Form MSME-1 Alert for Companies

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Who is required to file form MSME-1

If you are a company and answer to the following questions is “Yes”, then you are required to file Form MSME-1

  • Has your company received goods or services from MSME entities?
  • Are there outstanding balances in Company’s accounts pertaining to payments due to such MSME entities for more than 45 days as on 22nd January 2019?
  • Are there outstanding balances in your accounts pertaining to such MSME entities from which goods or services were received during October 2018-March 2019 and payments due for more than 45 days as on 31st March 2019?

When and how many Form MSME-1 are to be filed ?

FormDue DateDetails
First30 May 2019Upto 22 Jan 2019
Second30 May 2019Oct 2018 to March 2019

The form requires details such as PAN, Name of Supplier, Amount Due and reason for delay

Consequence

  • If any company fails to file MSME-1 or knowingly furnishes any incomplete / incorrect material information , it shall be punishable with fine which may extend to Rs. 25,000
  • Every officer of the company who is in default, shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than Rs. 25,000 but which may extend to Rs. 3,00,000 , or with both.

Actionable

Get in touch with suppliers immediately to know about their MSME registration status and request for their MSME/Udyog Aadhar registration number or copy of certificate.

Additionally, obtain balance confirmation certificates to ensure disclosure of correct amounts in the return.

This blog is contributed by CS Prerna Gupta | Partner : Preksh Corpserve LLP