Clarification regarding return to be filed for MSME’s by all specified companies

Ministry of Corporate Affairs issued a recent notification dated 22nd January, 2019 in continuation of notification issued by Ministry of Micro, Small and Medium Enterprises dated 2nd November, 2018 for filling of half yearly return by specified companies.

Ministry of Corporate Affairs given a push back to the notification issued by Ministry of Micro, Small and Medium Enterprises dated 2nd November, 2018. On 22nd January, 2019 MCA notified the Section 9 of MSMED Act, 2006 in Companies Act 2013 vide exercised its power under Section 405 of the Companies Act, 2013.

Provision said  “Every Specified company shall file in MSME Form I details of all outstanding dues to the Micro or Small Enterprises  existing on the date of notification of this order within 30 days from the date of this notification.

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.

Here_

“Specified Companies” All the Companies who get supplies of goods or services from Micro or small enterprises and the payment not made with-in 45 days from the date of acceptance or the date of deemed acceptance of goods or services.

“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 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;

“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;

Entities to be identified as Micro or Small enterprises

“Any class or classes of enterprises, whether proprietorship, Hindu undivided family, association of persons, co-operative society, partnership firm, company or undertaking, by whatever name called”

In case of Entity engage in Manufacturing or Production

If the entities engage in manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 (65 of 1951),

Micro Small
Investment in Plant and Machinery not exceeding Rs. 25 Lakhs. Investment in Plant and Machinery exceeding Rs. 25 Lakhs but not exceeding Rs. 5 crores

For the removal of doubts, it is hereby clarified that in calculating the investment in plant and machinery, the cost of pollution control, research and development, industrial safety devices and such other items as may be specified, by notification, shall be excluded.

In case of Entity engage in providing or rendering of services

Micro Small
Investment in equipments not exceeding Rs. 10 Lakhs. Investment in equipments exceeding Rs. 10 Lakhs but not exceeding Rs. 2 crores

Period to be covered for First Filling of Form MSME I

Basically the notification provides all outstanding dues to Micro or Small enterprises on the date of notification. However, the date for the starting of the period Is no specified. Therefore all companies have the total outstanding dues on 22nd January, 2019 from the incorporation date, shall file the return.

Schedule of Filling of further Form MSME I

S No. 6 Months period Due date of filling
1. 1st April to 30th September 31st October every year
2. 1st October to 31st March 30th April every year

Details to be filed with MCA in the Form are-

1. The amount of payment due; and

2. The reasons of the delay;

Last date for filling of the Form: 21st February, 2019

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15 Comments

  1. Palsh says:

    Hi,

    I want to know , I am registered under MSME and my client is not paying as we failed to provide PBG on time and infact client is putting 10% LD as per Purchase order on me by giving me all the recorded documents/Emails for LD. Can I challenge for it under MSME act

  2. shekar says:

    Is it necessary to provide details of delayed payment if payment is already made as on due reporting date ( 22nd feb 19) and
    for subsequent period 30th Sep and 31st march

    1. npvco says:

      Dear Shekhar Ji,

      If your payment is outstanding on 22nd January, 2019, than you must file the return, whether you made payment after 22 January 2019 and before the due date.

  3. Shikha Gupta says:

    In our Mfg. company credit terms with all suppliers is 90 days. There is no delay of 45 days criteria, In that case how to do reporting?

    1. npvco says:

      Hi Shikha,
      Notification is clearly mention the time should not be exceed from 45 days from date of acceptance of deemed date of acceptance.
      This notification is applicable on those Micro or Small enterprises (Supplier) who are registered under MSMED Act. In case if your company has credit period of 90 days, you need to identify the registered supplier under MSMED Act. Now you have two options, either you reduce the credit period less than 45 days or file the half yearly return.

    2. npvco says:

      Hi Shikha, Further i clarified here-

      Section 15 of MSMED Act clearly mentioned, if buyer or seller have their written agreement for date of payment should not exceed 45 days from the day of acceptance or the day of deemed acceptance.

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