MCA vide Notification dated 22nd January, 2019 directed that 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 (27 of 2006) (hereafter referred to as “Specified Companies”), shall submit a half yearly return to the Ministry of Corporate Affairs stating the following:
(a) the amount of payment due; and
(b) the reasons of the delay;
Meaning of Specified Company:- Specified Companies mean 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.
Micro & Small Enterprises means class or classes of enterprises (including companies, Partnership firm, Association of Person, Hindu Undivided family, Co-operative Society, Proprietorship Firm, other entities etc) as per below mentioned criteria:
| Composite Criteria: Investment and Annual Turnover | ||
| Classification | Micro | Small |
| Manufacturing and Services | Investment < Rs. 1 cr.
and Turnover < Rs. 5 cr. |
Investment < Rs. 10 cr.
and Turnover < Rs. 50 cr. |
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.
Day of Deemed Acceptance means 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.
Every Specified Company are required to file MSME Form I i.e. Form for furnishing half yearly return with the registrar in respect of outstanding payments to Micro or Small Enterprises by 31st October for the period from April to September and by 30th April for the period from October to March.
Information to furnish in MSME Form I
- Name of Suppliers
- PAN of Suppliers
- Amount due
- Date from which amount is due
- Reason of delay
Points to kept in mind while filing MSME return: –
- Ensure that the supplier should be registered as MSME or ask for registration certificate before filing the return.
- MSME-1 is not applicable to Medium Enterprises.
- Trading enterprises are not covered under MSME Act.
- Maximum 99 entries can be furnished in a Form. In case you have more than 99 entries, file another form.
Penalty Provision: –If any company fails to file MSME-1 within 30 days or knowingly furnishes any information or statistics which is incorrect or incomplete in any material respect, the company shall be punishable with fine which may extend to twenty-five thousand rupees and every officer of the company who is in default, shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to three lakh rupees, or with both.
