| The
Gazette of India
EXTRORDINARY
PART II - Section 1
PUBLISHED
BY AUTHORITY
No. 311
NEW DELHI, FRIDAY, JUNE 16, 2006/JYAISTHA 26, 1928
MINISTRY
OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 16th June, 2006/Jyaistha 26, 1928 (Saka)
The
following Act of Parliament received the assent of the President on the
16th June, 2006, and is hereby published for general information :
| THE
MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006
No.
27 OF 2006
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| An
act to provide for facilitating the promotion and development and
enhancing the competitiveness of micro, small and medium enterprises
and for matters connected therewith or incidental thereto.
WHEREAS
a declaration as to expediency of control of certain industries
by the Union was made under section 2 of the Industries (Development
and Regulation) Act, 1951;
AND
WHEREAS it is expedient to provide for facilitating the promotion
and development and enhancing the competitiveness of micro, small
and medium enterprises and for matters connected therewith or incidental
thereto;
BE
it enacted by Parliament in the Fifty-seventh Year of the Republic
of India as follows :- |
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1. |
(1) |
CHAPTER
1
PRELIMINARY
This
Act may be called the Micro, Small and Medium Enterprises Development
Act, 2006. |
Short
title and commencement. |
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(2) |
It
shall come into force on such date as the Central Government may, by notification,
appoint; and different dates may be appointed for different provisions
of this Act and any reference in any such provision to the commencement
of this Act shall be construed as a reference to the coming into force
of that provision. |
Definitions. |
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65 of 1951
61
of 1981
2 of 1934
1 of 1956
1 of 1956
39 of 1989
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In
this Act, unless the context otherwise requires,-
| (a) |
“Advisory
Committee” means the committee constituted by the Central Government
under sub-section (2) of section 7; |
| (b)
(c) |
“appointed
day” means the day following immediately after the expiry of the
period of fifteen days from the day of acceptance or the day of
deemed acceptance of any goods or any services by a buyer from
a supplier.
Explanation
– For the purpose of this clause,-
| (i) |
“the
day of acceptance” means,-
| (a) |
the
day of the actual delivery of goods or the rendering
of services; or |
| (b) |
where
any objection is made in writing by the buyer regarding
acceptance of goods or services within fifteen days
from the day of the delivery of goods or the rendering
of services, the day on which such objection is removed
by the supplier; |
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| (ii) |
“the
day of deemed acceptance” means, where no objection is made
in writing by the buyer regarding acceptance of goods or
services within fifteen days from the day of the delivery
of goods or the rendering of services, the day of the actual
delivery of goods or the rendering of services; |
“Board”
means the National Board for Micro, Small and Medium Enterprises
established under section 3; |
| (d) |
“buyer”
means whoever buys any goods or receives any services from a supplier
for consideration; |
| (e) |
“enterprise”
means an industrial undertaking or a business concern or any other
establishment, by whatever name called, engaged in the manufacture
or production of goods, in any manner, pertaining to any industry
specified in the First Schedule to the Industries (Development
and Regulation) Act, 1951 or engaged in providing or rendering
of any service or services; |
| (f) |
“goods”
means every kind of movable property other than actionable claims
and money; |
| (g) |
“medium
enterprise” means an enterprise classified as such under sub-clause
(iii) of clause (a) or sub-clause (iii) of clause (b) of sub-section(1)
of section 7; |
| (h) |
“micro
enterprise” means an enterprise classified as such under sub-clause
(i) of clause (a) or sub-clause (i) of clause (b) of sub-section
(1) of section 7 ; |
| (i) |
“National
Bank” means the National Bank for Agriculture and Rural Development
established under section 3 of the National Bank for Agriculture
and Rural Development Act, 1981; |
| (j) |
“notification”
means a notification published in the Official Gazette; |
| (k) |
“prescribed”
means prescribed by rules made under this Act; |
| (l) |
“Reserve
Bank” means the Reserve Bank of India constituted under section
3 of the Reserve Bank of India Act, 1934; |
| (m) |
“small
enterprise” means an enterprise classified as such under sub-clause
(ii) of clause (a) or sub-clause (ii) of clause (b) of sub-section
(1) of section 7; |
| (n) |
“supplier”
means a micro or small enterprise, which has filed a memorandum
with the authority referred to in clause (a) of sub-section (1)
of section 8, and includes, – |
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| (i) |
