk services through its dashboard.
9. How can I offer my consultancy service in ICAI MSME Helpdesk?
Chartered Accountant (in practice) can register with ICAI MSME Ecosystem and through MSME Helpdesk can book his availability in the helpdesk calendar of the given branch and view the queries listed by MSMEs.
10. What is MSME Illumination?
MSME Illumination is an initiative under ICAI MSME ExCHANGE to facilitate the expert advice on any specific issue faced by MSME registered with the ICAI MSME Ecosystem. The MSME can submit its issues online after following a simple registration process.
The Committee on MSME and Startup will organise monthly programme wherein the common issues faced by the MSME will be addressed by the Experts. The MSME can participate in these programmes to interact with the experts for seeking expert advise.
It may kindly be noted that the role of ICAI is to only facilitate the networking between interested parties. The views, information and opinion expressed are solely those of the individuals involved and do not necessarily involved those of the Institute of Chartered Accountants of India or its employees.
11. How MSME/Consultant can use MSME Illumination?
The Committee on MSME and Startup will organise monthly programme wherein the issues/queries of the MSME/Business Consultant will be addressed by the Experts. The MSME/Business Consultant can participate in this programme to interact with the experts for seeking expert advise.
The MSME/Business Consultant can submit their issues/queries online after following a simple registration process.
12. MSME Illuminate is in virtual or physical event?
It is a virtual event.
13. Is MSME Illuminate chargeable?
No, it is free of cost.
14. Difference between MSME helpdesk & MSME Illuminate?
In MSME Helpdesk you will get face to face resolution of your query. These helpdesk are organized by the ICAI Branches in their premises.
In MSME Illumination your query will be resolved by experts in a monthly event which can be attended by any MSME registered with ICAI.
15. How to connect with Business Consultant?
Registered MSME can send connection request to any Business Consultant from the large pool of registered Business Consultant of this portal.
