Question
As per the Gazette Notification on the new criteria for
classifying the enterprises as Micro, Small and Medium enterprises, what is the maximum investment limit in plant and machinery or equipment for a small enterprise?Solution
Government of India has notified new criteria for classifying the enterprises as Micro, Small and Medium enterprises. The new criteria will come into effect from July 1, 2020 and 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.
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