FORM MSME-1 Furnishing return with ROC in respect of outstanding payments to Micro or Small Enterprises
As you are aware that the MCA wide order dated 22nd January, 2019 directed 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 (27 of 2006) (hereafter referred to as “Specified Companies”), shall submit a half yearly return to the Ministry of Corporate Affairs stating the following:
(a) the amount of payment due; and
(b) the reasons of the delay;
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 i.e. 22nd January, 2019 within thirty days from the date of deployed on MCA 21 portal.(i.e. within 30 days from the 1st may, 2019)
https://taxguru.in/company-law/extension-date-filing-initial-return-msme-form.html
Every specified company shall file a return as per MSME-1, by 31st October for the period from April to September and by 30th April for the period from October to March.
MSME-1 FORM is required to file two times in the month of May, 2019 :
- Initial Return for the amount outstanding as on 22nd January, 2019
- Half Yearly Return for the amount outstanding as on 31st March, 2019.
IMPORTANT DEFINITION
1. Specified Companies mean 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.
Note : MSME-1 is not applicable to Medium Enterprises.
2. Micro & Small Enterprises above means any class or classes of enterprises (including companies, Partnership firm, Association of Person, Hindu Undivided family, Co-operative Society, Proprietorship Firm, other entities etc) shall be :
| Classification | Ceiling on Investment in Plant and Machinery (in INR) for enterprises engaged in or production, processing or preservation of goods | Ceiling on Investment in equipment (in INR) for enterprises engaged in service sector |
| Micro | Below INR 25 lakhs | Below INR 10 lakhs |
| Small | More than INR 25 lakh but does not exceed INR 5 crore | More than Rs.10 lakh but does not exceed Rs. 2 crore |
Note : Only registered enterprises and having valid MSME certificate shall be considered and Udyog Aadhar is also considered as MSME registration.
3. Day 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 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.
4. Day of Deemed Acceptance means day of the actual delivery of goods or the rendering of services, 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.
DETAILS TO BE FURNISHED IN MSME-1 :
- Name of supplier
- PAN of supplier
- Amount due against the supplies of goods or services
- Date from which the amount is due
- Reason of delay in payment of the amount due
PROCEDURE
- Firstly identify your MSME registered suppliers 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 details of such suppliers shall be furnished in Form MSME-1.
CONSEQUENCES FOR NON- FILING
If any company fails to file MSME-1 within 30 days 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.
(Author – CS Brajesh Kumar and can be contacted at kumarbraj7@gmail.com)
DISCLAIMER: The information given in this document has been made on the basis of the provisions of the Companies Act, 2013 and Rules made thereunder. It is based on the analysis and interpretation of applicable laws as on date. The information in this document is for general informational purposes only and is not a legal advice or a legal opinion. You should seek the advice of legal counsel of your choice before acting upon any of the information in this document. Under no circumstances whatsoever, we are not responsible for any loss, claim, liability, damage(s) resulting from the use, omission or inability to use the information provided in the document.
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If the payments outstanding are Nil is it necessary to file
No
If one bill dated 1st Apr, is paid after 52 days, in May, do I need to report that transaction in MSME Form? If yes then what should I mention in the column, “Specify the date from which amount is due” because the amount has already been paid and it is not due?
45th Day
Sir I have one query
If a Date of Invoice is 01/09/2021 and it is not exceeding 45 days before the month of September 21 but exceeding 45 days during October 21 so the above bill need to be consider for 1st half yearly return
Take into account in 2nd half.
Whether LLP’s are covered under definition of specified companies. whether LLP’s are required to file MSME form – I?
I want to know one query
If a Date of Invoice is 09/03/2021 and it is not exceeding 45 days payment has not received but after 5 days 45 days will be completed so the above bill need to be consider
or the above bill will be consider if the 45 days has been exceeded before the month of march 2021
As 45 days has not exceeded till 31st March, 2021 so this transaction is not relevant for for Form MSME-1 for HY ended 31.03.2021 but if exceeded 45 days then have to be reported in Form MSME-1 for HY ended 30.09.2021.
A private company is registered under MSME, now is it required to file form MSME, please clarify, thank you.
Yes, 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.
Medium enterprise also needs to file form MSME-1 for showing payment made to micro and small exceeding 45 days?
Yes.
Sir, If there is no outstanding as on 31.03.2020 for MSME but there is one supplier whose payment exceeds 45 days during half year..so in that case do we need to file Form or not?
Pls reply.
Yes.
Are we required to consider capital expense payment to MSME vendor while filing the return.
Yes.
Whether any obligation to file return or anyway obliged for furnishing accounts/ transaction if an enterprise is registered under MSME?
Dear Readers,
In this article, i want to clarify that there is no requirement of filing of First half yearly return in the month of May, 2018 as per the law.
In the ICSI webinar held on 10/05/2019, they said that wait for MCA clarification for the same.
sir if no any payment due then we need return file?
No.
Please Guide does MSME Outstanding detail above 45 days to file bill wise or without bill wise only Figure to update
As per bill wise.
only the particulars of such suppliers to whom payment is exceeding 45 days
Sir can i nil return file of MSME 1
The Company can not file nil return.
what if payment is made to MSME supplier after 45 days…whether in this case do we require to furnish this detail in MSME Forms.Because the langauage use in the form is Payment DUE(i.e amount not paid) but what about if payment is made after 45 days???
If payment is made after 45 days the Company have to report.
Sir, can we file MSME 1 without any auditors help.. because we are not a manufacturer. we are service oriented.. can we go and file directly in the MCA site.
Yes, you can file with MCA.
The particulars of only such suppliers to whom payment is exceeding 45 days or once a company is a specified company, particulars of all Micro and Small Companies are to be given?
The particulars of only such suppliers to whom payment is exceeding 45 days.