The Ministry of Corporate Affairs (MCA) has announced the release of a redesigned MSME-1 Form on the MCA V3 platform, which would require all enterprises to give precise information on pending payments to Micro, Small, and Medium Enterprises.
According to the modification order issued in India’s Gazette, the new form requires corporations to give detailed information about their financial interactions with MSME suppliers. This includes payments made within and outside of a 45-day period, as well as outstanding balances and the reasons for any delays.
Key Requirements for the New MSME-1 Form:
Details of MSE Supplier(s): Businesses must include the names of their MSME suppliers.
Amount Paid within 45 Days: Information on payments made to MSME suppliers within the 45-day timeframe.
Amount Paid after 45 Days: Information on payments made to MSME suppliers after the 45-day deadline.
Outstanding Amounts: Companies must report amounts that have been outstanding for 45 days or less, as well as those that have been outstanding for longer.
Reasons for Delay: Companies must explain reasons for any payment delays or outstanding balances.
This change goes into effect soon once it is published in the Official Gazette. The Ministry of Corporate Affairs is making an effort to increase transparency and accountability in financial interactions with MSMEs, hence facilitating timely payment to small firms.
Companies are reminded of their legal need to submit correct and complete information under Section 405 of the Companies Act, 2013. Noncompliance could result in fines under the Act.