Filing of Form MSME- 1
- As per section 405(1) of the Companies Act, 2013 and as per para 3 of the Specified Companies (Furnishing of Information about payment to Micro and Small Enterprise Suppliers) Order, 2019, every company shall file a return as per MSME Form I: By 31st October for the period from April to September and By 30th April for the period from October to March
- 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
- Non-compliance of Section 405(1) is liable with penalty u/s 405(4) i.e. such company shall be liable to a penalty of INR. 20,000 /- and every officer in default shall be liable to a penalty of INR. 20,000 in case of continuing failure, with further penalty of INR. 1,000/- for each day during which such failure continues, subject to a maximum of INR. 300,000/-.
- A statutory auditor should include a report in the financial statement regarding the delay in payment to MSME vendors, as well as the provisions of the loan.
