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Posted on April 22, 2022
About Form MSME in ROC with Filing Procedure
MSME stands for Micro, Small, and Medium Enterprises. The Ministry of Corporate Affairs (MCA) on the 22nd of January 2019, notified that all the companies which are having payments outstanding to MSME Enterprises should file all the particulars of the current outstanding dues using Form MSME-1. And this filing shall be comprised of two parts namely initial returns which are made using form MSME-1 and the half-yearly returns which are made using the Form MSME-2.
Aadhaar Card and PAN Card are the only documents required for MSME registration. MSME registration is fully online and no proof of documents is required. PAN and GST linked details on investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the Government databases. It applies to dues to only Micro or Small Enterprises and not Medium. In case there all payments due to micro or small enterprises are made before 45 days period, then Form is not required to be filed.
Micro, Small, and Medium Enterprises refer to any class or classes of enterprises, whether proprietorship, Hindu Undivided Family (HUF), Association of Persons (AOP), co-operative society, partnership firm, company, or undertaking, or as any other or such other name assigned to it.
And if such enterprises are in the manufacturing or the production of goods then it shall satisfy the following conditions:
manufacturing enterprises, to be classified as micro, must have invested INR 25 Lakhs or lower. On the other hand, enterprises of the service sector must have invested a sum of INR 10 Lakhs or lower in equipment for being eligible to receive such classification.
manufacturing enterprises would be classified as small for this purpose if their investment in Plant and Machinery exceeds INR 25 Lakhs but is limited to INR 5 Crores. On the other hand, enterprises in the service sector would be classified as small if their investment in equipment exceeds INR 10 Lakhs but is limited to INR 2 Crores.
Companies Specified and required to File Form MSME
All the specified enterprises are required to file from MSME, and this shall include all companies which are getting goods or services from micro and small enterprises. This specifically is for those companies which have not made the payment to the MSME for more than 45 days from the date of acceptance of goods or services. And these companies shall be required to file half-yearly returns with MCA stating the particulars regarding the outstanding amounts to be paid to MSME registration along with the proper reasons for such delay being caused for making payments to the MSME.
Responsibilities held by the Specified Companies
Firstly, the company should check if any enterprises from which they have availed the supply of goods or services are registered under the MSME Act or not. And if any of the enterprises are registered, and the payments to such enterprises has been delayed for a period of more than 45 days, the company should either pay off such dues or file a return with MCA in Form MSME stating the amount which is due along with the proper reason for such delay. The particulars of liability shall specifically include the following:
– The total outstanding amount due to the supplier of goods and services
– Name of the supplier
– PAN of the supplier
– Date from which the liability is due
– Reason for the delay in payment of the amount due.
Procedure for Filing
- Firstly the company should identify the MSME registered suppliers and ask for their registration certificate.
- And if there are any such suppliers who are Registered under MSME Act and if the payments to them are due for more than 45 days from the date of acceptance of the goods and services, then details of such suppliers shall be furnished in Form MSME-1.
Meaning of ‘Day of Acceptance’
(a) The day of the actual delivery of goods or the rendering of services; or
(b) Where any objection is made in writing by the buyer regarding the acceptance of goods or services within 15 days from the day of the delivery of goods or the rendering of services, then the day on which such objection is removed by the supplier.
Day of Deemed Acceptance
This means the day of the actual delivery of goods or the rendering of services, where no objection is made in writing by the buyer regarding the acceptance of goods or services within 15 days from the day of the delivery of goods or the rendering of services.
Due Date for Filing of MSME Forms
– In the case of a half-year period of non-remittance for the period of April to September, the due date for filing of returns shall be 31st of October.
– In the case of a half-year period of non-remittance for the period of October to March, the due date for filing of returns shall be the 30th of April.
Penalty for Non-Compliance
Any company which is committing a default pertaining to the filing of form MSME shall be levied with a fine of up to INR 25,000. Whereas the default committed by a Director, CFO or CS would qualify for an imprisonment term of up to 6 months or a fine ranging between INR 25,000 to INR 3 Lakhs.
|Classification||Ceiling on Investment in Plant and Machinery (in INR) for enterprises engaged in production, processing, or preservation of goods||Ceiling on Investment in equipment (in INR) for enterprises engaged in service sector|
|Micro||Below 25 Lakhs||Below 10 Lakhs|
|Small||More than 25 Lakh but does not exceed 5 Crore||More than 10 Lakh but does not exceed 2 Crore|