Half-yearly return with the registrar in respect of outstanding payments to Micro or Small Enterprise

Q.1 Form for filing the return in respect of outstanding payments to Micro or Small Enterprise?

Ans: MSME Form I

Q.2 What is the frequency of Reporting?

Ans: Half Yearly

Q.3 What is the Last Date of Filing the return?

Ans: By 31st October for the period from April to September and by 30th April for the period from October to March.

Q.4 Which Companies required to file Form MSME-1?

Ans: All companies, who:

(a) get supplies of goods or services from micro and small enterprises; and

(b) 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

Q.5 Are companies who do not have any outstanding payments to the micro and small enterprise for a period exceeding 45 days also required to file the return in form MSME-1?

Ans: No.

Q.6 What is a Micro-Enterprise?

Ans: (a)  If engaged in production or manufacture of goods- Investment in plant and machinery should not exceed 25 lakh rupees; and

(b)  If engaged in providing or rendering of services- Investment in the equipment should not exceed 10 lakh rupees

Q.7 What is a Small Enterprise?

Ans: (a)  If engaged in production or manufacture of goods- Investment in plant and machinery should not exceed 5 Crore rupees; and

(b)  If engaged in providing or rendering of services- Investment in the equipment should not exceed 2 Crore rupees

Q.8 Is reporting in respect of payments outstanding for goods purchased or services procured from medium enterprises for a period of more than 45 days to be done in form MSME-1?

Ans: No.

Q.9 Which date is to be considered as the Date of acceptance?

Ans: “The date of acceptance” means

(a) The day of the actual delivery of goods or the rendering of services; or

(b) Where any objection is made in writing by the buyer regarding the 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;

Q.10 Which date is to be considered as the Date of Deemed Acceptance?

Ans: “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;

Q.11 What are the costs to be excluded in the computation of investment in Plant and Machinery?

Ans: (a)  Cost of pollution control;

(b) Cost of research and development;

(c) Cost of Industrial Safety Devices;

(d) equipment such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores;

(e) installation of plant and machinery;

(f) power generation set and extra transformer installed by the enterprise as per the regulations of the State Electricity Board;

(g) bank charges and service charges paid to the National Small Industries Corporation or the State Small Industries Corporation;

(h) procurement or installation of cables, wiring, bus bars, electrical control panels (not mounted on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures;

(i) as producer plants;

(j) transportation charges (excluding sales-tax or value-added tax and excise duty) for indigenous machinery from the place of their manufacture to the site of the enterprise;

(k) Charges paid for technical know-how for the erection of plant and machinery;

(l) Such storage tanks which store raw materials and finished products only and are not linked with the manufacturing process; and

(m) Fire-fighting equipment.

Q.12 How is the cost of Second Hand Plant and Machinery to be computed for the purpose of determining whether the enterprise is a micro or small enterprise?

Ans: The original price of plant and Machinery irrespective of whether the plant and machinery is second hand shall be taken into account.

Q.13 How to compute the cost of Imported Machinery for the purpose of determining whether the enterprise is a micro or small enterprise?

Ans: The following charges and duties shall also be included in the computation of value:

(a) Import duty (excluding miscellaneous expenses such as transportation from the port to the site of the factory, demurrage paid at the port);

(b) Shipping charges;

(c) Customs clearance charges; and

(d)  Sales tax or value-added tax

Q.14 What are the details that are to be stated in the return?

Ans: (a) Name, PAN of supplier;

(b) Amount due and period for which the same is outstanding; and

(c) Reasons for delay in payment of the amount

Q.15 Is the return to be filed for all micro and small enterprise suppliers?

Ans: It is to be filed only in respect of those micro and small enterprise suppliers to whom payments exceed forty-five days from the date of acceptance or the date of deemed acceptance of the goods or services

Q.16 Who shall digitally sign the MSME-1 return?

Ans: Director/ Manager/ Secretary/ CEO/ CFO.

Q.17 What are the Penalties for non-filing of MSME-1 by due date?

Ans: (a) the company shall be punishable with fine which may extend to twenty-five thousand rupees;

(b) 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

Q.18 Is a foreign company also required to file the return in form MSME-I?

Ans: Yes.

Q.19 Is the company required to provide the details in respect of a micro or small enterprise supplier in form MSME-1 from whom the goods or services were procured and to whom payment exceeded 45 days but there is no amount outstanding in respect of such transaction as on the date of filing of the return?

Ans: No. The details in respect of only those suppliers are to be provided to whom the payment is outstanding as on the date of filing the return.

Q.20 Can the Central Government require a company to produce such records or documents to verify that the information furnished by the company in form MSME-1 is correct and complete?

Ans: Yes.

Q.21 What is the statutory fees for filing of return?

Ans: There is no fee payable.

Author Bio

Qualification: CS
Company: A K MANGLA & CO.
Location: Faridabad, Haryana, IN
Member Since: 06 Apr 2020 | Total Posts: 2

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One Comment

  1. ketan.coredelia says:

    with regards to question 19 transaction where paid beyond 45 days remains not o.s ie paid on 46th days and beyond need to report

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