Mandatory Return of Payment due to Micro & Small Enterprises [ As notified by MCA vide Notification No. 368(E) dated 22/Jan/2019 ]
Ministry of Corporate Affairs has issued Notification directing all companies whose payments to micro & small enterprise ( as defined by MSMED Act, 2006 ) suppliers exceed forty five days from the date of acceptance of the goods or services ( such companies will be referred as Specified Companies ) shall submit a half yearly return to MCA stating the details of total amount of payment due to micro & small enterprise and the reasons of the delay.
Return shall be filed in Form MSME I and the said return for the period April to September shall be filed by 31st October & for the period October to March shall be filed by 30th April.
In addition onetime Form MSME I shall be filed by Specified Companies ( as referred above ) for all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order ( 22/Jan/2019 ) within thirty days from the date of publication of this notification ( 21/Feb/2019 ). The Due date is now extended vide General Circular No. 01/2019 dated Dated: 21.02.2019 to 30 days from the date of deployment of Form MSME I on MCA 21 portal
Section 15 of MSMED Act, 2006 mandates payment to micro, small or medium enterprises within forty five days from the date of acceptance of goods or services.
To comply above notification it is advised to obtain Udyog Aadhar Registration Certificate or Registration obtained under MSMED Act, 2006 from the suppliers of goods or services so as to understand classification ( micro / small / medium ) of the said supplier. Above notification do not cover medium enterprises. MCA has not made available Form MSME 1 till 20/Feb/2019.
Disclaimer : Even though due care has been taken to ensure the accuracy, completeness and reliability of the information provided, users of this information are expected to refer to the relevant existing provisions of applicable laws. The user of the information agrees that the information is not a professional advice & we assume no responsibility for the consequences of use of such information.
Author: CA. Pavan Auti, Partner, A A M D & Associates, Chartered Accountants, Email – email@example.com