The Ministry of Corporate Affairs (MCA) issued a notification that specific companies having outstanding dues to the Micro or Small enterprises registered under MSMED Act have to file the particulars of all current outstanding dues in Form MSME-1 with the ROC (Registrar of Companies).
Who Should File Form MSME-1?
Specified companies should file Form MSME-1 when payments are due to MSME for more than 45 days from the date of acceptance of the services or goods, along with the reason for its delay.
What are ‘Specified Companies’?
Companies that have obtained goods or services from the MSME registered suppliers and
Whose payments to the MSMEs exceed 45 days from the date of acceptance or deemed acceptance of the goods or services.
Steps to be followed:
Step 1: Companies need to identify if their suppliers are registered under the MSMED Act, 2006.
Step 2: Whether the suppliers fall within the definition of Micro or Small enterprises.
Step 3: Whether the payment is due to them for more than 45 days from the date of acceptance of goods or services.
Due Date for Filing Form MSME-1
MSME-1 is a half-yearly return that the specified companies must file with the MCA. Below are the due dates for filing Form MSME-1:
| Due Date | Period for which MSME-1 is filed |
| 30 April | For October-March period |
| 31 October | For April-September period |
Non-Compliance of Filing Form MSME-1
Non-compliance with filing MSME-1 by the specified companies will attract a penalty under Section 405(4) of the Companies Act, 2013. As per Section 405(4), if any 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 continuing failure, the company and every officer in default will be liable for a further penalty of Rs.1,000 for each day the failure continues, subject to a maximum of Rs.3 lakh.