the
National Small Industries Corporation, being a company,
registered under the Companies Act, 1956; |
| (ii) |
the
Small Industries Development Corporation of a State or a
Union territory, by whatever name called, being a company
registered under the Companies Act, 1956; |
| (iii) |
any
company, cooperative society, society, trust or a body,
by whatever name called, registered or constituted under
any law for the time being in force and engaged in selling
goods produced by micro or small enterprises and rendering
services which are provided by such enterprises; |
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| (o) |
“Small
Industries Bank” means the Small Industries Development Bank of
India established under sub-section (1) of section 3 of the Small
Industries Development Bank of India Act, 1989; |
| (p) |
“State
Government”, in relation to a Union territory, means the Administrator
thereof appointed under article 239 of the Constitution. |
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CHAPTER
II
NATIONAL
BOARD FOR MICRO, SMALL AND MEDIUM ENTERPRISES |
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3. |
(1) |
With
effect from such date as the Central Government may, by notification,
appoint, there shall be established, for the purposes of this Act, a Board
to be known as the National Board for Micro, Small and Medium Enterprises. |
Establishment
of Board. |
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(2) |
The
head office of the Board shall be at Delhi |
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(3) |
The
Board shall consist of the following members, namely:- |
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| (a) |
the
Minister in charge of the Ministry or Department of the Central
Government having administrative control of the micro, small and
medium enterprises who shall be the ex officio Chairperson
of the Board; |
| (b) |
the
Minister of State or a Deputy Minister, if any, in the Ministry
or Department of the Central Government having administrative control
of the micro, small and medium enterprises who shall be ex officio
Vice-Chairperson of the Board, and where there is no such Minister
of State or Deputy Minister, such person as may be appointed by
the Central Government to be the Vice-Chairperson of the Board; |
| (c) |
six
Ministers of the State Governments having administrative control
of the departments of small scale industries or, as the case may
be, micro, small and medium enterprises , to be
appointed by the Central Government to represent such regions of
the country as may be notified by the Central Government in this
behalf, ex officio ; |
| (d) |
three
members of Parliament of whom two shall be elected by the House
of the People and one by the Council of States; |
| (e) |
the
Administrator of a Union territory to be appointed by the Central
Government, ex officio; |
| (f) |
the
Secretary to the Government of India in charge of the Ministry or
Department of the Central Government having administrative control
of the micro, small and medium enterprises, ex officio ; |
| (g) |
four
Secretaries to the Government of India, to represent the Ministries
of the Central Government dealing with commerce and industry, finance,
food processing industries, labour and planning to be appointed
by the Central Government, ex officio ; |
| (h) |
the
Chairman of the Board of Directors of the National Bank, ex
officio ; |
| (i) |
the
chairman and managing director of the Board of Directors of the
Small Industries Bank, ex officio ; |
| (j) |
the
chairman, Indian Banks Association, ex officio ; |
| (k) |
one
officer of the Reserve Bank, not below the rank of an Executive
Director, to be appointed by the Central Government to represent
the Reserve Bank; |
| (l) |
twenty
persons to represent the associations of micro, small and medium
enterprises, including not less than three persons representing
associations of women's enterprises and not less than three persons
representing associations of micro enterprises, to be appointed
by the Central Government; |
| (m) |
three
persons of eminence, one each from the fields of economics, industry
and science and technology, not less than one of whom shall be a
woman, to be appointed by the Central Government; |
| (n) |
two
representatives of Central Trade Union Organisation, to be appointed
by the Central Government; and |
| (o) |
one
officer not below the rank of Joint Secretary to the Government
of India in the Ministry or Department of the Central Government
having administrative control of the small and medium enterprises
to be appointed by the Central Government, who shall be the Member-Secretary
of the Board, ex officio |
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4. |
The
term of office of the members of the Board, other than ex officio members
of the Board, the manner of filling vacancies, and the procedure to be
followed in the discharge of their functions by the members of the Board,
shall be such as may be prescribed; Provided that the term of office of
