The Ministry of Corporate Affairs (MCA), vide notification dated 15 July 2024, has amended the Specified Companies (Furnishing of information about payment to Micro and Small Enterprise suppliers) Order, 2019 (the Order) by adding a proviso. The proviso clarifies that only "Specified Companies" that have outstanding payments to any Micro or Small Enterprise supplier for more than 45 days from the date of acceptance or deemed acceptance of goods or services under Section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 (the MSME Act) are required to furnish information in the prescribed form (previously MSME-1). The Order also mandates the use of a new form, replacing the existing MSME-1 for such filings.
Extract of the proviso inserted
"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."
The following new information is required in MSME Form-1,
namely:
- Amount paid within 45 days:
- Through TReDS;
- Other modes of payment;
- 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.
Our CommentsAs per the new reporting requirements, companies are required to
file this return even for the payments made within 45 days, which
was not required earlier. This means irrespective of whether
amounts are outstanding as on specified dates, i.e., 31 March or 30
September or not; if payments were made after 45 days during a
half-year reporting period, MSME Form-1 shall be filed. |
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