Filing Form MSME-1 is a requirement for specified companies that have outstanding dues to Micro, Small, and Medium Enterprises (MSMEs) for more than 45 days. Here’s a step-by-step guide on how to prepare and file Form MSME-1:
1. Identify MSME Creditors: Determine if any of your suppliers are registered under the MSME Act, 2006.
2. Check Payment Due Dates: Review all payments to MSME suppliers and identify any that are overdue by more than 45 days.
3. Gather Required Information:
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- Corporate Identification Number (CIN) and PAN of your company.
- Name, address, and email of your company.
- Name and PAN of the MSME suppliers.
- Outstanding amount due against the supply of goods or services.
4. Download Form MSME-1: Obtain the form from the Ministry of Corporate Affairs (MCA) portal.
5. Fill in the Details:
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- Select whether the form is filed as an “Initial Return” or “Half-Yearly Return”.
- Enter the CIN of your company and click on the ‘Pre-Fill’ button.
- Provide the basic details of your company and the initial returns of outstanding dues to the MSE suppliers.
6. File the Form: Submit the completed Form MSME-1 on the MCA portal.
7. Keep Records: Maintain a copy of the filed form and any acknowledgments received for your records.
Remember, Form MSME-1 is a half-yearly return that needs to be filed by specified companies regarding their outstanding payments to MSMEs. It helps the ROC keep track of companies that have outstanding dues towards MSMEs.
Failing to file Form MSME-1 can lead to several consequences under the Companies Act, 2013. Here are the potential implications:
1. Penalty on the Company: A penalty of ₹10,000 may be imposed, and in case of continuing contravention, a further penalty of ₹1,000 for each day after the first during which the contravention continues, subject to a maximum of ₹2 lakh.
2. Penalty on Directors: In case of default, officers of the company may face a penalty of up to ₹50,000.
3. Adjudication Notice by ROC: The Registrar of Companies (ROC) has the power to issue an adjudication notice to the company. In case of adjudication notice, the ROC cannot reduce the penalty amount below the minimum penalty.
4. Imprisonment: There is also a provision for imprisonment for a term which may extend to six months or a fine which shall not be less than ₹25,000 but which may extend to ₹3 lakh, or with both, for every officer of the company who is in default.
Remember, the purpose of filing Form MSME-1 is to ensure timely payments to MSME suppliers and to enable the ROC to monitor the compliance of companies with the provisions related to MSMEs. If you need further assistance or have any other questions, feel free to ask.
Author Bio
I m a merchant xporter ,
goods from different arts of city takes
5days to port
5days customs etc
10days sea transit
5days at destination
#Red sea kind of issue takes 10days extra
no one pays immediate = everyone wants credit (lc/lines are expensive)
now so much of headache in india , better to leave this country & ask vendors to export it to Freezone in other countries .