How small businesses can benefit from Udyam registration

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₹50 lakh, and projects in the non-farm service sector that cost up to ₹20 lakh. Under this scheme, a credit guarantee is provided to micro and small enterprises for loans up to ₹5 crore without collateral or a third-party guarantee, subject to certain limits. This programme aims to promote new enterprises, build capacity for existing MSMEs, and inculcate entrepreneurial culture.

It applies to current and aspiring entrepreneurs. This scheme aims to help MSMEs enter the export market by facilitating their participation in international exhibitions, fairs, conferences and seminars. Under the scheme, the government covers expenditure on stalls, airfare, advertisements and so on up to certain specified limits.

Details of many more such programmes and schemes are available on the official portalwww.msme.gov.in Micro and small enterprises can receive preferential treatment from their customers in the following ways. These are not available to medium enterprises. Apart from paying a high interest, customers who delay payments cannot treat this interest as a business expenditure under the Income Tax Act.

Also, if the customer has booked the expense in a particular financial year but doesn’t make the payment within the stipulated period and it remains unpaid at the end of the financial year, the expenditure booked will not be deductible that year. It will instead be deductible in the year of payment, according to Section 43B(h) of the Income Tax Act, which took effect from financial year 2023-24. Because MSEs receive preferential treatment, their customers face certain disadvantages.