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Introduction MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. When these industries grow, the economy of the country grows as a whole and flourishes. This sector is the job creator as well as plays a crucial role in providing large-scale employment and industrialization of rural and backward areas. These industries are also known as small-scale industries or SSI’s. Even if the Company is in the manufacturing line or the service line, registrations for both these areas can be obtained through the MSME act. This registration is not yet made mandatory by the Government but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc. The MSME became operational on October 02, 2006. It was established to promote, facilitate and develop the competitiveness of the micro, small and medium enterprises. What is MSME or SSI? Previously the existing MSME classification was based on the criteria of investment in plant and machinery or equipment. So, to enjoy the MSME benefits, the MSMEs have to limit their investment to a lower limit, as mentioned below: Existing MSME Classification Sector Criteria Micro Small Medium Manufacturing Investment < Rs.25 lakh < Rs.5 crore < Rs.10 crore Services Investment < Rs.10 lakh < Rs.2 crore < Rs.5 crore These lower limits were killing the urge to grow as they were unable to scale their businesses further. Also, there had been a long-pending demand for the revision of MSME classification so that they can further expand their operations while continuing to avail the MSME benefits. Now, under the Aatmanirbhar Bharat Abhiyan (ABA), the government revised the MSME classification by inserting composite criteria of both investment and annual turnover. Also, the distinction between the manufacturing and the services sectors under the MSME definition was removed. The following is the current revised MSME classification, where the investment and annual turnover are to be considered for deciding an MSME. Revised MSME Classification 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 What Are The Different Types of MSMEs? There are 3 types of MSME or SSIs which can be classified as under: Micro Enterprises Micro-enterprises are the smallest entities, of course. The investment under Micro manufacturing enterprises should be less than Rs. 25 lakhs in plant and machinery, whereas, the micro service enterprises should not exceed Rs. 10 lakhs investment. Small Enterprises In small manufacturing enterprises, the investment should be in between Rs. 25 lakh and Rs. 5 crores in plant and machinery, while in small service enterprises this investment limits between Rs. 10 lakh and Rs. 2 crores. Medium Enterprises And if we’ll talk about the Medium manufacturing enterprises, then the investment should be in between Rs. 5 crore and Rs. 10 crores in plant and machinery, and for small service enterprises it should be in between Rs. 2 crore and Rs. 5 crores. MSME Registration Procedure MSME registration is completely online. MSME online registration is to be done in the government portal of udyamregistration.gov.in. The registration of MSMEs can be done under the following two categories in the portal – For New Entrepreneurs who are not Registered yet as MSME or those with EM-II and For those having registration as UAM and For those already having registration as UAM through Assisted filing For New Entrepreneurs who are not Registered yet as MSME or those with EM-II New entrepreneurs and entrepreneurs having EM-II registration need to click the button “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” shown on the home page for registering MSME. New registration of MSME is done by entering the Aadhaar card number and PAN number. When clicked on the “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” button on the homepage of the government portal, it opens the page for registration and asks to enter the Aadhaar number and the name of the entrepreneur. After entering these details, “Validate and Generate OTP Button” is to be clicked. Once, this button is clicked and OTP is received and entered, the PAN Verification page opens. The entrepreneur must enter the “Type of Organisation” and the PAN Number and click on the “Validate PAN” button. The portal gets the PAN details from the government databases and validates the PAN number of the entrepreneur. After verification of PAN, the Udyam Registration form will appear and the entrepreneurs need to fill the personal details and details of the plant or industry. Once the details on the MSME registration form are filled, the “Submit and Get Final OTP” button is to be clicked. The MSME online registration process will be completed and a message of successful registration with reference number will appear. Note down the reference number for future use. After verification of MSME registration form, which may take a few days, the Udyam Registration Certificate is issued. Registration For Entrepreneurs Already Having UAM For those already having registration as UAM, they need to click the button “For those having registration as UAM” or “For those already having registration as UAM through Assisted filing” shown on the home page of the government portal. This will open a page where Udyog Aadhaar Number is to be entered and an OTP option should be selected. The options provided are to obtain OTP on mobile as filled in UAM or obtain OTP on email as filled UAM. After choosing the OTP Options, “Validate and Generate OTP” is to be clicked. After entering OTP, registration details are to be filled on the MSME registration form and Udyam registration will be complete. Documents Required for MSME Registration Aadhaar Card PAN Card GST is not compulsory for enterprises that do not require a GST registration under the GST law. However, the enterprises that need to

