Major relief and a piece of positive news for companies incorporated in India. The news is ROC Return Due Date extended further for FY 2020-21. The MCA has notified this through the latest notification in continuation with the previous notification announced in October 2021. The ROC had earlier extended the due date for company annual compliances of FY-2020-21. The due date was extended up to 31st December 2021. However, on receiving several requests from the companies and audit professionals, the ROC Return due date is now extended further. In this article, we will understand the latest notification from MCA regarding ROC due date extended further for FY 2020-21.
ROC Return due date extended further for company
In regard to the financial year 2020-21, concluded on 31 March 2021, ROC has extended the Due Date for Filing annual forms by Companies for 2 months.
Therefore, the companies (other than LLP) for the financial year 20-21 can file annual returns and do ROC compliances without penalties and late fees.
Important Note: Due Date Extension is not applicable to LLP Companies. The deadline for them is 31st December 2021.
The official notification from the MCA states that keeping in view various requests received from stakeholders regarding relaxation of levy of additional fees for annual financial statement/return filings required to be done for the financial year ended on 31.03.2021, it has been further decided that no additional fees shall be levied up to 15.02.2022 for the filing of e-forms AOC-4, AOC-4 (CFS), AOC-4 XBRL, AOC-4 Non-XBRL.
Furthermore, The notification states that In continuation to Ministry’s General Circular No.17/2021 dated 29.10.2021 no additional fees shall be levied up to 28.02.2022 for filing of e-forms MGT-7/MGT-7A in respect of the financial year ended on 31.03.2021.
Impact of ROC Due Date Extension
As a result of the latest notification, companies now need to pay only standard charges for filling the aforementioned e-forms. However, the relief is only applicable up to the month of February. The companies should take immediate benefit and take no chances as it will be a one-time opportunity.
The penalty of Not Filing Company Annual Returns
Failure to file an annual return is a violation of the Companies Act of 2013. If a firm fails to file its Annual Return for three successive financial years, the director of such company is disqualified and personally accountable for the rule violation, according to the Companies Act of 2013.
Furthermore, if corporations fail to file Annual Returns on time, fines are imposed for late filing of ROC forms. The following are the fines levied for failing to file yearly 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||10X of the normal fee|
|Exceeding 180 days and up to 270 days||12X 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|
In the same way, a corporation is regarded as “inactive” if it has not filed its Annual Return for the previous two fiscal years. As a result, authorities can also block the bank account of the company. Furthermore, The Registrar of Companies can also issue a notice to the Business Entity. The notice can accelerate the process of striking the business entity(Strike-Off) from the MCA records.
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