Nursing home and clinics under MSME sector

Question BankCategory: OthersNursing home and clinics under MSME sector
Kollipara sundaraiah asked 1 month ago

Govt recently some changes in MSME sector.nursing home and clinics services eligible or not under MSME sector.if eligible what is benefits,subcidy and MSME registered producure.

1 Answers
A. Kumar answered 1 month ago

The Indian Medical Association (IMA), was requesting central government to extend the micro, small and medium enterprises (MSME) benefits recently announced by the finance minister to clinics, nursing homes and small hospitals. And recently Health services included in MSME . After this IMA welcomes the move of including small and medium hospitals, nursing homes and clinics officially in the micro, small and medium enterprises (MSME) sector. The sector was also provided serial and code number.
Now the eligible hospitals, nursing homes and clinics will be able to get credit facilities through financial institutions at lower rate of interest, easy availability of finance, collateral free loans, lower electricity bill, stamp duty and property tax among various other benefits.
Budget 2019 announced that GST registered MSMEs can get 2% interest subvention from Government for incremental loans of Rs 1 crores under the MSME Credit Scheme.
Government of India had announced a major economic package for the MSMEs which have been given a special consideration. The package includes Rs. 3 lakh crore emergency working capital facility for businesses, including MSMEs, no global tenders for government tenders of upto Rs. 200 crore, Rs. 20,000 crore subordinate debt for stressed or loan defaulting MSMEs, Rs. 50,000 crore equity infusion for MSMEs through Fund of Funds, raising minimum threshold to initiate insolvency proceedings to Rs. 1 crore from Rs.1 lakh, which largely insulates MSMEs etc. MSMEs are being governed and regulated by MSME Development Act, 2006.
50% of total exports of India is done by MSMEs and 95 % of all industrial units in India are of MSMEs. Hence MSMEs are backbone of Indian Economy. 
When An Enterprise is classified as MSME (Click here for notification date 1-6-2020 effective from 1-7-2020)
New classification of MSME as effective from 1st July 2020 is given below:-
An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely: —
(i) a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
(ii)a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
(iii)a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
In short,

  Revised MSME Classification w.e.f 1-7-2020

Criteria

Micro

Small

Medium*

Investment 
       & 
Annual Turnover

< Rs.1 crore
 &  
< Rs.5 crore

< Rs.10 crore
&
< Rs.50 crore

< Rs.50 crore
&
< Rs.250 crore

MSME Registration Process and Documents required for Registration of MSME (Click here for notification dated 26.6.2020)
(1) Go to official portal https://udyogaadhaar.gov.in/ . The form for registration shall be as provided in the Udyam Registration portal itself.
(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 authorised 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 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 updation process shall be liable to such penalty as specified under section 27 of the Act.
 
Benefits of MSME Registration:

  1. Due to the MSME Registration, the bank loans become cheaper than interest on regular loans.
  2. Payment of Bills of MSME are processed with preference in various Government companies and departments.
  3. There are various tax rebates offered to MSME.
  4. It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
  5. There are many government tenders which are only open to the MSME Industries.
  6. In various organisations, MSME gets negotiation chance if their quoted price is within a specified percentage of L1 bidder.
  7. MSME get easy access to credit.
  8. Once registered the cost getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.
  9. Business registered under MSME are given higher preference for government license and certification.
  10. There is a One Time Settlement Fee for non-paid amounts of MSME and various other benefits are also available to MSMEs.
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