Important 20 FAQ’S ON MSME-1 (MCA E- FORM)

FAQ’s ON MCA E-Form MSME-1

FAQ’s on MCA Form MSME-1

Ministry of Corporate Affairs (MCA) has made amendments under Schedule III of the Companies Act, 2013 and read with notification S.O. 368(E) dated 22nd January, 2019 and introduced Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order 2019 thereby notified filing of Form MSME-1.

Under Form MSME -1 The companies are required to make certain disclosures pertaining to the    vendors registered under the Micro, Small and Medium Enterprises  Development Act, 2006 (MSMED Act, 2006)

FAQ’s ON MCA E-Form MSME-1

S. No. QuestionsAnswers
1What are the Provisions applicable to MSME-1 Form?Order 2 and 3 dated 22 January, 2019 issued under Section 405 of the Companies Act, 2013  
2What is the Objective of MSME-1 Form ?furnishing half yearly return with the registrar in respect of outstanding payments to Micro or Small Enterprises
3Nil Return (no outstanding amounts) is required to be filed?No.
4What is Return Type?Half Yearly Return (the form was introduced with two types of returns – Initial and Half Yearly Return.)  
5What is the Due Date to file MSME-1 Form?a) For Half year period April to September – 31st October   b) For half year period October to March – 30th April  
6Who is required to file MSME- 1 Form?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 as per the provisions of section 9 of the Micro, Small and Medium Enterprises Development Act, 2006  
7Whose details are required to be reported ?Whose payments exceed 45 days from the date of acceptance or the date of deemed acceptance of the goods or services as per provisions of Section 9 of the Micro Small and Medium enterprises Development Act, 2006 (MSMED Act)
8If agreement terms for payment is 28 days, and payment is made after 28 days?it is termed as delayed payment and should be reported under MSME-1 Form.
9If agreement is made to make payment within 60 days between the parties but as on date of filing return the amount is outstanding for more than 45 days but less than 50 days. Whether reporting is required or not?In this case, Reporting has to be made as per the rules made thereby and shall be given if the amount is outstanding for more than 45 days.
10In case, if there is no agreement?45 days criteria will be applicable when there is no agreement or agreement for 45 days.
11If any Supplier is not registered under MSMED Act, 2006 and at the time of Filing return he got status of Micro or Small ?Reporting should be required to be made for that supplier.
12How many Entries we can made for vendors in a single form ?99 Entries
13If as on 31.03.2020 No outstanding payment to MSME vendor, But there was delay in payment of some MSME vendor more than 45 days which has been paid on or before 31.03.2020. Whether Company needs to give details of such invoices in the form?Companies have to give details of outstanding payment to MSME vendor only on due date i.e. 31.03.2020 Payment has already been made to vendors before 31.03.2020, then company is not required to give details of such transaction in MSME-1.
14If entries are more than 99 then what?Multiple forms can be filed, if entries are more than 99.
15If Company is under IBC Process – Who is required to file?Duty of Resolution Professional is to file it (only Advisable)
16Exemption to file MSME-1 Form?Medium Enterprises are not require to file.
17Is their any additional fee (late fee) for delay filing of MSME Form?No Fee
18Is their any statutory filing fee for the filing of MSME FormNo Additional Fee
19Processing Type of this E-formThe form will be processed in STP mode.
20What is the Penalty for Non-Filing of Form MSME-1?Non-compliance will lead to punishment and penalty under the provision of the Companies Act. As per Penalty Provision of Section 405 (4) of the Companies Act, 2013

Disclaimer:

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

CS LALIT RAJPUT

He has contributed in ICAI, ICSI and MCCI and other various Newsletters. He is also a speaker at various platforms including seminars / webinars.

2 thoughts on “Important 20 FAQ’S ON MSME-1 (MCA E- FORM)

  1. Excellent presentation and a very good source of information on topics of professional interest for CAs and other tax professionals.

  2. Dear sir pls i am requesting you to give relaxation for ROC pending filing for 2 years due to covid 19 all MSME companies are suffering to recovering losses and start business just government told startup funds providing crores togather for msme but banks are not support for startup i am facing financial problem from 2019 i am incorporated new company on 27th december 2019 but still not get any loan or any support i am deceided to close or strikeoff company all banks ask for bank statement and profit and loss details pls pro ide relaxation

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