Article explains Law Governing the file of MSME- I Form  as notified vide Notification Date 22-01-2019, Due Date to File Return, Important Definition, Details Required in Form MSME-I, Procedure to file Form MSME-I, Penalty for Non-Filing of Form MSME-1 and Exemptions to the Rule related to filing of Form MSME-I.

Governing Law

  • MCA wide order dated 22ndJanuary, 2019 directed that all Specified Companies
  • Ministry of Corporate Affairs stating the following:

(a) the amount of payment due; and

(b) the reasons of the delay;

Shall submit One Time Return for the amount outstanding as on 22nd January, 2019

What is SPECIFIED COMPANIES

supplies of goods or services from micro and small enterprises and

  • whose payments to micro and small enterprise suppliers (NOT Medium Enterprises) exceed forty five days from the date of acceptance or the date of deemed acceptance of the goods or services

Due Date to file the form:

Sl. No. Return Period Due Date
1 One Time Return (Based on Outstanding as on 22nd January 2019) 30 May 2019
2 April to September 31st October
3 October to March 30th April ( for the 31st March 2019 date extended to 30 May 2019)

Important  Definition

Day of Acceptance means: 

(a) The day of the actual delivery 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.

Day of Deemed Acceptance means

  • day of the actual delivery of 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

Micro & Small Enterprises means

  • any class or classes of enterprises (including companies, Partnership firm, of Association Person, Hindu Undivided family,
    Co-operative Society, Proprietorship Firm, other entities etc) having investment in plant and machinery as-
Classification Investment in Plant and Machinery (in INR) Investment in Plant and Machinery (in INR)
Sector Manufacturing Sector Service Sector
Micro Below INR 25 lakhs Below INR 10 lakhs
Small More than INR 25 lakh but does not exceed INR 5 crore More than Rs.10 lakh but does not exceed Rs. 2 crore

DETAILS TO BE FURNISHED IN MSME-1 :

  • Name of supplier
  • PAN of supplier
  • Amount due against the supplies of goods or services
  • Date from which the amount is due
  • Reason of delay in payment of the amount due
  • MSME Registration Certificate shall be taken from supplier for
  • record purpose.

PROCEDURE:

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 of of the date acceptance goods and services, then details of such suppliers shall be furnished in Form MSME-1.

Penalty for Non-Filing of Form MSME-1

  • Non-compliance will lead to punishment and penalty under the provision of the Companies Act. As per Penalty Provision of Section 405 (4) Companies of the Act, 2013 Fine will be as follows:
Prosecution Fine
On Company Upto Rs. 25000
Directors, CFO On and CS Upto 6 Months Not less than Rs. 25000 upto Rs. 300000 per person

Exemption to the Rule:

1) Form MSME-1 is not applicable in the case of Medium Enterprises

Particulars Manufacturing Service
Sector (Investment in plant & machinery) 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) application 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

Disclaimer:

The information given in this document has been made on the basis of the provisions of Companies Act, 2013 and rules made there under. 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.

Further, 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.

Author Bio

Name: manoj
Qualification: CA in Practice
Company: N/A
Location: New Delhi, IN
Member Since: 23 Sep 2017 | Total Posts: 1

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