Already, 40,000 applications, amounting to ₹13,199 crore, have been converted into cases by the Micro and Small Enterprises Facilitation Council. The MSME Samadhaan portal monitors payments pending to MSMEs by the government, including state governments, statutory bodies, state-run firms and other government entities.
The portal allows MSEs to register complaints related to delayed payments. “Trade Receivables electronic Discounting System (TReDS) portal provides bill discounting facilities, which is helping tackle delayed payment issues of the MSMEs. We are working on making TReDS more effective,” said a senior MSME ministry official, who did not wish to be identified.
State governments have the highest pending amount of ₹3,170 crore, followed by central public sector undertakings (₹2,191 crore).
The MSME Development Act prescribes a 45-day payment timeline for buyers to make payments if they are buying from the MSMEs. If the buyers fail to pay within 45 days, they are liable to pay interest at three times the prevalent bank rate on the pending amount.Last year, the Centre introduced amendments to the Income Tax Act to ensure that the pending amount to MSMEs becomes ineligible for deduction from the income of the entity. The move was aimed at prodding entities, which were buying from these businesses to settle their dues quickly.
Content Source: economictimes.indiatimes.com