an ex officio member of the Board, shall continue so long as he holds
the office by virtue of which he is such a member. |
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5. |
No
act or proceedings of the Board shall be invalid merely by reason of-
| (a) |
any
vacancy in, or any defect in the constitution of, the Board; or |
| (b) |
any
defect in the appointment of a person acting as a member of the
Board; or |
| (c) |
any
irregularity in the procedure of the Board not affecting the merits
of the case. |
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6. |
The
Board shall meet at least once in every three months in a year. |
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7. |
The
Board may associate with itself, in such manner and for such purposes
as it may deem necessary, any person or persons whose assistance or advice
it may desire in complying with any of the provisions of this Act and
a person so associated shall have the right to take part in the discussions
of the Board relevant to the purposes for which he has been associated
but shall not have the right to vote. |
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8. |
Without
prejudice to sub-section (7) the Chairperson of the Board shall, for not
less than two of the meetings of the Board in a year, invite such Ministers
of the State Governments having administrative control of the departments
of small scale industries or, as the case may be, the micro, small and
medium enterprises, or the Administrators of Union territories and representatives
of such other associations of micro, small and medium enterprises, as
he may deem necessary for carrying out the purposes of this Act. |
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9. |
It
is hereby declared that the office of member of the Board shall not disqualify
its holder for being chosen as, or for being, a member of either House
of Parliament. |
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4. |
1) |
The
Central Government may remove a member of the Board from it, if he–
| (a) |
is,
or at any time has been, adjudged as insolvent; or |
| (b) |
is,
or becomes, of unsound mind and stands so declared by a competent
court; or |
| (c) |
refuses
to act or becomes incapable of acting as a member of the Board ;
or |
| (d) |
has
been convicted of an offence which, in the opinion of the Central
Government, involves moral turpitude; or |
| (e) |
has
so abused, in the opinion of the Central Government, his position
as a member of the Board as to render his continuance in the Board
detrimental to the interests of the general public |
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Removal
of member from Board. |
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2) |
Notwithstanding
anything contained in sub-section (1), no member shall be removed from
his office on the grounds specified in clauses (c) to (e) of that sub-section
unless he has been given a reasonable opportunity of being heard in the
matter. |
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5. |
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The
Board shall, subject to the general directions of the Central Government,
perform all or any of the following functions, namely:-
| (a) |
examine
the factors affecting the promotion and development of micro, small
and medium enterprises and review the policies and programmes of
the Central Government in regard to facilitating the promotion and
development and enhancing the competitiveness of such enterprises
and the impact thereof on such enterprises; |
| (b) |
make
recommendations on matters referred to in clause (a) or on any other
matter referred to it by the Central Government which, in the opinion
of that Government, is necessary or expedient for facilitating the
promotion and development and enhancing the competitiveness of the
micro, small and medium enterprises; and |
| (c) |
advise
the Central Government on the use of the Fund or Funds constituted
under section 12. |
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Functions
of Board. |
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6. |
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Subject
to other provisions of this Act, the Member-Secretary of the Board shall
exercise such powers and perform such functions as may be prescribed. |
Powers
and functions of Member-Secretary of Board |
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CHAPTER
III
CLASSIFICATION
OF ENTERPRISES, ADVISORY COMMITEE AND MEMORANDUM OF MICRO, SMALL AND MEDIUM
ENTERPRISES |
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| 65
of 1951
65 of 1951
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7. |
1) |
Notwithstanding
anything contained in section 11B of the Industries (Development and Regulation)
Act, 1951, the Central Government may, for the purposes of this Act, by
notification and having regard to the provisions of sub-sections (4) and
(5), classify any class or classes of enterprises, whether proprietorship,
