On July 15 Ministry of Corporate Affairs notified buyers of goods or services from micro and small enterprises (MSEs) to provide additional info on beyond 45-day payment delay through revised MSME form 1.

On July 15 Ministry of Corporate Affairs notified buyers of goods or services from micro and small enterprises (MSEs) to provide additional info on beyond 45-day payment delay through revised MSME form 1.

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Jul 19, 2024

Mohammed Ramees

The current form, introduced in 2019, so far sought information on amount due, date from which it is due and reason for the delay.

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The revised form now seeks information on amount paid within 45 days through TReDS or other payment mode and amount paid after 45 days.

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Moreover, it also seeks info on the amount outstanding for 45 days or less and the amount outstanding for over 45 days.

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Moreover, it also seeks info on the amount outstanding for 45 days or less and the amount outstanding for over 45 days.

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Buyers need to submit the form twice in a financial year: By Oct 31 for April-Sept period and by April 30 for Oct-March period.

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Failure to pay attracts a penalty of reportedly Rs 20,000 by the buyer and every officer involved in default. Subsequent failures lead to Rs 1,000 per day and up to Rs 3 lakh.

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The form 1 has to be digitally signed by either the director, managing director, manager, company secretary, CFO, CEO or any other authorized representative of the company

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Additionally, DIN of director or MD or DIN or PAN of manager or CEO or CFO or authorized representative has to be provided.

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