Small Scale Industrial Undertakings
Ancillary Industrial Undertakings
Small Scale Service & Business (Industry related) Enterprises (SSSBEs)
Small Scale Industrial Undertakings
Small Scale Industrial undertaking w.e.f. 21.12.1999
An industrial undertaking in which the investment in fixed
assets in plant and machinery whether held on ownership terms on lease or on
hire purchase does not exceed Rs 10 million.
(Subject to the condition that the unit is not owned, controlled or subsidiary
of any other industrial undertaking)
(a) In calculating the value of plant and machinery for the purposes of paragraphs (1) and (2) of this notification, the original price thereof, irrespective of whether the plant and machinery are new or second hand, shall be taken into account.
(b) In calculating the value of plant and machinery, the following shall be excluded, namely:-
(i) the cost of equipments such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores;
(ii) the cost of installation of plant and machinery;
(iii) the cost of research and development equipment and pollution control equipment;
(iv) the cost of generation sets and extra transformer installed by the undertaking as per the regulations of the State Electricity Board;
(iv) the bank charges and service charges paid to the National Small Industries Corporation or the State Small Industries Corporation;
(v) the cost involved in procurement or installation of cables, wiring, bus bars, electrical control panels (not those mounted on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures;
(vi) the cost of gas producer plants;
(vii) transportation charges (excluding of sales tax and excise) for indigenous machinery from the place of manufacturing to the site of the factory;
(ix) charges paid for technical know how for erection of plant and machinery;
(x) cost of such storage tanks which store raw materials, finished products only and are not linked with the manufacturing process; and
(xi) cost of fire fighting equipments.
(c) In the case of imported machinery, the following shall be included in calculating the value, namely:-
(i) import duty (excluding miscellaneous expenses as transportation from the port to the site of the factory, demurrage paid at the port);
(ii) the shipping charges;
(iii) customs clearance charges; and
(iv) sales tax.
Every industrial undertaking which has been issued a certificate of registration
under section 10 of the said Act or a license under sections 11, 11A and 13 of
the said Act by the Central Government and are covered by the provisions of
paragraphs (1) and (2) above relating to the ancillary or small scale industrial
undertaking, may be registered, at the discretion of the owner, as such, within
a period of one hundred and eighty days from the date of publication of this
notification in the Official Gazette.
Ancillary Industrial Undertakings
An industrial undertaking which is engaged or is proposed to be engaged in the manufacture or production of parts, components, sub-assemblies, tooling or intermediates, or the rendering of services and the undertaking supplies or renders or proposes to supply or render not less than 50 per cent of its production or services, as the case may be, to one or more other industrial undertakings and whose investment in fixed assets in plant and machinery whether held on ownership terms or on lease or on hire-purchase, does not exceed Rs 10 million.
Investment limit in plant and machinery in respect of tiny enterprises is Rs 2.5 million irrespective of location of the unit.
A Small Scale Industrial Unit/ Industry related service or business enterprise, managed by one or more women entrepreneurs in proprietary concerns, or in which she/ they individually or jointly have a share capital of not less than 51% as Partners/ Shareholders/ Directors of Private Limits Company/ Members of Cooperative Society.
Small Scale Service & Business (Industry related) Enterprises (SSSBEs)
SSSBEs industry related service/ business enterprises with investment upto Rs 500,000 in fixed assets, excluding land and building, are called Small Scale Service/ Business Enterprises (SSSBEs). This limit has been raised to Rs.1 million w.e.f. September 2000.