MSME Compliance

MSME

MSME stands for Micro, Small, Medium Enterprise.

MSME registration is not Mandatory or statutory as per the Act

MSME Definition

1. Medium Enterprise- Investment in equipment of less than 5 crore or Investment in Machinery of less than Rs. 10 Crores
2. Small Enterprise- Investment in equipment of less than 2 crores or Invesment in Machinery of less than 5 crore
3. Micro Enterprise- Investment in equipment of less than 10 lakhs or investment in Machinery of less than 25 lakhs.

The Central Government had issued a notification in which they have directed all the companies who get the goods supplied from Micro and Small Enterprises and whose payment is delayed or exceeds 45 days from the date of acceptance or the date of deemed acceptance of the goods or services as per the provision under section 9 of MSMED Act, 2006.

The Half yearly return is to be submitted to the Ministry of Corporate Affairs stating the following:-

1. The amount of payment due and
2. The reason of the delay

Points to be marked

1. Every Company has to file
2. Who has received goods from MSME
3. Payment is due or not paid on 46 days.

Notification Commencement date

Notification came out on 22^nd January 2019.

Return to be Filed

1. One Time Return – of the data dated 22.01.2019- Due Date of Filing-30.05.2019
2. Half Yearly Return – Till 31^st March 2019-Due Date of Filing-30.05.2019

ANALYTICAL STEPS

1) Firstly identify your MSME registered suppliers and ask for their registration certificate.

2) If there are any such suppliers who are Registered under MSME Act and if the payments to them are due for more than 45 days from the date of acceptance of the goods and services, then details of such suppliers shall be furnished in Form MSME-1

3) Information required in respect of such supplier to be submitted with ROC in Form MSME-1

> Total outstanding amount due on 22nd January 2019 [For One time return, which has to be submitted by 21^stFebruary 2019]

> Name of Supplier

> PAN of Supplier

> Date from which such amount is due

4) Reasons for delay in payment

Penalty for Non Filing

Non Filing will lead to penalty under section 405(4) of the Companies Act, 2013.

Fine is

On Company- Rs. 25000

On Directors, CFO and CS- Imprisonment upto 6 months

OR

Fine not less than Rs. 25000 upto Rs. 300000 per person

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FCS Richa Kumar

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