Furnish info about payment to micro & small enterprise suppliers in Form MSME 1

Furnishing of information about payment to micro and small enterprise suppliers – Form MSME 1

The Central Government vide the notification number S.O. 5622(E), dated the 2nd November, 2018 has directed 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 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;

Now, in exercise of the powers conferred by section 405 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the Order, namely called the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019, which has come in to effect from the 22nd January, 2019.

As per the aforesaid Order of MCA, 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. Further, every specified company shall also 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 every year.

Compliance requirement  related to filing of Form MSME I

1. Who all are required to file the Return in Form MSME I

• All Specified Companies will get covered under this Order.

“Specified Companies” shall include 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)

2. When is the Return (Form MSME I) required to be filed

• One Time return:

This one time return will contain details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order i.e. 22^nd January, 2019. This return is to be filled within thirty days from the date of publication of this notification i.e. before 21^st February, 2019.

• Half-yearly return

This Half-yearly return is to be filled by 31st October for the period from April to September and by 30th April for the period from October to March every year.

 3. Format of Return i.e. MSME FORM I

• MCA has specified the format of the Return i.e. MSME FORM I. We have attached the format of the return for your perusal.

4. Key action point for Specified Companies related  to filing of Form MSME I

• Identifying Micro and small enterprise who supplies goods or services to the Company.

• Verifying whether the 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.

• In case the Company is falling under the definition of Specified Companies than collate the following details as on 22nd January 2019:

• In case the turnover of the Specified Company is exceeding 500 crores than in addition to the aforesaid filling requirement the Company is also required to get itself registered on the Trade Receivable Discounting System Platform set up as per the RBI notification (attached)

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