In a significant move to ensure timely payments to micro and small enterprises (MSEs), the Ministry of Micro, Small and Medium Enterprises (MSME) has issued a new directive mandating companies to submit half-yearly returns on overdue payments.
As per Notification , the government, exercising its powers under Section 9 and Section 15 of the MSME Development Act, 2006, has instructed all companies procuring goods or services from micro and small enterprises to comply with stricter reporting norms.
Key Highlights of the Notification
- Mandatory Reporting: Companies whose payments to MSEs exceed 45 days from the date of acceptance or deemed acceptance must file a return with the Ministry of Corporate Affairs.
- Details to be Reported:
- The total amount of outstanding payments to MSMEs.
- Reasons for payment delays beyond the stipulated period.
- Compliance Timeline: Companies must submit these reports on a half-yearly basis.
Notification Details
Notification No. F. No. 16/8/2018/E-P&G/Policy
Date: 25th March, 2025
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