Entries from February 2008 ↓

What are Micro, Small and Medium Enterprises (MSME) and how MSME (Manufacturing) are different from MSME (Services)?

In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:

(a) Manufacturing Enterprises– 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). The Manufacturing Enterprise is defined in terms of   investment in Plant & Machinery.
(b) Service Enterprises:  The enterprises eng
aged in providing or rendering of services and are defined in terms of investment in equipment.

The limit for investment in plant and machinery / equipment for manufacturing / service enterprises, as notified, vide S.O. 1642(E) dtd.29-09-2006 are as under:

Manufacturing Sector

Enterprises

Investment in plant & machinery

Micro Enterprises     Does not exceed twenty five lakh rupees

Small Enterprises     More than twenty five lakh rupees but does not exceed five crore rupees

Medium Enterprises More than five crore rupees but does not exceed ten  crore rupees

Service Sector

Enterprises

Investment in equipments

Micro Enterprises     Does not exceed ten lakh rupees:

Small Enterprises     More than ten lakh rupees but does not exceed two crore rupees

Medium Enterprises More than two crore rupees but does not exceed five core rupees

What are the schemes available to NRIs for direct investments in India with repatriation benefits?

NRIs can make investments in new issues of shares/convertible debentures of Indian companies under direct investment schemes such as 24% scheme/40% scheme/100% scheme. They can also invest in the schemes of domestic Mutual Funds floated by public/private sector institutions/companies and bonds issued by public sector undertakings, Non-resident investors are not required to apply for permission to invest but the company concerned will have to obtain permission from Reserve Bank.

Do i need to have Pan card if I do not pay tax in India?

Yes as per the latest regulatory norms  quoting PAN  no is on all investments made by an individual in India is Mandatory

What steps an NRI needs to take to start investing in the Indian stock Market?

An NRI should open a new bank account with designated bank branch which is approved by RBI (Reserve Bank of  India) for this purpose.

  • He should apply for a general approval for investment in Indian Stock Market through his designated bank branch.
  • He should have a Permanent Account Number – Card  (PAN- Card) to be able to invest in Indian stock /dervivative/debt market.
  • He should open a Demat Account with a Depository Participant to hold his shares.
  • He needs to register with a broker to execute his buy/sell orders on the stock exchange(s).