{"id":23153,"date":"2019-08-17T19:00:33","date_gmt":"2019-08-17T13:30:33","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=23153"},"modified":"2021-01-28T16:12:35","modified_gmt":"2021-01-28T10:42:35","slug":"msme-form-1","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/msme-form-1\/","title":{"rendered":"MSME Form 1: Mandatory Compliance for Specified Companies"},"content":{"rendered":"<p>MSME Form 1 is a mandatory compliance for specified companies. Specified Companies are types of companies as defined in Section 9 of the Micro, Small and Medium Enterprises Development Act, 2006  {MSMED Act}. These Specified Companies need to fill the MSME Form 1 on a half-yearly <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a> to the Ministry of Corporate Affairs {MCA}.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are Specified Companies?<\/h2>\n\n\n\n<p>Specified companies are companies that get their supplies in the form of goods or services from the Micro and Small Enterprises. Also, companies whose payments to the Micro and Small Enterprise suppliers ages more than 45 days from the date of acceptance\/date of deemed acceptance of the services or goods as per the regulations of Section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 {<strong>MSMED Act<\/strong><sup><a href=\"https:\/\/samadhaan.msme.gov.in\/WriteReadData\/DocumentFile\/MSMED2006act.pdf\"><strong>[1]<\/strong><\/a><\/sup>}. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">About MSME Form 1<\/h2>\n\n\n\n<p>MSME Form 1 is the form for furnishing half yearly return with the registrar concerning the outstanding payments to the <a href=\"https:\/\/enterslice.com\/msme-registration\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Micro and Small Enterprises (opens in a new tab)\">Micro and Small Enterprises<\/a>. Every specified company are required to submit a half-yearly return to the Ministry of Corporate Affairs {MCA} containing the following information;<\/p>\n\n\n\n<ul><li>The amounts of the due payments and, <\/li><li>The reason for the delay in payment<\/li><\/ul>\n\n\n\n<p>This form\nwas issued under Section 405 of the Companies Act, 2013.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">MSME Form 1 with Instruction Manual<\/h2>\n\n\n\n<p>MSME Form 1 issued as per Section 405 of the Companies Act, 2013 is given below;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/1.png\" alt=\"MSME Form 1 with Instruction Manual\" class=\"wp-image-23178\" width=\"705\" height=\"784\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/1.png 537w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/1-269x300.png 269w\" sizes=\"(max-width: 705px) 100vw, 705px\"\/><figcaption><strong><em>MSME Form 1<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What are the Responsibilities of the\nSpecified Companies?<\/h2>\n\n\n\n<p>First, the Specified\ncompanies need to identify whether their suppliers are registered under the\nMSME Act or not. If they are, then they need to check if there are any payments\ndue from their end for a period which exceeds 45 days from the date of the\nacceptance of the services or goods by such company. In that case, the company\nwould need to either close the due payments or file a return of the particulars\nof the liability stating the reason for the delay in the MSME Form 1. The specifics\nof the liability should include the following;<\/p>\n\n\n\n<ul><li>The total amount of the due payment on 22<sup>nd<\/sup> January 2019<\/li><li>The name of the supplier enterprise<\/li><li>PAN Card of the supplier enterprise<\/li><li>The date on which the liability started<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Small and Micro Enterprises<\/h2>\n\n\n\n<p>Micro and Small\nEnterprises are classes or types of enterprises. The names Hindu Undivided\nfamily {HUF}, Association of persons {AOP}, Co-operative society, partnership\nfirm, etc. is associated with such companies or undertakings. &nbsp;<\/p>\n\n\n\n<ul><li>Small Enterprises: Manufacturing units that have made a minimum\ninvestment of Rs. 25 lakhs or below is classified as a Small Enterprise. Also, such\nunits need to invest the amount of 10 lakhs or below in equipment to receive\nthis classification.<\/li><li>Micro Enterprises: Manufacturing units that have made an investment\nin Plant and Machinery exceeding Rs. 25 lakhs but less than five crores will be\nconsidered a Micro Enterprise. Also, if such units invest more than Rs. 10 lakh\nbut less than Rs. 2 crores in equipment, then it will receive this\nclassification. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">MSME Form 1 due date<\/h2>\n\n\n\n<p>Every specified\ncompany needs to file in the MSME Form 1 stating the outstanding dues to the Micro\nor Small enterprise suppliers within thirty days from the date of publication\nof the notification specifying the order to perform the same action by the\nspecified companies. <\/p>\n\n\n\n<p>Every specified\ncompany will need to file the half-yearly return on 31<sup>st<\/sup> October for\nthe period of the half-year April to September and on 30<sup>th<\/sup> April\nnext year for the period of the next half year from October to March. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Extension of Due Date<\/h2>\n\n\n\n<p>In a circular\ndated 21<sup>st<\/sup> February 2019 the Ministry of Corporate Affairs said that the date\nfor filing the MSME Form 1 will be reckoned from the time now the form is\ndeployed on the MCA 21 Portal.<\/p>\n\n\n\n<p>Typically,\nthe due dates for the filing of the MSME Form 1 were as follows;<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td> Sr.    No.   <\/td><td>\n  Half-Year Period Of\n  Non-Remittance Of Form\n  <\/td><td>\n  Due Date Of Filing The Return\n  <\/td><\/tr><tr><td>\n  1\n  <\/td><td>\n  April to September\n  <\/td><td>\n  31<sup>st<\/sup> October\n  <\/td><\/tr><tr><td>\n  2\n  <\/td><td>\n  October to March\n  <\/td><td>\n  30<sup>th<\/sup> April\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n<a href=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/InitialReturnInMSMEForm_21022019.pdf\" class=\"pdfemb-viewer\" style=\"width: 767px; \" data-width=\"767\" data-height=\"max\" data-toolbar=\"bottom\" data-toolbar-fixed=\"on\">InitialReturnInMSMEForm_21022019<br><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Penalty for not Complying with these\nStandards<\/h2>\n\n\n\n<p>The penalty\nfor the non-compliance of these rules is as follows;<\/p>\n\n\n\n<ul><li>The defaulter company will be levied with a fine of Rs. 25000<\/li><li>The officer in default of the company would be liable for imprisonment\nterm of up to six months or with a fine from Rs. 25,000 to Rs. 3, 00,000<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">To Conclude<\/h2>\n\n\n\n<p>The Ministry\nof Corporate Affairs {MCA} has made is mandatory for micro and small enterprises\nto file returns stating their due payments to the MSEs along with the reason\nfor the delay in the MSME Form 1. Such specified companies need to file this\nreturn at a half-yearly basis. <\/p>\n\n\n\n<p>Previously the\ndue date for filing this return was 31<sup>st<\/sup> October for the period from\nApril to September and 30<sup>th<\/sup> April for the period from October to\nMarch. This is now reckoned by the government. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>MSME Form 1 is a mandatory compliance for specified companies. Specified Companies are types of companies as defined in Section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 {MSMED Act}. These Specified Companies need to fill the MSME Form 1 on a half-yearly basis to the Ministry of Corporate Affairs {MCA}. What [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":45339,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2369],"tags":[1658,2661,1115],"acf":{"service_id":"71"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MSME Form 1: List of Mandatory Compliance for Specified Companies<\/title>\n<meta name=\"description\" content=\"MSME Form 1 is a mandatory compliance for specified companies. 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