Companies working with SMEs to furnish half-yearly returns using MSME e-form
The notification issued by the Ministry of Corporate Affairs stated that all companies who get supplies of goods or services from small and micro enterprises are required to furnish half-yearly returns.
The Ministry of Corporate Affairs has notified that the MSME e-form can be downloaded from MCA 21 Company forms page from May 1, 2019. The form is required for furnishing half-yearly returns with the registrar in respect of outstanding payments to SMEs.
The notification issued by the Ministry of Corporate Affairs stated that all companies who get supplies of goods or services from micro and small enterprises and whose payments to these enterprise suppliers exceed 45 days from the date of acceptance or the date of deemed acceptance of the goods or services as per the provisions of Section 9 of the MSMEs Development Act, 2006 (27 of 2006), shall submit a half-yearly return to the Ministry of Corporate Affairs stating the amount of payment due. They should also state the reasons for the delay.
The notification stated:
- This Order may be called the Specified Companies (Furnishing of information about the payment to micro and small enterprise suppliers) Order, 2019. It shall come into force from the date of its publication in the Official Gazette.
- Every specified company shall file in MSME Form I details of all outstanding dues to SME suppliers existing on the date of notification of this order within thirty days from the date of publication of this notification.
- Every specified company shall file a return as per MSME Form I annexed to this Order, by October 31 for the period from April to September and by April 30 for the period from October to March.
Earlier this year, the Ministry of Corporate Affairs released a notification stating that the directors of companies delaying payments to small businesses could face imprisonment up to six months, or face fines between Rs 25,000 and Rs 3 lakh.
It mandated all companies to file half-yearly returns showing outstanding dues to MSME suppliers. They need to also assign reasons if such delays are for more than 45 days.
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