Struggling MSME? Fight late payments! Samadhaan tracks & resolves delayed payments from buyers. Get fair compensation & fast action. Free for MSMEs in India.
Indian MSMEs, the backbone of our economy, often face crippling delays in payments. Enter MSME Samadhaan, launched in 2017, a game-changer for micro and small entrepreneurs!
MSME Samadhaan – Meaning
MSME Samadhaan is an online portal launched by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India on 30th October 2017 to address the problem of delayed payments to MSMEs by Central Ministries/Departments/CPSEs/State Governments. The portal enables MSMEs to file their cases online regarding delayed payments and track their status. The portal also provides a mechanism for online dispute resolution between the MSME and the buyer.
Objectives of MSME Samadhaan
The main objectives of MSME Samadhaan are:
- To provide a quick and easy mechanism for MSMEs to file their cases regarding delayed payments.
- To ensure timely payment to MSMEs by Central Ministries/Departments/CPSEs/State Governments.
- To reduce the pendency of cases related to delayed payments.
- To promote a healthy ecosystem for MSMEs in India.
Delayed Payments to Micro, Small, and Medium Enterprises
As per the Micro, Small and Medium Enterprises Development Act, payment for goods or services rendered by an MSME-registered micro or small enterprise must be made on or before the date stipulated in the agreement. In the absence of a specified date, payment is due within fifteen days of acceptance. Furthermore, no payment to an MSME may be deferred for more than forty-five days from the date of acceptance or deemed acceptance.
Salient Features of MSME Samadhaan
The salient features of MSME Samadhaan are:
- The portal is online and can be accessed from anywhere.
- The portal is easy to use and does not require any technical expertise.
- The portal provides a secure platform for filing cases.
- The portal provides a mechanism for online dispute resolution.
- The portal is free of cost.
Penal Interest on Delayed Payment to MSME Enterprise
By the Micro, Small and Medium Enterprises Development Act, delayed payments to MSME suppliers incur substantial penalties. The buyer is liable for compound interest with monthly rests on the outstanding amount, starting from the agreed-upon date or 15 days after acceptance if no date is stipulated. Furthermore, a penal interest rate three times the bank rate notified by the Reserve Bank of India shall be levied. To make matters worse, such penal interest paid or payable by the buyer is not allowed as a deduction under the Income Tax Act. Buyers are, therefore, strongly advised to adhere to payment terms and avoid these legal and financial repercussions.
Did you know?MSME Samadhaan has been a huge success in addressing the problem of delayed payments to MSMEs. As of 31st March 2023, over 1 lakh cases have been filed on the portal and over 90% of these cases have been resolved. |
Benefits of MSME Samadhaan
- Ease of Filing Cases: MSMEs can file their cases regarding delayed payments online without having to visit any government office.
- Transparency: The portal provides a transparent platform for tracking the status of cases and monitoring the progress of their resolution.
- Quick Resolution: The portal provides a mechanism for online dispute resolution, which can help MSMEs get their cases resolved quickly and easily.
- Timely Payment: The portal helps in ensuring timely payment to MSMEs by Central Ministries/Departments/CPSEs/State Governments.
- Reduces Pendency of Cases: The portal helps in reducing the pendency of cases related to delayed payments.
- Promotes a Healthy Ecosystem for MSMEs: The portal promotes a healthy ecosystem for MSMEs in India by ensuring timely payment and reducing the incidences of delayed payments.
How to File a Delayed Payment Case on MSME Samadhaan
Filing a delayed payment case on MSME Samadhaan is a straightforward process, designed for ease and accessibility.
Register/Login:
- Visit the MSME Samadhaan portal: https://samadhaan.msme.gov.in/
- If you’re a new user, click Register Entrepreneur and provide your Udyam registration details or company information.
- If you’re an existing user, simply login with your username and password.
File Your Case:
- Once logged in, click on File Delayed Payment Application or similar option.
- Select the Buyer Type (Central Ministry/Department/CPSE/State Government) from the dropdown menu.
