ALL ABOUT MSME, RETURNS AND FILINGS
NOTIFICATION
MCA vides its
notification dated 22.01.2019 issued an Order may be called the Specified
Companies (Furnishing of information about payment to micro and small
enterprise suppliers) Order, 2019 through which reporting was required to be
made by Specified Companies before the ROC in MSME FORM 1
WHAT ARE SPECIFIED COMPANIES?
All companies, who
get supplies of goods or services from micro and small enterprises and whose
payments to micro and small
enterprise suppliers exceed forty five days from the DATE OF ACCEPTANCE or the date of
deemed acceptance of the goods or services as per the provisions of Section 9
of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006)
WHICH ENTITIES ARE NOT REQUIRED TO FILE
MSME FORM I??
1. Companies who don’t have any outstanding dues to Micro or Small Enterprises.
2. Companies who have outstanding dues to Micro or Small enterprises for less than 45 days.
MEANING OF DAY OF ACCEPTANCE?
Section 2(b)
of MSMED Act has defined the term appointed day as:
“Appointed Day” means the day following immediately
after the expiry of the period of fifteen days from the day of acceptance or the day of deemed
acceptance of any goods or any services by a buyer from a supplier.
Explanation.—For
the purposes of this clause,—
(i) “THE DAY
OF ACCEPTANCE” means,—
(a) the day
of the actual delivery of goods or the rendering of services; or
(b) where
any objection is made in writing by the buyer regarding acceptance of goods or services
within fifteen days from the day of the delivery of goods or the rendering of
services, the day on which such objection is removed by the supplier;
(ii) “THE
DAY OF DEEMED ACCEPTANCE” means, where no objection is made in writing by
the buyer regarding acceptance of goods or services within fifteen days from
the day of the delivery of goods or the rendering of services, the day of the
actual delivery of goods or the rendering of services;
SUBMISSION OF HALF-YEAR RETURN
(MSME FORM I)
Every specified Company shall submit a half yearly return to the Ministry
of Corporate Affairs in MSME Form I stating the following:
(a) the amount
of payment due; and
(b) the
reasons of the delay;
One Time:
1.
Within 30 Days of Notification: 20.02.2019
(Notification Date: 22.01.2019)
Regular:
2. For the period from April to September = 31st October
3. For the period from October to March = 30th April
CRITERIA WHETHER AN ENTITY IS MSME OR
NOT?
Companies may take a written declaration from the creditors about their status
whether MSME or not and should submit the declaration accordingly as required
Section 7 of MSMED Act specifies the Classification
of enterprises: 1) Notwithstanding anything contained in
section 11B of the Industries (Development and Regulation) Act, 1951 (65 of
1951),the Central Government may, for the purposes of this Act, by notification
and having regard to the provisions of sub-sections (4) and (5), classify
any class or classes of enterprises, whether proprietorship, Hindu undivided
family, association of persons, co-operative society, partnership firm, company
or undertaking, by whatever name called,
MANUFACTURING SECTOR
|
Enterprises
|
Investment in plant & machinery
|
Micro Enterprises
|
Does not exceed twenty five
lakh rupees
|
Small Enterprises
|
More than twenty five lakh rupees but does not
exceed five crore rupees
|
Medium Enterprises*
|
More than five crore rupees
but does not exceed ten crore rupees
|
|
SERVICE SECTOR
|
Enterprises
|
Investment in equipments
|
Micro Enterprises
|
Does not exceed ten lakh rupees:
|
Small Enterprises
|
More than ten lakh rupees but
does not exceed two crore rupees
|
Medium Enterprises*
|
More than two crore rupees but
does not exceed five core rupees
|
*Most Imp: Medium Enterprises are not covered under this order
CONSEQUENCES FOR NON PAYMENT / DELAYED PAYMENT TO MSME
Section 15 of MSMED Act, specifies Liability of buyer to make payment.—Where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment therefor on or before the date agreed upon between him and the supplier in writing or, where there is no agreement in this behalf, before the appointed day:
Provided that in no case the period agreed upon between the supplier and the buyer in writing shall exceed forty-five days from the day of acceptance or the day of deemed acceptance.
Section 16 of MSMED Act, specifies the date from which and rate at which interest is payable.—Where any buyer fails to make payment of the amount to the supplier, as required under section 15, the buyer shall, notwithstanding anything contained in any agreement between the buyer and the supplier or in any law for the time being in force, be liable to pay compound interest with monthly rests to the supplier on that amount from the appointed day or, as the case may be, from the date immediately following the date agreed upon, at three times of the bank rate notified by the Reserve Bank.
Section 17 : Recovery of amount due.—For any goods supplied or services rendered by the supplier, the buyer shall be liable to pay the amount with interest thereon as provided under section 16.
A sample of Letter
to be forward by the Company to its Creditors
Date: - - / - - /2019
To
All suppliers of XYZ Pvt Ltd.
SUBJECT:
CONFIRMATION OF STATUS OF THE SUPPLIERS/CREDITORS UNDER MSMED ACT, 2006
Dear Sir,
As per the Notification issued by the Ministry
of Corporate Affairs on 22nd January 2019, you are requested
to inform whether your organization is falling under MSME Category as per Micro, Small
and Medium Enterprises Development (MSMED) Act, 2006 or not.
The purpose of seeking this
information from you is to only ascertain your status under (MSMED) Act, 2006 for reporting purpose filing of return
as required under Form 1 of MSME Act.
(Please note that if you are
unable to provide us the abovementioned information within 7 days of receipt of this letter then we will treat you as “creditors/suppliers other than small
enterprises and micro enterprises” and accordingly use the information for
reporting to appropriate authority and identifying your status in our Balance
sheet)
So we request you to provide the following Information:
I confirm by ticking in the appropriate box that I/our
firm/Company is:
(a) Not registered as micro or small
or Medium enterprise under “Micro, Small & Medium Enterprises
Development (MSMED) Act, 2006 [
]
(b) Registered as :-
·
Micro [
]
·
Small [
] or
Under “Micro,
Small & Medium Enterprises Development (MSMED) Act, 2006.
If Registered under
(MSMED) Act, 2006 then please attach
copy of proof i.e. memorandum or certificate of registration obtained under
MSMED Act, as an acknowledgement and confirmation.
Signature
with Seal/stamp...................................
Name:
..............................................................
Supplier
Firm or Company Name:.............................
Place:
...........................
Date:
...........................
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