Hindu undivided family, association of persons, co-operative society,
partnership firm, company or undertaking, by whatever name called,
| (a) |
in
the case of the enterprises engaged in the manufacture or production
of goods pertaining to any industry specified in the first schedule
to the Industries (Development and Regulation) Act, 1951, as –
| (i) |
a
micro enterprise, where the investment in plant and machinery
does not exceed twenty five lakh rupees; |
| (ii) |
a
small enterprise, where the investment in plant and machinery
is more than twenty five lakh rupees but does not exceed five
crore rupees; or |
| (iii) |
a
medium enterprise, where the investment in plant and machinery
is more than five crore rupees but does not exceed ten crore
rupees; |
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in
the case of the enterprises engaged in providing or rendering of
services, as –
| (i) |
a
micro enterprise, where the investment in equipment does not
exceed ten lakh rupees; |
| (ii) |
a
small enterprise, where the investment in equipment is more
than ten lakh rupees but does not exceed two crore rupees;
or |
| (iii) |
a
medium enterprise, where the investment in equipment is more
than two crore rupees but does not exceed five crore rupees |
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Classification
of enterprises. |
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65 of 1951 |
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Explanation
1 For the removal of doubt, it is hereby clarified that in calculating
the investment in plant and machinery, the cost of pollution control,
research and development, industrial safety devices and such other items
as may be specified, by notification, shall be excluded.
Explanation
2 It is clarified that the provisions of section 29B of the Industries
(Development and Regulation) Act, 1951, shall be applicable to the enterprises
specified in sub-clauses (i) and (ii) of clause (a) of sub-section (l)
of this section. |
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2) |
The
Central Government shall, by notification, constitute an Advisory Committee
consisting of the following members, namely:-
| (a) |
the
Secretary to the Government of India in the Ministry or Department
of the Central Government having administrative control of the small
and medium enterprises who shall be the Chairperson, ex officio
; |
| (b) |
not
more than five officers of the Central Government possessing necessary
expertise in matters relating to micro, small and medium enterprises,
members, ex officio ; |
| (c) |
not
more than three representatives of the State Governments, members,
ex officio ; and |
| (d) |
one
representative each of the associations of micro, small and medium
enterprises, members, ex officio ; |
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3) |
The
Member- Secretary of the Board shall also be the ex officio Member-Secretary
of the Advisory Committee. |
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4) |
The
Central Government shall, prior to classifying any class or classes of
enterprises under sub-section (1), obtain the recommendations of the Advisory
Committee. |
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5) |
The
Advisory Committee shall examine the matters referred to it by the Board
in connection with any subject referred to in section 5 and furnish its
recommendations of the Board. |
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6) |
The
Central Government may seek the advice of the Advisory Committee on any
of the matters specified in section 9, 10, 11, 12 or 14 of Chapter IV. |
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7) |
The
State Government may seek advice of the Advisory Committee on any of the
matters specified in the rules made under section 30. |
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8) |
The
Advisory Committee shall, after considering the following matters, communicate
its recommendations or advice to the Central Government or, as the case
may be, State Government or the Board, namely:-
| (a) |
the
level of employment in a class or classes of enterprises; |
| (b) |
the
level of investments in plant and machinery or equipment, in a class
or classes of enterprises; |
| (c) |
the
need of higher investment in plant and machinery or equipment for
technological upgradation, employment generation and enhanced competitiveness
of the class or classes of enterprises; |
| (d) |
the
possibility of promoting and diffusing entrepreneurship in micro,
small or medium enterprises; |
| (e) |
the
international standards for classification of small and medium enterprises. |
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| 65
of 1951
61 of 1956 |
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9) |
Notwithstanding
anything contained in section 11B of the Industries (Development and Regulation)
Act, 1951 and clause (h) of section 2 of the Khadi and Village Industries
Commission Act, 1956, the Central Government may, while classifying any
