MSME Reporting Compliance | MSME Form 1

Every specified company is required to file a half yearly return with the eForm MSME Form 1 providing the details of outstanding dues to Micro, Small and Medium Enterprises. The term specified company here would mean to include all such companies who have inward transactions such as supplies with Micro, Small and Medium Enterprises and payment for such supplies are outstanding for a period of forty-five days or more from the date of the supply or service. Details of such outstanding dues will be required to be reported in the eForm with the appropriate reasons for such delay in payment.

Is your Vendor a Micro, Small & Medium Enterprises?

The reporting mechanism here focuses on the outstanding dues towards MSMEs only so its very important to know if your vendor or service provided is a Micro, Small & Medium Enterprises (MSME). A Notification issues by Ministry of MSME provides the criteria about the recognition of such entities:

How would you know if your vendor is an MSME ?

This is a big challenge for the companies dealing with small concerns, we would recommend you get a certificate or declaration from every small vendor you deal with to get a confirmation about of if such vendor falls within Micro, Small and Medium Enterprises.

When is the eForm required to be filed?

The eForm MSME Form 1 is required to be filed halfyearly reporting the outstanding dues to MSME for April to September and October to March, but the initial form is required to be filed by 22-02-2019 for the period.

What is the due date for MSME Form 1 ?

The due date for fining the initial MEME Form 1 is 22-02-2019 but the later returns have to be filed as follows:

• For Period April to September 31st October
• For Period October to March 30th April