As per the amendments to Schedule III to the Companies Act, 2013 and notification no. S.O. 368(E) dated 22nd January, 2019 issued by the Ministry of Corporate Affairs of India, 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).
Some Key Points regarding E-Form MSME -1
1. 1. Two Returns : One time Return and Half Yearly Return
2. Due Date for both the Returns is 30th May 2019
3. For one time return : Amount outstanding as on 22.01.2019 because as per MCA circular dated 22.01.2019 point no. 2
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 i.e. 22.01.2019 is the date of notification date:
4. For Half Yearly Return:
Every specified company shall file a return as per MSME Form I annexed to this Order, by 31st October for the period from April to September and by 30th April for the period from October to March.
The period is: 01st October 2018 to 31st March 2019
5. MSME-1 is also NOT REQUIRED to be filed where there is NIL reporting/outstanding.
6. Permanent Account Number (PAN) of company is Mandatory
7. Form MSME-1 is required to be filed only when the amount is outstanding beyond 45 days from the date of acceptance of supplies.
8. The form will be processed in STP mode
9. While Filing Returns:
a. Period of Filing will be blocked automatically for initial / one time filing and available for Half Yearly Return.
b. E form MSME-1 allowed only 99 Entries in the for Particulars of the name of suppliers and amount of payments due, if more than 99 entries are there then new form is required to be filed (You have to file multiple forms).
c. No. of Entries consider no. of Invoices
If Company received 5 invoices on one particular date then all five invoices should be reported separately
10. We have to ask suppliers whether they fall under the category or Small / Micro as per MSMED Act, if they not fall or no answer is recived then no need to file MSME -1 form as Company is not aware about the nature of Supplier. Communication is must. Company has to ask them first. (Webinar MSME-1)
11. MCA has not clarified about the period for 1st half-yearly Return which has to be filed before 30th April 2019 for the half year ended 31st March 2019 as one time return shall be filed with the data as on 22.01.2019.
12. Company has to identify Micro and Small separately. MSME-1 is to be filed only when amount is due to MSME Enterprise and company should take steps to find out whether supplier is MSME or not.
13. If 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 law stating that details shall be given if the amount is outstanding for more than 45 days