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REPORTING ABOUT MSME VENDORS IN MSME FORM-1

MSME Form 1, is a form for furnishing return with the ROC in respect of payments outstanding to micro or small enterprises. To protect the interest of small companies and business, Ministry of Corporate Affairs introduces this form. MCA emphasis on these compliances by all specified companies whether private or public.

 

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INTRODUCTION

  • MSME Form 1, is a form for furnishing return with the ROC in respect of payments outstanding to micro or small enterprises. To protect the interest of small companies and business, Ministry of Corporate Affairs introduces this form. MCA emphasis on these compliances by all specified companies whether private or public.

introduction

APPLICABILITY

  • It is notified by the central government wide notification number S.O 5622(E), dated 2nd November 2018, that all companies who receive goods or services from small and micro enterprises and whose payment to the suppliers of that enterprises exceeds 45 days from the date of acceptance or deemed acceptance(as per the provisions of section 9 of MSMED Act 2006) of goods and/or services shall file a return to Ministry of Corporate Affairs in MSME FORM 1, stating the amount of payment due and the reason of delay.

applicable

DUE DATES & TYPES OF RETURN

  • One time return or transitional return to be filed within 30 days of deployment of form on website.

  • Subsequent half yearly return

    a. For first half of financial year "April to September"- 31st October
    b. For second half of financial year "October to March"- 30th April

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PENALTY

  • Non filing of MSME Form 1 will lead to punishment and penalty under the provisons of section 405(4) of Companies Act 2013.

  • Penalty will be as follows-

    On Companies - upto rupees 25000
    2. On Directors, CS, CFO -- Imprisonment upto 6 months or fine of rupees 25000 to 300000 per person.

penalty

EXEMPTIONS

  • Form MSME 1 is not applicable in case of Medium enterprises.

  • 1. Medium enterprises are those whose investment in--

  • 2. Manufacturing Sector is more than Rs. 5 crore but does not exceed Rs. 10 crore

  • It means even if payment exceeds 45 days but the creditor or supplier give a declaration that they do not fall under micro or small enterprises than no need to file Form MSME 1

exemption

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