As per the MSMED Act, MSME registration is a voluntary registration. But is advisable to register under MSME Act that provides a host of benefits and access to schemes. The purpose of MSME / UDHYOG AADHAR registration is to avail the benefits and subsidies provided by the government.
Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 contains provisions to deal with cases of delayed payment to Micro and Small Enterprises (MSEs). As per the provisions, the buyer is liable to pay compound interest with monthly rests to the supplier on the amount at three times of the bank rate notified by Reserve Bank in case he does not make payment to the supplier for the supplies of goods or services within 45 days of the day of acceptance of the goods/service or the deemed day of acceptance.
The Delayed Payment Portal “Samadhaan” which was set up with the objective to resolve delayed payment issues of MSME has done full justice with the entrepreneurs by serving its purpose. The portal has been set up with an objective of empowering MSMEs across the country to directly register their cases related to delayed payment by Central Ministries and various government departments.
The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 contains provisions of Delayed Payment to Micro and Small Enterprise (MSEs). (Section 15- 24). State Governments to establish Micro and Small Enterprise Facilitation Council (MSEFC) for settlement of disputes on getting references/filing on Delayed payments. (Section 20 and 21)
Nature of assistance
MSEFC of the State after examining the case filed by MSE unit will issue directions to the buyer unit for payment of due amount along with interest as per the provisions under the MSMED Act 2006.
Who can apply
Any Micro or small enterprise having valid Udyog Aadhar(UAM) can apply.
The buyer is liable to pay compound interest with the monthly rests to the supplier on the amount at the three times of the bank rate notified by RBI in case he does not make payment to the supplier for his supplies of goods or services within 45 days of the acceptance of the goods/service rendered. (Section 16)
State Governments to notify (i) Authority for filing Entrepreneur Memorandum (ii) Rules of MSEFC and (iii) Constitution of MSEFC.
All States/UTs have notified Authority for Filing Entrepreneur’s Memorandum, 33 States/UTs (i.e. except Arunachal Pradesh, Assam, and Manipur) have Notified rules of MSEFC and all the 36 States/UTs have constituted MSEFCs, as per provisions laid down under MSMED Act 2006.
Every reference made to MSEFC shall be decided within a period of ninety days from the date of making such a reference as per provisions laid in the Act.
If the Appellant (not being the supplier) wants to file an appeal, no application for setting aside any decree or award by the MSEFC shall be entertained by any court unless the appellant (not being a supplier) has deposited with it, the 75% of the award amount. (Section 19)
The provisions under the Act are implemented by MSEFC chaired by Director of Industries of the State /UT having administrative control of the MSE units. State Government/UTs are requested to ensure that the MSE Facilitation Council hold meetings regularly and delayed payment cases are decided by the Councils within a period of 90 days as stipulated in the MSMED Act, 2006.
MSME REGISTRATION AND BENEFITS – UPDATED 2019
MSME Samadhaan Portal – Ease of filing an application under MSEFC, an Initiative from Ministry of MSME, Govt. of India
Ministry of MSME has taken an initiative for filing the application by the supplier MSE unit against the buyer of goods/services before the concerned MSEFC of his/her State/UT. These will be viewed by MSEFC Council for their actions. These will be also visible to Concerned Central Ministries, Departments, CPSEs, State Government, etc for pro-active actions.
The Micro Small and Medium Enterprises Development Act (MSMED), 2006– A Law with large impact
The MSMED Act 2006, s a single comprehensive act for development and regulation of small enterprises and had been a long outstanding demand of the sector so as to free it from a plethora of laws and regulations, which it had to face with limited awareness and resources.
This is an Act that facilitates the promotion, development and also enhances the competitiveness of micro, small and medium enterprises and for matters connected therewith and incidental thereto.
Registration as Micro, Small and Medium Enterprise (MSME) under the Act: The following slabs have been prescribed under the MSMED Act to determine the status of the Enterprise:
Under the MSMED Act, the prescribed slab rates to determine the status of the enterprise is tabulated below:
|S. No.||Enterprise Types||Manufacturing Industry (Investing in Plant and Machinery)||Service Industry (Investing in Equipment)|
|1.||Micro||The amount that does not exceed Rs. 25 lacs||Does not exceed Rs. 10 Lakh|
|2.||Small||The amount that exceeds Rs. 25 lacs, but less than Rs. 5 Crore||The amount that exceeds Rs. 10 lacs, but less than Rs. 2 Crore|
|3.||Medium||The amount that exceeds Rs. 5 Crore, but less than Rs. 10 Crore||The amount that exceeds Rs. 2 Crore, but less than Rs. 5 Crore|
The below following are the document checklist in order to file the application of delayed payment.
- You must produce the scanned PDF documents of work orders of Respondent and invoices generated against those orders.
- The document size must not be more than 1 MB.
- A maximum of 3 work orders and 3 invoices can be uploaded.