All about MSME Compliance vide Notification no. S.O. 5622 (E) on 22nd January, 2019

Adv. Gaurav Srivastava 9811312468, 8527445968
Notification No. S.O. 5621(E) on dated 2nd November, 2018	In exercise of powers conferred by section 9* of the Micro, Small and Medium Enterprises Development Act, 2006, the central government issues the following instructions that ALL COMPANIES REGISTERED WITH THE COMPANIES ACT, 2013 WITH A TURNOVER OF MORE THAN RS. 500 CRORE (RUPEES FIVE HUNDRED CRORE) AND ALL CENTRAL PUBLIC SECTOR ENTERPRISES shall be required to get themselves onboarded on the TRADE RECEIVABLES DISCOUNTING SYSTEM PLATFORM, set up as per the notification of the Reserve Bank of India. The Registrar of Companies in each State shall be the competent authority to monitor the compliance of these instructions by companies under its jurisdiction and the Department of Public Enterprises, Government of India shall be the competent authority to monitor the compliance of such instructions by Central Public Sector Enterprises.
* Section 9: Measures for promotion and development.-	The Central Government may, from time to time, for the purposes of facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises, particularly of the micro and small enterprises, by way of development of skill in the employees, management and entrepreneurs, provisioning for technological upgradation marketing assistance or infrastructure facilities and cluster development of such enterprises with a view to strengthening backward and forward linkages, specify, by notification, such programmes, guidelines or instructions, as it may deem fit.
Notification no. S.O. 5622 (E) on 22nd January, 2019	The Central Government has directed that ALL COMPANIES, who get SUPPLIES OF GOODS OR SERVICES from MICRO and SMALL enterprises and whose payments to MICRO and SMALL ENTERPRISES SUPPLIERS exceeds 45 days from the DATE OF ACCEPTANCE or the DATE OF DEEMED ACCEPTANCE of the goods or services as per the provisions of section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 (hereafter referred to as "Specified Companies"), shall submit a half yearly return to the Ministry of Corporate Affairs stating the following: (a) the amount of payment due; and (b) the reasons of the delay; The Central Government in exercise of its power given under section 405 of the Companies Act, 2013, considers it necessary to require “specified Companies” to furnish above information under said section of the Act and for which makes the following Order named the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019. This order shall come into force from the date of its publication in the official Gazette. 1. Every specified company shall file in MSME Form I details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order within 30 days from the date of publication of this notification. 2. Every specified company shall file a return as per MSME Form I annexed to this Order, by 31st October for the period from April to September and by 30th April for the period from October to March.
Section 7 in The Micro, Small and Medium Enterprises Development Act, 2006	Classification of enterprises.— (1) Notwithstanding anything contained in section 11B of the Industries (Development and Regulation) Act, 1951 (65 of 1951), the Central Government may, for the purposes of this Act, by notification and having regard to the provisions of sub-sections (4) and (5), classify any class or classes of enterprises, whether proprietorship, Hindu undivided family, association of persons, co-operative society, partnership firm, company or undertaking, by whatever name called,— (a) in the case of the enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 (65 of 1951), as— (i) a micro enterprise, where the investment in plant and machinery does not exceed twenty-five lakh rupees; (ii) a small enterprise, where the investment in plant and machinery is more than twenty-five lakh rupees but does not exceed five crore rupees; (b) in the case of the enterprises engaged in providing or rendering of services, as— (i) a micro enterprise, where the investment in equipment does not exceed ten lakh rupees; (ii) a small enterprise, where the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees;
Section 2(n) in The Micro, Small and Medium Enterprises Development Act, 2006	“supplier” means a micro or small enterprise, which has filed a memorandum* with the authority referred to in sub-section (1) of section 8, and includes,— (i) the National Small Industries Corporation, being a company, registered under the Companies Act, 1956 (1 of 1956); (ii) the Small Industries Development Corporation of a State or a Union territory, by whatever name called, being a company registered under the Companies Act, 1956 (1 of 1956); (iii) any company, co-operative society, trust or a body, by whatever name called, registered or constituted under any law for the time being in force and engaged in selling goods produced by micro or small enterprises and rendering services which are provided by such enterprises;
	*MEMORANDUM Is To Be Filed With The District Industries Centre*, By A Micro, Small Or Medium Enterprise, As The Case May Be, Under Sub-Section (1) Of Section 8 Of The Micro, Small & Medium Enterprises Development (MSMED) ACT, 2006. Ø  Three copies of memorandum for micro and small enterprises should be filed Ø  There is no fee for processing the memorandum Ø  Existing Unit should fill up only Part II of the Memorandum.
Section 8 in The Micro, Small and Medium Enterprises Development Act, 2006	Memorandum of micro, small and medium enterprises.— (1) Any person who intends to establish,— (a) a micro or small enterprise, may, at his discretion, or (b) a medium enterprise engaged in providing or rendering of services may, at his discretion; or (c) a medium enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 (65 of 1951), shall file the memorandum of micro, small or, as the case may be, of medium enterprise with such authority as may be specified by the State Government under sub-section (4) or the Central Government under sub-section (3): Provided that any person who, before the commencement of this Act, established— (a) a small scale industry and obtained a registration certificate, may, at his discretion; and (b) an industry engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 (65 of 1951), having investment in plant and machinery of more than one crore rupees but not exceeding ten crore rupees and, in pursuance of the notification of the Government of India in the erstwhile Ministry of Industry (Department of Industrial Development) number S.O.477(E) dated the 25th July, 1991 filed an Industrial Entrepreneur’s Memorandum, shall within one hundred and eighty days from the commencement of this Act, file the memorandum, in accordance with the provisions of this Act.