How Can Businesses Prepare Documents for MSME Samadhaan Filing?
Late payments by buyers can impact cash flow for any small business. Suppliers could’ve already shipped goods, provided service, paid employees and salaries and fulfilled tax obligations. They haven’t received payment from the buyer yet.
MSME Samadhaan complaint filing gives Micro and small enterprises a legal recourse to raise delayed payment disputes as per the Micro, Small and Medium Enterprises Development Act, 2006. However, documents matter because the merit of your case will be based on the documents uploaded with your complaint.
Enterprise’s tend to upload only the invoice that is pending payment. The truth is, it’s your whole transaction history that matters. Purchase orders, proof of delivery, correspondence regarding payment and registration certificates help determine the buyer and supplier dynamics.
Sorting your documents before filing for an MSME payment delay dispute will save you trouble in the long run. That’s what BK Singh Advocate has to say about missing documents.
The MSME Samadhaan portal empowers Micro and Small Enterprises to file complaints regarding payments that are overdue. The complaint is then forwarded to the concerned Micro and Small Enterprises Facilitation Council (MSEFC) as per MSMED Act.
Why Are Documents Important for MSME Samadhaan Filing?
Documents are the foundation of every late payment claim. You'll need to evidence that goods or services were delivered, that the purchaser was required to pay and that the amount is outstanding.
An invoice doesn't tell the whole commercial story.
A purchaser may argue that they don't need to pay an invoice because they haven't received the goods, the job wasn't completed or the invoice amount was incorrect.
Documents can be used to evidence:
- The identity of the supplier and purchaser
- The goods or services supplied
- The date the goods were shipped or job was completed
- The payment terms agreed
- The amount outstanding
If you keep a set of organised documents we can better understand your circumstances.
Quick Facts About MSME Samadhaan Documents
In majority of cases Udyam Registration Number needs to be authenticated for claiming relaxation in delayed payment for eligible MSEs.
Purchase Order / Work Order Establishes business relation between Buyer & Supplier.
Invoices Substantiate the amount claimed by the supplier.
Proof of delivery/service done Confirms supplier's claim.
Reminders & correspondence from buyer Help in establishing efforts taken to realise the payment.
Invoice Consolidation (multiple invoices) Allowed, can be uploaded as per guidelines mentioned in the portal.
Which Documents Are Required for MSME Samadhaan Filing?
Please note that the documents may vary slightly depending on the facts and circumstances involved in the transaction. However, in general terms suppliers must maintain supporting records/documents which evidence their claim. Few of the important ones are mentioned below:-
1.Udyam Registration Certificate
The proof of registration of enterprise is the first and foremost important document.
Suppliers must keep a copy of their Udyam Registration Certificate because MSME Samadhaan delayed payment protection is tied to your eligibility as Micro and Small Enterprises.
BK Singh Advocate verifies the registration details and matches it with the documents of the transaction whether the statutory framework covers the person’s claim.
2. Copies of Invoices
Invoice truly are some of the most critical documents which are involved in an MSME delayed payment dispute.
The invoice must clearly reflect the following:-
- Supplier information
- Buyer information
- Date of invoice
- Description of Goods/Services supplied
- Amount to be paid
- Tax details(if applicable)
Invoice may not necessarily prove the delivery/ acceptance. Therefore it must be supported with other documents.
3. Purchase Order/ Work Order
Purchase Order/Work Order will clarify what was ordered by the buyer from the supplier.
It can comprise of following information:-
- Quantity
- Scope
- Delivery timeline
- Commercial terms
- Payment terms
As mentioned on the official MSME FAQ site “Work order is taken into consideration while filing Samadhaan. In cases where purchase order/work order is verbal, an affidavit to that effect may be requested.”
What Proof of Delivery Is Needed?
Proof of delivery confirms that you delivered the goods, and that the supplier has fulfilled their obligation.
Proof of delivery could be in the form of:
- Delivery challans
- Goods receipt acknowledgements
- Transport notes
- E-way bills
- Courier receipts
- Installation reports
- Proof of service completions.
For service providers, proofs of completion could become just as important.
When a customer tries to withhold payment, he may question whether or not you actually supplied the goods. He may also ask if you provided the service you said you would. Records of delivery and acceptance can confirm that you did.
Are Bank Statements Required for MSME Samadhaan?
Bank statements may also help you prove your claim. They can show that payment was not made, or was only partly made.
Documents which may assist you are:
- Bank statements
- Ledger
- Payment history
- Part payment records
If supplier's ledger does not match buyer's record ,it may create dispute.
BK Singh Advocate suggests that the outstandings, if any, be settled before filing so that the suit money claimed is accurate.
When Should You Consult a Lawyer Before MSME Samadhaan Filing?
