Revised MSME Form 1 In TallyPrime
To protect the financial stability of India’s Micro and Small Enterprises (MSEs), the Ministry of Corporate Affairs (MCA) has launched a new version of MSME Form 1. This update supports the government’s aim to improve corporate transparency, incentivize timely payments, and increase responsibility regarding corporate disclosures.
Why should this matter to your business?
All companies with arrears exceeding 45 days with registered Micro and Small Enterprises (MSEs) will need to incorporate the new MSME Form 1 into their workflow. This adopts the government’s more robust initiative mwe adopted towards protecting cash flows for SMEs while also seeking clearer and more elaborate disclosures from companies. Your business now needs:
- Detailed Supplier-wise information regarding overdue payments
- Grouping at PAN level to eliminate duplicates and ensure accuracy
- Uniform format needed for easy submission on the MCA portal
TallyPrim’s most recent update aims to tackle these issues making compliance easier than ever.
What changes have been made to MSME Form 1 in TallyPrime?
TallyPrime’s revised MSME Form 1 was designed incorporating all recent updates from the MCA as well as v3 portal compliances so that you can remain compliant without stress.
Here is what we have for you:
- MSME Form 1 Update Compliance with MCA Guidelines: The report’s structure and logic are seamlessly integrated with the MCA’s prescribed format. There will be no manual restructuring required.
- Outstanding MSME Dues Summary Per Supplier: Prepare class wise summary abstracts of pending dues to MSMEs, showing outstanding amounts both below and above the 45-day mark from the acceptance date.
- Required MCA Excel Format Export: Export statements in excel template formats required by the MCA which can then be directly uploaded to v3 portal of MCA.
- Consolidation by PAN: TallyPrime’s intelligent grouping and consolidating of dues by PAN allows for streamlined reporting and audit-read data.
- Adjustable advanced filters: Based on your preferences, select or exclude specific bills or parties. Effortlessly tailor reports to meet your requirements without any limitation.
TallyPrime has your business covered whether it’s during tax time or audit periods with filings being punctual while staying compliant and always prepared.
New vs Existing MSME Form 1 - Side-By-Side
Parameter | Prior Design | Updated Design |
Setup | List Outstanding Leverage Individual Bills | Supplier Summary |
Ageing Reporting Criteria | Not Required | Segregation as\: ‘ Sub 45 Days’ & ‘Over 45 Days Segmentation’ |
PAN Grouping limitations | Does not exist | Requires mandatory Pan level consolidation |
Reporting Template | Basic format | MCA Excel template sparingly uses v3 portal ready. |
Filtering and Customization | Restricted manual work | Advanced filters by party/bill |
Note that payments to MSEs which are overdue by 45 days must be reported for both halves of the year, i.e., MSME Form 1 is due on 30th April and 31st October.
Stay Compliant with TallyPrime
Meeting compliance requirements using TallyPrime becomes necessary as industries and market frameworks shift towards critical and timely reporting. The revised MSME Form 1 has a clear focus on reporting substantial gaps including: supplier-level detail, ageing analytics, as well as PAN consolidation on a multi-tiered scale—allowing no flexibility in accuracy.
TallyPrime recently introduced features aimed at automating disclosures to ensure all demands set forth within the MCA directives are met allowing businesses full readiness to endure audits without any hassles regardless of when they arise—all disclosures need to be submitted at any time.
