Payment issue ----is MSME registration a Magic Wand

As such there are no disadvantages of MSME registration, which is even free....

But as far as payment is concern, the private companies have to report for any pending amount of MSME unit, due beyond 90 days.... while no interest/penalty declared till date...... So.. some psychological effect....

There is NO Disadvantages of MSME Registration. The MSME I Form is to provide information on a half-yearly basis in the context of the outstanding payments to Micro or Small Enterprises for a period exceeding 45 days with the Registrar of Companies (ROC). Major changes have been made by the Ministry of Corporate Affairs in the context of protecting the interest of the small group of companies or businesses. He laid emphasis on following compliance by all Specified Companies Whether Public or a Private Company, Micro or Small. A half-yearly return is required to be submitted to the Ministry of Corporate Affairs on a mandatory basis, by all those companies who receive the supply of goods or services from Micro or small enterprises and the payment done to these micro and small enterprise suppliers exceed forty-five days from the date of acceptance (or deemed acceptance) of the relevant good or services. The following points should be stated in it: the amount of payment due and the reasons for the delay Following the provision of section 405 of the Companies Act, 2013, (18 of 2013) the Central Government made it necessary for all the “Specified Companies” to furnish the above-notified information about the payment to micro and small enterprise suppliers. Applicability on Companies: As per a notification issued by the MCA it has been mandated to file disclosures through Form MSME I for every type of the Company – Public or Private Company, Micro or Small Companies; the Company that satisfies the following two conditions: Condition 1: Company must have received Goods and/or Services from Micro or Small Enterprise Condition 2: Payment must have been due/not paid, to such Micro and Small Enterprise for 46 days from the date of acceptance Note: Date of deemed delivery refers to the acceptance of goods and services by the buyer in written with no objection with the product or services received within the 15 days time period. Late Filing Penalty for MSME Form 1 The section 405(4) which includes non-furnishing/incomplete/incorrect information penalty states a fine up to Rs.25000 (Co.,), Rs.25000/- (Min) & Rs.3 lacs (max) and imprisonment of 6 months for directors or both. Therefore it is mandatory for directors to file the MSME form 1.

Hi Asha ji good Morning.

Thank you so much for comprehensive explanation.

I wish Immediate safety and well being of all members , there families and community in large,

Stay Safe Stay Healthy,