Everything You Need to Know About ROC Form MSME-1

In a notification issued in 2019 by the Ministry of Corporate Affairs (MCA), certain companies with outstanding dues to Micro, Small, and Medium Enterprises (MSMEs) are required to file the details of all such outstanding amounts in Form MSME-1 (a half yearly form) with the Registrar of Companies (ROC).

Filing the Form MSME-1 ensures that the small-scale business gets regular payments from its clients. The form works as a compliance tool under the MSME Act, 2006, which encourages accountability and transparency in the business.

There are no fees for filing the form.

Important Due Dates

Key Changes

The form must be filed for payment due to Micro or Small Enterprises if:

• They have an outstanding balance for a period exceeding 45 days from the date of acceptance of goods or services.
• The due amount is paid after 45 days
• Even if there is no outstanding balance at the respective half years, the form will still be filed if any payment during that period was made after 45 days from the date of acceptance.

Details to include in the MSME-1 Filing

• Supplier’s Name and PAN
• Amounts paid within 45 days
• Payments made after 45 days
• Dues that have been pending for 45 days or less
• Dues are pending for more than 45 days
• Explanation for any delayed payments

Penalty for Missing the Filing

• Failure to submit the form on time can lead to:
• A penalty of Rs. 20,000 on the company and the officer in default.
• A penalty of Rs. 1000 per day, up to a maximum of Rs. 3 lakh, will be levied if the delay continues