Know Everything on MSME Form 1 ROC Filing

MSME Form-1 (MCA) is to be filed by those specified companies whose outstanding payment to MSMEs suppliers is exceeding 45 days.

Date of Notification: In context to Order dated January 22, 2019, issued under Section 405 of the Companies Act, 2013.

Click here to read the full notification.

What is MSME Form 1 (MCA)?

The MSME Form-1 is to be filed for the payment of half yearly return with the Registrar of Companies (ROC) in respect of the outstanding payments to Micro or Small Enterprises.

The Ministry of Corporate Affairs have made major changes for protecting the interest of groups of small companies or business. He laid emphasis on following compliance by all Specified Companies Whether Public or a Private Company, Micro or Small.

The Companies who receive supply of goods or services from Micro or small enterprises and the amount of payment due with having the reasons of such delay, exceeds 45 days from the date of acceptance or date of deemed acceptance of the goods or services are required to file a half-yearly return.

The return shall be filed in prescribed MCA e-form “MSME FORM 1”

The Return should be state following points in it:

  • amount of payment due; and
  • reasons for the delayed payment

In the exercise of power under the provision of section 405 of the Companies Act, 2013, (18 of 2013) the Central Government made it necessary for all the “Specified Companies” to furnish the above-notified information about payment to micro and small enterprise suppliers.

Meaning of Some Important Terms

Specified Companies: Specified companies as per the provisions of section 9 of the MSME Development Act, 2006 are those companies who receive the supply of goods or services from MSMEs and the payment against these supplies to the suppliers of these MSMEs exceed 45 days from the date of acceptance or date of deemed acceptance of the goods or services
Micro and Small Enterprise: Any class or classes of enterprises (including proprietorship, Hindu undivided family (HUF), partnership firm, company, undertaking, co-operative society or an association of persons), in which are defined as MSME(s) under the Micro, Small and Medium Enterprise Development (MSME) Act, 2006.

Note: The Criteria specified above are specified bases Micro, Small and Medium Enterprises Development Act, 2006 and the bill to change the criteria of classification and to withdraw the MSMED (Amendment), 2015 is pending in the Lok Sabha.

Applicability on Companies

As per a notification issued by the MCA it has been mandated to file disclosures through e-Form MSME-I for every type of the Company – Public or Private Company, Micro or Small Companies; the Company that satisfies the following two conditions:

  • Condition 1: Company must have received Goods and/or Services from Micro or Small Enterprise
  • Condition 2: Payment must have been due/not paid, to such Micro and Small Enterprise for 46 days from the date of acceptance

Note: Date of deemed delivery refers to the acceptance of goods and services by the buyer in written with no objection with the product or services received within the 15 days time period.

Manner for Filing MSME Form 1 (MCA)

The Initial one-time Return: The companies should file, the MSME Form I detailing all the outstanding/ dues against the Micro or small enterprises suppliers that are existing on the date of notification of the related order within 30 days from the date of deployment of E-form MSME-1 on the MCA Portal.

Last date for filing Initial Return (First time return) in form MSME 1: Within 30 days from the date when E-form MSME-1 shall be deployed on the MCA Portal. Note: (as per the extended notification of MCA dated 21.02.2019).

Due Date for Filing MSME Form 1 (MCA)

Initially, every company is required to file MSME-1 before February 21, 2018 mentioning details of all outstanding payments to Micro or Small enterprises (MSMEs) suppliers existing on the date of notification of this order within thirty days

Thereafter, every company shall require to file MSME -1 as a half yearly return, in respect of outstanding payments to MSMEs.

Filing Period Due date of Filing
From April to September 31st October
From October to March 30th April

Exemption to this rule-Who should not file the form?

  • This Rule is not applicable for all the Companies but only for those Specified Companies whose dues to MSMEs suppliers exceed 45 days from the date of acceptance or deemed acceptance of the goods or services under the provisions under section 9 of the MSME Development Act, 2006.
  • If the payment against supplier exceeds 45 days but the supplier/Creditors gives a declaration that they do not fell under the category of Micro or small Enterprises.