The Ministry of Corporate Affairs (MCA) has provided various extensions and relaxations in fees for filing forms due to the COVID-19 situation. These extensions and relaxations in fees have given the companies and LLPs extra time to fulfil their annual compliances for FY 2020-21 under the Companies Act, 2013 and Limited Liability Partnership (LLP) Act, 2008, respectively.
The MCA has granted extensions and relaxed the fees for filing forms due to the representations received by many stakeholders. The representations made by the stakeholders requested extensions and relaxation in fees for filing forms due to the impact of the COVID-19 pandemic. Thus, the MCA has provided relaxations and extensions in the below-mentioned compliances.
Extension of Time for Holding AGM
The MCA issued an office memorandum directing the state Registrar of Companies (ROCs) to grant an extension of two months for holding the Annual General Meeting (AGM) by companies. Subsequently, all the state ROCs passed an order of extension of time for holding AGM for the financial year ending 31st March 2021.
The order provided an extension of two months to conduct AGM by the companies that could not hold AGM within six months of the end of the financial year. Thus, the companies that did not hold AGM within 30th September 2021 for FY 20-21 can conduct their AGM within 30th November 2021.
The state ROCs also provided in the order of extension of time for holding AGM that the companies need not file form GNL-1 for seeking two months extension for conducting AGM. The companies whose GNL-1 applications are pending and whose GNL-1 applications are rejected can also hold their AGM within 30th November 2021 without paying the penalty.
Extension of Date for Filing Cost Audit Report
Cost auditors must prepare and submit the cost audit reports for the financial year ending 31st March 2021 to the companies by 30th September 2021. Initially, the MCA issued a notification stating that the cost auditor can submit the cost audit report for FY 20-21 to the companies Board of Directors by 31st October 2021.
However, the MCA granted a further extension on the last date of filing cost audit reports by cost auditors by one month. Thus, the cost auditors can submit the cost audit report to the companies by 30th November 2021. Consequently, the companies should file the cost audit report in form CRA-4 to the ROC within 30 days of the receipt of the report.
Relaxation of Additional Fees for Filing Form-8
The MCA issued a notification providing relaxation of additional fees for filing form-8 by the Limited Liability Partnerships (LLPs). The LLPs have to file the statement of account and solvency within 30th October 2021 for FY 20-21. With the extension provided by the MCA, the LLPs can file their statement of account and solvency, i.e. form-8, within 30th December 2021 without paying any additional fees.
Relaxation of Additional Fees for Filing Form AOC-4 and MGT-7
The MCA issued a notification providing relaxation of additional fees for filing annual financial statements for FY 20-21 by companies. Thus, the companies can file forms AOC-4, AOC-4 (CFS), AOC-4 XBRL, AOC-4 Non-XBRL and MGT-7/MGT-7A for the financial year ended 31st March 2021 till 31st December 2021 without paying any additional fees.
The extension provided by MCA for conducting AGM and submitting cost audit reports will help companies facing difficulties due to the COVID-19 situation to complete their compliances within time. The relaxations in additional fees for filing financial forms by the companies and LLPs allows them to file forms till 31st December 2021 by paying the regular fees.
For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in
I am an Advocate by profession. I interpret laws and put them in simple words. I love to explore and try new things in life.
