Federation Of All India Vyapar Mandal requested FM that Companies Fresh Start Scheme, 2020 (CFSS- 2020) may be extended till 31st March 2021 as By that time every Company which is seeking relief will be able to take benefit of this scheme and will make their filing upto date once for all and LLP Settlement Scheme, 2020 may be extended till 31st March.
FEDERATION OF ALL INDIA VYAPAR MANDAL
Nation Apex Body of Various Trade Organisations and Vyapar Madal
Phone No. +91-8076435958
E-mail Id: [email protected]
website : www.faivm.in
Facebook : /FAIVM
Ref : FAIVM/21-01/MCA/594-596
Date : 20 January 2021
Smt. N. Sitharaman
Hon’ble Union Finance Minister and Union Minister for Corporate Affairs
Government of India
Sub.: Extension in last date for CFSS 2020 and LLP Settlement Scheme 2020
Pandemic has hit operations of corporates and other entities like LLP badly. After lifting Lock down, every business entity has become busy in managing its affairs and tried hard to recover from a stress situation to save businesses and employment. Under the circumstances annual compliances for Corporates and LLP has left behind in the anxiety to energise wheel of business and wheel of economy of nation.
Enriching the ease of doing business as envisioned by our Hon’ble Prime Minister Shri Narendra Modi ji and under your dynamic leadership, MCA has extended dues dates for various compliances from time to time. But steins of pandemic are still hitting operational part of businesses due to non-availability of staff who have migrated to their own places during lock down. This scenario is also prevailing at the offices of professionals like CAs and CSs.
MCA had already brought two schemes for providing an opportunity to file all pending documents without paying any additional fee.
Companies Fresh Start Scheme, 2020 (CFSS- 2020)
LLP Settlement Scheme, 2020
These schemes were path breaking opportunities and were similar to VIVAAD SE VISHWAS. These schemes were overwhelmed by Corporate and LLP as well as by professionals like CA/CS. However due some reasons, as listed below, a large number of corporate/LLP could not take benefit out of these scheme;
1. Several petitions for the revival of the Companies U/s 252 of the Companies Act are pending due to the non-operation of NCLT all over India.
2. Many Corporate Business Houses were closed till September due to the lockdown extended by the government of different states.
3. It took almost 60 days for the closure of Account for the financial year 2019-20 after the opening of offices and operations of the business.
4. For the Financial year 2019-20 the closure of the book of accounts took place after the opening of lockdown in the months of September and October. But the due date of filling was 30th May for Form 11 and 30th October for Form 8. Therefore, it is inconvenient to provide little time for compliance while conducting everyday business. Under normal circumstances, the statute provides 2 months for Form 11 after the closure of books of accounts and 7 months for Form 8. Hence, ample time should be given for CFSS scheme.
5. In the same vein consideration should be made for compliances of Private and Public Companies as well because they get at least 6 months for Audit and conducting AGM after the closing of the books of accounts by the Statute. Extension of 3 months for AGM is not equivalent to the 6 months after closure of the book of account provided by the Companies Act 2013.
6. Corporate Compliance Professional like CA/CS face numerous difficulties during the process of- Complying the different sections of the statute and usually, we resolve it by meeting with the officers of the government on their directions but the same facilities of meeting with officers has been stopped by the department due to pandemic and also they never pick up the phone for the resolution. This was a major hurdle for taking the benefits of CFSS.
7. Due to the non-functioning of the MCA portal on 31st Dec 2020, all work performed for the particular compliance was nullified due to the inability to file the form to the MCA portal.
In view of above, we request
A. Companies Fresh Start Scheme, 2020 (CFSS- 2020) may be extended till 31st March 2021. By that time every Company which is seeking relief will be able to take benefit of this scheme and will make their filing uptodate once for all.
B. LLP Settlement Scheme, 2020 may be extended till 31st March.
We shall be highly obliged for an urgent decision in the matter.
V K Bansal
National General Secretary
Shri Narendra Modi ji
Hon’ble Prime Minister
Governemnt of India
Shri Piyush Goyal
Hon’ble Union Minister for Commerce and Industry
Government of India