In India, Ministry of Micro, Small & Medium Enterprises envision a vibrant MSME sector by promoting growth and development of the MSME Sector, including Khadi, Village and Coir Industries, in cooperation with concerned Ministries/Departments, State Governments and other Stakeholders, through providing support to existing enterprises and encouraging creation of new enterprises.
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.
As per the order, Every specified company shall file in MSME Form I details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order within thirty days from the date of publication of this notification.
Half-yearly reporting requirements
All companies — other than Government companies —Every specified company shall file a return as per MSME Form I annexed to this Order, by 31st October for the period from April to September and by 30th April for the period from October to March.
Features of MSME Samadhaan Portal
- Enterprises can register the cases if they do not get the amount within 45 days from PSUs or government agencies
- The portal will greatly facilitate the monitoring of the delayed payment in a more effective manner.
- The portal will not only give information about pending payment of MSEs with individual CPSEs / Central Ministries, State Governments, etc but also the concerned ministries able to monitor the cases of delayed payment under their jurisdiction and issue necessary instructions to resolve the issues.
- The information available on the portal is a Public Domain and therefore it puts moral pressure on the defaulters. MSME can also access the portal and monitor their cases.
- With the launch of the new portal, the local traders are expected to benefit along with ease of improving their business relationships with MSMEs.
- The enterprises can now monitor and gather information related to payments with individual state, central and CPSEs ministries.
- Apart from this, each of the MSEs will also be having access to the web portal services at their respective jurisdiction levels for monitoring.
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.