What is TDS? TDS (Tax Deducted at Source) is an indirect system of deduction of tax according to the Income Tax Act, 1961 at the point of generation of income. Tax is deducted by the payer and is remitted to the government by him on behalf of the payee. A TDS Return is a quarterly statement which has to be submitted to the Income Tax Department of India. Submitting TDS Return is mandatory if you are a deductor. It has details of TDS deducted and deposited by you. How to file TDS? Step 1: Go to http://incometaxindiaefiling.gov.in/ and click on ‘Login Here’. Step 2: Enter your login credentials and click on ‘Login’. Your user ID will be your TAN. Step 3: Once you’ve logged in, click on the ‘Upload TDS’ option under the TDS tab. Step 4: You will be provided with a form where you will need to select the correct details. Once the details are selected, click on Validate. Note that TDS statements can be uploaded only from FY 2010-11 and only regular statements can be uploaded on the income tax website. Step 5: The returns can be validated through the following modes: Step 5a: Validate using DSC or Digital Signature Certificate. The TDS statements can be uploaded using DSC. To upload using DSC, first upload the TDS zip file and also attach the digital signature file. Then, click on Upload. Once the TDS statement is uploaded, a success message will appear on the screen and a confirmation mail will be sent to your registered email ID. Step 5b: Validate using EVC or Electronic Verification Code. After step 4, if you haven’t generated a DSC, you will be able to validate the TDS statements using an electronic verification code (EVC). Upload the TDS zip file and click on ‘Click here to E-verify’. The next screen will give you the option to use an EVC already generated or generate a new EVC. Select the relevant option, enter the EVC and click on ‘Submit’.   Frequently Asked Questions (FAQs) What is TDS? Ans. TDS means Tax Deducted at Source. It is the amount deducted from payments of various kinds such as salary, contract payment, commission etc. This deducted amount can be adjusted against the tax due of the deductee. Who is required to file TDS return? Ans. It is the duty of the person who is making payment to someone for specified goods or services to deduct TDS and file TDS return. The specified payment includes salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. The person who deducts TDS is called deductor and the person whose tax is being deducted is called deductee.TDS is not required to be deducted by Individuals and HUF except for those whose accounts are required to be audited u/s 44AB i.e. whose gross receipts in preceding financial year in case of business is more than 2 crore (AY 2017-2018) or 1 crore ( AY 2016-2017) and in case of profession 50 lakhs ( AY 2017-2018) or 25 lakhs (AY 2016-2017). What is TAN and is it required to file TDS return? Ans. TAN is an alphanumeric 10 digit number required by a person who is liable to deduct TDS and file TDS return. Thus such person must make an application within a month of deducting TDS for allotment of Tax Deduction and Collection Number (TAN) in Form 49B. This number allotted is mandatory to mention in all TDS Certificates issued, returns, challans etc. If a person fails to apply for TAN he may be penalised up to Rs. 10,000/-. What are different types of TDS forms? Ans. Different types of TDS forms are as follows:-Form 24Q -TDS on SalariesForm 26Q – TDS on payments other than SalariesForm 27Q – TDS on payments made to Non-ResidentsForm 27EQ – TCS Is PAN mandatory for deductors and employees/deductees? Ans. PAN of the deductor has to be given by Non-Government deductors. It is essential to quote PAN of all deductees. What are the due dates of submission of quarterly TDS returns? Ans. Due dates of submission of quarterly TDS Return is 31st July for Q1, 31st October for Q2, 31st January for Q3, and 31st May for last quarter. What are the rates at which TDS is to be deducted for TDS returns? Ans. Following table gives the types of payments, threshold limits and the rates at which TDS is to be deducted. Section Particulars TDS Rates in % Threshold limits 192 Salary As per the rates of Income Slab As per the rates of Income Slab 192A Payment of accumulated balance of provident fund which is taxable in the hands of an employee 10 Rs. 50,000 193 Interest on securitiesInterest on SecuritiesInterest on Debentures; 1010 Interest on 7.75% GOI saving bonds – Rs. 10,000Others – Rs. 2,500Interest on debentures – Rs. 5,000 194 Dividend(other than the listed companies) 10 Senior citizen – Rs. 50,000Others – Rs. 40,000 194A Income by way of interest other than interest on securities 10 Rs. 5,000 194B Winnings from lotteries/ puzzles/card games. 30 Rs. 10,000 194BB Income by way of Winnings from horse races 30 Rs. 5,000 194C Payment to contractor/sub- contractorHUF/IndividualsOthers 12 Single payment – Rs. 30,000Aggregate payment – Rs. 1,00,000 194D Insurance commission 5 Rs. 15,000 194DA Payment in respect of life insurance policy 1 Rs. 1,00,000 194EE Payment of NSS Deposits 10 Rs. 2,500 194F Payment on account of repurchase of unit by Mutual Fund or Unit trust of India 20 Nil 194G Commission on sale of lottery tickets 5 Rs. 15,000 194H Commission or brokerage 5 Rs. 15,000 194-I Renta) Plant & Machineryb) Land or building or furniture or fitting 210 Rs. 2.4 lakhs 194-IA Payment on transfer of certain immovable property other than agricultural land 1 Rs. 50 lakhs 194-IB Payment of rent by individual or HUF not liable to tax audit 5 Rs. 50,000 per month 194-IC Payment of monetary consideration under Joint Development Agreements 10 – 194J Any sum paid by way ofFee for professional servicesFee for technical servicesRoyalty,Remuneration/fee/commission to a director orFor not