Penalty for non-filing Annual Return: An Overview
The Penalty for non-filing Annual Return will be discussed in detail.
A company is a separate legal entity that can be sued or sue by any other legal firm. It can enter into various types of transactions. After the incorporation of a Private limited company, it depends upon the directors of the company to assure filings of several regulatory and legal are filed on time by a company or not. Failing to file statutory filings may cause penalties. It could also end up in disqualifying the directors from incorporating another company later on. In the year 2018, the fine for non-compliance has been increased to over Rs.1 lakh by both the income tax department and MCA that is the Ministry of corporate affairs.
The Penalty for non-filing Annual Return 2018
Usually, according to the company’s act, the government fee for filing or registering any document with the Registrar is Rs. 200. A Private limited company has to file form MGT-7 & form AOC-4 all year. The applicable government fee would be Rs. 400. Following is the comparison between the current regulations and proposed rules from 1 July 2018:
|DAYS OF DELAY||PENALTY (CURRENT) IN Rs||PENALTY (PROPOSED) IN Rs|
|Up to 15 days||400||up to 3000|
|Added to 15 days and up to 30 days and up to 30 days in remaining forms.||800||up to 6000|
|Added to 30 days & need to 60 days||1600||up to 12000|
|Added to 60 days & need to 90 days||2400||up to 18000|
|Added to 90 days & need to 180 days||4000||up to 36000|
|Added to 180 days & need to 270 days||4800||up to 54000|
If it gets delayed more than 270 days then the current penalty is Rs.100 per day and the proposed penalty will be Rs. 100 per day perform. The Ministry of Corporate Affairs announced on 8th May 2018 that:
- The Second Amendment Rules 2018 of the companies have been notified on 7th May 2018. As per this amendment, if the due date of filing an annual return under section 92 of the Companies Act, 2013 expires after 30/06/2018 then the additional fees will be charged Rs.100 per day for MGT-7, AoC- 4 XBRL and AoC-4 CFS.
- In the case of belated annual return or balance sheet that is due to file under the companies act 1956 i.e 23AC, 23ACA, 23AC XBRL, 23ACA XBRL, 20B, 21A or the companies act, 2013 i.e MGT-7, AOC-4, AOC-4 XBRL and AOC-4 CFS, the additional for the period of delay up to 30th June 2018 plus Rs. 100 per day must be payable.
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