Know All About MSME-1 MCA Form By CS Aman Kumar


MSME-1 is a Form which comes into existence by a notification which is introduced by the Central Government, dated 22nd January 2019. The Notification is- “Specified Companies (Furnishing of Information about payment to Micro and Small Enterprise Suppliers) Orders, 2019”.
 
1. Why this Order Introduced by the Central Government???
 
The Ministry of Corporate Affairs (MCA) has issued a Notification dated 22nd January 2019 mentioning that all companies who get supplies of goods & services from micro & small enterprises and whose payment to Micro & Small Enterprise suppliers exceeds 45 days from the date of acceptance or the date of the deemed acceptance of the goods and services, as per the provisions of Section-9 of MSME Development Act, 2006, shall submit a half yearly return to the MCA stating the following:

  1. The amount of payment due and
  2. The reasons for the delay.
 
2. What is Specified Company???
 
  • Every Public or Private Company who Receive Goods and/or Services from MSME, Whose payment due or not paid till 45 days.
3. What are the steps to be taken by the Specified Enterprise???
 
  • First, they have to find out from their suppliers whether they are Registered under MSME Act then ask for submission of their Registration Certificate.
  • If there are any such suppliers who are Registered under MSME Act and if the payments to them are due for more than 45 days from the date of acceptance of the goods and services,  then we have to pay them their all dues immediately, otherwise the Specified Company shall be liable to file MSME Form I with details of all outstanding dues to Micro or Small Enterprise Suppliers existing on the date notification of this order within 30 days from the date of Publication of this Notification
4. Who falls under the purview of Micro or small enterprises???
 
• It may be any one of the following:

  1. Company
  2. Partnership Firm
  3. Association of Persons
  4. Hindu Undivided Family
  5. Co-operative Society
  6. Proprietorship.
 Who are registered under MSMED Act, 2006.

5. How to Identifying whether the Suppliers comes under Micro or Small enterprises or not???
 
  • If Company doesn’t know this then the company send their supplier a request letter and ask to inform whether they are registered under MSMED Act, 2006, If yes, then request them to send a confirmation letter along with duly attested copy of MSME Registration Certificate and PAN organization.
6. What are Micro, Small & Medium Enterprises???
   
  • In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are depicted below:

Manufacturing Sector

Service Sector

Enterprises

Investment in plant & machinery

Enterprises

Investment in equipment

Micro Enterprises

Does not exceed Rs. 25 Lakh

Micro Enterprises

Does not exceed Rs. 10 Lakh

Small Enterprises

More than Rs. 25 Lakh but does not exceed Rs. 5 Crore

Small Enterprises

More than Rs. 10 Lakh but does not exceed Rs. 2 Crore

Medium Enterprises

More than Rs. 5 Crore but does not exceed Rs. 10 Crore

Medium Enterprises

More than Rs. 2 Crore but does not exceed Rs. 5 Crore


*Medium Enterprises are not covered under this order

7. What is the Relevance of this order???
 
  • This measure has been taken by the Central government with respect to Section 9 of the MSME Development Act,2006 which states that- The Central Government may, from time to time, for the purposes of facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises, particularly of the micro and small enterprises, by way of development of skill in the employees, management and entrepreneurs, provisioning for technological upgradation marketing assistance or infrastructure facilities and cluster development of such enterprises with a view to strengthening backward and forward linkages, specify, by notification, such programmes, guidelines or instructions, as it may deem fit.
So, In Order to Promote the Micro & Small enterprises the Government has taken this Steps and we must welcome this initiative of the Government with true and spirit.

8. Which entities are not required to File MSME Form I??
 
  1. Companies who don’t have any outstanding dues to Micro or Small Enterprises.
  2. Companies who have outstanding dues to Micro or Small enterprises but they have paid the dues within 45 days or dues is within limited period .i.e. less than 45 days.
9. What are the details that are required while filing form MSME I with MCA??
 
• The details that will be required are:
  1. The amount of payment due; and
  2. Valid reasons of default.
10. What is the due date of Filing MSME Form I for the First Time???
 
  • Due date is 30 days of Publishing of the notification on Official Gazette; notification was published on 22nd January 2019.
Accordingly, the due date is 20th February 2019.

11. Due date for Subsequent Returns???
 
  • Subsequently, this return is to be filled Half Yearly and the due date is depicted in the diagram given below-
Encl: A sample of Letter of Request that will be forwarded by the Company to its Creditors.

                          Letter of Request
Date :                      
 
Dear Sir/Madam,
 
Sub: Micro, Small and Medium Enterprises Certificate

As per the Notification issued by the Ministry of Corporate Affairs on 22nd January 2019, you are requested to inform whether your organization is falling under MSME Category or not.
 
If yes, please send the confirmation letter along with duly attested copy of MSME Registration Certificate and PAN latest by 8th February 2019.
 
If no communication is received by us within that date, we will consider that your organization does not fall under MSME Category.
 
Please treat the matter as URGENT!
 
Regards,
 
For ……………………………..Limited
 
 
 
Authorized Signatory

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