Companies that are dealing with the MSEs are now mandatory to fill out the MSME 1 form. What is the reason behind these increasing delays in payments to MSME? They have been facing the issue for a long time. Many have payments delayed for more than 5 years. Finance Minister Nirmala Sitharaman also announced a 45-day payment rule to help MSMEs grow. The Ministry of Corporate Affairs (MCA) now makes it compulsory for all companies to fill out the form that deals with MSEs.
Companies Dealing With MSE Mandatory To Fill MSME 1 form
The companies that are dealing with the MSEs are now mandatory to fill out the new MSME 1 form. It will help the MSMEs to become stronger. Often the MSMEs have difficulty in getting the payment on time. The new form will help in keeping a better track of the loopholes in the MSME payment cycle. Thus, whether the company has any delayed or pending payment with MSE or not, they have to fill out the form. However, the previous form was only for the companies that have pending payments with MSEs.
This form will collect information regarding the amount paid within 45 days, the outstanding amount after 45 days, the mode of payment, and the reason for the delay in payment. It will be helpful for MSMEs who are dealing with struggles over in receiving the payments. The government is launching a lot of new schemes and rules in favour of MSMEs. These are Micro, Small, and Medium enterprises.
Micro refers to the enterprises that do not exceed Rs. 1 Crores of investment and turnover of Rs. 5 Crores. While small enterprises come with an investment of Rs. 10 crores and turnover not exceeding Rs. 50 crores. The medium enterprises come with investments not exceeding Rs. 50 crores and turnover of Rs. 250 Crores. The President of India SME Forum also showed his happiness with the implementation of this new form. He mentioned that MSMEs have been fighting for timely payments for more than 15 years.
Nirmala Sitharaman’s 45-day rule is also having a lot of problems. Many people are opposing the rule. They feel that the rule is taking their orders away. The companies are preferring medium enterprise or non-MSME firms. They also appealed to take this rule back. On the other hand, many MSMEs also fear that implementation of this new form-filling method will also take away the orders to non-MSMEs. Thus, the MSMEs have a lot of fear and curiosity to know what will happen next. Stay tuned for more information on our website.