Return of Outstanding Payments to Micro or Small Enterprise (MSME)
Return of MSME
₹
1,500/-*
₹
- Statutory Fees including Additional Fees, Penalty in course of Filing of Form MSME-1 is not included in the above amount.
- Any advice given to the Client is only an opinion based on our knowledge of the Client’s particular circumstances.
- The client will be responsible for verifying the information contained in such returns and/or filings prior to approving/signing such return/filing.
- Fees Should be paid according to conversation held between the Legal Parivar Team and Client.
FORM MSME-1
As of January 22, 2019, the Ministry of Corporate Affairs (MCA) has mandated that certain companies with pending payments to Micro, Small, and Medium Enterprises (MSMEs) must submit details of their current outstanding dues using Form MSME-1 to the Registrar of Companies (ROC).
Companies are required to ascertain whether their suppliers are registered under the MSME Act, 2006. If the suppliers are MSME-registered and there are unsettled dues from the company to these MSME suppliers, the company is obligated to file Form MSME-1.
The MSMED Act of 2006 enhances provisions related to delayed payments to Micro, Small, and Medium Enterprises (MSMEs) by specifying maximum credit periods and penal interest for payment delays. In cases where companies experience delays in payment, it is mandatory for them to provide reasons for such delays in their financial statements.
Section 15 of the MSMED Act stipulates that when suppliers render services or supply goods to a buyer, payments should be made by the agreed-upon date or, in the absence of an agreed date, before the appointed date—defined as fifteen days from the date of acceptance.
Furthermore, Section 15 establishes that the credit period granted by the seller should not exceed 45 days from the acceptance date or the date of deemed acceptance. In reinforcement of this provision, the Ministry of Corporate Affairs (MCA) introduced Form MSME-1. Companies acquiring services or goods from an MSME supplier and having outstanding payments for more than 45 days are obligated to disclose this information to the Registrar of Companies (ROC) by filing the MSME-1 return.
The MSME-1 return is a semi-annual filing required of specified companies to disclose their outstanding payments to MSMEs. This facilitates the ROC in monitoring companies with pending dues to MSMEs and MSME suppliers awaiting payments.
It’s important to note that companies are only required to file this return if they have outstanding payments to MSME suppliers exceeding 45 days. If there are no outstanding amounts with MSME suppliers, companies are not obligated to file a ‘Nil MSME-1 Return.’
Who Should File MSME-1 Return ?
Companies falling under the category of “specified companies” are required to submit Form MSME-1 in instances where payments to Micro, Small, and Medium Enterprises (MSME) are overdue for more than 45 days from the date of accepting the services or goods.
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.
Due Date for Filing Form MSME-1
MSME-1 is a half-yearly return that the specified companies must file with the MCA. Due dates for filing Form MSME-1:
- 30th April For October-March period
- 31st October For April-September period
Non Filing of Form MSME-1
Failure to adhere to the MSME-1 filing requirement by the designated companies will result in penalties under Section 405(4) of the Companies Act, 2013. According to Section 405(4), a company and every officer in default will face a penalty of Rs.20,000 if they neglect to file MSME-1. In the event of persistent non-compliance, the company and every officer in default will incur an additional penalty of Rs.1,000 for each day the failure persists, with a maximum cap of Rs.3 lakh.