Companies are relieved as the ROC deadline for the AGM of FY 2020-21 has been extended. Requests from various corporations and other stakeholders prompted this new MCA notice. A postponement of the FY21 Annual General Meeting (AGM) was requested by corporations all around the country. Company annual compliance deadlines for FY-2021-2022 were previously extended by the ROC. However, following several requests from businesses and audit experts, the deadline for filing the ROC Return has been further extended again. In this article, you will read about the latest update of the Company Annual filing return for FY 20-21 Further extended.
Latest Notification: Company Annual filing return for FY 20-21 further extended
The ROC has extended the deadline for companies to file their annual forms for the financial year 2020-21, which ended on March 31, 2021, by a month. Companies can thus file annual reports and comply with ROC requirements for the financial year 20-21 without incurring fines or late fees.
The official notification from MCA states that no additional fees will be imposed for the annual filing of e-forms AOC-4, AOC-4 (CFS), AOC-4 XBRL, AOC-4 Non-XBRL until March 15, 2022, in continuation of the Ministry’s General Circular No.22/2021 dated December 29, 2021, in light of various requests from stakeholders regarding the relaxation of additional fees for annual financial statement/return filings for the financial year ended on March 31, 2021.
Furthermore, For the fiscal year that concluded on March 31, 2021, no additional costs will be charged for filing e-forms MGT-7/MGT-7A until March 31, 2022.
During this time, just the standard costs will be charged for the submission of the aforementioned electronic forms.
The effect of the ROC Due Date Extension
As a result of the recent announcement, organizations now simply need to pay regular fees for furnishing the aforementioned e-forms. There is, however, a short-term relief that only lasts until March 2022. Businesses should seize this opportunity immediately and take no chances since it can be their last opportunity.
Consequences of Failing to do Company Annual Filing
Failure to file an annual return in accordance with the Companies Act of 2013 is a violation. Company directors are disqualified and held liable for rule violations under the Companies Act of 2013 if they fail to file their Annual Return for three consecutive financial years.
Additionally, if businesses fail to file their Annual Returns(Private Limited Company Annual Compliance) on time, they are subject to penalties for late submission of ROC forms. The following are the penalties imposed for failing to file annual returns on time.
|Period of Delay||Amount of Penalty|
|Up to 15 days (sections 93,139 and 157)||1X of the normal fee|
|Exceeding 15 days and up to 30 days (Sections 93, 139, and 157) and up to 30 days in remaining forms.||2X of the normal fee|
|Exceeding 30 days and up to 60 days||4X of the normal fee|
|Exceeding 60 days and up to 90 days||6X of the normal fee|
|Exceeding 90 days and up to 180 days||9X of the normal fee|
|Exceeding 180 days and up to 270 days||15X of the normal fee|
|Delay more than 270 days||The second proviso to sub-section (1) of section 403 of the Act may be referred or 12 times or even 18 times in specific cases|
Furthermore, a corporation is considered “inactive” if it has not submitted its Annual Return for the two prior fiscal years. As a result, the company’s bank account might be frozen by authorities. In addition, the Registrar of Companies has the power to send a notice to a company. In some cases, the notification might speed up MCA’s process of removing the corporate entity from its records.
Advantages of Due date extended for AGM of FY 2020- 21
- Companies that have not yet held their annual general meetings (AGMs) stand to gain from the extension of the AGM deadline. They are also getting additional time to file their annual accounts and annual reports with the ROCs because the due dates for these are linked to the date of the AGM.
- Companies have ample time to complete and finalize their financial accounts.
- The deadline for submitting ROC returns and complying with other ROC requirements, such as AOC-4, MGT-7, and ADT-1, is automatically extended.
- The extension of the AGM deadline will also assist firms in restoring normalcy to their bookkeeping and accounting service.
Download E-Startup Mobile App and Never miss the latest updates narrating to your business.