All about eForm MSME Form-I (Filling half yearly return with the registrar in respect of outstanding payments to MSME due date 31st October, 2019)

Purpose to file the eForm

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 as per the provisions of section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) (hereafter referred to as “Specified Companies”), shall submit a return to the Ministry of Corporate Affairs in the interval mentioned below

1. Initial return or

2. Regular half yearly return

Information required for filling the eForm

Regular half yearly return of outstanding dues to Micro or Small Enterprises Suppliers:

a) Total outstanding amount

(b)Particulars of the name of suppliers and amount of payments due in the below format

Financial Year From Financial Year To Name of Supplier PAN of Supplier Amount Due Specify the date from which amount is due

(c) Reasons for Delay in amount of payments due

Note:

# Also please note that there is no fees  for filling this form.

# Section 405(4) non furnishing/incomplete/incorrect information shall be punishable with fine up to Rs.25000 (Co.,), Rs.25000/- (Min) & Rs.3 lacs (max) for director or imprisonment up to six months or both.

Governing Law and Back Ground

SECTION 405 OF COMPANIES ACT, 2013

eForm MSME FORM-I is required to be and which are reproduced for your reference:

1. Specified Companies (Furnishing of information about payment to MSME) 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 45 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 (27 of 2006) (hereafter referred to as “Specified Companies”), shall submit a half yearly return to the Ministry of Corporate Affairs stating the following:

i. the amount of payment due and

ii. the reasons of the delay;

iii. 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 thirty days from the date of publication of this notification.

iv. Every specified company shall file a return as per MSME Form I annexed to this Order, by 31st October for the period from April to September and by 30th April for the period from October to March.

NOTIFICATION NO. S.O 5622(E) DATED 2ND NOVEMBER , 2018

In exercise of powers conferred by section 9 of the Micro, Small and Medium  Enterprises Development Act, 2006 (27 of 2006), the Central Government hereby directs that 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 the Act, shall submit a half yearly return to the

Ministry of Corporate Affairs stating the following:

(a) The amount of payments due; and

(b) The reasons of the delay

NOTIFICATION NO. S.O 368(E) DATED 22ND JANUARY, 2019

Whereas, the Central Government vide notification number 05622 (E), dated the 2 nd November, 2018 has directed that all companies as stated above.

And whereas, in exercise of power under section 405 of the Companies Act, 2013, (18 of 2013) the Central Government, considers it necessary to require “Specified Companies” to furnish above information under said section 405 of the Companies Act, 2013.7

MSME DEVELOPMENT ACT, 2006

Specified Companies: As per the provisions of section 9 of the MSME Development Act, 2006, Specified companies are those companies who receive the supply of goods or services from MSMEs and the payment against these supplies to these MSMEs exceed 45 days from the date of acceptance (deemed acceptance) of the goods or services.

POINT OF DISCUSSIONS :

CAN PAYMENT CYCLE OR AGREEMENT BETWEEN PARTIES BE MORE THAN 45 DAYS ?

With the enactment of the MSME, Act 2006, for the goods and services supplied by the MSEME units, payments have to be made by the buyers on or before the date agreed on between him and the supplier in writing or, in case of no agreement, before the appointed day. The agreement between seller and buyer shall not exceed more than 45 days.· If the buyer fails to make payment of the amount to the supplier, he shall be liable to pay compound interest with monthly rests to the supplier on the amount from the appointed day or, on the date agreed on, at three times of the Bank Rate notified by Reserve Bank.

WHETHER ALL COMPANIES HAS TO FILE MSME FORM I?

No, only the specified Companies has to file MSME Form I and if there are pending payment beyond 45 days. Hence no NIL Return is required.

IF THERE ARE MULTIPLE REASONS FOR DELAY , THEN HOW DO I GIVE IT IN THE FORM AS THE COLUMN ACCEPTS ONLY 1000 CHARACTERS ?

By way of covering letter being attached to the form.

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5 Comments

  1. Karishma Khatri says:

    Please suggest if any Company has not filed the MSME-1 Initial Return (till 30.May, 2019), can it file half yearly return after filing the initial one with penality? Or is there any other solution?

  2. Apoorva Sharma says:

    Need help regarding the amount due. for eg:- Invoice amount is Rs.2000 and payment due date of invoice is 30/04/2019 and payment of same is made on 15/05/2019.whether reporting of such Invoice also be made in Form MSME 1 or not? as such amount is not oustanding on 30-09-2019

    1. Anand Khambe says:

      For half yearly return, payments to suppliers exceeding 45 days even if it is not outstanding as on 30.09.2019 are requried to be disclosed.

  3. AJAY KUMAR MISHRA says:

    In cases where retention money is deducted and withheld as per agreement, generally for 12 months. Is retention money is allowed to be retained more than 45 days under MSME act.

    1. Sunil Shrestha says:

      Following is my opinion on the above query-
      The term “Day of Acceptance” and “Day of Deemed Acceptance of Goods & Services” in case of retention money should be the completion date of Defect Liability Period.

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