Ministry of Corporate Affairs (MCA) has introduced Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019 on 22nd January, 2019 which requires 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 a half yearly return to the Ministry of Corporate Affairs in e-Form MSME-1.
Here are some of the FAQ’s on e-Form MSME-1 and Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019.
1. WHICH ARE THE SPECIFIED COMPANIES?
Every company which gets 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.
2. WHAT IS THE DATE OF ACCEPTANCE OR DEEMED ACCEPTANCE OF GOODS OR SERVICE?
“The day of acceptance” means-
(a) The day of the actual delivery of goods or the rendering of services;
(b) 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;
The day 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;
3. WHO IS A SUPPLIER?
Section 2(n) of the MSME Act states Supplier means, a micro or small enterprise, which has filed a memorandum with the authority referred to in Section 8 (1) of the act and includes,-
4. WHAT IS AN ENTERPRISE?
‘Manufacturing Enterprises’– the enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951 or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use.
Link of First Schedule to the IDRA, 1951 – https://bit.ly/2ZMQWmo
‘Service Enterprises’– the enterprises engaged in providing or rendering of services of any kind.
5. WHAT ARE THE CRITERIA TO DETERMINR MICRO AND SMALL ENTERPRISE?
|Manufacturing Sector Investment In Plant And Machinery||Service Sector Investment In Equipment|
|Micro Enterprise||Less than 25 Lakh||Less than 10 Lakh|
|Small Enterprise||25 Lakh to 5 Crore||10 Lakh to 2 Crore|
6. WHETHER THE DETAILS OF SUPPLIERS NOT REGISTERED UNDER MSME ACT IS REQUIRED TO BE GIVEN?
No, the details of suppliers not registered under MSME act is not required to be given.
7. IS THERE ANY MINIMUM AMOUNT OF MONEY OUTSTANDING TO BE PAID IS EXEMPTED FROM REPORTING?
No, even Rs. 50/- outstanding to be paid is required to be reported.
8. IF THE COMPANY HAS NO SUPPLIER WHOSE PAYMENT IS OUTSTANDING FOR MORE THAN 45 DAYS, THEN NIL RETURN IS REQUIRED TO BE FIED?
In that case, no return is required to be filed.
9. WHAT STEPS ARE REEQUIRED TO BE TAKEN BY THE SPECIFIED COMPANIES?
Firstly, as there is no way to find online, Specified Companies should ask their suppliers whether they are registered under MSME Act and ask for their Registration Certificate.
If there are any such suppliers who are registered under MSME Act and if the payments to them are due for more than 45 days from the date of acceptance of the goods and services, then we have to pay them their all dues immediately, otherwise the Specified Company shall be liable to file MSME Form I.
10. WHICH ARE THE INFORMATION REQUIRED TO SUBMITTED IN MSME-I?
11. WHAT ARE THE DUE DATES TO FILE THE FORM MSME-1?
For initial one-time return – 30th May, 2019. The details as on 22nd January, 2019 is required to be given.
For Half yearly return
|Return Period||Due Date|
|April to September||31st October|
|October to March||30th April.|
12. IS THERE ANY REQUIREMENT OF PROFESSIONAL CERTIFICATION?
No professional certification is required in this form. Only one digital signature of Director/ KMP of the Company is required.
13. WHAT IS THE PENALTY FOR NON-FILING OF FORM MSME-1 ?
Non-compliance will lead to punishment and penalty under the provision of Section 405 (4) of the Companies Act, 2013 which states-
if any company fails to comply with an order or 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 twenty-five thousand rupees and every officer of the company who is in default, shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to three lakh rupees, or with both.
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