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:
|Micro||Less Than INR 1 Crore||Less Than INR 5 Crore|
|Small||INR 1 To 10 Crore||INR 5 To 50 Crore|
|Medium||INR 10 To 50 Crore||INR 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.