👍👍👍👍👍👍👍Complete Guidance on Form MSME-1

Clipped from: https://taxguru.in/company-law/complete-guidance-form-msme-1.html

As we all are aware that all the Companies are required to file two MSME-1 forms with the concerned authority i.e. Registrar of Companies.

Now, we understand which Companies are required to mandatorily file their Form MSME-1. 

All companies, who get supplies of goods or services from micro and small enterprises and whose payments to micro and small enterprise suppliers exceed forty-five days from the date of acceptance or the date of deemed acceptance of the goods or services as per the provisions of section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 (hereafter referred to as “Specified Companies”), shall submit a half yearly return.

Timeline of filing of Form MSME-1

a) For the period October to March- 30th April (Due Date)

b) For the period April to September- 31st October (Due Date)

Criteria for MSME

Definitions of 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) were earlier classified into two classes-

An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely:–

  • A Micro Enterprises- Investment in plant and machinery or equipment does not exceed 1 Crore AND Turnover does not exceed five Crore rupees.
  • A Small Enterprises- Investment in plant and machinery or equipment does not exceed 10 Crore AND Turnover does not exceed fifty Crore rupees.
  • A Medium Enterprises- Investment in plant and machinery or equipment does not exceed 50 Crore AND Turnover does not exceed two hundred fifty Crore rupees.

The limit for investment in plant and machinery / equipment for manufacturing / service enterprises, are as under:

ClassificationInvestment LimitTurnover
MicroLess Than INR 1 CroreLess Than INR 5 Crore
SmallINR 1 To 10 CroreINR 5 To 50 Crore
MediumINR 10 To 50 CroreINR 50 To 250 Crore

The term “AND” is used between the two conditions. Therefore, an enterprise should satisfy both the conditions to qualify to a Micro, Small or Medium enterprise as the case may be.

Details Required for filing the Return in the form MSME FORM I:

(a) Total outstanding amount due from April to September or October to March as the case may be

(b) Particulars of the name of suppliers and amount of payments due

  •  Financial Years/Particulars
  • Name of Suppliers
  • PAN of Suppliers
  • Amount Due
  • Specify the date from which amount is due

(c ) Reasons for Delay in amount of payments due

Fees for filing of Form MSME-1

There is no such fee for filing of form MSME-1 and also there is no additional fee after due date for filing of form MSME-1.

Attachments for Form MSME-1

There is no such mandatory attachment for form MSME-1.

Non-Compliance of filing of Form MSME-1

Penalty: 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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s