Condonation of Delay Scheme 2018 allows the Defaulting Companies (other than the companies which have been struck off/ whose name have been removed from the register of Companies u/s 248(5)) to file its overdue documents which were due for filing till 30.06.2017 in accordance with provisions of the scheme.
Condonation of Delay Scheme 2018 is a Way out prescribed for Removal of Disqualification of Directors due to non Filing of Financial Statement and Annual Return u/s 164(2).
Introduction:
As MCA issued the list of approx 309,614 Director who has been disqualified under section 164(2) and whose DIN has been blocked by the MCA. Due to this action many representations made from industry, defaulting companies and their directors seeking an opportunity for the defaulting companies to become compliant and normalize operations.
With a view to give them opportunity the CG has decided to introduce a scheme namely “Condonation of Delay Scheme 2018” [CODS-2018].”
Time Period: The Condonation of Delay Scheme 2018 shall be into from w.e.f. 01st January, 2018 and shall remain in force upto 31st March, 2018 (Companies have to comply with the scheme within this period of 3 months).
SOME DEFINITIONS TO BE USED FOR THE COMPLIANCES:
| Over Due Documents |
|
| Defaulting Company | Company which has not filed its
– Financial Statements, or – Annual Return As required under the Companies Act, 1956 or Companies Act, 2013, as the case may be, and the rules made there under for a continuous period 3 years. |
Forms Allowed filing under the Condonation of Delay Scheme 2018 –
Over Due Documents
| S. No. | Form No. | Purpose of File |
| 1. | 20B / MGT – 7 | Annual Return by Company having Share Capital |
| 2. | 21A / MGT -7 | Annual Return for Company not having Share Capital |
| 3. | 23AC, ACA, AOC-4- XBRL, non-XBRL, CFS | Form for filing of Balance Sheet/ Financial Statement and Profit and Loss Account |
| 4. | 66 | Compliance Certificate with Roc |
| 5. | 23B/ ADT-1 | Intimation for appointment of Auditor |
PROCEDURE TO BE FOLLOWED FOR THE PURPOSE OF CONDONATION OF DELAY SCHEME 2018
This Scheme is for the Defaulting Companies “Whose name have not been removed from the record of the Registrar” means the Companies which are defaulting but whose status in the record of the ROC is Active.
STEP – I- DIN Activate
The DIN of the disqualified directors shall be activate during the validity of the scheme i.e. 01.01.2018 to 31.03.2018 to enable them to file the documents.
STEP – II- Filing of Pending ROC Forms
The defaulting Company shall file the overdue documents (list mentioned above in table form) in respective form with addition fees i.e. as per section 403 (maximum additional fees 12 time of actual fees).
STEP – III- Seeking of Scheme
After filing documents in STEP II Company shall seek condonation of delay by filing of e-form e-CODS 2018 with Fees Rs. 30,000/-.
EFFECT OF NON- AVAILING OF SCHEME
The DIN of Directors associated with defaulting Company that have not done the below mentioned shall be liable to deactivated on expiry of the scheme period.
- Have not filed over due documents and
- The eform CODS 2018 and
- These are not taken on record in the MCA21 and
- Are still found to be disqualified on the conclusion of scheme
EFFECT ON DEFAULTING COMPANIES – WHICH HAS STRUCK OFF
In case of defaulting – struck off Company have filed applications for revival under section 252 of the Act upto the date of this scheme (i.e. 31.03.2018). The DIN of such directors shall be re-activated only NCLT order of revival subject to the Company having filing of all overdue documents.
WARNING:
At the conclusion of scheme i.e. 31.03.2018, the Registrar shall take all necessary action under the Companies Act, 1956/2013 against the Companies who have not availed themselves of this scheme and continue to be in default in filing the overdue documents.
Few Questions:
I.Whether Struck Off Companies can take benefit of Condonation of Delay Scheme 2018?
Solution: This scheme can be avail by the Defaulting Company – which has not struck off in the record of the Registrar of Companies. Therefore, Struck Off Companies can’t take benefit of this scheme.
II. Applicability of Condonation of Delay Scheme 2018?
Solution: This scheme can be avail by the Defaulting Company – (other than the companies which have been struck off/ whose names have been removed from the Register of Companies under Section 248(5) of the Act)
III. Time period for availability of benefits of Condonation of Delay Scheme 2018 (CODS – 2018)?
Solution: This scheme shall be available for the period:
Start from 1st January, 2018 TO End on 31st March, 2018
IV. Fees to be paid under Scheme CODS– 2018?
Solution: Following fees required to pay under the Scheme:
- Late Filing Fees of all the Pending form i.e. ( Actual + 12 times additional Fees)
- Fee of e-CODS 2018 i.e. Rs. 30,000/-fsdf
V. E-form for which this scheme can be avail?
| S. No. | Form No. | Purpose of File |
| 1. | 20B / MGT – 7 | Annual Return by Company having Share Capital |
| 2. | 21A / MGT -7 | Annual Return for Company not having Share Capital |
| 3. | 23AC, ACA, AOC-4- XBRL, non-XBRL, CFS | Form for filing of Balance Sheet/ Financial Statement and Profit and Loss Account |
| 4. | 66 | Compliance Certificate with Roc |
| 5. | 23B/ ADT-1 | Intimation for appointment of Auditor |
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