Companies Required To Submit Half-Yearly Returns For Delayed MSME Payments

(MENAFN- KNN India) New Delhi, Mar 27 (KNN) In a move to ensure timely payments to Micro, Small, and Medium Enterprises (MSMEs), the Central Government has issued a directive under the Micro, Small, and Medium Enterprises Development Act, 2006.

As per the notification, all companies procuring goods or services from micro and small enterprises must submit a half-yearly return to the Ministry of Corporate Affairs if their payments exceed 45 days from the date of acceptance or deemed acceptance.

The notification, issued under Section 9 and read with Section 15 of the Act, aims to address delayed payments, a major challenge faced by small businesses.

The required return must include details of the total outstanding amount due to micro and small enterprise suppliers.

Additionally, companies must also specify the reasons for the delay in making these payments.

This regulation is expected to improve financial discipline among larger corporations and enhance liquidity for MSMEs, which often struggle due to delayed payments.

The directive is part of the government's broader efforts to strengthen the MSME sector, which is a crucial contributor to employment and economic growth in India.

The notification was signed by Rajneesh, Additional Secretary and Development Commissioner. Businesses failing to comply may face penalties as per the provisions of the MSME Act.

Industry experts believe this move will bring greater transparency and accountability, ultimately benefiting small businesses.

(KNN Bureau)

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