MSME Disclosure

MSME DISCLOSURE

Ministry of Corporate Affairs by the notification dated 22nd of January, 2019 has come out with an order asking Specified Companies to furnish information about payment to Micro and Small Enterprise Suppliers.

1. A. Who are Specified Companies? 
   • Company -
     1. Who get supplies of goods or services from Micro and Small Enterprises AND
     1. Whose Payment to Micro and Small Enterprise Suppliers is outstanding for more than 45 days from the date of acceptance or the date of deemed acceptance of the goods or services
2. B. Who are Micro and Small Enterprises?
   • The Company or other Enterprise who has filed Memorandum of Micro, Small or Medium Enterprise under MSME Act and has obtained MSME certificate.
3. C. What details are required to be submitted by Specified Companies?
   1. Amount of Payment Due AND
   2. The Reason of the delay
4. D. What is the Due date?
   1. One Time Return – On or Before 20th February, 2019
   2. Half Yearly Returns – by 31st October for the period from April to September and by 30th April for the period from October to March.
5. E. What is Date of Acceptance or the date of Deemed Acceptance?
   1. Date of Acceptance means:
      • The day of the actual delivery of goods or the rendering of services OR
      • Where any objection is made in writing by the buyer regarding acceptance of goods or services within 15 days from the day of the delivery of goods or rendering of services, the day on which such objection is removed by the supplier
   2. Date of Deemed Acceptance means where no objection is made in writing by the buyer regarding acceptance of goods or services within 15 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.
6. F. What are the requirement to Submit MSME Form I?

Note: MCA is yet to notify MSME FORM I on its web portal. In the Meantime, Companies are advised to arrange and keep all the information as stated in point “F” above

For Example:

Entity A is registered under MSME Act and has obtained MSME certificate. Entity B gets some supply of goods or services from Entity A and the dues towards entity A is pending for more than 45 days then Entity B is required to file Form MSME I mentioning the details of Entity A along with reason of delay.

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