The Ministry of Micro, Small & Medium Enterprises had vide its notification dated 2nd November, 2018 directed that all companies who get supplies of goods or services from micro and small enterprises and whose payments to micro and small enterprise suppliers exceed 45 days from the date of acceptance or the date of deemed acceptance of the goods or services shall submit a half yearly return to the Ministry of Corporate Affairs stating inter alia the amount of payments due and the reasons for the delay.
So this MSMED notification was to be regulated by the MCA.
Now MCA has vide its order dated 22nd January, 2019 effectuated this notification of MSMED. MCA has gazetted an order called Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers), Order, 2019.
The Order states that every “specified company” shall file in MSME Form 1 details of all outstanding dues to micro or small enterprise suppliers existing on the date of notification of this order i.e. on 22nd January, 2019 within 30 days from the date of publication of this notification i.e. within 21st February, 2019.
The Order further states that every “specified company” shall file a half yearly return for the period April to September by 31st October and for the period October to March by 30th April, every year.
So ONE immediate compliance of outstanding micro and small suppliers within 30 days and TWO half yearly returns every year.
What is “Specified company” is not clarified in any of the notification but it is safe to assume that it means that all companies who supplies of goods or services from micro or small enterprises.