CS kanika saraf
In my current article, I will enlighten my friends about urgent secretarial compliance of filing MCA Form MSME-1.
The Central Government vide 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” as per section 405 of The Companies Act, 2013), 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;
Specified Company means Every Company “Public or Private” who Received Goods or Services ‘from’ Micro or Small Enterprises ‘of which’ Payment Due or Not Paid till 45 days
Thus, in a nutshell
Every Company which has received goods or services from Micro & Small Enterprise
Payment is due/ not paid to such enterprise for 46 days from date of acceptance
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 publication of this notification – Means the Due date for First Return is 21st Feb, 2019.
> One time return or transitional return is required to be filed within 30 days of publication of this order i.e. 21stFebruary, 2019.
> Due date of subsequent returns is mentioned below:
1) Firstly identify your MSME registered suppliers and ask for their registration certificate.
2) 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
3) Information required in respect of such supplier to be submitted with ROC in Form MSME-1
> Total outstanding amount due on 22nd January 2019 [For One time return, which has to be submitted by 21stFebruary 2019]
> Name of Supplier
> PAN of Supplier
> Date from which such amount is due
4. Reasons for delay in payment
Definitions as per Micro, Small & Medium Enterprises Development (MSMED) Act, 2006
Meaning of Micro & Small Enterprise
In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro & Small Enterprises are depicted below:
|Manufacturing Sector||Service Sector|
|Enterprises||Investment in plant & machinery||Enterprises||Investment in equipment|
|Micro Enterprises||Does not exceed Rs. 25 Lakh||Micro Enterprises||Does not exceed Rs. 10 Lakh|
|Small Enterprises||More than Rs. 25 Lakh but does not exceed Rs. 5 Crore||Small Enterprises||More than Rs. 10 Lakh but does not exceed Rs. 2 Crore|
It covers companies, Partnership firm, Association of Person, Hindu Undivided family, Co-operative Society, Proprietorship Firm, other entities etc.
Definition of the Day of Acceptance:
Explanation (i) to Section 2(b) of the Act provides that 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
Definition of the Day of Deemed Acceptance:
Explanation (ii) to Section 2(b) of the Act provides that day of acceptance means the 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.
Non-compliance will lead to punishment and penalty under the provision of the Companies Act. As per Penalty Provision of Section 405 (4) of the Companies Act, 2013 Fine will be as follows:
> On Company – upto Rs. 25,000
> On Directors, CFO and CS – Imprisonment – up to 6 Months
Fine – not less than Rs. 25000 upto Rs. 300000 per person
Exemption to this Rule:
1. Form MSME-1 is not applicable in the case of Medium Enterprises;
|Manufacturing Sector (Investment in plant & machinery)||Service Sector (Investment in equipment)|
|Medium Enterprises||More than Rs. 5 Crore but does not exceed Rs. 10 Crore||More than Rs. 2 Crore but does not exceed Rs. 5 Crore|
2. This Rule applicable only for those Specified Companies whose payment to Micro & Small Enterprises exceed 45 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 MSME Development Act, 2006;
3. If payment Exceed 45 days but supplier/Creditors given a declaration that they do not fall under Micro or small Enterprises.
Note: all efforts have been made to provide you comprehensive knowledge about the form and its application. In case, you need any professional assistance; drop us an email or give a call.
We, at prudent adviso services, provide companies filing services at reasonable fee. Feel free to contact Monika Goel @ 9999596103 (kindly whatsapp in case of network issue) or mail me at email@example.com