MSME-1

Overview

MSME-1 is a return form newly introduced by MCA. This form is required to be filed by company which has purchased goods/ services from micro and small enterprises and payment against such goods/services is outstanding for more than 45 days from the date of receiving goods/services. This return is required to file with the ROC on half yearly basis by the company.

What is Micro & Small Enterprises?

Micro and small enterprises include Company, Partnership concern, AOP, HUF, Cooperative Society, Proprietorship Concerns which fulfills following criteria:

Msme-1 is applicable to only to Micro and small enterprises and not medium level.

Procedure of Filing MSME-1 Return

• Download form MSME-1 from MCA portal.
• Fill the form through prefill after entering CIN of the company and enter details of each MSME creditors in the form.
• Reason for delay of payment to be specified.
• Affix required attachments.
• Submit after check form and pre scrutiny with directors DSC.
• Upload the form after paying prescribed fees on the MCA portal.

Types of Return

There are two types of MSME-1 return which are:

• Initial one time return: This return is required to be filed by companies within 30 days of publication of order by MCA (date of order is 22.01.2019) in form MSME-1 disclosing outstanding amount towards MSME enterprise.
• Half yearly return: Every specified companies are required to file this return on half yearly basis on or before the prescribed due date disclosing outstanding amount towards MSME enterprise during that period.

Due Date of Filing Return

The company shall file MSME-1 return in case of one time return within 30 days of publication of order by MCA i.e. on or before 22.02.2019.

Regular half yearly return due dates are:

• For first half of the year (i.e. from 1st April to 30th September) on or before 31st October.
• For second half of the year (i.e. 1st October to 31st March) on or before 30th April.

Particulars

Fees in case of companies having share capital are:

• CIN of the company.
• PAN of the company.
• Particulars of the suppliers and amount due.
• PAN of the supplier.
• Total outstanding amount of the company towards MSME supplier.
• Reasons for delay in payment of amount by the company.

Specified Companies

A Company fulfilling both conditions mentioned below is required to file MSME-1 return:

• The company which has purchased goods/services from micro or small enterprises.
• The payment of amount towards that purchase is outstanding for more than 45 days.

ATTACHMENT OF DPT-3

• DSC of directors.
• Attachment of creditors list who are MSME and have certificate of the same and the payment is due for more than 45 days along with Reasons for Delay.

Consequences of Non-Filing

In case of default in filing by the company the following punishment shall be applicable:

• For company: Fine up to Rs. 25000.
• For officer of company in default: Fine of Rs. 25000 but which may extend to Rs. 3 lakh or imprisonment for a period which may extend to 6 months or with both.