Now, Companies receiving supplies of Goods and Services from MSMEs are mandatorily required to file Half Yearly Returns to MCA indicating details of delay in payments
The Ministry of Micro Small and Medium Enterprises (“MSME”) has in its notification dated 2nd November, 2018 made it mandatory for companies procuring goods or services from micro and small enterprises and making payments exceeding 45 days from the date of acceptance or the date of deemed acceptance of the goods or services TO NOW file/submit a half-yearly return to the Ministry of Corporate Affairs (MCA) regarding the same.
This return is required to indicate the following details:
- The amount due for payment.
- Reason for delay.
The Ministry came up with this proposition as per its intent to promote, develop and enhance the competitiveness of micro, small and medium enterprises enumerated under the Micro, Small and Medium Enterprises Development Act, 2006.