ALL ABOUT MSME, RETURNS AND FILINGS

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,

Click here for details of goods covered inrelation in manufacturing or production pertaining to any industry specified inthe First Schedule to the Industries (Development and Regulation) Act, 1951 (65of 1951)

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

Click here for format of MSME Form I as available in Notification (Notification No.: S.O. 5622(E), dated the 2nd November, 2018)

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: ...........................

Knowledge increases by sharing but not by saving !

If you like this article then please follow and Subscribe so that you can get our updates in future ……..” freely “

Ravi Garg                                    

Company Secretary                    

91-7838204665,

csravi2014@gmail.com

Feel free to contact with us.