Government releases compliance schedule to ensure MSME payments
The government has decided to crack down on companies delaying payments to small businesses by insisting that all defaulting entities compulsorily provide it details of outstanding money with reasons by April or face action that could result in imprisonment up to 6 months or fine of not less than Rs 25,000 up to Rs 3 lakh.
The Ministry of Corporate Affairs, which notified new guidelines to address the concerns of small businesses over delayed payments in January, has now released a compliance schedule under which private and public companies will be required to fill Form DPT 3 on or before April 22, for disclosure of details of outstanding money or loan received by company but not considered as deposits.
In addition, for all outstanding dues to MSME suppliers for a period exceeding 45 days, an annual filing system has been developed under which corporate entities will fill yearly Form DPT 3 on or before June 30, for one- time disclosure of details of outstanding money or loan received by company for the previous financial year.
As per the new guidelines, all entities will also have to file a return as per MSME Form I by 31st October for the period from April to September and by April 30 for the period from October to March. If there are any delays in payments, it has to be mentioned in the returns with the MCA reserving the right to penalise defaulting entities.