Office of the Development Officer, MSME issues clarification w.r.t applicability of MSMED Act, 2006 on ‘Work Contracts’

The Office of the Development Officer, MSME (“Ministry”) has issued a clarification stating that the *Udyam Registration Portal is based on “Economic Activities” taken from NIC Code 2008. So far as Udyam Registration is concerned, for every activity in the dropdown menu of the portal, Udyam Registration can be done.

There is no activity named “Work Contract” in NIC code 2008. Some activities on the portal are under major activity “manufacturing” while others come under “Services”. An enterprise might be performing purely manufacturing activities or Services or a combination of both.

Further, if an enterprise has Udyam Registration, it can avail the benefit(s) of schemes/programmes of this Ministry subject to the prevailing Guidelines/ Circular/ Order/ Notification of that particular scheme/programme.

Background:

The Ministry has been receiving representations from stakeholders like Industry Associations, Central Ministries/Departments/CPSEs and entrepreneurs regarding applicability of MSMED Act, 2006 on ‘Work Contracts’. The present clarification has been issued in this regard.

For further dreails, contact us.

Source: Office of the Development Officer, MSME

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*The Ministry has created an online Udyam Registration Portal for registration of Micro, Small and Medium Enterprises (MSMEs) based on the composite criteria of investment in plant and machinery or equipment and turnover of MSMEs.