How SMEs can tackle their delayed payments crisis?

How SMEs can tackle their delayed payments crisis?

Late clearance of payments to MSMEs by their government buyers including ministries, departments, PSUs, etc., has been a major growth bottleneck for small businesses

Late clearance of payments to MSMEs by their government buyers including ministries, departments, PSUs, etc., has been a major growth bottleneck for small businesses

According to the data from the Samadhaan portal, 1.59 complaints involving over Rs 38,000 crore, of which only 31,163 cases involving Rs 5,429 crore were disposed

According to the data from the Samadhaan portal, 1.59 complaints involving over Rs 38,000 crore, of which only 31,163 cases involving Rs 5,429 crore were disposed

Here are the measures taken by the government to address delayed payments issue

Here are the measures taken by the government to address delayed payments issue

Under the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, Micro & Small Enterprises Facilitation Councils set up in the States/UTs to deal with the cases of delayed payments of MSEs

Under the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, Micro & Small Enterprises Facilitation Councils set up in the States/UTs to deal with the cases of delayed payments of MSEs

Launched Samadhaan portal for filing grievances and for monitoring the outstanding dues to the MSEs from the buyers of goods and services on October 30, 2017

Launched Samadhaan portal for filing grievances and for monitoring the outstanding dues to the MSEs from the buyers of goods and services on October 30, 2017

Requested states/UTs to set up more number of facilitation councils for quicker disposal of cases related to delayed payments. So far 152 MSEFCs have been set up with more than one MSEFC set up in various states

Requested states/UTs to set up more number of facilitation councils for quicker disposal of cases related to delayed payments. So far 152 MSEFCs have been set up with more than one MSEFC set up in various states

Created a special sub-portal within Samadhaan Portal in June 2020 after the AatmaNirbhar Bharat announcements, for reporting the dues and monthly payments by central ministries/ department/public sector enterprises to MSMEs

Created a special sub-portal within Samadhaan Portal in June 2020 after the AatmaNirbhar Bharat announcements, for reporting the dues and monthly payments by central ministries/ department/public sector enterprises to MSMEs

Instructed CPSEs and all companies with a turnover of Rs 500 crore or more to get themselves on-boarded on the TReDS, an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers

Instructed CPSEs and all companies with a turnover of Rs 500 crore or more to get themselves on-boarded on the TReDS, an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers

Companies which get supplies of goods or services from MSEs and whose payment to MSEs exceeds 45 days from the date of acceptance also need to submit a half-yearly return to the Ministry of Corporate Affairs stating the amount of payments due and the reasons of the delay

Companies which get supplies of goods or services from MSEs and whose payment to MSEs exceeds 45 days from the date of acceptance also need to submit a half-yearly return to the Ministry of Corporate Affairs stating the amount of payments due and the reasons of the delay

Budget 2023 allowed deduction under Section 43B of the Income Tax Act for expenditure incurred on payments only when payment is actually made to MSMEs.

Budget 2023 allowed deduction under Section 43B of the Income Tax Act for expenditure incurred on payments only when payment is actually made to MSMEs.

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