All about MSME Form I – Initial Return & Half yearly Return

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

Act Reference

e-Form MSME FORM I is required to be filed pursuant to Order dated 22 January, 2019 issued under Section 405 of the Companies Act, 2013 and which are reproduced for your reference:

Applicability

1. 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 (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;

2. 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.

3. 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.

Analysis’

1.Specified companies means

(i) All companies, who get supplies of goods or services from micro and small enterprises and

(ii) whose payments to micro and small enterprise suppliers exceed 45 days from the date of acceptance or the date of deemed acceptance of the goods or services, shall submit a return eform MSME FORM I to the MCA in the interval mentioned below

a. Initial return or

b. Regular half yearly return

2. Micro, Small and Medium (MSME) Enterprises means

In accordance with Micro, Small and Medium Enterprises Development Act, 2006, the manufacture and service enterprise is defined in terms of investment in plant & machinery and services respectively as micro, small and medium enterprise as explained below:

	Micro	Small	Medium
Manufacturing Enterprises	Up to Rs. 25 lacs	More than Rs. 25 lacs but up to Rs. 5 crores	More than Rs. 5 crores but upto Rs. 10 crores
Service Enterprises	Up to Rs. 10 lacs	More than Rs. 10 lacs but up to Rs. 2 crores	More than Rs. 2 crores but up to Rs. 5 crores

Note: only Micro and Small Enterprise Suppliers are considered. Medium Enterprise suppliers are not considered as per the notification. Trading enterprises are not covered under MSME Act

3.“date of acceptance” means

In accordance with MSME Act, 2006, “the day of acceptance” means-

• the day of the actual delivery of goods or the rendering of services; or
• 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.

4.“date of deemed acceptance” means

In accordance with MSME Act, 2006, “the day 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.

5. Due date for filing eform MSME  FORM  I

a. Initial Return: Every specified company shall file in e-form MSME Form 1 details of all outstanding duesto Micro and Small enterprise suppliers existing on the date of notification of this order within 30 days from the date of publication (22.01.2019) of this notification.

As per MCA General Circular No.01/2019 dated 21.02.2019 the due date extended for filing of initial return. i.e. from the  date of deployment of e-form on MCA portal. The e-form MSME FORM I available from 01.05.2019 and due date for filing initial return is 30 days from 01.05.2019. i.e. 30^th May of 2019

b. Half yearly return: Every specified company shall file a half yearly return in e-from MSME Form I as:  

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

Note: Since e-form MSME FORM I available from 01.05.2019, the due date for Half yearly return – October 2018 to March 2019, may be consider as 30^th May of 2019

6.Details to be furnished in e-form MSME FORM I

a. Initial Return:

(i) PAN of the Company

(ii) Email Id of the Company

(iii) Total outstanding amount due as on date of notification of order (22.01.2019)

(iv) Particulars of the name of suppliers and amount of payments due (number of entries to be specified subject to maximum 99 rows)

-For each supplier the following details to be furnished

(A) FY from

(B) FY to

(C) Name of the Supplier

(D) PAN of the Supplier

(E) Amount due

(F) Specify the date from which amount due

(v) Reasons for Delay in amount of payments due (para)

(vi) Optional attachment if any

b. Regular half yearly return :

(i) Period (Apr to Sep or Oct to March)

(ii) PAN of the Company

(iii) Email Id of the Company

(iv) Total outstanding amount due for the respective period

(v) Particulars of the name of suppliers and amount of payments due (number of entries to be specified subject to maximum 99 rows)

-For each supplier the following details to be furnished

(G) FY from

(H) FY to

(I) Name of the Supplier

(J) PAN of the Supplier

(K) Amount due

(L) Specify the date from which amount due

(vi) Reasons for Delay in amount of payments due (para)

(vii) Optional attachment if any

The e-form MSME FORM I to be digitally signed by the following authorised persons of the company

(i) Director or

(ii) Manager or

(iii) Company Secretary or

(iv) CEO or

(v) CFO

For director, DIN details to be given. For Manager, Company Secretary, CEO or CFO PAN details to be given.

7. Penal Prosecutions

Section 405(4) of the Companies Act, 2013 is reproduced below

If any company fails to comply with an order made under sub-section (1) or subsection (3), or knowingly furnishes any information or 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. 3,00,000/- 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 Chartered Accountant in Practice and reached at rajasekar@ggaca.in , Cell No. +91 99942 89478)