CS Divesh Goyal
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INTRODUCTION The Ministry of Corporate Affairs (MCA) introduced Form MSME-1 to ensure prompt payments to Micro and Small Enterprises (MSEs) and enforce accountability among companies dealing with them. The compliance arises from the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED A
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FAQ :
Form MSME-1 is designed to ensure prompt payments to Micro and Small Enterprises (MSEs) and enforce accountability among companies that deal with them, by requiring half-yearly disclosure of payment statuses.
A company must file Form MSME-1 if, during the half-year, it makes payments to an MSME vendor after 45 days, or if any amount remains unpaid for more than 45 days as of the last day of the half-year.
The V3 form requires company details, the reporting period, classification of payments (within 45 days, after 45 days, outstanding < 45 days, outstanding > 45 days), and specific details for each MSME vendor including PAN, Udyam No., nature of services, due dates, and amounts.
No, Form MSME-1 specifically covers only micro and small enterprises as defined under Section 7 of the MSMED Act. Medium enterprises are not included.
Yes, the V3 form requires reporting of all four categories: payments made within 45 days, payments made after 45 days, outstanding payments pending less than 45 days, and outstanding payments pending more than 45 days.
The filing portal only allows submissions if the reporting conditions are met. If no payments were made after 45 days and no amounts were outstanding beyond 45 days at the half-year end, then no MSME-1 form needs to be filed for that period.
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