Form - MSME-1
On 1st May 2019, the Ministry of Corporate Affairs (“MCA“) had released e-form MSME 1 (“MSME 1“), where all companies who are obtaining supplies of goods/ services from micro and small enterprises and whose respective payments towards such enterprises exceeding 45 days from the date of acceptance or the date of estimated acceptance of such products or services are required to file MSME 1, by 30th May 2019.
Form MSME-1- An Overview
The MSME 1 Form 1 is introduced by MCA in order to provide information on the payment made on a half-yearly basis regarding the outstanding payments to Micro or Small Enterprises for a period beyond 45 days with the Registrar of Companies (ROC). However, MSME 1 Form this is applicable to only micro and small enterprises and not to medium enterprises
A half-yearly return is needed to be submitted to the Ministry of Corporate Affairs on a compulsory basis, by all those specified corporations who receive the supply of goods/ services from Micro or small businesses and the payment made to these micro as well as small enterprise suppliers had exceeded 45 days from the date of acceptance (or deemed acceptance) of the related goods or services.
In the MSME Form 1, some of the important details must be stated which includes:
- The amount of payment due
- The reasons for the delay
According to Section 405 of the Companies Act, 2013, the Central Government had made it essential for all the “Specified Companies” towards furnishing the above-notified information relating to the payment to micro and small enterprise suppliers.
applicability OF - Form MSME-1
According to a notification issued by the MCA it has been directed to file disclosures through MSME 1 Form for each type of the Company – Public or Private Company, Micro or Small Companies. The Corporation must satisfy the following two conditions:
Condition 1: the corporation must have received Goods and/or Services from Micro or Small Enterprise
Condition 2: Payment should have been due/not paid, towards such Micro and Small Enterprise for 45 days from the date of acceptance
Note: The date of estimated delivery refers to the acceptance of goods and services by the buyer in writing with no objection to the goods or services received within the 15 days’ time period.
Documents Required for Form MSME-1
- Aadhaar card of the individual
- Pan Card of the individual in case of proprietor Or Corporation/firm Pan Card in Case of Corporation/firm
- Bank Account Details
- Office Address as well as Plant Locations
- AOA and MOA
- Bills of the equipment as well as the machinery.
Frequently Asked Questions
Companies are required to furnish the following details through the MSME-1 Form:
• The amount of payment due
• The reasons for the delay
• Name of the Supplier
• PAN details of the supplier
• Date from which amount is due
– A specified Company under MSME Form-1 includes a Public or Private company who:
• Receives goods or services from Micro or Small Enterprises (MSME)
• The payment for such services is due to the enterprise exceeding 45 days