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.
The new form, as per the amendment order published in the Gazette of India, requires companies to provide comprehensive details of their financial transactions with MSME suppliers. This includes payments made within and beyond the 45-days period and outstanding amounts, along with reasons for any delays. This means irrespective of whether amounts are outstanding as of 31st March or 30 September or not, if payments were made after 45 days during the half-year reporting period, MSME-1 shall be filed
Earlier, companies need not file an ‘MSME-1 Return’ when there were no outstanding amounts due to micro or small suppliers at the end of the reporting period i.e. 31st March and 30th September.
New Information required now includes:
– Amount paid within 45 days
– Amount paid after 45 days,
– Amount outstanding for 45 days or less
– Amount Outstanding for more than 45 days,
– Reason for delay in payment / amount outstanding.
Conclusion: With the introduction of the revised MSME-1 Form on the MCA V3 platform, companies must now provide comprehensive data on payments to MSME suppliers. This enhanced transparency aims to bolster financial accountability and support MSMEs by ensuring timely payments. It’s essential for businesses to adhere to these updated reporting obligations to avoid penalties and foster stronger supplier relationships.
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MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 15th July, 2024
S.O. 2751(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: –
MSME Form I
Form for furnishing half yearly return with the registrar in respect of
outstanding payments to Micro or Small Enterprises
[Pursuant to Order 2 and 3 dated 22 January, 2019 issued under
Section 405 of the Companies Act, 2013]
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.
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