/ What should be investment for Micro Service Enterprise? *
Answers
Answer:
4 lakh ; 20 per cent of the total advances to MSE sector should go to micro (manufacturing) enterprises with investment in plant and machinery above Rs. ... 25 lakh, and micro (service) enterprises with investment in equipment above Rs. 4 lakh and up to Rs. 10 lakh........
Explanation:
From a legal perspective, the definition of MSMEs as under Section 7 (1) of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) will be revised by raising the investment limit and while earlier, the Section 7(1) of the MSMED Act classified enterprises as micro, small and medium enterprises based on the size of their investments now an additional criterion of turnover is also being introduced. The distinction between manufacturing and service sector will also be eliminated. The existing and revised definition of MSME‟s is as under: