Small Scale 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.100 lakhs (Rupees One Hundred Lakhs only).
Ancillary Industrial Undertakings
industrial undertaking engaged or is proposed to be engaged in the
manufacture or production of parts, components, sub-assemblies,
tooling or intermediates, or rendering 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.100 lakhs (Rupees One
Hundred Lakhs only).
Investment limits in
plant and machinery in respect of tiny enterprises is Rs.25 lakhs
(Rupees Twenty Five Lakhs only) 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
Limited Company/ Members of Co-operative Society.
Small Scale Service & Business (Industry related)
SSSBEs, industry related
service/ business enterprises with investment upto Rs.10 lakhs in fixed
assets, excluding land and building, are called Small Scale Service/
Business Enterprises (SSSBEs).
Plant and Machinery
In calculating the value
of plant and machinery, the original price thereof irrespective of
whether the plant and machinery are new or second hand, shall be taken
into account. However, to determine the price of second hand imported
machinery, the original vale of the said plant and machinery will be
taken in foreign currency terms. The value of foreign currency will be
converted into rupee using the "current" exchange rate, i.e. exchange
rate prevalent at the time of import. The import duty will be added on
the basis of "current" rate of import duty, i.e. the rate of import
duty prevalent at the time of import.
In calculating the value of plant and machinery, the following shall
be excluded, namely:-
Cost of equipment such as tools, jigs, dies, moulds and spare parts
for maintenance and the cost of consumable stores.
Cost of installation of plant and machinery.
Cost of Research and Development (R&D) equipment and
pollution control equipment.
Cost of generation sets, extra transformers, etc.,
installed by the undertaking as per the regulations of the State
Bank charges and service charges paid to the National Small
Industries Corporation or the State Small Industries Corporation.
Cost involved in procurement or installation of cables,
wiring, bus bars, electrical control panels (not those mounted on
individual machines), oil circuit breaker/miniature circuit breakers,
etc. which are necessarily to be used for providing electrical power
to the plant and machinery safety measures.
Cost of gas producer plants.
Transportation charges (excluding taxes e.g., Sales tax,
excise, etc.) for indigenous machinery from the place of manufacturing
to the site of the factory.
Charges paid for technical know-how or erection of plant
Cost of such storage tanks which store raw materials,
finished products only and are not linked with the manufacturing
Cost of fire-fighting equipment.
Cost of those items of plant and machinery installed
purely for power generation using non-conventional energy sources such
as wind, solar energy, ocean waves, bio-gas etc.
In case of
imported machinery, the following shall be included in calculating the
- Import duty, excluding
miscellaneous expenses such as transportation from the port to the
site of the factory, demurrage paid at the port.
- Shipping charges
- Customs clearance charges and Sales tax