MEANING OF Micro & Small Filing of MSME-1 - Series - 415
MEANING OF Micro &
Small
Filing of MSME-1
Article updated as on 25th January, 2019
Many Professionals / corporate are confused in relation to
meaning of Micro and Small enterprises in respect of Notification dated 22nd
January, 2019. In this editorial, author will discuss meaning of MSME for
purpose of this notification.
Legal Language:
Classification of enterprises.—(1) Notwithstanding anything contained in section 11B of
the
Industries (Development and Regulation) Act, 1951 (65 of 1951),the
Central Government may, for the purposes of this Act, by notification and
having regard to the provisions of sub-sections (4) and (5), classify
any class or classes of enterprises, whether proprietorship, Hindu undivided
family, association of persons, co-operative society, partnership firm, company
or undertaking, by whatever name called,—
(a) in the case of the enterprises engaged in the
manufacture or production of goods pertaining to any industry specified in the
First Schedule to the Industries (Development and Regulation) Act, 1951 (65 of
1951),as—
(i)
a micro enterprise, where the investment in plant and machinery does not exceed
twenty five lakh rupees;
(ii)
a small enterprise, where the investment in plant and machinery is more than
twenty-five
lakh
rupees but does not exceed five crore rupees; or
(iii)
a medium enterprise, where the investment in plant and machinery is more than
five
crore
rupees but does not exceed ten crore rupees;
NOTE: Form MSME-1 is not applicable in
case of Medium Enterprises.
As per notification dated 22.01.2019 “Every specified company shall file
in MSME Form I details of all outstanding dues to Micro or small enterprises suppliers existing on the date of
notification of this order within thirty days from the date of publication of
this notification.”
I. What is meaning of Micro and Small enterprises:-
Micro and small
Enterprises: as defined below:
Meaning of Micro Enterprise:
In the case of
the enterprises engaged in the manufacture or production of goods, where the investment
in plant and machinery does not exceed Rs. 25,00,000/-;
Meaning of Small Enterprise:
In the case of
the enterprises engaged in the manufacture or production of goods, where the investment
in plant and machinery is more than Rs. 2,500,000 rupees but does not exceed Rs.
50,000,000;
II. Whether for purpose of filing of e-form MSME-1 by
specified Companies. Whether Micro or Small Companies required to obtain registration
under MSME Act or not?-
As per language
of MSME Act, 2006 Section 8 “Any person who intends to establish Micro, Small “shall” file …………………….. With authority.
Therefore as one school of thought, one can opine that an entity registered under MSME Act, 2006 by fulfilling the above mentioned limit shall considered as Micro and Small entity for purpose of MSME-1
III. Which type of entities cover under Micro and Small
entities?-
Micro and small Includes:
·
Proprietorship, Hindu Undivided Family,
·
Association of Persons, Co-Operative Society,
·
Partnership Firm, Company
or Undertaking.
IV. How to identify whether creditors entity falls
under Micro and Small or not?-
For the purpose of reporting under
MSME Form-1. Company should be aware that creditor’s entity is Micro or Small
or not. Therefore, Company have to ask a declaration from the creditors whether
they falls under Micro or small or not.
V.How many Disclosure Company have to make in respect
of delay in payment to Micro and Small Company:
First: Specified Companies needs
to file MSME Form -1 with ROC as per MCA notification dated 22nd January,
2019.
Second: As per Section 22 of
MSME Act, 2006 “Where any buyer is required to get his annual accounts audited
under any law for the time being in force, such buyer shall furnish the
following additional information in his annual statement of accounts, namely:
(i)the principal amount and the interest due
thereon (to be shown separately) remaining unpaid to any supplier as at the end
of each accounting year;
(ii) the amount of interest paid by the buyer in
terms of section 16, along with the amount of the payment made to the supplier
beyond the appointed day during each accounting year;
(iii) the amount of interest due and payable for
the period of delay in making payment (which have been paid but beyond the
appointed day during the year) but without adding the interest specified under
this Act;
(iv) the amount of interest accrued and remaining
unpaid at the end of each accounting year; and
(v) the amount of further interest remaining due
and payable even in the succeeding years, until such date when the interest
dues as above are actually paid to the small enterprise, for the purpose of disallowance
as a deductible expenditure under section 23.
VI.
Which are Specified Companies:-
VII.
Which form Specified Company required to file with
ROC:-
Specified Companies are
required to file returns with ROC in e-form MSME-1:
Two Type of Returns required filing
by “Specified Companies” like:
·
One Time Return
·
Half Yearly Return
VIII.
Which is due date of filing of “One Time Return”?
One time return required to
file within 30 days of publication of these rules i.e. 20th February, 2019 (22nd January, 2019 + 29 days)
IX.
In “One Time Return” which type of information
required to submit with ROC?
X.
Which is due date of filing of “Half Yearly
Return”?
For Half year period ‘April
to September’ 31st
October
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[1]
This provision has no relation for filing of MSME-1
Language of MSME ACT Please see "May" not "Shall" and "his discretion" means voluntary on his discretion.
ReplyDeleteMicro, Small and Medium Enterprises Development Act, 2006
8. Memorandum of micro, small and medium enterprises.-
1. Any person who intends to establish,
a. a micro or small enterprise, may, at his discretion, or
b. a medium enterprise engaged in providing or rendering of services may, at his discretion; or
c. a medium enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951,shall file the memorandum of mico, small or, as the case may be, of medium enterprise with such authority as may be specified by the State Government under sub-section (4) or the Central Government under sub-section (3):Provided that any person who, before the commencement of this Act, established
i. a small scale industry and obtained a registration certificate, may, at his discretion; and
ii. an industry engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951, having investment in plant and machinery of more than one crore rupees but not exceeding ten crore rupees and, in pursuance of the notification of the Government of India in the erstwhile Ministry of Industry (Department of Industrial Development) number S.O. 477(E) dated the 25th July, 1991 filed an Industrial Entrepreneur's Memorandum shall within one hundred and eighty days from the commencement of this Act, file the memorandum, in accordance with the provisions of this Act.
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