The Order dated 22 January, 2019 issued under Section 405 requires filing of returns in respect of outstanding payments to Micro or Small Enterprise.
Purpose: The purpose of the order dated 22 January, 2019 issued under Section 405 of the Companies Act, 2013 is to ensure timely payment to Micro or Small Enterprises (MSEs) by companies as per the provisions of the MSMED Act, 2006. It mandates filing of returns by companies with respect to outstanding payments to MSEs.
Timeline: The order was issued on 22 January, 2019, and the timeline for filing the returns is twice a year, within 30 days from the end of each half of the financial year i.e., by 30 April and 31 October.
Penalty: Non-compliance with the order can result in a penalty ranging from INR 25,000 to INR 5 lakhs for the company and its officers.
Form: The form for filing returns under this order is Form MSME-1.
Reporting Authority: The returns are to be filed with the Ministry of Corporate Affairs (MCA).
Other: The order covers all companies that receive supplies of goods or services from MSEs and whose payments to such MSEs exceed 45 days from the date of acceptance or the deemed acceptance of the goods or services. It also covers all companies that have outstanding dues to MSEs as on 22 January, 2019.
