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^ndNovember, 2018 for filling of half yearly return by specified companies.

MCA notification on date 22^ndJanuary 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:

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.

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 :

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.

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 [email protected] , Cell No. +91 94282 28267.

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