According to the notification released on 22nd January 2019 by ministry of corporate affairs every company having any amount outstanding to MSME are required to file the details of such outstanding amount in MSME 1.  The companies were required to file the initial return MSME 1 within the time lag of 30 days and the half yearly return in MSME 2 by the due date. It is mandatory for all such companies to file this form. With this blog we will be taking a look at the various aspects related to the MSME 1 return to be filed by the companies.

Which companies can be registered under the MSME scheme?

Before moving forward it is important for us to have a brief look at the meaning of the MSME and understand its concept. MSME is the abbreviated form for MICRO, SMALL and Medium scale enterprises which are registered under the MSME scheme and have obtained the MSME certificate. By getting registered under the MSME scheme the companies can avail certain benefits exclusively provided to them by the government.  However, not every company can obtain the MSME certificate rather just the companies fulfilling the below mentioned criteria can be registered under the MSME scheme-

  1. Micro enterprises – In order to be classified under the micro category the manufacturing enterprises, should have made an investment of Rs. 25 lakhs or lower. On the other hand, entities of the service sector must have invested a sum of Rs. 10 lakhs or lower in equipment to receive this classification.
  2. Small enterprises –For being categorized as the manufacturing enterprises the company must have an investment in Plant and Machinery exceeds Rs. 25 lakhs but is limited to Rs. 5 crores. In addition to this the service sector enterprise will be considered as small if their investment in equipment exceeds Rs. 10 lakhs but is limited to Rs. 2 crores.

What are the key points to be considered for MSME – 1?

  1. The companies who have pending dues to MSME are required to file this return.
  2. The dues must be pending for more than 45 days of receiving the goods and services.
  3. It is not mandatory to file the NIL return.
  4. Companies are required to take confirmation from the client whether they are registered under the MSME scheme or not.

What are the details to be filed in the MSME 1 return?

The company filing the MSME 1 returns is required to mention the below mentioned details in this return –

  1. For the one time return the companies are required to mention the total amount outstanding on or before 22nd January 2019 due from the supplier MSME company,
  2. The name of the supplier.
  3. The PAN of the supplier.
  4. The date on which the liability of the amount starts.

How can you file the MSME 1?

In order the file the form MSME the applicant is required to follow the below mentioned procedure –

  1. To start the procedure the applicant is required to go the MCA official site and download the form from there. In the form the option of either the initial filing or the half yearly filing should be selected.
  2. After selecting the form type enter the CIN of the company. Once the CIN is successfully added all the details about the company like the name, address of registered office, email ID of the Company will be auto displayed. One thing to be noted here is that you have the option of editing the email Id and the phone number in case it is changed.
  3. Now you are required to enter the total amount due from the suppliers prior to 22nd January 2019 . Along with the amount due the entries for the suppliers should also be made. In these entries the name of the supplier, their PAN , amount due to them and the financial year to which this amount relates should be entered.
  4. In this return it is mandatory for the company to mention the reasons for the delay in the payment.
  5. Now to authorize the details in the form filed it should be signed by the senior managerial person of company or a company secretary. The DIN and the PAN of such person must be added and the digital Signature certificate should be affixed to the same.

In this manner the MSME should be filed on the MCA portal.