• MSME- Micro Small and Medium Enterprise

• Filing of Form MSME-1 is applicable to Micro and small enterprises only

• Frequency of Reporting- Half Yearly

Micro Enterprise

• If engaged in manufacturing of goods or providing services, investment should be less than 1 crore and turnover should be less than 5 crores.

Small Enterprise

• If engaged in manufacturing of goods or providing services, investment should be less than 10 crores and turnover should be less than 50 crores.

Which Companies required to file Form MSME- 1?

All Companies including foreign company Who:

a) Get supplies of goods or services from micro and small enterprises and

b) Whose payments to micro and small enterprise suppliers exceed forty-five days from the date of acceptance or from the date of deemed acceptance of the goods or services.

Date of Acceptance:

I. The day of actual delivery of goods or the rendering services or

II. Where any objection is made in writing by the buyer regarding the acceptance of goods or services within 15 days from the delivery of goods or the rendering of services, the day of the actual delivery of goods or the rendering of services.

Date of Deemed Acceptance:

I. Where no objection is made in writing by the buyer regarding acceptance of goods or services within 15 days from the day of the delivery of goods or the rendering of services, the day of actual delivery of goods or the rendering of services

Details that are to be stated in the return

• Name, PAN of Supplier

• Amount due and period from which the due is outstanding

• Reasons for delay in payment of amount

• Director, Manager, Secretary, CEO, CFO has to sign the return digitally

Penalties and Statutory Dues

• No need to pay any fees for filing the return

• The company shall be punishable with fine which may extend to twenty-five thousand rupees

• Every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to 6 months or with fine which shall not be less than twenty-five thousand rupees but which may extend to three lakhs, or with both

Note: The company is required to provide the details of only those suppliers to whom the payment is outstanding as on 31st march or 30th September.
Because of COVID 19, Due date for filing half yearly return for the period October 2019 to March 2020 extended from 30th April, 2020 to 31st October, 2020.

Disclaimer:“The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation.”