India Corporate Tax Returns: Essentials of MSME Form 1 (MCA)
Amir -Virani 30th May 2019 145Category: Compliance. ()

In the recent past, the Ministry of Corporate Affairs (MCA) India has ramped up its efforts to protect the interests of Micro, Small and Medium (MSM) companies while promoting the importance of complying with legal and regulatory requirements. MSME are broadly classified into 2 categories: Manufacturing and Service. According to MSME Act 2006, a Micro or Small Enterprise could mean a proprietorship, Hindu Undivided Family (HUF), partnership firm, company, undertaking, Association of Persons or Co-operative Society.

The MCA has now made submission of MSME Form 1 mandatory. Through MSME Form 1, all ‘specified companies’ – whether public, private, micro or small – have to file their half-yearly return with the Registrar of Companies (ROC) if their outstanding payments to Micro or Small Enterprises exceed 45 days.

Thus all companies that:

Get supplies of goods or services from micro and small enterprises
AND

whose payments to these suppliers exceeds 45 days (i.e. at least 46 days) from the date of acceptance (or deemed acceptance) of these goods or services
are deemed ‘specified companies’ and they must submit a half-yearly return through MSME Form 1 to the MCA.

The returns must specify:

The amount of payment due
Reasons for the delay in payment
Legal reference: Section 405 of the Companies Act, 2013, (18 of 2013) the Central Government

Due date for submitting MSME Form 1: 30th May 2019

Do you fall under the category of Specified Company? Then you must file the MSME Form 1 without delay!

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