A bill specifying the turnover of a business entity which would
classify it as a micro, small or medium enterprise, was introduced by
the government in the Lok Sabha on Monday July 23,2018
The Micro, Small and Medium Enterprises Development (Amendment) Bill provides for change in the criterion of classification of MSMEs from the existing based on 'investment in plant and machinery or equipment' to 'annual turnover' of the enterprise.
The bill was introduced in the Lok Sabha by Minister of State for MSMEs Giriraj Singh, after he withdrew the 2015 Bill on the issue.
As per the amendments -
The Micro, Small and Medium Enterprises Development (Amendment) Bill provides for change in the criterion of classification of MSMEs from the existing based on 'investment in plant and machinery or equipment' to 'annual turnover' of the enterprise.
The bill was introduced in the Lok Sabha by Minister of State for MSMEs Giriraj Singh, after he withdrew the 2015 Bill on the issue.
As per the amendments -
- any business with a turnover of up to Rs. 5 crore would be considered as a 'micro enterprise'.
- A 'small enterprise' would be the one whose annual turnover is more than Rs. 5 crore to Rs. 75 crore.
- Those businesses with turnover over Rs. 75 crore but up to Rs. 250 crore would be deemed as a 'medium enterprise'.
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