{"id":102,"date":"2019-03-04T05:39:14","date_gmt":"2019-03-04T05:39:14","guid":{"rendered":"http:\/\/raaas.com\/blog\/?p=102"},"modified":"2024-03-12T12:13:28","modified_gmt":"2024-03-12T06:43:28","slug":"mca-msme-form-1","status":"publish","type":"post","link":"https:\/\/raaas.com\/blog\/mca-msme-form-1\/","title":{"rendered":"MCA-MSME Form 1"},"content":{"rendered":"\n

Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019<\/u><\/strong>– Every specified company shall file in MSME Form I details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order within thirty days from the date of publication of this notification.<\/p>\n\n\n\n

Notification<\/u><\/strong> \u2013 <\/strong>On 22nd<\/sup> January 2019 MCA notified<\/strong> the Section 9 of MSMED Act, 2006 in Companies Act 2013 vide exercised its power under Section 405 of the Companies Act, 2013.<\/p>\n\n\n\n

MSME Form 1<\/u><\/strong>– <\/strong>A form for furnishing half yearly return with the Registrar of Companies (ROC) in respect of outstanding payments to Micro or Small Enterprises.<\/p>\n\n\n\n

In view to protect the interest of the small group of companies or business, Ministry of Corporate Affairs came up with the major changes or infusing the compliance by all Specified Companies.<\/p>\n\n\n\n

Important Definitions<\/u><\/strong> –<\/strong><\/p>\n\n\n\n

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  1. Specified Companies<\/u><\/strong>– <\/strong>Specified companies in this context, denotes all companies getting goods or services from micro and small enterprises. Specifically, it is meant for those companies whose payments to the latter hasn\u2019t been made for more than 45 days from the date of acceptance of the goods or services. As per the notification, these companies are required to furnish a half-yearly return to the Ministry of Corporate Affairs stating the particulars of the outstanding amount and the reasons for delay in payment to MSME enterprises.<\/li>\n\n\n\n
  2. Entities to be identified as Micro or Small enterprises<\/u><\/strong>– <\/strong>In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME), any class or classes of enterprises, whether proprietorship, Hindu undivided family, association of persons, co-operative society, partnership firm, company or undertaking, by whatever name called are classified in two Classes namely Manufacturing Enterprises and Service Enterprises.<\/li>\n<\/ol>\n\n\n\n
    Sector<\/strong><\/td>MICRO<\/strong><\/td>SMALL<\/strong><\/td><\/tr>
    Manufacturing Sector<\/strong><\/td>Investment in Plant and Machinery not exceeding Rs. 25 Lakhs.<\/td>Investment in Plant and Machinery exceeding Rs. 25 Lakhs but not exceeding Rs. 5 crores<\/td><\/tr>
    Service Sector<\/strong><\/td>Investment in equipments not exceeding Rs. 10 Lakhs.<\/td>Investment in equipments exceeding Rs. 10 Lakhs but not exceeding Rs. 2 crores.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Responsibilities of the Specified Companies<\/u><\/strong>–<\/strong>
    To start with, specified companies are required to identify whether their suppliers are registered under the MSME Act. If they have been, and if payments to them are due for more than 45 days from the date of acceptance of the goods or services, the company would either be required to close the pending dues or file returns of the particulars of the liability, along with the reason for its delay in MSME Form 1. The particulars of liability should include:<\/p>\n\n\n\n