General instruction for payment process and documentations
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Request Letter
 Clearly mention Project code and Phase for which payment is requested
 The request Date should be after payment to the designer and completion of phase activity.
 All the documents submitted along with the request letter should be verified as per guideline and
checked (tick marked) in the request letter list.
Invoice (Design fees)
 Designer should raise an invoice in the name of MSME unit for the phase activity
 It should be printed on letter head of the designer with complete address, seal and signature
 It should mention the Service Tax no. if liable to pay
 It should have PAN number.
 Invoice date must be after the project approval/TPA date & on or after phase completion date
Receipt
 Receipt should be issued providing the name of MSME unit against the payment received & the receipts
should be printed on Designer’s letter head.
 It should mention the mode of Payment (Amount received & TDS deducted, Cheque No, Bank Name, Issue
Date)
 All receipts issued for Rs. 5000/- and above must have Revenue Stamp duly signed.
 Any payment for Rs. 20,000/- and above should be made through cheque (traceable) as per the norms of
RBI.
Bank Statement/Copy of Passbook
 Highlight payment transaction in respect to the phase installment
 Bank statement may be from either MSME or Designer side
 Bank statement shows the account no, name, address, etc.
Travel and Documentation and Prototype expenses
 Attach Travel, Documentation and Prototype expenses Summary sheet with list bills & receipts
 The bills should be in the name of either MSME unit / Designer
 Invoice from designer or request on letter head for lumsum amount for making prototype expenses, etc
will not be acceptable-original bills required.
 Receipt of payment should be attached with the bills & Revenue stamped receipt from vendor in case of
amount more than Rs. 5000 and above.
 Do not claim any expenses on Vouchers accept petty expenses & not total not exceeding Rs. 5000/-.
 If prototype travel expenses made by the Designer, the MSME unit will pay 40% of the total expenses to
the Designer & 60% will paid to the designer directly from NID on request from MSME unit.
Phase completion certificate
 Mention the approved and actual completion date as per the format
 Phase deliverables should be achieved as per approved proposal
 Should be printed on MSME letter head
Project Extension letter
 Only 2 extension will be allowed & Extension is allowed maximum up to 6 month only
 Grace period after end of phase/project completion date should can be maximum 15 days
 Clearly mention valid justification/reason for delay.
 On MSME letter head/mail copy
Condonation request letter
 Only applicable on completion of entire project and submission of documents
 Should be printed on MSME letter head
 Clearly mention justification/reason for delay
The Principal Applicant has to deduct full TDS on Consultancy fee bill raised by co-applicant/ Designer on the
Principal Applicant. NID as a Implementing agency will not be deducting TDS on any reimbursement. It is
Principal Applicant responsibility to deduct Applicable tax on whole amount and timely deposit with
Government and also all other formalities necessary i.e. filing TDS returns and issuance of TDS certificates to
the Co- Applicant.
If any Principal applicant is not liable to deduct TDS then Principal Applicant will be required to submit TDS
exemption Certificate provided to them by IT Department.
Reimbursement process from NID takes minimum 15 to 20 days time involving scrutiny, audit and signing of
cheques after receiving and verifying all the documents as per the checklist. The delay due to no
submission/incomplete documents would not be acceptable and would not be justified for delay in project.
To,
Date:
Project Head,
Design Clinic Scheme for MSMEs,
NID, Paldi,
Ahmedabad.
Ref No: PDP- __ - ___
Sub: Payment request for Phase-2
Dear Sir,
We certify that our Designer / Design firm have satisfactorily completed and we have already made the 100%
payment as per details attached. We now request you to release us 60% of the following activities from the
approved budget as per the Tripartite agreement.
We have attached the following documents for the processing of phase reimbursement:
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Original invoice of designer,
Original payment receipt provided by Designer
Proof of payment (i.e. bank statement of MSME or Designer – Should be mentioning the cheque
transaction)
Phase-2 activity Report as per guideline and checklist.
3-5 Images (JPG) of each Concepts Generated and selected as mentioned in the approved proposal
Phase-2 Completion Certificate
Extension request (If project activity is delayed from approved schedule)
Declaration of exemption from TDS liability (Please mark YES as applicable):
We hereby certify that we have deducted full TDS on Consultancy fee bill raised by co-applicant/ Designer on
us. Even the TDS deducted will cover the 60 % portion which will be paid by NID directly (as a grant) on our
behalf. It is our responsibility to deduct Applicable tax on whole amount and timely deposit with Government
and also all other formalities necessary i.e. filing TDS returns and issuance of TDS certificates to the CoApplicant.
OR
Our firm is a proprietor concern and turnover is below Rs. 60 Lacs, as such we are not liable to deduct tax at
source on any payments.
Thanking you,
Yours sincerely,
(Signature and seal)
(Note: To be submitted by MSME unit’s on Letter Head.)
Invoice
Name :
(Designer)
INVOICE NO :
Address:
DATE :
SERVICE TAX
NO.
(If Applicable)
TO.
(MSME unit)
Address:
Qty
1
Description
Sub Total
Design Fee Of Project Code : PDP-14-
Phase-2
TOTAL :
Service Tax (_____ %) :
Grand Total :
In words (Rs.): _______________________________________________________________
Yours sincerely,
(Signature and seal)
Total
Payment Receipt
Date ________________
We have received 2nd installment from MSME UNIT ______________________________
________________________________________________________________________
Project No
______________
Phase - 2
Against Invoice No: _______________________
Amount Received
from MSME
Mode of payment
(cheque, D.D,
Money order etc.)
_____________________

Cheque No___________ Bank_______________ Date_______

D.D No______________ Bank_______________ Date_______

Bank Transfer (RTGS/NEFT) Bank_______________ Date_______

Other
TDS amount
The Bank Statement attached for your reference.
Thanking you,
Revenue
Stamp
Yours Faithfully
(Signature and seal)
Date: _______________
Certificate for Successful Completion of Phase _____
This is to certify that in respect of Design Clinic project No. PDP-/ / under
Design
Clinic
Scheme
for
MSMEs
for
Project
title
“___________________________________ __________________ .”, the Designer/ Design
firm
____________________________,
has satisfactorily completed the Phase
_____on ___________Date & achieved all the deliverable as per phase
deliverables as approved in the project proposal.
_______________________
Signature & Designation
of the authorized signatory
With Seal of MSME unit
(Note: To be submitted by MSME unit’s on Letter Head.)
To,
Date:
The Project Head,
Design Clinic Scheme for MSMEs
NID, Paldi-Ahemdabad-380007
Sub: Request for Project Extension/Condonation of Delay
This has reference to the proposal PDP/
/
submitted by us with Design Consultant /Design Firm
______________________________ Project title “______________________________” submitted under the Design
Clinic Scheme for MSMEs for financial support.
As per the terms of the approved Project and the Tripartite Agreement the Project should be completed on or
before__________________ the original target of completion date. We wish to state that the project has been delayed
at _________ Phase/s mainly for the following reasons. We request you to kindly approve the project extension.
New Date for completion of the project requested
OR
We have already completed the project on____________ (date), Hence it is requested to you kindly condone the delay
for submission of documents/completion of project.
We request you to process our payment.
Detailed Justification for delay
We have/haven’t applied earlier for Project Extension. The earlier targeted project completion date
was.____/___/______.
For your consideration and approval of the Extension/Condonation of Delay as mentioned above
Thanking you,
___________________________
(Seal and Signature of MSME unit)
(Note: To be submitted by MSME unit’s on Letter Head.)