Hello Companies! Don’t Miss to file Form MSME-1 – The New Compliance!

 

For all companies in India dealing with Micro and Small Enterprise (registered under the MSME Act, 2006) suppliers, it’s crucial to remember the Form MSME-1 requirement introduced by the Ministry of Corporate Affairs (MCA).

Purpose of introducing MSME-1:

This form helps the MCA track companies with outstanding payments to MSME suppliers exceeding 45 days.

Filing Obligation:

If your company has dues to Micro and Small suppliers (registered under the MSME Act, 2006) that have been outstanding for more than 45 days from the date of acceptance, you must file Form MSME-1.

Information Required:

The revised MSME-1 form on the MCA V3 platform now requires companies to provide more detailed information on payments to MSME suppliers, including amounts paid within and after 45 days, outstanding amounts (within and beyond 45 days), and reasons for payment delays. This enhanced transparency aims to improve financial accountability and support MSMEs by promoting timely payments. Companies must adhere to these updated reporting requirements to avoid penalties and strengthen supplier relationships.

Key Due Dates:
For the period April to September: File by October 31st.
For the period October to March: File by April 30th.

Nil Return: Importantly, if there are no outstanding dues to MSME suppliers, no return is required.

Non-Compliance: Failure to file Form MSME-1 or providing incorrect information can lead to significant penalties under Section 405(4) of the Companies Act, 2013, potentially reaching up to ₹3 lakh for continued non-compliance for the company and its officers.

Identify Your Suppliers: Ensure you know which of your suppliers are registered under the MSME Act, 2006.

Stay compliant and support our MSME ecosystem by ensuring timely filing of Form MSME-1 when applicable.