Article covers Detailed Checklist and Steps To Determine Applicability of MCA Order on MSME Form-I, Introduction to MSME Form-I, Applicability of MSME Form-I and relevant MCA order, Steps to be followed by the Companies to determine the applicability, Details Required for filing of MSME Form-I, Fee for Filing of MSME Form-I and Penalty for non-compliance.

Introduction to MSME Form-I

For the purposes of facilitating the promotion, development and enhancing the competitiveness of micro, small and medium enterprises, particularly of the micro and small enterprises the Ministry has introduces the MSME FORM I. Pursuant Order dated 22nd January, 2019 issued under Section 405 of the Companies Act, 2013, all companies, who get supplies of goods or services from micro and small enterprises and whose payments to micro and small enterprise suppliers exceed 45 days from the date of acceptance or the date of deemed acceptance of the goods or services shall submit a return to the Ministry of Corporate Affairs as follows:

(1). One time Initial return;

(2). Regular half yearly return.

Applicability of MSME Form-I and relevant MCA order

This order is applicable only for the Companies

and

Such Companies, who get supplies of goods or services from micro and small Enterprises (the Micro and Small enterprises can be other than companies also)*

and

Payments to such micro and small enterprise suppliers is exceed 45 days from the date of acceptance or the date of deemed acceptance of the goods or services*

* Explanation

(I) This Form is to be filed only by the Companies but supplier of the Goods or Services can be proprietorship, Hindu Undivided Family, Association of Persons, Co-operative Society, Partnership Firm, Company or undertaking, by whatever name called registered under Micro, Small and Medium Enterprises Development Act, 2006 as Micro or Small Company.

(II) This form is to be filed by all the Companies including the MSME, OPC, PVT, Unlisted Public, Listed, Producer, Section 8 which satisfies above applicability;

(III) This order is not applicable for import of goods or services;

(III) Micro and Small Companies Meaning:

As per to Section 7(1) of the Micro, Small and Medium Enterprises Development Act, 2006:

(a). In the case of the enterprises engaged in the manufacture or production of goods:

(i). A micro enterprise– where the investment in plant and machinery does not exceed Rs. 25 Lakhs;

(ii) A small enterprise– where the investment in plant and machinery is more than Rs. 25 Lakhs but does not exceed Rs. 5 Cr.

(b). In the case of the enterprises engaged in providing or rendering of services as:

(i). A micro enterprise– where the investment in equipment does not exceed Rs. 10 Lakhs;

(ii). A small enterprise– where the investment in equipment is more than Rs. 10 Lakhs but does not exceed Rs. 2 Cr.

(IV) The date of acceptance means:

1. the day of the actual delivery of goods or the rendering of services; or

2. where any objection is made in writing by the buyer regarding acceptance of goods or services within fifteen days from the day of the delivery of goods or the rendering of services, the day on which such objection is removed by the supplier;

(V) The date of deemed acceptance means, where no objection is made in writing by the buyer regarding acceptance of goods or services within fifteen days from the day of the delivery of goods or the rendering of services, the day of the actual delivery of goods or the rendering of services;

Steps to be followed by the Companies to determine the applicability:

Check that the Company has any dues to the Suppliers/Creditors as on 22.01.2019 or 31.03.2019 If yes: check the below Conditions

If no: Not required to file this Form

Check that such due to the Suppliers/ Creditors is exceeding 45 days If yes: check the below Conditions

If no: Not required to file this Form

Send a mail or get written confirmation from the such Suppliers/Creditors that whether they are covered under Micro or Small Enterprises or not If yes by any one or more Suppliers/Creditors required to file the Form

If no: Not required to file this Form

If the all the above conditions are satisfied with any one or more Suppliers/Creditors of the Company, otherwise the Companies are exempted from filing this Form

Details Required for filing of MSME Form-I

(A) For Initial return;

1. Permanent Account Number (PAN) of the Company;

2. Total Outstanding amount dues to Micro or Small Enterprises Suppliers as on date of notification i.e 22nd January, 2019;

3. Reasons for Delay in amount of payments due: The reason should be given entry wise;

4. Details of Outstanding amount as mentioned in point no. 2:

Financial Year From

Financial Year to Name of Supplier PAN of Supplier Amount Due

Date from which amount is due

It should be greater than the date of Incorporation It should be equal to Sysdate Enter the name of Supplier entry wise Enter ‘Permanent Account Number’ (PAN) of the Supplier Enter the Amount Enter the Date from which amount is due

The Maximum number of rows for the fields from ‘Financial year from’ to ‘Amount due’ will be 99, if number of entries exceeds 99, require to furnish the same as attachment to the Form.

(B) For regular half yearly return for a period from 01st October 2018 to 31st March 2019:

1. Permanent Account Number (PAN) of the Company;

2. Total Outstanding amount due for the period 01st October 2018 to 31st March 2019;

3. Reasons for Delay in amount of payments due: The reason should be given entry wise;

4. Details of Outstanding amount as mentioned in point no. 2:

Financial Year From Financial Year to Name of Supplier PAN of Supplier Amount Due Date from which amount is due
It should be greater than the date of Incorporation It should be equal to Sysdate Enter the name of Supplier entry wise Enter ‘Permanent Account Number’ (PAN) of the Supplier Enter the Amount Enter the Date from which amount is due

The Maximum number of rows for the fields from ‘Financial year from’ to ‘Amount due’ will be 99, if number of entries exceeds 99, require to furnish the same as attachment to the Form.

(C) Digital Signature of any Director/Company Secretary/Manager/ CEO/CFO/

(D) It’s advisable to obtain confirmation from Suppliers/creditors of the Company whether they are covered under micro and small enterprise or not.

Fee for Filing of MSME Form-I

Not Applicable

Penalty for non-compliance

Since this order is issued under Section 405 of the Companies Act, 2013 if any company fails:

1. To comply with an order or

2. Knowingly furnishes any information or statistics which is incorrect or incomplete in any material respect.

  • The Company shall be punishable with fine which may extend to Rs. 25,000/- and
  • Every officer of the Company who is in default, shall be punishable with imprisonment for a term which may extend to 6 (Six) months or with fine which shall not be less than Rs. 25,000/- but which may extend to Rs. 3 Lakh, or with both.

Author Bio

Name: Nanja
Qualification: CS
Company: Vasanth & Co., Chartered Accountants
Location: Bengaluru, Karnataka, IN
Member Since: 18 Feb 2019 | Total Posts: 2

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