MSME-1
Ministry of Corporate Affairs vide notification dated 22nd January, 2019 issued an order named as Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019.
So, Order provides an add-on compliance for the specified companies with the existing compliance.
1. Specified Company:-All companies, who get supplies of goods or services from micro and small enterprises and whose payments exceed 45 days from the date of acceptance or the date of deemed acceptance ofthe goods or services.
2. Initial Return: Every specified company shall file Form MSME-1 mentioning details of all outstanding dues to Micro or small enterprises suppliers existing on the date 22nd January, 2019 within 30 days thirty days from the date of deployment of said form on MCA portal, i.e. 30th May, 2019
3. Half Yearly Return – Every specified company shall file a half yearly return in Form MSME-1by 31st October for the period from April to September and by 30thApril for the period from October to March stating the following:
(a) the amount of payment due; and (b) the reasons of the delay.
Crux of the Matter:- If any company gets goods or hires services from Micro and Small Enterprises and payment has been lagged for more than 45 days then Company have to file an Initial Return for all dues existing on the date of 22nd January, 2019 in Form MSME-1 till 30th May, 2019 and a Half Yearlyreturn by 31st October and 30th April every year.
Pre- Requirement for filing the form
1. CIN of the company
2. PAN of the company
3. Total outstanding amount due as on 22nd January, 2019
4. Name of suppliers
5. PAN of suppliers
6. Amount due and date from which the amount is due
7. Reasons for delay of the payment
8. DSC of a director
FAQ’s
1. Why MSME-1?
Ø To give boost to the business of Micro Small Enterprises and to provide them timely payment for their services rendered.
2. Is there any exemption to any companies?
Ø Medium Enterprises are exempted that means if any company purchases goods or hires services from Medium Enterprises then they are exempt from filing the Form MSME-1.
3. Time period within which MSME-1 for initial return shall be filed.
Ø 30 days i.e. till 30th May, 2019.
4. What do we mean by date of deemed acceptance?
Ø Date of acceptance means the day of the actual delivery of goods or the rendering of services, where no objection is made in writing by the buyer regarding acceptance of goods or services within fifteen days from the day of the delivery of goods or the rendering of services.
5. What do we mean by date of acceptance?
Ø Day of acceptance means:
(a) The day of the actual delivery of goods or the rendering of services; or
(b) Where any objection is made in writing by the buyer regarding acceptance of goods or services within fifteen days from the day of the delivery of goods or the rendering of services, the day on which such objection is removed by the supplier.
6. How to identify supplier is a MSME?
|
Enterprises |
Investment in plant & machinery |
Investment in equipments |
|
Micro Enterprises |
Max Rs. 25 lakh |
Max Rs 10 lakh |
|
Small Enterprises |
More than Rs. 25 lakh but does not exceed Rs. 5 crore |
More than Rs 10 lakh but does not exceed Rs 2 crore |
|
Medium Enterprises |
More than Rs. 5 crore but does not exceed Rs.10 crore |
More than Rs 2 crore but does not exceed Rs 5 crore |
So, this is the best way to give more power and encouragement to Micro and Small enterprises as the lag in payment will get under the radar of the government.
From above it is very clear that companies should look at each and every aspect of the order before reporting.
E-form MSME-1 is available on MCA Portal for filing purpose.
For Ready Reference : mca.gov.in/MSMESpecifiedCompanies
For any Queries or suggestions do reach out at
arpit959@gmail.com