- Enter the Buyer Name and other relevant details of the buyer.
- Provide details of the Contract/Agreement (date, amount, payment terms).
- Specify the Date of Due Payment or Date of Acceptance of Goods/Services (if no due date exists).
- State the Current Outstanding Amount owed by the buyer.
- Upload any supporting documents (invoices, agreements, acceptance letters).
- Review your application and submit it electronically.
Track Your Case:
- After submitting your case, you’ll receive a unique case number for reference.
- Use this case number to track the progress of your case through the online portal.
- The portal will display updates on the case status, including any communication from the buyer or the MSME Facilitation Council (MSEFC).
- You will receive notifications via email and SMS as your case progresses.
Tracking Case Status on MSME Samadhaan
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Visit the MSME Samadhaan portal:
- Access the portal at https://samadhaan.msme.gov.in/
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Login to your account:
- Click on “Entrepreneur Login” or “MSEFC Login” based on your registration.
- Enter your username and password.
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Navigate to the case tracking section:
- Once logged in, look for a section titled “Check Case Status” or a similar option.
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Provide case details:
- You’ll need to provide either your User ID or Case Number to retrieve the case status.
- Enter the required information and verify the security captcha code.
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View case status:
- The portal will display the current status of your case, including details such as:
- Case registration date
- Buyer details
- Contract/agreement details
- Due payment date
- Outstanding amount
- Current stage of the case (e.g., filed, under review, hearing scheduled, resolved)
- Recent updates and actions taken
- The portal will display the current status of your case, including details such as:
The Requirement to Disclose in the Annual Statement
If a buyer requires an audit of their annual accounts, they are obligated to disclose the following facts in their financial statements:
- Outstanding payments: Any unpaid principal and accrued interest owed to micro or small suppliers at the end of the accounting year.
- Interest paid and delayed payments: The total amount of interest paid to micro or small suppliers for late payments, along with the value of the delayed payments themselves.
- Accrued delay interest: The outstanding amount of interest owed to micro or small suppliers due to delayed payments.
FAQ
What is MSME Samadhaan?
MSME Samadhaan is an online portal launched by the Indian government to help micro and small enterprises (MSMEs) resolve problems with delayed payments from government departments, public sector companies, and other large buyers. Through the portal, MSMEs can register their cases, track their progress, and access online dispute resolution mechanisms.
Who can use MSME Samadhaan?
Any micro or small enterprise registered under the Udyam scheme or with the relevant state authorities can use MSME Samadhaan. This includes individual entrepreneurs, partnership firms, private limited companies, and other MSMEs as defined by the government.
How do I file a delayed payment complaint on MSME Samadhaan?
You can file a complaint on MSME Samadhaan by following these steps: Visit the MSME Samadhaan website: https://samadhaan.msme.gov.in/ Register or log in using your Udyam registration details or company information. Click on File Delayed Payment Application or a similar option. Select the buyer type (government department, CPSE, etc.) and enter their details. Provide information about the contract/agreement, due payment date, outstanding amount, and supporting documents. Review and submit your application. You will receive a unique case number for tracking.
What are the benefits of using MSME Samadhaan?
There are several benefits to using MSME Samadhaan: Ease of filing: You can file your complaint online without visiting any government office. Transparency: Track the status of your case and communicate with the buyer through the portal. Faster resolution: Online dispute resolution mechanisms can help resolve cases quicker. Timely payments: The portal encourages timely payments from buyers. Reduced pendency: Streamlined processes aim to reduce the backlog of cases. Empowerment: MSMEs can take control of their payment issues and ensure fair treatment.
What is MSME payment compliance?
MSME payment compliance refers to the timely payment of dues to MSMEs by buyers as per agreed-upon terms or legislation. The Micro, Small and Medium Enterprises Development Act mandates prompt payment within 45 days from acceptance of goods or services. MSME Samadhaan and other initiatives aim to improve compliance and protect MSMEs' financial interests.
