Introduction:
The Ministry of Corporate Affairs (“MCA”) has introduced Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Amendment Order, 2024 published on July 15, 2024 (“the Notification”). This amendment has inserted a proviso to paragraph 3 of the Specified Companies (Furnishing of Information about Payment to Micro and Small Enterprise Suppliers) Order, 2019, stating:
“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.”
Key Changes:
Previously, all specified companies were required to report payments exceeding 45 days and outstanding as on September 30 or March 31. However, effective from the date of the Notification, Form MSME-1 has been updated and made available on the MCA V3 portal, where companies are now required to report the following details, even if not outstanding as on September 30 or March 31:
- All payments made within 45 days, including the mode of payment.
- All payments made after 45 days.
- All amounts outstanding for 45 days or less.
- All amounts outstanding for more than 45 days.
The due date for filing Form MSME-1 is as follows:
| Sr. No. | Period | Due date |
| (a) | H1 – April to September | October 31 |
| (b) | H2 – October to March | April 30 |
Conclusion:
This amendment aims to streamline the compliance process for companies dealing with micro and small enterprises, ensuring timely reporting and transparency. Companies should take note of the revised reporting requirements and updated timelines for submitting Form MSME-1 to avoid any regulatory lapses.
The notification can be accessed through the following link:
https://www.mca.gov.in/bin/dms/getdocument?mds=5d6WlpyCZCPzZo0CHi%252B7oA%253D%253D&type=open