Legal advice may be useful when :-
- Buyer has raised objection against the invoice
- Transaction involves more than 1 invoice
- Payments were made in part
- Buyer has raised objection due to quality
- Agreement terms are ambiguous
- Limitation issues.
- Talks for settlement have been attempted.
MSME Lawyers reviews your company documents and guide you to understand the missing documents and check whether your delayed payment grievance qualify for MSMEs legislative route.
BK Singh Advocate will go through your documents and analyze where your business stands prior to starting the process.
Why Should Businesses Maintain Documents Before Payment Problems Begin?
Why Most Collection Cases Turn Sour: Documentation is Kept in Pieces.
One person has email. Someone else files invoices. Proof of delivery is stored somewhere else. Verbal payment discussions are had over the phone, with no record.
Awesome. Now go file suit. Um…where are your records?
KEEP DOCUMENTING,DREAM BIG.
Start with organized files from Day 1:
- Signed Agreement
- Purchase order
- Invoice
- Proof of delivery
- Proof of payment
- Buyer acceptances
- Correspondence
You’ll probably still lose (you’ll recover more), but at least you can tell your story.
How Can BK Singh Advocate Help With MSME Samadhaan Documentation?
BK Singh Advocate reviews your paperwork related to delayed payments application to understand whether the facts of the case support your delayed payment application based on the documents available with you.
Following are some of the documents we review.
- Whether Udyam is registered or not.
- Invoice Verification.
- Purchase Order Analysis.
- Contract Analysis.
- Delivery Evidence.
- Matching payment etc.
- Buyers’ excuses.
Contact MSME Lawyers to guide you on MSME claims, MSEFC issues and document verification. We aim to understand your sale facts and can place you in a position with a legal backed position rather than false hopes.
How Can MSME Lawyers Help With Samadhaan Filing?
MSME Lawyers guide Micro and Small Enterprises through delayed payment issues, document requirements and MSEFC related proceedings.
Not only will we file the application but we also guide you to maintain a proper commercial record.
Review steps may include: -
- Udyam Registration Verification
- Scrutinizing the Invoice
- Verification of Purchase Order
- Delivery of goods/services Verification
- Correspondence with buyer
- Computing the Outstanding Amount
Advocate Mr.K.Bhagwan Singh will go over the available documents with you and point out practical issues that can strengthen or weaken your claim.
Each delayed payment issue is dependent on its facts. What is relevant in one scenario may not be sufficient for another.
Frequently Asked Questions
1. What documents will I need for MSME Samadhaan filing?
Ans. Generally, documents such as Udyam Registration Certificate, invoices, purchase order/work order, Proof of delivery and amount outstanding records are required.
2. Do I require Udyam Registration for MSME Samadhaan?
Ans. Valid Udyam Registration is required for the eligible Micro and Small Enterprises to use the delayed payment mechanism under MSMED Act.
3. Can I approach MSME Samadhaan without a purchase order?
Ans. Purchase order/ work order is required in most of the cases to supply goods/services. But in cases where verbal order was given, supporting affidavit or some other proof might be necessary.
4. Can I approach MSME Samadhaan with only invoices?
Ans. Only invoices might not be sufficient. Supplier needs to provide proof of delivery, Agreement/order copy, communication with buyer etc. to strengthen their case.
5. Can I attach multiple invoices against one MSME Samadhaan application?
Ans. Yes, you can upload multiple invoices as mentioned in the portal guidelines and mention the details clearly against each invoice along with the supporting documents.
6. Will BK Singh (Advocate) analyse my MSME Documents?
Ans. Yes, Advocate BK Singh can analyse your invoices, Udyam Registration/Documents, Agreement/Contract, Proof of delivery and communication with buyer to advise you about your case.
7. What if the buyer claims that he never received payment from his company?
Ans. If such a dispute arises from the buyer’s end, you will have to analyse your agreement, proof of delivery and their reasoning to check if the supplier is eligible for the claim.
8. Do bank statements work for MSME delayed payments?
Ans. Bank statements help prove whether the payment was made in full or in part or not made at all.
9. What happens after MSME Samadhaan is submitted?
Ans. Once submitted, the matter will be forwarded to the respective MSEFC who will process the delayed payment as per MSMED Act.
10. When should I speak to MSME Lawyers?
Ans. You should consult MSME Lawyers if you have late payment issues, your supplier documents are being contested or if you require guidance on which recovery process to initiate.
Final Thoughts
Simply uploading an unpaid invoice will not help you file a successful MSME Samadhaan. The supplier has to upload a clean slate document stating business relationship of supplier-buyer, supply made of goods/services and amount due. If proper documents are maintained from day 1, it will make claims for delay of payment easier to assess and take action. MSME Lawyers helps businesses assess their documentation, understand MSMED Act remedies and create a fact based game plan. (With inputs from BK Singh Advocate)
