The Micro, Small, and Medium Firms Development (MSMED) Act, 2006 was adopted by the Indian government, which defined micro, small, and medium enterprises.
When and why did MCA introduce MSME 1 Form?
The Ministry of Corporate Affairs (“MCA“) released e-form MSME 1 (“MSME 1“) on May 1, 2019, requiring all companies that obtain supplies of goods or services from micro and small enterprises and whose respective payments to such enterprises exceed 45 days from the date of acceptance or estimated acceptance of such products or services to file MSME 1 by May 30, 2019.
Also Read- MSME registration
What is MSME Form 1?
MCA has established the MSME 1 Form 1 in order to give information on payments made on a half-yearly basis to Micro or Small Enterprises for periods longer than 45 days with the Registrar of Companies (ROC). However, the MSME 1 Form only applies to micro and small businesses, not medium-sized businesses.
All specified corporations that receive a supply of goods/services from micro or small businesses and the payment made to these micro or small enterprise suppliers has exceeded 45 days from the date of acceptance (or deemed acceptance) of the related goods or services are required to submit a half-yearly return to the Ministry of Corporate Affairs on a mandatory basis.
Applicability of MSME Form 1 to Businesses:
It has been instructed to file disclosures using MSME 1 Form for each type of company – public or private, micro or small, according to a notification issued by the MCA. The following two requirements must be met by the Corporation:
Condition 1: the company must have obtained goods and/or services from a micro or small business.
Condition 2: Payment to such Micro and Small Enterprises shall have been due/not paid for 45 days from the date of acceptance.
MSME FORM 1 Documents Required:
- The individual’s Aadhaar card
- Individual Pan Card in the case of a sole proprietorship or Corporation/firm In the case of a corporation or company, a Pan Card is required.
- Bank Account Information
- The address of the office as well as the locations of the plants
- Bills for both the equipment and the machinery
Suggested Read- print udyog aadhaar certificate
How to Complete the MSME 1 Form:
- Once the form has been downloaded from the MCA portal, the applicant must open it and choose whether the filing is for an initial return or a recurring half-yearly return.
- After the applicant has chosen the form’s objective, you must input the company’s CIN and click the prefill button.
- When the applicant clicks the pre-fill button, the system will automatically show the Corporation’s name, registered office address, and email address. The applicant, on the other hand, might change the Corporation’s e-mail address.
- After entering the overdue total, the applicant must enter the number of entries, or the number of suppliers whose sum is due, along with additional information such as the supplier’s name, PAN, amount due, and the fiscal year from which and to which the amount relates.
- The cause for the payment delay to the provider must be stated.
- No mandatory attachments are required while completing the MSME 1 Form. However, in order to avoid any sort of discrepancy, the applicant might attach any proof of sum owed to such providers, such as an invoice or a cash memo, to support the information that is submitted in the form.
- The applicant must include the individual digitally signing the form’s designation (Director, Manager, Company Secretary, CEO, and CFO) as well as the DIN/PAN.
- After that, you must click on the Check Form. After that, click on pre-scrutiny and add your digital signature.
- The applicant must file the MSME 1 Form on the MCA portal once it has been pre-scrutinized.