MSME Samadhaan - Delayed Payment Monitoring System

In India, the Ministry of Micro, Small, and Medium Enterprises (MSME) sector has been acknowledged as the backbone of the Indian economy and promotes equitable development for all. On 30th October 2017, the Ministry of Micro, Small & Medium Enterprises (MSME) launched MSME Samadhaan. MSME Delayed Payment Portal, or MSME Samadhaan, was launched expressly to empower micro and small entrepreneurs across the country. MSME Samadhaan enables MSMEs to register cases related to delayed payments by Central Ministries, Departments, CPSEs, and State Governments. This article looks at the MSME Samadhaan portal services in detail.

Delayed Payments to Micro, Small, and Medium Enterprises

If any micro or small enterprise that has MSME registration supplies any goods or services, then the buyer requires to make the payment on or before the date of the agreed upon between the buyer and the micro or small enterprise. In case there is no payment date on the agreement, then the buyer is required to make payment within fifteen days of acceptance of goods or services. Further, in any case, a payment due to a micro or small enterprise cannot exceed forty-five days from the day of acceptance or the day of deemed acceptance.

Penal Interest on Delayed Payment to MSME Enterprise

In case of failure by the buyer to make the payment on time, the buyer requires to pay compound interest with monthly interest rests to the supplier on that amount from the date of payment or fifteen days of acceptance of goods or services. The penal interest chargeable for delayed payment to an MSME enterprise is three times the bank rate notified by the Reserve Bank of India. The penal interest paid by the buyer or payable by the buyer is not allowed as a deduction under the Income Tax Act, making the burden, even higher.

The requirement to Disclose in the Annual Statement

In case a buyer requires to get the audition of annual accounts, then it is the responsibility of the buyer to disclose the following facts in the annual statement.

The principal amount and interest due thereon remain unpaid to any micro or small supplier at the end of the accounting year;
The amount of interest paid by the buyer and the value of delayed payments made by the buyer;
The amount of delayed payment interest due and payable;

MSME Samadhaan

The MSME Samadhaan portal enables the MSMEs to directly register their cases about delayed payments against the buyer of goods/services before the Micro and Small Enterprise Facilitation Council (MSEFC). These complaints will be visible to the Central Ministries/Departments/CPSEs/State Governments, etc., for pro-active actions. The portal will significantly facilitate the monitoring of delayed payments efficiently. The information on this portal will be available in the public domain to exert moral pressure on the defaulting parties. The MSMEs can also access the portal and monitor their cases.

The objective of the MSME Samadhaan Portal

The primary objective of the MSME Samadhaan portal is to monitor the delayed payments of the MSME sector, which the administration reviews. It aims to empower micro and small entrepreneurs across the country to register their delayed payment cases related to the Ministries and Departments under the Union Government and Central Public Sector Enterprises, as well as all the State governments and their Public Sector Undertakings.

Features of MSME Samadhaan Portal

The portal offers various features that can be availed by the Entrepreneurs / MSE. Some of the features are listed below:

The portal facilitates the entrepreneurs in monitoring the delayed payments effectively.
The information on the portal will be available in the public domain.
The MSMEs will also be empowered to access the portal and monitor their cases.
The CEOs of PSEs and the secretary of the Ministries concerned will also monitor the delayed payment of MSEs and issues quickly.
Enterprises can register the cases if they do not get the amount within 45 days from PSUs or government agencies.

Nature of Compensation Provided to MSME

The MSEFC of the State, after the examination of the case filed by an MSME, may issue directions to the buyer for the full payment of the due amount along with interest.

Who Can Apply on the MSME Samadhaan Portal?

Any MSME with a valid Udyam Registration can apply for filing an online application against the buyer/purchaser of goods/services before the relevant MSEFC of their State/UT.

Prerequisite for filing in Samadhaan Portal

Udyam Registration Number is mandatory to file applications online on MSME Samadhaan Portal. Registration for Udyam can be done online on the official website of the Ministry of MSME free of cost. IndiaFilings can help you get UDYAM registration and LEDGERS Accounting Software to provide estimates and invoices, track purchases, file GST returns, and generate GST eWay bills. For more details on MSME – Udyam Registration, click here

Documents Required

The following is the document list to file the application for delayed payment:

PDF documents of work orders of Respondent and invoices generated against those orders.
In case the purchase order is oral an affidavit to that effect is to be submitted.

Note: The document size must not be more than 1 MB. A maximum of 3 work orders and 3 invoices can be uploaded. Multiple invoices can be combined into a single PDF and can be uploaded. The affidavit of the oral purchase order is to be included in a single PDF.

Application Procedure for Delayed Payment

Kindly follow the below steps to file the application for delayed payment. You have to visit the official portal of MSME Samadhaan to file the application for delayed payments.

Then click on the case filing for the “Entrepreneur/ MSE Units” tab that is visible on the homepage of the portal.
You will be directed to the new page where you have to enter your Udyog Aadhaar Number or Udyam Registration Number.
After that, enter your Aadhaar Number or Mobile Number as in Udyam Registration (Only for Assisted filing cases)
Then you need to enter the verification code as given on the text image.
Then click on the Validate Udyog Aadhaar button

Note: You will receive your OTP only on the email registered during Udyam Registration.

Enter the OTP and proceed to file the application for delayed payment.
Upload the documents (scanned PDF documents of work orders of Respondent and invoices generated by you against those work orders) and submit the application.

The process to Check the Status on MSME Samadhaan Portal

The process to check the status of the filed application on the MSMEs Samadhaan Portal by the MSMEs is as follows:

Visit the MSME Samadhaan Portal. Click on the ‘Check Case Status’ button available on the top left-hand side of the homepage
A new page will open. Select the ‘Udyog Aadhaar Number’ or ‘Udyam Registration Number’ option.
Enter the Udyog Aadhaar/Udyam Registration Number or application number and click on the ‘Login’ button.
Once you log in with valid credentials you will be redirected to the Dashboard where multiple actions can be done including viewing the application status.