class or classes of enterprises under sub-section (1), vary, from time
to time, the criterion of investment and also consider criteria or standards
in respect of employment or turnover of the enterprises and include in
such classification the micro or tiny enterprises or the village enterprises,
as part of small enterprises. |
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65
of 1951
65 of 1951 |
8. |
1) |
Any
person who intends to establish,-
| (a) |
a
micro or small enterprise, may, at his discretion; or |
| (b) |
a
medium enterprise engaged in providing or rendering of services
may, at his discretion; or |
| (c) |
a
medium enterprise engaged in the manufacture or production of goods
pertaining to any industry specified in the First Schedule to the
Industries (Development and Regulation) Act, 1951, shall file the
memorandum of micro, small or, as the case may be, of medium enterprise
with such authority as may be specified by the State Government
under sub-section(4) or the Central Government under sub-section
(3):
Provided
that any person who, before the commencement of this Act, established—
| (a) |
a
small scale industry and obtained a registration certificate,
may, at his discretion; and |
| (b) |
an
industry engaged in the manufacture or production of goods
pertaining to any industry specified in the First Schedule
to the Industries (Development and Regulation) Act, 1951,
having investment in plant and machinery or more than one
crore rupees but not exceeding ten crore rupees and, in pursuance
of the notification of the Government of India in the erstwhile
Ministry of Industry (Department of Industrial Development)
number S.O.477(E), dated the 25 TH July, 1991 file an Industrial
Entrepreneurs' Memorandum, shall within one hundred and eighty
days from the commencement of this Act, file the memorandum,
in accordance with the provisions of this Act. |
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Memorandum
of micro, small and medium enterprises |
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2) |
The
form of the memorandum, the procedure of its filing and other matters
incidental thereto shall be such as may be notified by the Central Government
after obtaining the recommendations of the Advisory Committee in this
behalf. |
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3) |
The
authority with which the memorandum shall be filed by a medium enterprise
shall be such as may be specified, by notification, by the Central Government. |
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4) |
The
State Government shall, by notification, specify the authority with which
a micro or small enterprise may file the memorandum. |
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5) |
The
authorities specified under sub-sections (3) and (4) shall follow, for
the purposes of this section, the procedure notified by the Central Government
under sub-section (2). |
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CHAPTER
IV
MEASURES
FOR PROMOTION, DEVELOPMENT AND ENHANCEMENT OF COMPETITIVENESS OF MICRO,
SMALL AND MEDIUM ENTERPRISES |
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9. |
1) |
The
Central Government may, from time to time, for the purposes of facilitating
the promotion and development and enhancing the competitiveness of micro,
small and medium enterprises, particularly of the micro and small enterprises,
by way of development of skill in the employees, management and entrepreneurs,
provisioning for technological upgradation, providing marketing assistance
or infrastructure facilities and cluster development of such enterprises
with a view to strengthening backward and forward linkages, specify, by
notification, such programmes, guidelines or instructions, as it may deem
fit. |
Measures
for promotion and development |
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10. |
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The
policies and practices in respect of credit to the micro, small and medium
enterprises shall be progressive and such as may be specified in the guidelines
or instructions issued by the Reserve Bank, from time to time, to ensure
timely and smooth flow of credit to such enterprises, minimise the incidence
of sickness among and enhance the competitiveness of such enterprises. |
Credit
facilities |
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11. |
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For
facilitating promotion and development of micro and small enterprises,
the Central Government or the State Government may, by order notify from
time to time, preference policies in respect of procurement of goods and
services, produced and provided by micro and small enterprises, by its
Ministries or departments, as the case may be, or its aided institutions
and public sector enterprises. |
Procurement
preference policy. |
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12 |
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There
shall be constituted , by notification, one or more Funds
