E-FORM MSME

QUERY:

Should E-Form MSME be filed, if the outstanding payment is less than 45 days?

This question has been raised frequently due to the changes in the form's format. The answer is a clear "NO."

Here’s why:

Applicability:

All companies that receive goods or services from micro and small enterprises, and whose payments to those suppliers exceed 45 days from the date of acceptance or deemed acceptance (as per Section 9 of the Micro, Small and Medium Enterprises Development Act, 2006), are required to submit a half-yearly return to the Ministry of Corporate Affairs.

Therefore, the form applies only to companies where payments exceed 45 days.

In the new format, the data is split into 4 categories:

1. Payments made within 45 days,
2. Payments made after 45 days,
3. Outstanding for 45 days or less and
4.  Outstanding for more than 45 days.

 Companies for whom the form is applicable must fill in the details of respective categories.

CONCLUSION:

Thus, E-Form MSME needs to be filed only by companies where payments exceed 45 days, regardless of the new disclosure format.

If exceeding 45 days, what is the disclosure requirement in E-FORM as per new format?

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From the desk of CS Sharath