ComplianceSupport

In addition to MSME act, Companies are also required to report status of payments to their MSME vendors to the jurisdictional registrar of companies under the Companies Act, 2013.

Ministry of Corporate Affairs (the “MCA”) by the notification dated 22^nd of January, 2019 has issued Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019 (the “Order”).

The order is applicable on the following company (the “Specified Company”):

1. who get supplies of goods or services from micro and small enterprises; and
2. whose payments to micro and small enterprise suppliers exceed 45 days from the date of acceptance* or the date of deemed acceptance** of the goods or services.

The Specified Company is required to state the following details to the concerned Registrar of Companies in form MSME*** Form I:

1. The amount of payment due; and
2. The reasons of the delay.

Due Dates:

1. One time return as on 22^nd January, 2019 to be filed, on or before 20^th February, 2019;
2. Half yearly returns : by 31^st October for the period from April to September and by 30th April for the period from October to March.

We request you to identify your MSME and confirm if this rules is applicable on your company.

Note that the e-filing version of the MSME Form I is yet to be launched by the MCA. Meanwhile, if this rule is applicable on your company, arrange the information in the following format:

Financial Years/ Particulars	Name of Suppliers	PAN of Suppliers	Amount Due	Specify the date from which amount is due	Reason of Delay, if any.

Required Disclosures
ONE TIME RETURN : Payments pending as on 22^nd Jan, 2019 & due for more than 45 days;

HALF YEARLY RETURN : Payments pending for more than 45 days during the said Half Year.

*Date of Acceptance means:
(a) the day of the actual delivery of goods or the rendering of services; or
(b) where any objection is made in writing by the buyer regarding acceptance of goods or services within fifteen days from the day of the delivery of goods or the rendering of services, the day on which such objection is removed by the supplier.

**Deemed Date of Acceptance means where no objection is made in writing by the buyer regarding acceptance of goods or services within fifteen days from the day of the delivery of goods or the rendering of services, the day of the actual delivery of goods or the rendering of services.

***Registration of MSME?

Any person who intends to establish,—
(a) a micro or small enterprise, may, at his discretion; or
(b) a medium enterprise engaged in providing or rendering of services may, at his discretion; or
(c) a medium enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 (65 of 1951),

shall file the memorandum of micro, small or medium enterprise with the concerned Department of the State.

For any query and clarification, please feel free to contact us.