How some large companies are cheating Govt and MSMEs
Several large reputed and publicly traded companies have started adopting a new technique. Govt made a new rule that companies must pay MSMEs in 45 days and have to disclose any such pending msme payments twice a year to ROC.
These so called reputed companies have a new modus operandi. When a MSME has done services work and then issued a tax invoice - they dont give receiving of the invoice even after 6 months.
As a result they are not only cheating the Govt with interest costs on delayed gst payment they are cheating msmes and being highly unfair.
Members please help find a solution. LocalCircles please escalate this. more
These so called reputed companies have a new modus operandi. When a MSME has done services work and then issued a tax invoice - they dont give receiving of the invoice even after 6 months.
As a result they are not only cheating the Govt with interest costs on delayed gst payment they are cheating msmes and being highly unfair.
Members please help find a solution. LocalCircles please escalate this. more
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Dear Amit /Others, For such situations when payments are not being made by any limited /private limited /limited liability companies and the amount is at least Rs. 1,00,000 /- *one could seek quick recovery of their money under the Insolvency and Bankruptcy Code (IBC)* , the provisions of which are very strict. Under IBC, the Company which is holding up the payment gets 10 days to respond /settle. And if within 10 days if the payment is not made /settled, one can approach NCLT (National Company Law Tribunal). And *one of the important reasons why the Companies get eager to settle the matter even before the case gets admitted in NCLT is that as soon as the matter gets admitted in NCLT, the Court appoints an Insolvency Professional who is from then on, responsible to take over the management of the Company - whereby the Management of the Company (Owners) lose control of the Company. * *It has been found that many, many cases get resolved and settled very quickly leading to quick recovery of the money. * For any further information /clarifications, you may contact me. With Best wishes, Sanjeev Oza On Sat, 24 Aug, 2019, 9:04 PM Amit Mishra, wrote: > more
Aug 28
True, as pointed out by Amit , some companies are indulging in such practices to delay payments to MSME and the suggestion given by Bhuvnesh Kumar is a solution if you can practice the same. more
Aug 26
Just send invoice by REGD. AD. and by email as well with delivery receipt and read receipt. Use MSME Facilitation council for complaint. No need for receipt of invoice. Once invoice is delviered, in case they have a problem in your services, they must inform you within 15 days. If they don't, it is deemed accepted and must pay within 45 days. Else, they have to pay interest. Also, you must pay GST to govt. If they do not give you payment within 180 days, they have to give away credit of GST taken by them based on your invoice and your payment of GST. Going to MSME Council is sufficient. They will act immediately. more
Aug 24
As far as GST is concerned it is the obligation of MSME in this case to deposit tax with govt against invoice within the stipulated time even if they have not received the payment. The point you have raised of large companies not giving receiving of invoice. If possible a digital copy of invoice could also be sent through email. This will also help in follow up for payment. more
Aug 24
