All about MSME Form 1

https://www.fundstiger.com/msme-form-1/

The Ministry of Corporate Affairs (MCA), on the 22nd of January 2019, notified a requirement to companies that have outstanding to MSME enterprises to file the particulars of all current outstanding dues to the concerned Micro and Small Enterprises in Form MSME 1. The filing of such returns comprises of two parts, namely initial returns (MSME-1) and half-yearly return (MSME-2). MSME-1 must be filed within 30 days of the issue of the notification, which to be precise was the 21st of February, 2019. This due date was then extended and now the present due date is within 30 days of the form being made available by the MCA.

What is MSME Form 1 (MCA)?

The MSME I Form is for the payment of half yearly return with the Registrar of Companies (ROC) in context of the outstanding payments to Micro or Small Enterprises.

A half-yearly return is required to be submitted to the Ministry of Corporate Affairs on a mandatory basis, by all those companies who receive supply of goods or services from Micro or small enterprises and the payment done to these micro and small enterprise suppliers exceeds forty-five days from the date of acceptance (or deemed acceptance) of the relevant good or services.

The following points should be stated in it:

• The amount of payment due and
• The reasons for the delay

Following the provision of section 405 of the Companies Act, 2013, (18 of 2013) the Central Government made it necessary for all the “Specified Companies” to furnish the above-notified information about the payment to micro and small enterprise suppliers.

Specified Companies are those companies who receive the supply of goods or services from MSMEs and the payment against these supplies to the suppliers of these MSMEs exceed 45 days from the date of acceptance (deemed acceptance) of the goods or services

Applicability on Companies

As per a notification issued by the MCA it has been mandated to file disclosures through Form MSME I for every type of the Company – Public or Private Company, Micro or Small Companies; the Company that satisfies the following two conditions:

Condition 1: Company must have received Goods and/or Services from Micro or Small Enterprise

Condition 2: Payment must have been due/not paid, to such Micro and Small Enterprise for 46 days from the date of acceptance

Key points of Form MSME-I

1. It applies to dues to only Micro or Small Enterprises and not Medium.

2. The dues shall be accrued for more than 45 days and accordingly, the reporting has to be made for amount of payment due and reasons for such delay. In case there all payments due to micro or small enterprises are made before 45 days period, then Form is not required to be filed.

3. Nil return is not compulsory.

4. Re-reimbursement of expenses not covered under MSME.

5. Companies shall take confirmation/declaration from suppliers whether they fall under MSME or not.

Documents Required

1. Aadhaar card of Applicant
2. Pan Card of applicant in case of proprietor Or Company/firm Pan Card in Case of Company/firm
3. Bank Account Details
4. Office and Plant Locations address and proof.
5. AOA and MOA
6. Bills of the equipment and the machinery.

10 Steps to File Form MSME 1:

1. Once you have downloaded the form from the MCA portal, open the form and select whether the filing is being done for initial return or for regular half yearly return.

2. Once purpose of the form is selected, enter CIN of the Company and click on the prefill button.

3. Once clicked on pre-fill button, the system shall automatically display the name, address of registered office, and email ID of the Company. However, you can edit the e-mail ID of the Company and enter a revised one.

4. Enter the total outstanding amounts due as on date of notification of this order i.e. 22nd January, 2019.

5. After entering the outstanding amount, enter the number of entries i.e. number of suppliers whose amount is due including other details such as name, PAN, amount due towards supplier, financial year from and to which such amount relates.

6. It is mandatory to state the reason for the delay in making the payments due to the supplier.

7. There are no mandatory attachments required in case of filing of Form MSME I. However it is recommended to attach any proof of amount due to such supplier such as invoice or cash memo supporting the information filed in the form and to further avoid any kind of discrepancy.

8. Enter the designation (Director, Manager, Company Secretary, CEO, and CFO) of the person digitally signing the form and enter DIN/PAN accordingly.

9. Click on Check Form. Affix digital signature and then click on pre-scrutiny.

10. Once the Form is pre-scrutinized, file the same on MCA portal.

Due Date for Filing Form MSME-1

Initially, One-time return was required to be filed within 30 days of publication of this order i.e. 21stFebruary, 2019.

But since the form was not available on the MCA portal, now the form must be submitted within 30 dates from the date of its deployment on MCA portal i.e. from 1st May (as per the extended circular of MCA dated 21.02.2019).

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

Penalty for Non-Compliance

Any company defaulting under these provisions would be forced to remit a fine of up to Rs. 25,000; whereas the defaults of a Director, CFO or CS would qualify for an imprisonment term of up to six months or a fine ranging between Rs. 25,000 to Rs. 3,00,000.

FundsTiger can arrange loans from all above mentioned banks you can apply for an attractive offer with best possible Rate of Interest and Terms for Personal Loan, Business Loan, Home Loan and Car Refinance Loan.

FundsTiger is an Online Lending Marketplace where you can avail fast and easy Home, Business and Personal Loans via 30+ Banks and NBFCs at best possible rates. We will also help you to improve your Credit Score. We have dedicated Relationship Managers who assist you at every step of the process. We can also help you in Balance Transfers that will help you reduce your Interest Outgo