MSME Compliance (Form MSME - 1) in Surat
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MSME Compliance – Understanding Form MSME-1
In order to safeguard money of micro, small and medium enterprise, MCA has come up with all new regulation in the form of MSME-1 form in which a company is required to report outstanding amount towards any goods or services availed from those enterprises which are registered as micro, small or medium enterprise under Micro, Small and Medium Enterprises Development Act,2006. The filing requirement applies to all companies and must be submitted twice a year.
What is Form MSME-1?
Form MSME-1 is a half-yearly return that companies must file to disclose outstanding payments exceeding 45 days from the date of acceptance (or deemed acceptance) of goods or services procured from MSMEs. The company is also required to provide reason for the same.
Who Needs to File MSME-1?
MSME-1 is to be submitted by:
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All firms (Public or Private, including Micro or Small Firms).
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Firms who have accepted goods or services from registered MSMEs.
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Firms where payments have been pending for 45 days or more from the date of acceptance.
Due Dates for Filing Form MSME-1
MSME-1 must be filed twice a year, based on the following reporting periods:
Reporting Period Due Date
April to September – October 31
October to March – April 30
Details Needed to File MSME-1
When filing Form MSME-1, the following information needs to be furnished by companies:
List of MSMEs against whom payments are overdue for more than 45 days.
Total amount due (party-wise).
Reason for delay in payments (party-wise explanation)
Timely compliance by MSMEs enables companies to adhere to the legislations, escape penalties, and earn the confidence of MSME vendors. Timely submission of Form MSME-1 maintains financial transactions transparent and enables small companies to expand.
Who Needs to File DPT-3?
All companies except government companies must file DPT-3 annually by June 30.
Example: For the financial year 2022-23, DPT-3 must be filed by June 30, 2023.
What Happens When You Don't File the Forms on Time?
If you don’t submit the required forms by the deadline, you’ll face penalties:
Late Fee:
You’ll have to pay INR 100 for each day you delay filing.
On the Company:
INR 1,000 per day, subject to a maximum of INR 10 Lakhs.
On Every Officer in Default:
INR 1 Lakh, plus INR 100 per day of delay, subject to a maximum of INR 5 Lakhs.
Penalties for Non-Filing of DPT-3
Failure to file DPT-3 and continued acceptance of deposits can lead to severe penalties:
1) Under Section 73 of the Companies Act
(1) A minimum penalty of ₹1 crore or twice the deposit amount, whichever is lower. (2) Penalty may extend up to ₹10 crore. (3) For every officer in default: Imprisonment up to 7 years and a fine between ₹25 lakh to ₹2 crore.
2) Under Rule 21 of the Companies (Acceptance of Deposits) Rules, 2014
(1) Fine on the company and responsible officers: Up to ₹5,000. (2) Additional penalty for continuing non-compliance: ₹500 per day from the date of default.
Timely filing of DPT-3 ensures compliance, prevents legal risks, and maintains your company’s credibility with financial institutions and stakeholders.