MSME Form 1 – Return and Compliance Related to Micro and Small Enterprise

MSME Form 1 – Return and Compliance Related to Micro and Small Enterprise

 In continuation of notification issued by Ministry of Micro, Small and Medium Enterprises dated 2^nd November, 2018 for filling of half yearly return by specified companies.

 MCA notification on date 22^nd 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 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 and genearal circular No. 01/2019  dated 21.02.2019. 

Date of Notification	Due Date
22nd January, 2019	21th February 2019
MCA extended due date of filling of MSME – 1 Return Circular No. 01/2019 dated 21.02.2019	Due date extended for filling of initial return i.e from the date of deployment of e-form on MCA portal. The e form MSME Form available from 01.05.2019 and due date for filling initial return is 30 Days from 01.05.2019 i,e 30th May 2019.

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 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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