How some large companies are cheating Govt and MSMEs
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
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
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
*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,
On Sat, 24 Aug, 2019, 9:04 PM Amit Mishra, <firstname.lastname@example.org>
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