to be called by such name as may be specified in the notification and
there shall be credited thereto any grants made by the Central Government
under section 13. |
Funds. |
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13. |
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The
Central Government may, after due appropriation made by Parliament by
law in this behalf, credit to the Fund or Funds by way of grants for the
purposes of this Act, such sums of money as that Government may consider
necessary to provide |
Grants
by Central Government. |
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14. |
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| 1) |
The
Central Government shall have the power to administer the Fund or
Funds in such manner as may be prescribed. |
| 2) |
The
Fund or Funds shall be utilised exclusively for the measures specified
in sub-section (1) of section 9. |
| 3) |
The
Central Government shall be responsible for the coordination and
ensuring timely utilisation and release of sums in accordance with
such criteria as may be prescribed |
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Administration
and utilisation of Fund or Funds. |
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CHAPTER
V
DELAYED
PAYMENTS TO MICRO AND SMALL ENTERPRISES |
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15. |
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Where
any supplier supplies any goods or renders any services to any buyer,
the buyer shall make payment therefore on or before the date agreed upon
between him and the supplier in writing or, where there is no agreement
in this behalf, before the appointed day: Provided that in no case the
period agreed upon between the supplier and the buyer in writing shall
exceed forty-five days from the day of acceptance or the day of deemed
acceptance. |
Liability
of buyer to make payment. |
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16. |
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Where
any buyer fails to make payment of the amount to the supplier, as required
under section 15, the buyer shall, notwithstanding anything contained
in any agreement between the buyer and the supplier or in any law for
the time being in force, be liable to pay compound interest with monthly
rests to the supplier on that amount from the appointed day or, as the
case may be, from the date immediately following the date agreed upon,
at three times of the bank rate notified by the Reserve Bank. |
Date
from which and rate at which interest is payable. |
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17. |
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For
any goods supplied or services rendered by the supplier, the buyer shall
be liable to pay the amount with interest thereon as provided under section
16. |
Recovery
of amount due. |
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18. |
1) |
Notwithstanding
anything contained in any other law for the time being in force, any party
to a dispute may, with regard to any amount due under section 17, make
a reference to the Micro and Small Enterprises Facilitation Council. |
Reference
to Micro and Small Enterprises Facilitation Council. |
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26 of 1996 |
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2) |
On
receipt of a reference under sub-section ( 1 ), the Council shall
either itself conduct conciliation in the matter or seek the assistance
of any institution or centre providing alternate dispute resolution services
by making a reference to such an institution or centre, for conducting
conciliation and the provisions of sections 65 to 81 of the Arbitration
and Conciliation Act, 1996 shall apply to such a dispute as if the conciliation
was initiated under Part III of that Act. |
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26 of 1996 |
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3) |
Where
the conciliation initiated under sub-section ( 2 ) is not successful
and stands terminated without any settlement between the parties, the
Council shall either itself take up the dispute for arbitration or refer
it to any institution or centre providing alternate dispute resolution
services for such arbitration and the provisions of the Arbitration and
Conciliation Act, 1996, shall then apply to the dispute as if the arbitration
was in pursuance of an arbitration agreement referred to in sub-section
( 1 ) of section 7 of that Act. |
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4) |
Notwithstanding
anything contained in any other law for the time being in force, the Micro
and Small Enterprises Facilitation Council or the centre providing alternate
dispute resolution services shall have jurisdiction to act as an Arbitrator
or Conciliator under this section in a dispute between the supplier located
within its jurisdiction and a buyer located anywhere in India. |
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5) |
Every
