Legal Suvidha is at your service,  09599937963


by Legal Suvidha

no Image


GST on Sale of Land & Building

Liable to pay tax under RCM! Issue payment voucher to supplier.

Composition Scheme for Service Providers

Advance Tax

Searching for investment options offering equity returns at lower risk? See below!

Central government on 22.01.2019 notified MSME Form 1 for furnishing details of payment due to Micro & Small Enterprises (hereinafter referred to as MSE). On 02.11.2018, Central Government vide notification no.  S.O. 5622(E), directed the companies receiving supplies of goods or services from MSEs & whose payment to MSEs exceeds 45 days from the date of acceptance of or the date of deemed acceptance of supplies of goods or services as per the provisions of section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as specified companies), to submit half yearly return to MCA. The return should state the following:

·  The amount of payment due; and

·   The reasons of delay.

So, for eligibility of filing half yearly return to MCA following are pre-conditions:

·   That company must receive supply of goods or Services from MSEs.

·   That the payment to MSEs exceeds 45 days.

Now, in furtherance of above notification & under section 405 of companies act, 2013, central government issued the Specified Companies (Furnishing of Information about payment to micro & small enterprise suppliers) Order, 2019 dated 22.01.2019.

MSME Form 1

As per this order, every specified company is duty bound to file details of all outstanding dues to MSEs suppliers existing on the date of issue of this order i.e. 22.01.2019. The format of the MSME Form 1 is annexed in the order.

Time period

Specified companies are required to furnish details in MSME Form 1 within 30 days from the date of publication of this order i.e. 22.01.2019.

Due Dates of filing

Order prescribes following due dates for filing return in MSME Form 1 which are as follows:

·   For period April to September – by 31st October.

·   For period October to March – by 30th April.

Details to be furnished in MSME Form 1

·   Corporate Identity Number of company

·   PAN of Company

·   Global location Number (optional)

·   General details of company like name, address, e-mail id etc.

·   Total outstanding amount due as on date of notification of this order.

·    Name of suppliers (MSE), their PAN, amount due & date from which the amount is due.

·    Reasons for delay in payment of due to MSEs.

·    Digital signature.

·    DIN of director or PAN of manager of CEO or CEO or membership number of CS.

Meaning of Micro & Small enterprises

For the purpose of this order, the meaning the Micro & Small enterprises can be seen in the Micro, Small and Medium Enterprises Development Act, 2006. As per the S. 7 of the Act, it is as follows:

In case of enterprises engaged in manufacture of goods pertaining to industries specified in 1st Schedule of the Industries (Development & Regulation) Act, 1951:

·    Micro enterprise means where investment in Plant & Machinery does not exceed Rs. 25L.

·    Small enterprise means where the investment in Plant & Machinery is between Rs. 25L – Rs. 5Cr.

In case of enterprises rendering services:

·     Micro enterprise means where the investment in equipment does not exceed Rs. 10L.

·     Small enterprise means where the investment in equipment is between Rs. 10L – Rs. 2Cr.

Hence, the specified companies are duty bound to file half yearly return in MSME Form 1 to MCA by due dates prescribed making the MCA aware of instances where there is any delay in payment to MSEs so that there is no hindrance in the growth of MSEs.