Avoid heavy penalties and file MSME Form I applicable to all Specified Companies


Avoid heavy penalties and file MSME Form I applicable to all Specified Companies Mandatory filing of MSME Form I announced vide Companies (Furnishing of information about payment to MSME suppliers) Order, 2019 dated January 22nd, 2019. Applicability : Applicable on Every Company ?Public or Private? who Received Goods or Services ‘from’ Micro or Small Enterprises ‘of which’ Payment Due or Not Paid till 45 days Two Types of Returns to be filed by above ?Specified Companies? : ? One Time Return to be filed by 20th February, 2019 ? (within thirty days from the date of publication of this notification (?i.e., January 22, 2019?) ? Half Yearly Return

Avoid heavy penalties and file MSME Form I applicable to all Specified Companies

Every specified company shall file a return as per MSME Form I annexed to this Order, by October 31 for the period from April to September and by April 30 for the period from October to March. Details to be filed : Outstanding payments to MSME for more than 45 days from the date of acceptance or deemed acceptance of goods or/and services. The Companies who have no outstanding payments to MSME or such outstanding payments are for not more than 45 days are not required to file this form. DETAILS AND DOCUMENTS TO BE ENCLOSED WITH THE FORM INITIAL RETURN: 1. The total outstanding amount, 2. Details of suppliers and payments due (PAN of Suppliers) 3. Reasons for delay in payment Penalty Provision If the said details are not submitted to MCA on or before 20/02/2019 or the information submitted is incorrect or incomplete following consequences follow: Fine On Company ? up to Rs. 25,000 On Directors, CFO and CS – Imprisonment up to 6 Months or Fine not less than Rs. 25,000 up to Rs. 3,00,000 per person Definition of MSME:- The Micro Small & Medium Enterprises (MSMEs) are defined in India under the MSME Act 2006 as below: Manufacturing units having investment in plant and machinery below Rs 25 lakh are termed as Micro, those between Rs 25 lakh and Rs 5 crore termed as Small and those between Rs 5 crore to Rs 10 crore as Medium. Service units having investment in equipment up to Rs 10 lakh are termed as Micro, between Rs 10 lakh to Rs 2 crore Small and between Rs 2 crore to Rs 5 crore Medium. What needs to be done? In order to avoid heavy penalties file your one time return MSME Form I as soon as possible but latest by 20th February, 2019. You can file the Half yearly returns by April 30th, 2019 and October 31st, 2019 respectively. Sources for your ready reference: 1. www.mca.gov.in , www.msme.gov.in www.msmeregistration.org 2. MCA Notification dated January 22, 2019 3. MSMED Notification dated November 2, 2018. In case of you have any questions please feel free to write to [email protected]

Deepak Gupta

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