Summary: The increasing complexity of managing multiple government forms and e-forms online, particularly with overlapping deadlines, is posing significant challenges for professionals. For example, the deadline for filing tax audits is 30th September, but there is no extension for filing AOC-4 with the Ministry of Corporate Affairs (MCA). This results in professionals prioritizing tax audits, leaving non-tax audit companies subject to late fees due to delays in form preparation. Director KYC updates are another cumbersome process, often leading to heavy penalties if not completed on time, which shifts the blame onto professionals. Although the tax audit deadline has been extended to 7th October, it now clashes with the deadline for filing MEF forms and the appointment or reappointment of auditors. Additionally, GST returns need attention amidst this schedule. The government’s move towards digitalization is beneficial, but frequent site crashes near deadlines exacerbate the problem. There is a growing demand for more considerate handling of late fees and flexible final dates, particularly for the filing of financial statements and annual returns. Clients are encouraged to submit documents early to help professionals avoid unnecessary stress and late fees.
The government is making efforts to facilitate online uploads of all return forms and e-forms for businesses and other entities. However, the overlapping deadlines are causing significant difficulties for professionals, creating an unavoidable burden for them. It is essential to address these clashes, particularly concerning due dates. For example:
MCA and Tax Audit Dates
The last date to file the tax audit is September 30, yet the MCA has not extended the deadline for filing AOC-4. Companies not subject to a tax audit are given second priority by professionals. These entities will incur late fees when submitting forms to the MCA because preparing the necessary documents for the MCA e-forms takes time. Clients often perceive professionals as incompetent when they cannot complete tasks due to time constraints.
The KYC process for company directors can also be cumbersome, especially when changes to details are required. If not completed promptly, the late fees are substantial, leading clients to blame professionals for not completing the work on time.
Extension of Dates
The deadline for filing the tax audit has now been extended to October 7. Professionals initially planned to submit the MEF form after finishing the tax audits; however, this new deadline will create further conflicts. Additionally, after September 30, the appointment or reappointment of auditors must be filed, but this will now also clash with the extended tax audit deadline.
GST returns also need to be addressed during this busy period.
The MCA is urged to consider the imposition of late fees and finalize dates for filing financial statements and annual returns more reasonably. While it is beneficial that everything is online, websites often crash during peak submission times.
Clients are encouraged to engage professionals well in advance to ensure timely filing of all returns, helping them avoid sleepless nights and unnecessary stress.
The government is requested to exercise compassion when penalizing late filers.
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