MSME Form 1

Introduction

The Ministry of Corporate Affairs (MCA) mandates the submission of MSME Form 1 by companies that have outstanding payments to suppliers registered as Micro, Small, and Medium Enterprises (MSMEs) under the MSME Act, 2006. 

MSME form 1 filing is a component of the compliance process that is designed to guarantee that MSMEs are paid within the designated time frame, thereby preventing cash flow issues for these smaller businesses, which are frequently more susceptible to payment delays.

What is the MSME Form 1/MSME Return (MCA)?

The MSME Form 1 (MCA) is a form that is used to submit half-yearly returns to the registrar regarding outstanding payments to Micro and Small Enterprises. 

In order to submit the half-yearly return to the Ministry of Corporate Affairs, each specified company is required to file the MSME return, which includes the information provided below.

1. The cause of the payment delay
2. The sum of payments that are overdue
3. The form must be submitted within thirty days of the deployment on the MCA 21 portal, despite the fact that the MSME was established on January 22, 2019, the date of issuance of this notification.

Due Date for MSME Form 1 (Initial Return)

The government has extended the deadline for the submission of the MSME Form 1 to May 2024 for all eligible companies. 

The department previously stated that the due date for filing MSME Form 1 for companies t is 30 days from the date it is published on the official website. Check out the notification by clicking here.

Due Date for MSME Form 1 (Half-Yearly Return)

Companies are required to submit Form MSME-1 (half-yearly return) in situations where payments are due to MSME more than 45 days after the acceptance of services or products.  

This form may be submitted until the last day of the subsequent month from the conclusion of each half-year in relation to outstanding payments to Micro or Small Enterprise. 

For example, the deadline for April 2024 to September 2024 is October 31, 2024, and the deadline for October 2024 to March 2025 is April 30, 2025.

Documents Necessary for Filing an MSME Return

Documents Necessary for the Initial Return

1. PAN of the supplier
2. The total quantity that is owed
3. Name of the supplier
4. Causes of payment delays
5. Due Date for Amount
6. From or to the financial year
7. The date on which the quantity is due
8. Digital Signature Certificate (DSC)

Documents necessary for the regular half-yearly return

1. The time frame to which the file pertains
2. PAN of the organization
3. Email address of the organization
4. Total outstanding due for a specific period
5. The name of the supplier and the total quantity due are provided.
6. Causes of payment delay
7. Attachments, if applicable, should be included.

What is the process for submitting the MSME Form 1?

Wondering how to file msme form 1? We have got you covered.

In order to guarantee compliance and precise reporting to the Ministry of Corporate Affairs (MCA), the MSME-1 return must be submitted through a structured process. The following is a comprehensive guide that will assist you in completing the filing process:

1. Download the MSME-1 form from the MCA portal.
2. Input your organization’s corporate identification number (CIN). This will enable the form to prefill certain company details automatically.
3. Input the information of the creditor: Manually enter the information for each MSME creditor. This comprises their name, the quantity due, and the payment timeline.
4. Indicate the Cause of the Delay: In the event that payment has been delayed, it is necessary to state the specific reason for each instance on the form.
5. Attach Necessary Documents: While the MSME Form 1 does not typically necessitate mandatory attachments, it is important to include any supportive documents that may assist in comprehending the delays or transactions.
6. Pre-Scrutiny Check: Prior to submission, utilize the ‘Check Form’ and ‘Pre-Scrutiny’ functions to verify that all data entered is accurate and that the form complies with the MCA’s specifications.

The directors of the company must digitally approve the form using their Digital Signature Certificate (DSC). Confirm any amended requirements on the MCA portal, as there is typically no fee associated with MSME 1 filing. However, one can face penalty for not filing MSME form 1.

Pay fees and upload. After all necessary preparations have been made, the completed form should be uploaded.

Looking for a reliable legal partner? Discover Lawgical Adda. Our consultants will provide you with comprehensive information on the process of filing the MSME form-1. 

We guarantee that we will support you during the filing procedure. Our MSME Form-1 consultants ensure that they will provide you with guidance throughout the documentation process to prevent inaccuracies. 

As previously mentioned, penalties may be levied for the provision of inaccurate information or statistics. Consequently, our professionals assure you that the form will be submitted without any errors. 

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