MSME Form 1 – A new Hope for MSME

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  • 5 May 2019
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MSME Form 1 – A new Hope for MSME
5 May

In exercise of powers conferred under Section 9 of the Micro, Small and Medium Enterprises Development Act, 2006, the Central Government 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 the Micro, Small and Medium Enterprises Development Act 2006, shall submit a half yearly return to the Ministry of Corporate Affairs stating the following:

  1. the amount of payment due and
  2. the reasons of the delay;

 

Definitions of Micro and Small Enterprises

Classification

Manufacturing Sector

Investment in Plant and Machinery

Service Sector

Investment in Equipment

Micro Enterprises

Upto Rs. 25 Lakhs

Upto Rs. 10 lakhs

Small Enterprises

More than Rs. 25 Lakhs but does not exceed Rs. 5 crores

More than Rs. 10 Lakhs but does not exceed Rs. 2 crores

If you are not registered as Micro Small and Medium Enterprises, CLICK HERE to register yourself as MSME

 

Liability of Filing MSME Form-1

 

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 the Micro, Small and Medium Enterprises Development Act 2006, shall submit a half yearly return to the Ministry of Corporate Affairs.

 

Due Date for filing Form MSME-1

Due date of subsequent returns is mentioned below:

For Half year period ‘April to September’ – 31st October

For half year period ‘October to March’ – 30th April

 

Documents Required for Filing of Form:-

The following documents / information is required to file e-form MSME Form-1

  1. Corporate Identification Number (CIN)
  2. Permanent Account Number (PAN)
  3. Initial return of outstanding dues to Micro or Small Enterprises Suppliers.
  4. Total outstanding amount due as on date
  5. Particulars of the name of suppliers and amount of payments due
  6. Name of Supplier
  7. PAN of Supplier
  8. Amount Due
  9. Reasons for delay in amount of payments due
  10. Digital Signature of Director / CEO / Company Secretary

 

CONSEQUENCES FOR NON- FILING

If any company who is required to file e-form MSME-1 or furnishes any incorrect / incomplete information in any material respect, the company shall be punishable with fine which may extend to Twenty-Five Thousand Rupees and every officer of the company who is in default, shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than Twenty-Five Thousand Rupees but which may extend to Three Lakh Rupees, or with both.

 

Relevant Provisions:-

Section 15 of the Micro, Small and Medium Enterprises Development Act, 2006:-

Liability of buyer to make payment—where any supplier, supplies any goods or renders any services to any buyer, the buyer shall make payment therefore on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day:

Provided that in no case the period agreed upon between the supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance.

 

Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006:-

Where any buyer fails to make payment of the amount to the supplier, as required under section 15, the buyer shall, notwithstanding anything contained in any agreement between the buyer and the supplier or in any law for the time being in force, be liable to pay compound interest with monthly rests to the supplier on that amount from the appointed day or, as the case may be from the date immediately following the date agreed upon, at three times of the bank rate notified by Reserve Bank.

 

Section 17 of the Micro, Small and Medium Enterprises Development Act, 2006:-

For any goods supplied or services rendered by the supplier, the buyer shall be liable to pay the amount with interest thereon as provided under section 16.

 

Section 405 of the Companies Act, 2013:-

  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:
  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.

 

Want to get assistance in filing eform MSME-1, CLICK HERE.

If you want to recover your legitimate dues / long pending dues, CLICK HERE. 

 

 

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