reference made under this section shall be decided within a period of
ninety days from the date of making such a reference. |
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19. |
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No
application for setting aside any decree, award or other order made either
by the Council itself or by any institution or centre providing alternate
dispute resolution services to which a reference is made by the Council,
shall be entertained by any court unless the appellant (not being a supplier)
has deposited with it seventy-five per cent of the amount in terms of
the decree, award or, as the case may be, the other order in the manner
directed by such court: Provided that pending disposal of the application
to set aside the decree, award or order, the court shall order that such
percentage of the amount deposited shall be paid to the supplier, as it
considers reasonable under the circumstances of the case subject to such
conditions as it deems necessary to impose. |
Application
for setting aside decree, award or order. |
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20. |
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The
State Government shall, by notification, establish one or more Micro and
Small Enterprises Facilitation Councils, at such places, exercising such
jurisdiction and for such areas, as may be specified in he notification. |
Establishment
of Micro and Small Enterprises Facilitation Council |
|
| |
21. |
1) |
The
Micro and Small Enterprise Facilitation Council shall consist of not less
than three but not more than five members to be appointed from among the
following categories, namely:-
| (i) |
Director
of Industries, by whatever name called, or any other officer not
below the rank of such Director, in the Department of the State
Government having administrative control of the small scale industries
or, as the case may be, micro, small and medium enterprises; and |
| (ii) |
one
or more office-bearers or representatives of associations of micro
or small industry or enterprises in the State; and |
| (iii) |
one
or more representatives of banks and financial institutions lending
to micro or small enterprises; or |
| (iv) |
one
or more persons having special knowledge in the field of industry,
finance, law, trade or commerce |
|
Composition
of Micro and Small Enterprises Facilitation Council |
|
| |
|
2) |
The
person appointed under clause (i) of sub-section (1) shall be the chairperson
of the Micro and Small Enterprise Facilitation Council. |
|
|
| |
|
3) |
The
composition of the Micro and Small Enterprise Facilitation Council, the
manner of filling vacancies of its members and the procedure to be followed
in the discharge of their functions by the members shall be such as may
be prescribed by the State Government. |
|
|
| |
22) |
|
Where
any buyer is required to get his annual accounts audited under any law
for the time being in force, such buyer shall furnish the following additional
information in his annual statement of accounts, namely:-
| (i) |
the
principal amount and the interest due thereon (to be shown separately)
remaining unpaid to any supplier as at the end of each accounting
year; |
| (ii) |
the
amount of interest paid by the buyer in terms of section 18, along
with the amounts of the payment made to the supplier beyond the
appointed day during each accounting year; |
| (iii) |
the
amount of interest due and payable for the period of delay in making
payment (which have been paid but beyond the appointed day during
the year) but without adding the interest specified under this Act; |
| (iv) |
the
amount of interest accrued and remaining unpaid at the end of each
accounting year; and |
| (v) |
the
amount of further interest remaining due and payable even in the
succeeding years, until such date when the interest dues as above
are actually paid to the small enterprise, for the purpose of disallowance
as a deductible expenditure under section 23. |
|
Requirement
to specify unpaid amount with interest in the annual statement of accounts. |
|
| 43
of 1961. |
23. |
|
Notwithstanding
anything contained in the Income-tax Act, 1961, the amount of interest
payable or paid by any buyer, under or in accordance with the provisions
of this Act, shall not, for the purposes of computation of income under
the Income-tax Act, 1961, be allowed as deduction. |
Interest
not to be allowed as deduction from income. |
|
| |
24. |
|
The
provisions of sections 15 to 23 shall have effect notwithstanding anything
inconsistent therewith contained in any other law for the time being in
force. |
Over-riding
effect. |
|
|
1 of 1996 |
25. |
|
Notwithstanding
anything contained in any law for the time being in force, the Central
Government may, with a view to facilitating closure of business by a micro,
small or medium enterprise, not being a company registered under the Companies
Act, 1956, notify a scheme within one year from the date of commencement
of this Act . |
Scheme
for closure of business of micro, small and medium enterprises |
