MSME Form-1

·      Applicability:- Companies which accept supplies or services from MSME and If payment for such supplies received or services availed is due for payment to MSME for more than 45 days from the date of acceptance.

·         Due Date of filing- on half yearly basis within thirty days of completion of each half year (till 31^st October & 30^th April).

·         Date of commencement:- 1^st May 2019.

·         Not applicable on Medium Enterprises.

·         Definition of Micro, Small & Medium Enterprises- (Old)

Classification	Ceiling on Investment in Plant and Machinery (in INR) for enterprises engaged in or production, processing or preservation of goods	Ceiling on Investment in equipment (in INR) for enterprises engaged in service sector
Micro	Below INR 25 lakhs	Below INR 10 lakhs
Small	More than INR 25 lakh but does not exceed INR 5 crore	More than Rs.10 lakh but does not exceed Rs. 2 crore
medium	More than INR 5 crore but does not exceed Rs.10 crore.	More than Rs 2 crore but does not exceed Rs. 5 crores..

 

·         Definition of Micro, Small and Medium Enterprises:- (Revised) (effective from 01/07/2020)

Classification
Micro	Investment less than 1 cr. & Turnover less than 5 cr.
Small	Investment less than 10 cr. & Turnover less than 50 cr.
Medium	Investment less than 20 cr. & Turnover less than 100 cr.

 

·         Disclosures Required:-

Ø  Amount of payment due beyond 45 days.

Ø  Reason for delay. 

·         Details to be furnished in Form-1:-

Ø  Name of Supplier

Ø  PAN of supplier

Ø  Amount due against the supplies of goods and services

Ø  Date from which the amount is due

Ø  Reason for delay in payment.

 

·         As per section 15 of MSME Development Act, 2006, the period for making payment, as may be agreed upon between the buyer and the seller cannot exceed 45 days.

·         As per section 16 of MSME Development Act , 2006 , If the buyer fails to make payment within the agreed time or 45 days (whichever is earlier) the buyer is liable to pay compound interest with monthly rest to the supplier, from the *appointed date* at 3 times of the bank rate notified by RBI.       

     

·         Notes:-

Ø  For the purpose of ascertaining the amount of investment, previously filed income tax return will be considered and the purchase price (gross value will be taken and not the net value)

Ø  For computation of Annual Turnover export of goods or services shall be excluded

 

·         *Appointed date means the 46^th day or the succeeding day after the last day fixed for  making the payment (whichever is earlier)

 

 OTHER ARTICLE-

PROCEDURE FOR CONVERSION OF COMPANY TO LLP

Author	Vaibhav Pasrija
Qualification	CS Professional Student, Commerce Graduate, Undergoing Management Training
E-mail	Vpasrija93@gmail.com
Linked-in	Vaibhav Pasrija
Instagram	@Vaibhavpasrija

 

** {All views expressed here are the personal opinion of the author and, are for educational purposes only}