Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Amendment Order, 2024
On July 15th, 2024, the Ministry of Corporate Affairs issued a significant amendment to the Specified Companies Order under the Companies Act 2013 vide Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Amendment Order, 2024. This amendment aims to strengthen the reporting framework concerning payments to micro and small enterprise (MSE) suppliers.
The amendment, enacted under Section 405 of the Companies Act 2013, introduces a pivotal change impacting specified companies. According to the revised order, companies must now report details regarding payments pending to MSEs. Specifically, companies are required to furnish information if payments to MSEs remain outstanding for more than 45 days from the date of acceptance or deemed acceptance of goods or services.
Key provisions of the amendment include:
1. Criteria for Reporting: Only specified companies with overdue payments to MSEs beyond 45 days are mandated to submit information.
2. Form MSME-1: The amendment substitutes the existing MSME Form-1 in the Annexure of the Specified Companies Order 2019. This updated form is designed to capture comprehensive details essential for reporting under the new guidelines.
The rationale behind this amendment is to enhance transparency and accountability in dealings between companies and MSEs. It aligns with the broader objectives of promoting timely payments to MSEs, which are crucial for their sustainability and growth. By enforcing stricter reporting norms, the government aims to safeguard the interests of MSEs and ensure fair business practices across sectors.
****
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (II)]
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 15th July, 2024
S.0. ………. (E)._ In exercise of the powers conferred by section 405 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following Order to amend the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019 namely:
1. (1) This Order may be called the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Amendment Order, 2024.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019 (herein after referred to as the said order),-
(i) in paragraph 3, the following proviso shall be inserted, namely:-
“Provided that only those specified companies which are having payments pending to any micro or small enterprises for more than 45 days from the date of acceptance or the date of deemed acceptance of the goods or services under section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) shall furnish the information in MSME Form-1.”
(ii) in Annexure, for MSME Form-1, the following form shall be substituted, namely: –
F. No. 17/6/2017-CL-V]
(Manoj Pandey)
Additional Secretary to the Government of India
Note:- The Principal order was published in the Gazzette of India, Extraordinary, Part II, Section 3, Sub-Section (ii), vide notification number S.O. 368(E), dated the 22nd January, 2019.
