Filling of MSME Form 1
The MSME Form 1 has been notified by the Ministry of Corporate Affairs for Companies to file their half yearly return to ROC (Registrar of Companies) specifying the outstanding amount they own to Micro, Small and Medium Enterprises. This has been laid for protection of the interest of MSME business groups for speedier processing of their delayed payments by companies and to levy more strict reporting provisions on them.
All companies, receiving supplies from MSMEs for which payment dues exceed for more than 45 days from the date of acceptance or deemed acceptance of the goods(as stated in section 9 of the MSMED Act 2006 ) shall have to file MSME form 1.
The return shall comprise of:
– The number of payments due to MSME entities.
– The reasons for the delay of such payment
According to provisions of Section 405 of the Companies Act, 2013, the Central Government states the necessity for filling of MSME Form 1 by Specified Companies as defined in the act and making of the following order called Specified Companies (Furnishing information about payment to MSME suppliers) Order, 2019.
Details to Mention in MSME Form 1
Furnishing MSME form 1 return to ROC, the company shall supply the following information:
– Particulars of MSME Suppliers (Name and PAN Details of Suppliers)
– Summary of the number of payment dues
– Financial years/particulars
– Date from which the amount is due.
The due date for filling MSME Form 1
Every Company shall have to file its initial return in MSME Form 1 within 30 days of the availability of the form on the MCA common portal. While the due date for filling the 2nd half yearly returns for the period from April to September is 31st October and for the period of October to March is 30th April.
Penal Provisions of Non-filling MSME From 1
To draw attention on the filing provisions of MSME Form 1 by specified companies the following penalties have been stated to be applied for non-compliance of Section 405 return provisions:
– If Company found in default of non-filling or delayed filling – Penalty shall be levied up to a maximum of Rs 25,000.
– If Director, CFO, CS, or any other member found in default – Imprisonment for up to 6 months or penalty of not fewer Rs 25000 up to a maximum of Rs 3,00,000 shall be levied.
Conclusion
Filling of MSME Form 1 is mandatory compliance for all companies to be filed before the stated due date. Any delay in filling or non-compliance to provisions of the Companies Act, 2013 related to MSME Form1 return will attract strict penalties on the companies and its officials.
Do you seek assistance on filling company returns?
Email us your concern at info@cs-india.com