The Government of India has always been in favor of providing facilities to Small and Medium Enterprises (MSMEs). There are many benefits to getting MSME registration in India, which can only be obtained if the business has registered itself as MSME / SSI under the MSME Act. Following are some of the benefits or SSI / MSME registration in India.
1) Exemption on Income tax
Enterprises with MSME registration can enjoy Income Tax exemption in the first year of business, as mentioned in the government scheme and depending on the business activity.
2) Barcode registration subsidy
Enterprises that have MSME registration can get bar code registration subsidy as per the scheme.
3) Waiver in Security Deposit in Government
The following assistance is provided to MSME registered enterprises when applying for government tenders:
Tender sets are issued free of charge, Exemption from advance payment, Exemption of security deposit up to financial limit for which the unit has been registered.
4) Concession in electricity bills
MSME Registered Enterprises can get a discount on their electricity bill by submitting an application to the Electricity Department with an MSME Registration Certificate.
5) Reimbursement of ISO Certification
MSME registered enterprises can reimburse the cost of their ISO certification by making an application to the authority concerned with the Ministry of MSME.
6) 1% exemption on the interest rate on OD
MSME registered enterprises may avail 1% discount on interest rate on OD as mentioned in the scheme.
7) 50% subsidy for patent registration
MSME registered enterprises can get 50% subsidy for patent registration by making an application to the concerned authority.
8) Facilitation of Factoring and Registration on TReDS Portal
Trade Receivables and Discounting System (TReDS) – This is an electronic platform where sellers, buyers and financiers all register themselves. It facilitates the financing and discounting of MSMEs through multiple financiers. An MSME registered enterprise can avail the benefits offered by this platform.
9) Protection against delay in payment
The Ministry of MSMEs protects UDYAM registered businesses from the right to defer payment from buyers and the right to defer payment through arbitration, arbitration, and at the earliest possible settlement of disputes. If a UDYAM registered micro or small enterprise provides a product or service, it is the buyer’s responsibility to pay on or before the agreed date. Where there is no contract, the buyer must pay within 15 days of receiving the product or service. In addition, a payment for a small or micro enterprise must be made within a maximum of 45 days from the date of receipt or date of receipt. If a buyer fails to do so, the buyer is liable to pay interest, a monthly compounding from the agreed date of payment or within 15 days of receiving the product or service. The penalty interest charged by the buyer for late payment in an MSME enterprise is three times the bank rate advertised by the Reserve Bank of India.
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