Mandatory Reporting of Outstanding Payments through Form MSME-1
Pragya Bhandari
The Ministry of Corporate Affairs has issued a Notification with respect to filing of return for outstanding payments to the Micro or Small Enterprises. The learned author under this article put her efforts to elucidate the same and related provisions thereof.
1. Prologue
In view to protect the interest of the micro and small group of companies or businesses, the Ministry of Corporate Affairs has issued Specified Companies (Furnishing of information about payment to Micro and Small enterprise Suppliers) Order, 2019 [in short, an order] under section 405 of the Companies Act, 2013 vide Notification S.O. 368(E), dt. 22-1-2019. It has come into force from 22-1-2019. Accordingly, specified companies are required to submit returns i.e. one time return and half yearly return with the registrar in e-form MSME-1 in respect of outstanding payments to Micro or Small Enterprises. This notification strengthens the legislative structure for delayed payments to micro and small enterprises.
2. Applicability of order
This order is applicable to all the companies whether private or public, who --
(a) receive supplies of goods and services from micro and small enterprise; and
(b) whose payment to micro and small enterprise exceeds 45 days from the date of acceptance or from the date of deemed acceptance of the goods or services as per the provisions of section 9 of the Micro, Small and Medium Enterprises Development Act, 2006.
It is pertinent to note that companies will be referred as specified companies for the purpose of an order.
3. Filing of returns
(i) One time return
As per the order, every specified company was required to file in Form MSME-1 details of all outstanding dues to micro or small enterprises suppliers existing on the date of notification of this order i.e. 22-1-2019. Such form was required to be filed within 30 days from the date of publication of notification.