Make in India Certificate_Is It Mandatory to Get it from CA

The Make in India initiative, launched by the Government of India, aims to promote domestic manufacturing, attract foreign investment, and position India as a global manufacturing hub. Businesses seeking to participate in government procurement under this initiative or showcase their compliance with local sourcing norms often require a Make in India Certificate.

What is a Make in India Certificate?

A Make in India Certificate is a document certifying that a certain percentage of a product’s components or manufacturing processes originate in India. This certification is particularly significant for public procurement and government projects where preference is given to products made in India under the Public Procurement (Preference to Make in India) Order.

Is It Mandatory to Get It from a Chartered Accountant (CA)?

Yes, obtaining the Make in India Certificate typically requires certification from a Chartered Accountant (CA). The CA is responsible for verifying and certifying the percentage of domestic content in a product based on manufacturing and sourcing details provided by the applicant.

This process ensures accuracy and adherence to the guidelines outlined under the Make in India initiative. Without a CA’s certification, the certificate may lack legal credibility, especially for government or compliance purposes.

Why Involve a CA?

1. Compliance with Regulations: A CA ensures the calculation of local content aligns with prescribed norms.
2. Credibility and Authenticity: Certification by a qualified CA lends trustworthiness to the document, essential for government tenders and procurement.
3. Avoiding Penalties: Proper certification can help avoid legal or procedural penalties for misrepresentation.

Frequently Asked Questions (FAQs)

1. Who needs a Make in India Certificate?
Businesses involved in manufacturing, supplying products to government projects, or participating in public tenders requiring compliance with local sourcing norms need this certificate.

2. What is the minimum local content required to qualify for the certificate?
The minimum local content varies based on the product category and is determined by government guidelines. Typically, a minimum of 50% domestic value addition is required for most products.

3. Can any CA issue the certificate?
Yes, any qualified Chartered Accountant can issue the certificate after thoroughly verifying the product’s manufacturing and sourcing details.

4. What documents are needed to obtain the certificate?
You may need to provide bills of materials, invoices, production processes, vendor details, and other relevant records to substantiate the claim of local content.

5. Is the Make in India Certificate valid for all products?
No, the certificate is product-specific and must be obtained for each product requiring certification.

Conclusion

While the Make in India Certificate can significantly boost a company’s market presence and government contracting opportunities, ensuring its authenticity and adherence to regulations makes it mandatory to involve a Chartered Accountant. Businesses should seek professional guidance to comply with the necessary requirements and benefit fully from the initiative.