Companies that delay payments to MSME will be exposed, ministry has made preparations
There will also be a provision for interest on this. Until now, information has been sought from companies whether they have to pay any payment to any micro and small company or not. The name of that company was asked, as well as how much is to be paid, its permanent account number (PAN), and when the payment is pending. Companies were giving information about the dues until 31 March.
The ministry has prepared to expose the companies delaying payment to micro and small companies of MSME. After the new MSME rule came into effect this year, companies had made arrangements that after making purchases throughout the year, they deposit money by 31st March, so that they can give information in the income tax return that they have paid the micro and small companies on 31st March. The Ministry of Micro, Small and Medium Enterprises has therefore introduced another form MSME-1 to give more security to micro and small companies by exposing those companies that plan to delay payments throughout the year.
In this, it will also ask after how many days the payment was made for the goods purchased in the whole year. There will be a provision of interest on it, too. So far, it was asked to the companies whether they have to pay any micro and small company or not. In this, the name of that company was asked and also how much is to be paid, its permanent account number-PAN and since when pending. In this, the companies were giving information about the dues till 31st March. Now its format has been changed. Now the question is how much was paid within the stipulated time after taking the goods.
This stipulated time is maximum 45 days if there is a written contract and 15 days if there is no contract. Along with this, it will also have to be given how much is pending while filing the tax audit report. The last date for filing the tax audit report is 30th September. However, its effect is visible on the business world since February this year and many businessmen have started avoiding doing business with micro and small companies. According to Gopesh Sahu, former president of the Company Secretary Institute Kanpur Chapter, the new information will let the ministry know how much payment was made for the goods purchased in 15 days or 45 days. With the provision of interest on that amount, the level of payment received by micro and small companies will improve.