|
| |
|
|
CHAPTER
VI
MISCELLANEOUS |
|
|
| |
26. |
1) |
The
Central Government or State Government may appoint such officers with
such designations and such other employees as it thinks fit for the purposes
of this Act and may entrust to them such of the powers and functions under
this Act as it may deem fit. |
Appointment
of officers and other employees. |
|
| |
|
2) |
The
Officers appointed under sub-section (1) may, for the purposes of this
Act, by order require any person to furnish such information, in such
form, as may be prescribed. |
|
|
| |
27. |
1) |
Whoever
intentionally contravenes or attempts to contravene or abets the contravention
of any of the provisions contained in sub-section (1) of section 8 or
sub-section (2) of section 26 shall be punishable -
| (a) |
in
the case of the first conviction, with fine which may extend to
rupees one thousand; and |
| (b) |
in
the case of any second or subsequent conviction, with fine which
shall not be less than rupees one thousand but may extend to rupees
ten thousand |
|
Penalty
for contravention of section 8 or section 22 or section 26 |
|
| |
|
2) |
Where
a buyer contravenes the provisions of section 22, he shall be punishable
with a fine which shall not be less than rupees ten thousand. |
|
|
| |
28. |
|
No
court inferior to that of a Metropolitan Magistrate or a Magistrate of
the first class shall try any offence punishable under this Act. |
Jurisdiction
of courts. |
|
| |
29. |
1) |
The
Central Government may, by notification, make rules to carry out the provisions
of this Act. |
Power
to make rules. |
|
| |
|
2) |
In
particular, and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely:-
| (a) |
the term of office of the members of the Board, the manner of filling
vacancies, and the procedure to be followed in the discharge of
functions by the members of the Board under sub-section (4) of section
3; |
| (b) |
the powers and functions of the Member-Secretary under section 6; |
| (c) |
the manner in which the Fund may be administered under sub-section
(1) of section 14; |
| (d) |
the criteria based on which sums may be released under sub-section
(3) of section 14; |
| (e) |
the information to be furnished and the form in which it is to be
furnished under sub-section (2) of section 26; and |
| (f) |
any other matter which is to be or may be prescribed under this
Act. |
|
|
|
| |
|
3) |
Every
notification issued under section 9 and every rule made by the Central
Government under this section shall be laid, as soon as may be after it
is made, before each House of Parliament, while it is in session, for
a total period of thirty days which may be comprised in one session or
in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid,
both Houses agree in making any modification in the notification or rule
or both Houses agree that the notification or rule should not be made,
the notification or rule shall thereafter have effect only in such modified
form or be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity of
anything previously done under that notification or rule. |
|
|
| |
30. |
1) |
The
State Government may, by notification, make rules to carry out the provisions
of this Act. |
Power
to make rules by State Government. |
|
| |
|
2) |
In
particular, and without prejudice to the generality of the foregoing power,
such rule may provide for all or any of the following matters, namely:-
| (a) |
the
composition of the Micro and Small Enterprise Facilitation Council,
the manner of filling vacancies of the members and the procedure
to be followed in the discharge of their functions by the members
of the Micro and Small Enterprise Facilitation Council under sub-section
(3) of section 21; |
| (b) |
any
other matter which is to be or may be, prescribed under this Act. |
|
|
|
| |
|
3) |
The
rule made under this section shall, as soon as may be after it is made,
be laid before each House of the State Legislature where there are two
Houses, and where there is one House of the State Legislature, before
that House. |
|
|
| |
31. |
1) |
If
any difficulty arises in giving effect to the provisions of this Act,
the Central Government may, by order published in the Official Gazette,
make such provisions not inconsistent with the provisions of this Act
as may appear to be necessary for removing the difficulty: Provided that
no order shall be made under this section after the expiry of two years
from the commencement of this Act. |
Power
to remove difficulties. |
|
| |
|
2) |
Every
order made under this section shall, as soon as may be after it is made,
be laid before each House of Parliament. |
|
|
| |
32. |
1) |
The
Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings
Act, 1993 is hereby repealed. |
Repeal
of Act |
|
| |
|
2) |
Notwithstanding
such repeal, anything done or any action taken under the Act so repealed
under sub-section (1) shall be deemed to have been done or taken under
the corresponding provisions of this Act. |
32
of 1993 . |
|
| S/d-
K N CHATURVEDI
Secy. to the Govt. of India |
