Defaulting companies to file their pending returns without the payment of late fees
by Rajesh Prajapati AT8 ACCOUNTING PVT LTD
Sub:
Companies Fresh Start Scheme 2020
The Corporate
Affairs Ministry (MCA) has come up with the ‘Companies
Fresh Start Scheme 2020’ to enable companies
make good of any filing-related
defaults, irrespective
of duration of default, and make a fresh start
as a fully
compliant entity.
The scheme is a one-time
waiver of additional filing fees for delayed
filings by the companies or LLPs with the
Registrar of Companies during the tenure of the scheme, i.e. during the period
starting from April 1 and ending on September 30.
The Schemes, apart from giving
longer timelines for corporates to comply with various filing
requirements under the Companies
Act 2013 and LLP Act, 2008, significantly
reduce the related financial burden on them, especially for those with long
standing defaults, thereby giving them an opportunity to make a “Fresh
Start.”
However, the immunity is only against delayed
filings in MCA 21 and not against any
substantive violation of law.
The Scheme provides an
opportunity to the Companies to make their default
good by filing their Annual Returns, Financial
Statements and all the other necessary forms,
documents and statements that are specified, within that particular time frame
as provided under the scheme. Non – compliance of the same results in the
imposition of penalties.
The scheme came into force on
01.04.2020 and shall remain in force till 30.09.2020.
3.
APPLICABILITY OF THE SCHEME:
The scheme shall be applicable
on all ‘defaulting
Companies’ who has failed to file their Annual
returns, Financial statements and other
statutory Compliances and which are due for filing
till date.
4.
NON-APPLICABILITY OF THE SCHEME:
a) Cases where notice
for strike off has been made under section 248 of
the Companies Act 2013 and action has been initiated against them. b) Where any
application for Strike off has been made by the Company itself. c) Amalgamated
Companies d) Where the Company has received a
status of Dormant Company under section 455 of the Companies Act. e) Vanishing
Companies f) Increase
in Authorized Share Capital forms and Charge
forms.
5.
IMMUNITY GRANTED TO THE DEFAULTING
COMPANIES:
Every defaulting
Company shall be required to pay the normal
fees as prescribed under Companies (Registration Offices and Fees) Rule 2014 on
the date of filing of each belated document and no additional fee shall be
payable.
6.
SCOPE OF IMMUNITY GRANTED BY THE
SCHEME:
Scope shall be granted from
launch of any prosecution or proceedings till the extent that such prosecution
or proceedings is limited to non-filing
of the documents. No
Immunity shall be granted in case where any
matter is pending before the Court of law in case of management disputes.
7.
IMMUNITY CERTIFICATE HOW GRANTED?
The Application for seeking the Immunity
certificate shall be made after filing of
belated documents under the scheme and such documents are taken on record or
approved by the Officer.
8.
TIME PERIOD FOR IMMUNITY CERTIFICATE:
Before the expiry of six months from the
closure of the Scheme.
9.
FEES FOR IMMUNITY CERTIFICATE?
No fees shall be levied on
filing of this form.
10.
WITHDRAWAL OF APPEAL IN ORDER TO GET
THE IMMUNITY CERTIFICATE:
Where the defaulting
Company or any of its officer has filed any
appeal before a competent Court against any notice issued by any adjudicating
authority in respect of statutory
filings under Companies
Act 2013 or Companies
Act 1956, then the Company or the officer in
default shall withdraw such appeal and furnish a proof in relation to the same.
The Immunity shall not be
granted to the Companies Where no Appeal has been made against the order of
penalty or conviction before this scheme came to force.
12.
CASES WHERE ORDER HAS BEEN PASSED BY
THE ADJUDICATING AUTHORITY BUT NO APPEAL HAS BEEN MADE:
Cases where any penalties, fine
has been imposed by the Adjudicating Authority against the delay associated
with regards to non-filing
of document on the MCA portal, and no appeal
has been preferred or filed by the Company or any of its officer before the
Regional Director under section 454(6) the Company shall have two options:
OPTION 1: Where the last
date for filing an appeal before the Regional
Director against the order of the
Adjudicating Authority under section 454(6) falls between 1st March 2020 to
31st May 2020(both days included), a period of additional 120 days shall be
allowed after the expiry of the last date to all the Companies to file an
Appeal before Regional Director.
OPTION 2: During such additional period as stated above, the order
of the Adjudicating Authority in so far as it relates to delay associated in filing
of the Documents, returns, statements etc shall not be initiated against the Company.
13.
EFFECT OF IMMUNITY:
Once the immunity has been
granted the designated Authority shall withdraw all its pending prosecutions if
any before the Concerned Court or any proceedings for adjudication of penalties
under section 454 in so far such it relates to non-filing of documents if any.
14.
SCHEME FOR DEFAULTING INACTIVE
COMPANIES:
The Defaulting
Inactive Companies while filing documents under
CFSS-2020 can apply to get the status of the Dormant Company
under section 455 by filing e form MSC 1 at
normal fees.
After the Conclusion of the said
scheme the Concerned Authority shall take necessary action against the
defaulting Companies.
AUTHOR CS
GAURAV ARORA
Company Name: AT8
ACCOUNTING PVT LTD
Company Website: www.at8accounting.com
Email: contact@at8accounting.com & at8acounting@gmail.com
Contact: +918872066332
Sponsor Ads
Created on Apr 27th 2020 05:44. Viewed 319 times.