Check MSME Status of your Vendors
Ensure MSME Form 1 Compliance
Introducing MSME Vendor Status Check from SignalX. Identify the MSME status of the vendors associated with your company and ensure your business compliance with MSME form 1 regulations.
Provide PAN, Check if your vendor is an MSME or not
Provide PAN to fetch MSME number associated with a vendor
Check the authenticity of MSME numbers provided by your vendors
Benefits of checking MSME status of associated vendors
Why is it important for Companies to verify the MSME Status of their Vendors?
Regulatory compliance of India mandates businesses to declare their dues to MSMEs biannually via the MSME Form 1, with non-compliance leading to significant penalties, including monetary fines and potential imprisonment.
The recent amendment by the Finance Act, 2023, further underscores the importance of timely payments to MSME vendors, as any delay can disallow the expense under Income tax laws, impacting the company’s tax liabilities. Additionally, annual CARO filings require auditors to report on outstanding payments to MSMEs, making accurate identification and reporting crucial.
From a financial perspective, delays in payments to MSMEs necessitate businesses to provision for interest in their balance sheets, which can strain their financial health. Operationally, understanding the MSME status aids businesses in ensuring their vendors avail the rightful benefits, fostering stronger vendor relationships.
How SignalX can help you with MSME Status Check on your vendor?
SignalX’s MSME status check and verification service helps businesses verify the status of their third-party’s MSME registration quickly and accurately. Our service provides a simple, user-friendly, and cost-effective solution that is designed to increase the efficiency of the MSME status check process.
Enter the PAN details associated with your vendors as an input parameter to check their MSME status. If you have a bulk PAN number, you can provide us with a CSV file containing the PAN numbers to be verified.
Get the below details on any MSME with the SignalX Udyam Verification
Check MSME Status of your VendorsRequest a Quote to get started!
Frequently Asked Questions
What is MSME Form 1 Compliance?
MSME Form 1 is a half-yearly return that specified companies need to file regarding their outstanding payments to Micro and Small Enterprises (MSME). Specified companies are types of companies as defined in Section 9 of the Micro, Small and Medium Enterprises Development Act, 2006. The form is required to be filed within 30 days from the date of deployment of E-form MSME-1 on the MCA Portal.
Companies need to identify if their suppliers are registered or not under the MSME Act, 2006. When the suppliers are registered under the MSME Act, and there are outstanding dues by a company to the MSME suppliers, it must file Form MSME-1. Specified companies should file Form MSME-1 when payments are due to MSME for more than 45 days from the date of acceptance of the services or goods, along with the reason for its delay.
How to check MSME Status of Vendor?
You can check the MSME Status of your vendor with SignalX by giving the PAN details associated with the vendors. Once the check is done, you get details like, whether your vendor is a registered MSME, which category of MSME your vendor falls under, the UAM number associated with the MSME registered vendors, and many more other details.
When to file MSME Form 1?
To file MSME Form 1, companies need to adhere to the following due dates:
- From April to September: The form must be filed by 31st October.
- From October to March: The form must be filed by 30th April
It is important for companies to file the form within the specified timelines to ensure compliance with the regulations. Non-compliance with filing MSME Form 1 can lead to penalties under Section 405(4) of the Companies Act, 2013.
What are the penalties involved in case of delayed payments and non-compliance to MSME Form 1?
In case of delayed payments to Micro and Small Enterprises (MSME) vendors, there are penalties and consequences that companies may face. Such penalties includes:
In case of delayed payments, companies are liable to pay interest on delayed payments to MSME registered suppliers. The rate of interest is three times the bank rate notified by the Reserve Bank of India
If a company files MSME Form 1 after the due date or fails to file it, the company is liable for a penalty under Section 450 of the Companies Act, 2013.
The company and every officer in default will be liable to a penalty of Rs. 25,000. In case of continuing failure, an additional penalty of Rs. 500 per day will be imposed