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Question

How would you differentiate between an ancillary and a tiny unit?

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Solution

The differences between an ancillary unit and a tiny unit are

Basis of Ancillary UnitTiny UnitDistrinctionMeaningAn ancillary unit isA tiny unit is thethe unit whichbusiness enterprisessupplies not less than 50%plant and machineryproduction to theis not more than Rs 25parent unit.lakhs.InvestmentInvestment limit inInvestment limit is RsLimitsuch unit is Rs 1 crore.25 lakhs in this type of unit.Assistance Parent unit assistsNo such assistance isof Parentthe ancillary unit bythere.Unitproviding technicaland financial help.


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