Applicable to whom:
All companies who get supplies of goods and services from the micro and small enterprises and payment to such vendors exceed 45 days.
What to file:
Need to file a one time return in Form MSME – 1 by 21st Feb 2019 followed by half yearly returns
What to report in Form:
Need to give the details of such identified vendors, amount of payment outstanding exceeding 45 days, reason of delay in payment
Consequences of wrong or delay or non-filing:
Penalty on company Rs 25,000
Every officer in default – Minimum fine Rs. 25,000 which may extend to Rs. 300,000 or Imprisonment which may extended to 6 months or both
Latest update dated 21.02.2019:
MCA General Circular 1/2019, Extension for last date of filing initial return in MSME Form I. The period of 30 days for filing initial return in MSME Form I shall start from the date the said e-form is deployed on MCA 21 portal. Form is still to be released.
Saurabh Gupta is a practicing Chartered Accountant having qualified post qualification course in “Master in Business Finance” from ICAI. He has over 15 years of experience in finance and accounts domain. He specializes in strategic planning and implementation, financial control, fund raising, transfer pricing audits, tax planning & statutory compliances. He is having versatile corporate experience in retail sector and has worked in financial controller role with DLF Brands prior to joining practice.