Form MSME 1 - MSME Half Yearly Return Filing
The Ministry of Corporate Affairs (MCA) issued a notification on 22 January 2019 that specific companies having outstanding dues to the MSME (Micro, Small and Medium) enterprises have to file the particulars of all current outstanding dues in Form MSME-1 with the ROC (Registrar of Companies).
Companies need to identify if their suppliers are registered or not under the MSME Act, 2006. When the suppliers are registered under the MSME Act, and there are outstanding dues by a company to the MSME suppliers, it must file Form MSME-1.
File your MSME 1 Return with the help of Team TAXAJ
It Usually takes 5 to 7 working days.
- Filing of Form MSME-1
- Companies want to comply to the MSME Norms by filing their half yearly return
- Purchase the plan
- Share the documents/details as requested by us.
- We shall prepare the documents as required & get signed by you.
- Prepare the form as applicable & file it.
- CIN and PAN of the company
- Name, address and e-mail of the company
- Name and PAN of the suppliers
- Outstanding amount due against the supply of goods or services
- Date from which the amount is due
- Reason for delay in payment of the amount due
When and why MSME 1 Form introduced by MCA?
On , the had released (), 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 , by .
What is Form MSME 1?
The 1 is introduced by 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, this is applicable to only micro and small enterprises and not to medium enterprises
A 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, some of the important details must be stated which includes:
• The amount of payment due
• The reasons for the delay
According to of the , the Central Government had made it essential for all the “” towards furnishing the above-notified information relating to the payment to micro and small enterprise suppliers.
Who should file Form MSME-1?
Specified companies should file Form MSME-1 when payments are due to MSME for more than 45 days from the date of acceptance of the services or goods, along with the reason for its delay. Specified companies are companies-
- That have obtained goods or services from the MSME.
- Whose payments to the MSMEs exceed 45 days from the date of acceptance or deemed acceptance of the goods or services.
Purpose of filing of Form MSME-1
The MSME Development Act, 2006 (MSMED) strengthens the provisions relating to delayed payments to the MSMEs by providing the maximum credit period and penal interest for delay in payment. When there is a delay in payment by the companies, they must mention the reason for such delay in their statement of accounts.
Section 15 of the MSMED Act states that where the suppliers render services or supply goods to any buyer, the buyers should make payment on or before the agreed date between them and the suppliers. When there is no agreed date for payment between the MSME supplier and buyer, the buyer must make payment before the appointed date. The appointed date means fifteen days from the date of acceptance.
Section 15 also states that the period of credit granted by the seller should not exceed 45 days from the acceptance date or date of deemed acceptance. To strengthen this provision further, the MCA introduced Form MSME-1. Every company that has obtained services or goods from an MSME supplier and has outstanding payment for more than 45 days must disclose it to the ROC by filing the MSME-1 return.
The MSME-1 is a half-yearly return that the specified companies need to file regarding their outstanding payments to the MSME. In this manner, the ROC can keep track of the companies that have outstanding dues towards MSMEs and the MSME suppliers who need to receive payments.
However, companies have to file this return only when they have payments outstanding for more than 45 days to the MSME supplier. The companies need not file a ‘Nil MSME-1 Return’ when there are no outstanding amounts with the MSME suppliers.
Details to be Reported in Form MSME-1
- CIN and PAN of the company
- Name, address and e-mail of the company
- Name and PAN of the suppliers
- Outstanding amount due against the supply of goods or services
- Date from which the amount is due
- Reason for delay in payment of the amount due
How to File Form MSME 1
→ Once the applicant has downloaded the form from the portal, the applicant must open the form and select whether the filing is being completed for initial return or for regular half-yearly return.
→ Once the applicant selects the purpose of the form, you are required to enter the CIN of the Company and click on the prefill button.
→ Once the applicant clicked on the pre-fill button, the system would automatically display the name, address of the registered office, as well as email ID of the Corporation. However, the applicant could edit the e-mail ID of the Corporation and enter a revised one.
→ The applicant then must enter the total outstanding sums due as on the date of notification of the said order i.e. 22nd January 2019.
→ After entering the outstanding sum, the applicant must enter the number of entries, that is a number of suppliers whose sum is due which includes additional details for example name, PAN, sum due towards the supplier, a fiscal year from and to which such amount relates.
→ It is compulsory to mention the reason for the delay in making the payments which are due to the supplier.
→ There are no compulsory attachments required for filing the . However, the applicant can attach any proof of sum due to such supplier for example invoice or cash memo supporting the information that is filed in the form in order to avoid any kind of discrepancy.
→ The applicant must enter the designation (Director, Manager, Company Secretary, CEO, and CFO) of the individual digitally signing the form and enter DIN/PAN.
→ Then you are required to click on Check Form. Affix digital signature and then click on pre-scrutiny.
→ When the is pre-scrutinized, the applicant must file the same on the portal.
Due Date for filing Form MSME-1
MSME-1 is a half-yearly return that the specified companies must file with the MCA. Below are the due dates for filing Form MSME-1:
| Due Date | Period for which MSME-1 is filed |
| 30 April | For October-March period |
| 31 October | For April-September period |
Non-Compliance for filing of Form MSME-1
Non-compliance with filing MSME-1 by the specified companies will attract a penalty under Section 405(4) of the Companies Act, 2013. As per Section 405(4), if any company fails to file MSME-1, the company and every officer in default will be liable to a penalty of Rs.20,000. In case of continuing failure, the company and every officer in default will be liable for a further penalty of Rs.1,000 for each day the failure continues, subject to a maximum of Rs.3 lakh.
