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.

MCA notification on date 22nd January 2019 regarding ‘Micro and Small Enterprise Suppliers’ notified as Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019

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  shall submit Return to MCA.

A. Entities covered 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”

B. Definition as per Micro , Small and Medium Enterprise Development ( MSMED Act 2006 )

In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006.

 In case of entity engaged in manufacturing or Production and rendering services  :

Manufacturing Sector   Service Sector
Enterprise Investment in Plant and Machinery Enterprise Investment in Equipment
 
Micro Does not exceed Rs. 25 Lakh   Micro Does not exceed Rs. 10 Lakh
Small More than Rs. 25 Lakh but does not exceeds Rs. 5 Crore Small More than Rs. 10 Lakh but does not exceeds Rs. 2 Crore
Medium More than Rs. 5 Crore but not exceeding Rs. 10 Crore Medium More than Rs. 2 Crore but not exceeding Rs. 5 Crore

Note: only Micro and Small Enterprise Suppliers are considered. Medium Enterprise suppliers are not considered as per the notification. 

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.

C. Purpose of MSME I return:

Provide details of “Amount of Payment due and Reason of delay” to the Registrar of the Companies.

D. Period to be covered for First Filling of Form MSME I

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 30 days from the Date of publication of this Notification as below (One Time Return)

The date of the starting of the period is no specified. Therefore all companies have the total out standing dues on 22nd January 2019 ( i.e. Notification Date )  from the date of Incorporation date shall file return

Date of Notification Due Date
22nd January, 2019 21th February 2019
23rd February 2019 ( MCA extended due date of filling of MSME – 1 Return ) MCA has clarified that the due date for filing of initial return in Form MSME-I has been extended, now the period of 30 days shall be reckoned from the date of deployment of Form MSME-I on  MCA   21 Portal.

 

Half Yearly Return :

In addition to the above, Every Specified Company is required to file a return as per MSME Form-I, on half yearly basis as below :

Return Period Due Date
MSME  Form – 1 April to September 31st October
MSME Form – 1 October to March 30th April

E. Details Covered In MSME I Return :

1. Amount of Payment Due

2. The Reason for Delay

F. Penal Provision:

Attention is drawn to provision of sub section 4 of section 405 of Companies Act, which provide for punishment for any information statistics which is incorrect or incomplete in any material respect.

Particulars Penalty
On defaulting company Extended Up to  Rs. 25,000/-
Every Officer who is in default Minimum Fine Rs. 25,000/- which may extended to Rs. 30,000/-

Or

Imprisonment which may extended to 6 Months or Both

Disclaimer :

All Readers are advised to refer relevant provision of law before applying or accepting any of the point mentioned above or not. Author accepts no responsibility whatsoever and will not be liable for any losses, claims or damages which may arise because of the contents of this write up.

The author is practicing CA and reached at dhavaldoshi1988@gmail.com , Cell No. +91 94282 28267.

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3 Comments

  1. Padmanabh Ranchhoddas Merchant says:

    are micro small and medium enterprises required to register themselves with some regulatory authority and get registration number? are they required to state their registration number on their bills, invoices, debit notes,challans, etc.?

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