Empowering Compliance with Section 43B(h): Streamline MSME Verification with Figment’s Udyam Registration API

?? Navigating the New Compliance Landscape:

The Micro, Small, and Medium Enterprises Development Act (MSMED Act), 2006, has long been a cornerstone of India’s growth, empowering the nation’s MSMEs. But recent updates have made compliance more crucial than ever. The introduction of Section 43B(h) in the Finance Act 2023 mandates businesses to settle payments to MSMEs within 45 days. Delays could mean that interest and overdue payments will not be tax-deductible, significantly impacting your bottom line if you rely on MSME suppliers.

The Compliance Challenge: Identifying MSMEs Efficiently

For enterprises and auditors, validating the MSME status of a large network of vendors is an overwhelming task, especially with data points spread across PAN, GSTIN, or CIN records. Manual checks are resource-intensive, error-prone, and can lead to compliance risks, particularly with the new regulations. This is where Figment’s Udyam Registration Verification API comes in.?

?? Figment’s Solution: Udyam Registration Verification API

Figment has developed a powerful, efficient, and easy-to-use API that empowers businesses, auditors, and financial institutions to verify the MSME status of suppliers quickly. Leveraging real-time access to the official Udyam database, our API ensures accurate, instant, and compliant verification using vendor PAN, GSTIN, or CIN numbers.?

?? Key Features:

• Instant Results: Verify the MSME status of vendors in seconds—no more manual delays or waiting for crucial compliance data.
• Data Accuracy: Access real-time, official Udyam Registration data, reducing risks associated with outdated or incorrect information.
• Seamless Integration: Easily integrate our API into your procurement systems or audit workflows.
• Bulk Verification: Validate multiple vendors at once, optimizing efficiency and reducing administrative overhead.

?? Benefits for Enterprises:

1. Ensures Compliance: Timely verification helps you comply with the MSMED Act and Section 43B(h), avoiding tax disallowances due to delayed payments.
2. Continuous Monitoring: Ongoing tracking of vendor MSME status ensures your records stay updated, reducing the risk of compliance issues.
3. Data Enrichment: Enhance your vendor master data with verified MSME information, enabling accurate audits and reducing reliance on manual representations.?

?? Streamlined Audits for Auditors:

For auditors, Figment’s API simplifies the verification process, allowing instant cross-checks on MSME status based on PAN, GSTIN, or CIN. This reduces the time and effort required in audits while increasing the accuracy and reliability of audit reports.

?? Use Cases of Figment’s MSME Verification API:

• Statutory Compliance: Enterprises can ensure compliance with Section 43B(h) and the MSMED Act, avoiding penalties and tax liabilities.
• Financial Institutions: Banks can validate MSME status during loan assessments or while offering MSME-specific financing.
• Government Schemes: Agencies can quickly verify MSME eligibility for government support programs.

?? How It Works: Simple Input, Instant Output

• Input: Enter the PAN, GSTIN, or CIN numbers—individually or in bulk.
• Output: Receive detailed MSME information, including: Udyam Registration Number Business Name & Address Type of MSME (Micro, Small, Medium) Registration Date Sector of Activity (Manufacturing/Services)

This comprehensive data empowers your team to verify suppliers, mitigate compliance risks, and ensure timely payments.?

?? Conclusion: Embrace a Compliant Future with Figment

As regulations evolve, embracing digital solutions like Figment’s Udyam Registration API can help enterprises and auditors stay ahead of compliance requirements, mitigate risks, and build stronger relationships with MSME suppliers.?

Unlock the power of real-time, accurate data with Figment’s Udyam Registration API—empowering businesses to navigate compliance, streamline operations, and contribute to a resilient MSME ecosystem.

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