In continuation of notification issued by Ministry of Micro, Small and Medium Enterprises dated 2nd November, 2018 for filling of half yearly return by specified companies.
MCA notification on date 22nd January 2019 regarding ‘Micro and Small Enterprise Suppliers’ notified as Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019
All companies, who get supplies of goods or services from micro and small enterprises and whose payments to micro and small enterprise suppliers exceed forty five days from the date of acceptance or the date of deemed acceptance of the goods or services as per the provisions of section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 shall submit Return to MCA.
Page Contents
A. Entities covered identified as Micro or Small enterprises :
“Any class or classes of enterprises, whether proprietorship, Hindu undivided family, association of persons, co-operative society, partnership firm, company or undertaking, by whatever name called”
B. Definition as per Micro , Small and Medium Enterprise Development ( MSMED Act 2006 )
In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006.
In case of entity engaged in manufacturing or Production and rendering services :
| Manufacturing Sector | Service Sector | ||||
| Enterprise | Investment in Plant and Machinery | Enterprise | Investment in Equipment | ||
| Micro | Does not exceed Rs. 25 Lakh | Micro | Does not exceed Rs. 10 Lakh | ||
| Small | More than Rs. 25 Lakh but does not exceeds Rs. 5 Crore | Small | More than Rs. 10 Lakh but does not exceeds Rs. 2 Crore | ||
| Medium | More than Rs. 5 Crore but not exceeding Rs. 10 Crore | Medium | More than Rs. 2 Crore but not exceeding Rs. 5 Crore | ||
Note: only Micro and Small Enterprise Suppliers are considered. Medium Enterprise suppliers are not considered as per the notification.
For the removal of doubts, it is hereby clarified that in calculating the investment in plant and machinery, the cost of pollution control, research and development, industrial safety devices and such other items as may be specified, by notification, shall be excluded.
C. Purpose of MSME I return:
Provide details of “Amount of Payment due and Reason of delay” to the Registrar of the Companies.
D. Period to be covered for First Filling of Form MSME I
Every Specified Company shall file in MSME Form I details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order within 30 days from the Date of publication of this Notification as below (One Time Return)
The date of the starting of the period is no specified. Therefore all companies have the total out standing dues on 22nd January 2019 ( i.e. Notification Date ) from the date of Incorporation date shall file return
| Date of Notification | Due Date |
| 22nd January, 2019 | 21th February 2019 |
| 23rd February 2019 ( MCA extended due date of filling of MSME – 1 Return ) | MCA has clarified that the due date for filing of initial return in Form MSME-I has been extended, now the period of 30 days shall be reckoned from the date of deployment of Form MSME-I on MCA 21 Portal.
|
Half Yearly Return :
In addition to the above, Every Specified Company is required to file a return as per MSME Form-I, on half yearly basis as below :
| Return | Period | Due Date |
| MSME Form – 1 | April to September | 31st October |
| MSME Form – 1 | October to March | 30th April |
E. Details Covered In MSME I Return :
1. Amount of Payment Due
2. The Reason for Delay
F. Penal Provision:
Attention is drawn to provision of sub section 4 of section 405 of Companies Act, which provide for punishment for any information statistics which is incorrect or incomplete in any material respect.
| Particulars | Penalty |
| On defaulting company | Extended Up to Rs. 25,000/- |
| Every Officer who is in default | Minimum Fine Rs. 25,000/- which may extended to Rs. 30,000/-
Or Imprisonment which may extended to 6 Months or Both |
Disclaimer :
All Readers are advised to refer relevant provision of law before applying or accepting any of the point mentioned above or not. Author accepts no responsibility whatsoever and will not be liable for any losses, claims or damages which may arise because of the contents of this write up.
The author is practicing CA and reached at dhavaldoshi1988@gmail.com , Cell No. +91 94282 28267.
Author Bio
What is the cut off date of reporting outstanding amount for the period Oct 2018-March 2018?
What if the balances are nil? Should we file nil return?
are micro small and medium enterprises required to register themselves with some regulatory authority and get registration number? are they required to state their registration number on their bills, invoices, debit notes,challans, etc.?