MSME Form-1 - applicability and Requirements
Form MSME-1 is a mandatory filing requirement introduced by the Ministry of Corporate Affairs (MCA) in response to a notification issued on 22 January 2019. The purpose of this form is to ensure transparency and timely payments to Micro, Small, and Medium Enterprises (MSMEs). Companies falling under specific criteria are obligated to furnish details of outstanding dues to MSMEs through this form. Here are key points regarding Form MSME-1:
Who Should File Form MSME-1?
Companies meeting the following criteria must file Form MSME-1:
- Obtaining Goods or Services from MSMEs: Companies that procure goods or services from MSMEs.
- Payments Exceeding 45 Days: Companies whose payments to MSMEs exceed 45 days from the date of acceptance or deemed acceptance of the goods or services.
Purpose of Filing Form MSME-1:
The filing of Form MSME-1 aligns with the provisions of the MSME Development Act, 2006, emphasizing timely payments and penal interest for delays. It aims to reinforce compliance with Section 15 of the Act, which stipulates the maximum credit period.
Details to be Reported:
Companies filing Form MSME-1 must provide the following details:
Company Information:
- Company Identification Number (CIN) and PAN of the company.
- Name, address, and e-mail of the company.
MSME Supplier Information:
- Name and PAN of the MSME suppliers.
Details of Outstanding Dues:
- Outstanding amount due against the supply of goods or services.
- Date from which the amount is due.
Reason for Delay:
- Companies must state the reason for the delay in payment.
Due Dates for Filing Form MSME-1:
Form MSME-1 is a half-yearly return, and companies must adhere to the following due dates:
- 30 April: For the October-March period.
- 31 October: For the April-September period.
Non-Compliance Consequences:
Failure to comply with filing MSME-1 may result in penalties under Section 405(4) of the Companies Act, 2013. Penalties include:
-
Recent Posts
.jpeg)
