Annual Compliance for Companies: Form MSME 1

Annual Compliance for Companies: Form MSME 1


Form MSME 1 is a part of mandatory annual compliance for every company having outstanding dues to the MSME. The form was introduced in the year 2019, all companies need to identify about their suppliers whether they are registered under MSME Act or not. If any of the suppliers is registered with MSME and there is any outstanding for more than a period of 45 days, the company must file the form MSME-1 and disclose all such details therein.

When and who should file the form MSME 1?

Form MSME-1 is a half yearly form and is to filled twice a year by any company who has accepted any goods or services from a firm registered under the MSME Act 2006 and having an outstanding due of more than 45 days. Here it is important to note that there must be some outstanding due to MSME registered firm if there is no outstanding for a period of 45 days or more filing of form MSME-1 is not mandatory.

Eg. ABC PVT LTD accepted goods worth Rs 75,000 form XYZ PVT LTD which is a registered MSME organization on 15th of May 2021 and paid an amount of Rs 50,000 on 29th June 2021 and the balance was paid on 15th of July 2021. In such a situation ABC PVT LTD is required to file the form MSME-1 on or before 30th October 2021.

It is important to note that the total dues must be paid off within 45 days from the date of invoice, in case the total due was paid after the 45 days of acceptance but before the due date of filing the form MSME-1, the company should file the form MSME-1.

Due dates for filing

S.No Particulars Due date
1 For a period of October to March 30th April
2 For a period of April to September 31st October

Purpose for Filing of form MSME-1

The MSME Act is designed and amended time to time to empower the Medium and Small size entrepreneurs and businesses. With the notification issued on 22nd of January 2019 filing of form MSME-1 has been made compulsory.

Section 15 of The MSME Act states that, if any goods or services obtained by any company from a MSME registered organization, the buyer of the goods or service receiver should clear all the dues within due time and within the time period agreed between them. In case if there is no agreed time period for payment to the MSME organization the buyer or service receiver should make the payment before appropriate date i.e. 15 days from the date of acceptance of the goods or receiving of service.

Section 15 also states that the period of credit granted by the seller should not exceed 45 days from the acceptance date or date of deemed acceptance. To strengthen this provision, the form MSME-1 was introduced. Through this form every company that has accepted any goods or services from a registered MSME organization and which has an outstanding payment for more than 45 days must disclose it to the Registrar of Companies (ROC) by filing of form MSME-1.

Details required to be furnished in form MSME-1

  1. Name, CIN No and PAN No of the company
  2. Contact details of the company ( Address and Email id)
  3. Name and PAN No of the Supplier
  4. Amount due to the supplier against the goods or services accepted
  5. Date from which the amount is due
  6. Reason for delay in payment

Fees for filing of E-Form MSME-1 (Annual compliance for Companies)

The applicable government fees for filing of form MSME-1

Share capital of the Company Fee for E-Form MSME – 1
Below 1,00,000 Rs. 200/-
1,00,000 to 4,99,999 Rs. 300/-
4,99,999 to 24,99,999 Rs. 400/-
25,00,000 to 99,99,999 Rs. 500/-
1,00,00,000 or more Rs. 600/-

There is a relaxation in the Additional fee in case of delayed filing of the E-From MSME-1.

Penalties and consequences on Non-compliance

As per the provisions of section 405(4) of The Companies Act, 2013 if a company fails to file MSME-1, the company and every officer in default will be liable to a penalty of Rs. 20,000. In case of continue default the company and every officer will be liable for an additional penalty of Rs 1000 every day of default continues maximum to Rs. 3,00,000/-.

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