The Ministry of Corporate Affairs have made major changes for protecting the interest of groups of small companies or business. He laid emphasis on following compliance by all Specified Companies Whether Public or a Private Company, Micro or Small.

The Companies who receive supply of goods or services from Micro or small enterprises and the amount of payment due with having the reasons of such delay, exceeds 45 days from the date of acceptance or date of deemed acceptance of the goods or services are required to file a half-yearly return.

The return shall be filed in prescribed MCA e-form ‘MSME FORM 1’

FAQ ON MCA E- FORM MSME-1

Q-1 What is MSME Form 1 (MCA)?

Ans. The MSME Form-1 is to be filed for the payment of half yearly return with the Registrar of Companies (ROC) in respect of the outstanding payments to Micro or Small Enterprises.

Q-2 What is Specified Companies?

Ans. Specified Companies: Specified companies as per the provisions of section 9 of the MSME Development Act, 2006 are those companies who receive the supply of goods or services from MSMEs and the payment against these supplies to the suppliers of these MSMEs exceed 45 days from the date of acceptance or date of deemed acceptance of the goods or services

Q-3 What is Micro and Small Enterprises?

Micro and Small Enterprise: Any class or classes of enterprises (including proprietorship, Hindu undivided family (HUF), partnership firm, company, undertaking, co-operative society or an association of persons), in which are defined as MSME(s) under the Micro, Small and Medium Enterprise Development (MSME) Act, 2006.

Small, Micro and Medium Enterprises

Section 7 of the Micro, Small and Medium Enterprises Development Act, 2006 defines the scope of micro, small and medium enterprises as follows:

Manufacturing Sector Service Sector
Enterprises Investment in Plant & Machinery Enterprises Investment in Equipment
Micro Enterprises Does not exceed Rs. 25 Lakhs. Micro Enterprises Does not exceed Rs. 10 Lakhs.
Small Enterprises More than Rs. 25 Lakhs but does not exceed Rs. 5 Crores. Small Enterprises More than Rs. 10 Lakhs but does not exceed Rs. 2 Crores.
Medium Enterprise More than Rs. 5 Crores but does not exceed Rs. 10 Crores. Medium Enterprise More than Rs. 2 Crores but does not exceed Rs. 5 Crores.

NOTE: Medium Enterprises are not covered under the MSME-1 Form

Q-3 What should be stated in the MSME-1 Form?

Ans. The Return should be state following points in it:

1. amount of payment due; and

2. reasons for the delayed payment

MSME Form-1 (MCA) is to be filed by only those specified companies whose outstanding payment to MSMEs suppliers is exceeding 45 days as on 31st March or 30th September

Q-4 MSME-1 Form Applicability?

Ans. Applicability on Companies

As per a notification issued by the MCA it has been mandated to file disclosures through e-Form MSME-I for every type of the Company – Public or Private Company, Micro or Small Companies; the Company that satisfies the following two conditions:

Condition 1: Company must have received Goods and/or Services from Micro or Small Enterprise

Condition 2: Payment must have been due/not paid, to such Micro and Small Enterprise for 46 days from the date of acceptance

Note: Date of deemed delivery refers to the acceptance of goods and services by the buyer in written with no objection with the product or services received within the 15 days time period.

Q-5 If agreement terms for payment is 30 days, and payment is made after 30 days?

Ans. it is termed as delayed payment and should be reported under MSME-1 Form.

Q.6 If agreement is made to make payment within 50 days between the parties but as on date of filing return the amount is outstanding for more than 45 days but less than 50 days. Whether reporting is required or not?

Ans. In this case, Reporting has to be made as per the rules made thereby and shall be given if the amount is outstanding for more than 45 days.

Q-7 What is the due date of filling of MSME-1 Form?

Due Date for Filing MSME Form 1 (MCA)

Every company shall require to file MSME -1 as a half yearly return, in respect of outstanding payments to MSMEs..

Filing Period Due date of Filing
From April to September 31st October
From October to March 30th April

Q-8 What are the Exemption to filling of MSME-1 Form ? or Who are not required to file this form?

Ans (i) This Rule is not applicable for all the Companies but only for those Specified Companies whose dues to MSMEs suppliers exceed 45 days from the date of acceptance or deemed acceptance of the goods or services under the provisions under section 9 of the MSME Development Act, 2006.

(ii) If the payment against supplier exceeds 45 days but the supplier/Creditors gives a declaration that they do not fell under the category of Micro or small Enterprises.

Q-9 Is their any additional fee (late fee) for delay filing of MSME Form?

Ans. No Fee

Q.10 Is their any statutory filing fee for the filing of MSME Form

Ans. No Additional Fee

*****

(Author – CA Neha Aggarwal and can be contacted at [email protected])

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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Qualification: CA in Practice
Company: JAIN K GUPTA & CO.
Location: CHANDIGARH, Chandigarh, IN
Member Since: 26 Feb 2020 | Total Posts: 2

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One Comment

  1. Bhaskar Bachchhav says:

    Can a Micro Enterprises, offering his Services to his Client and if his Payment of Services offered in not received, ask to the Client, to provide, MCA e-form ‘MSME FORM 1’ ?

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