Sam has started a small MSME food processing unit in remote area of Himachal. He invested Rs. 10 Lakhs in a plant, equipment and hired people for segregation of fruit and packing of the product. Identify the category in which this enterprise falls as per MSME Act. Also, suggest the four incentives available to him.
Sam has started a small MSME food processing unit in remote area of Himachal. He invested Rs. 10 Lakhs in a plant, equipment and hired people for segregation of fruit and packing of the product. Identify the category in which this enterprise falls as per MSME Act. Also, suggest the four incentives available to him.
Sam's small MSME food processing unit in remote area of Himachal comes under category of micro enterprise. The incentives under MSME act provided by the government are as follows :
(i) Land : Developed plots are offered by every state for establishing industries.
(ii) Power : Some states supply power at a concessional rate of 50%, while some give it free of cost during the initial years.
(iii) Water : Water is either supplied at 50% concession or is totally free for a period of 5 years.
(iv) Finance : Small business units are offered loans at a very low rate of interest i.e. 10 to 15% subsidies are given for building capital assets.
(v) Sales tax : Exemption from sales tax is extended by some states for a period of 5 years while all union territories provide full exemption from sales tax.
Sam's small MSME food processing unit in remote area of Himachal comes under category of micro enterprise. The incentives under MSME act provided by the government are as follows :
(i) Land : Developed plots are offered by every state for establishing industries.
(ii) Power : Some states supply power at a concessional rate of 50%, while some give it free of cost during the initial years.
(iii) Water : Water is either supplied at 50% concession or is totally free for a period of 5 years.
(iv) Finance : Small business units are offered loans at a very low rate of interest i.e. 10 to 15% subsidies are given for building capital assets.
(v) Sales tax : Exemption from sales tax is extended by some states for a period of 5 years while all union territories provide full exemption from sales tax.
