Many companies availed benefit of the Companies Fresh Start Scheme (CFSS) 2020 last year.

Last year MCA came up with the Companies Fresh Start Scheme (CFSS) 2020 to give a chance for companies to start afresh and make good the defaults in filing a number of forms with ROC. Many companies availed the benefit of the scheme as it gave them a chance to file forms which were overdue with just normal fees and no additional fees and penalties.

The scheme was a welcome relief for companies already reeling under the economic slowdown made worse by lockdown and raging pandemic.

If you were one of the companies which availed the benefit of the scheme, do not forget to file Form CFSS-2020 till 30th June 2021.

Ques: What is form CFSS-2020? Why do we need to file the form?

Ans: Form CFSS is an application for issue of immunity certificate to be filed by companies who have availed the benefit of CFSS-2020 scheme introduced by MCA in 2020.

Ques: Why do I need to file form CFSS-2020?

Ans: As mentioned before, the form is application for issue of immunity certificate to companies which availed the benefit of the Companies Fresh Start Scheme (CFSS) 2020. This gives immunity to the companies against additional fees on late filing of various forms with MCA.

Also, very importantly this ensures immunity against various penalties under the Companies Act’ 2013 for defaults in filing various forms with MCA.

We know penalties under the Companies Act;2013 can be draconian and amount to thousands and lakhs, therefore to save these penalties form CFSS-2020 needs to be filed.

Ques: What if we have availed the benefit of CFSS Scheme but do not file form CFSS-2020?

Ans: Those companies which fail to file Form CFSS-2020 are not eligible for immunity against late fees and penalties for defaults in filings under the Companies Act’2013 meaning thereby that ROC can issue notice for payment of late/additional fees for delayed filings under the Act also notice may be issued for levying penalties for contravention of the Companies for delayed filings.

Ques: How do we know if we have availed the benefit of CFSS 2020 scheme and need to file form CFSS-2020?

Ans: The Companies Fresh Start Scheme (CFSS) 2020 scheme was applicable from 01st April, 2020 to 31st December’2020.  Therefore, if a company has filed a specified form after the due date of filing and filed such form between 01.04.2020 to 31.12.2020, the company has automatically availed the CFSS 2020 scheme as the MCA portal would not have levied additional fees on such form.

Therefore, if you have filed any specified form after its due date and the filing date was between 01.04.20 to 31.12.2020, then you need to file form CFSS-2020 to apply for immunity certificate under Companies Fresh Start Scheme (CFSS) 2020.

Ques: What forms are not allowed to be reported under CFSS-2020 e-Form?

Ans: SRN of the following forms are not required to be mentioned in CFSS:

a) SH-7 for increase in authorized share capital.

b) Charge related forms i.e. (CHG-1, CHG-4, CHG-8 & CHG-9).

c) Forms filed within the due date are not required to be reported under this form.

d) All forms filed after due date but filed before 01st April’2020 or after 31st December’2020 are also not required to be reported under this form.

Ques: What information has to be given under CFSS-2020?

Ans: Under Form CFSS-2020, the company lists all the forms it has filed under CFSS-2020 Scheme and paid normal fees on the same without paying any additional fees. SRN of the form filed under the scheme is to be given.

Here, the company lists the SRN of all forms it has filed on which the benefit of the scheme has been taken. On providing SRN and pre-filling, name of the form along with date of filing and fees paid on the same appears.

On successful filing of this form, immunity certificate for all the forms provided in CFSS-2020 will be issued by MCA.

Ques: What if we miss listing any forms on which scheme is availed?

Ans: If the company does not list any forms on which benefit of the scheme is taken in the application for immunity, then immunity certificate in respect of the said form will not be issued to the company which means that ROC can ask for payment of additional fees on delayed filing of such form and also issue show cause notice for levying penalty for default/late filing of such form(s).

Ques: What is ‘date of event’ as asked in form CFSS-2020?

Ans: Date of event is actual date of occurrence of the event. This will help in determining if the form was filed after the due date and eligible for CFSS scheme. For example, if a resolution was passed on 15.02.2020 then the date of event would be 15.02.2020.

The date of event varies for different forms like date of filing forms AOC-4 & MGT-7 depends on the date of AGM therefore date of AGM is the date of event in case of these annual forms.

Another important form due date for which lies in June is DPT-3i.e 30th June. The date of event of form DPT-3 for FY 2019-20 will be 30.06.2020.

Ques: How many SRNs can we mention in form CFSS-2020?

Ans: Maximum 20 SRNs can be mentioned in this form. If a company has more than 20 SRNs to be mentioned in form CFSS-2020, then the company can file another form for the pending SRNs not mentioned.

However, if there are less than 20 SRNs to be mentioned in one form and if a company forgets to mention one or more SRNs then it cannot file another form for the same.

Ques: What will be the date of event for Annual forms for OPC?

Ans: Since OPCs are not mandated to hold AGM there is a confusion over ‘date of event’ while filing CFSS form for OPC. In my opinion, if OPC has held an AGM then date of event for AOC-4 and MGT-7 will be the date of AGM but if OPC has not held any AGM then date of event for form AOC-4 of an OPC will be 27th September’2020 in case filing for FY 2019-20 is to be done as an OPC is required to file AOC-4 within 180 days from the close of the financial year. If we take 31st March as the close of the financial year then 180 expire on 27th September therefore due date for filing AOC-4 of OPC will be 27th September and the same will be the date of event.

The event date for MGT-7 of OPC will be 60 days from such date i.e 60 days from 27th September which will be 26th November.

Ques: Is there any option where we can view all the forms we have filed for which CFSS needs to be filed?

Ans: As such there is no option for viewing forms or SRNs for which CFSS is to be applied for but there are a couple of ways in which you can calculate the forms which need to be mentioned to apply for immunity in form CFSS-2020.

a) If you have a single login from which all the filings are done then it would show list of all companies for which filing is done from the said login. It would also show list of forms filed by the said company along with date of such form.

b) Also, one can view all the SRNs filed from the login in ‘Track SRN Status’ date wise. This process maybe time consuming as one can view SRNs filed within 7 days only at a time. Therefore, it would take some time to view all SRNs filed from 01.04.2020 to 31.12.2020.

Few other points to be considered

  • There is no fee for filing form CFSS-2020 and form will be filed in straight through process i.e STP Mode and will be approved as soon as on filing and immunity certificate will be mailed to the company.
  • Company will need to authorize filing of this form with MCA by way of a board resolution.
  • Companies can also mention SRN of DIR-3 KYC to seek immunity for this form although the company is not required to file such form as such form is to be filed by persons having DIN. If a DIN holder is a director in any company then such company can mention SRN of form DIR-3 KYC to seek immunity under the scheme. If the DIN holder is not associated with any company then SRN of form DIR-3 KYC will not be mentioned in form CFSS-2020.

(The author a Chartered Accountant and can be contacted at [email protected] or Mobile: +91-9953199493)

Author Bio

Qualification: CA in Practice
Company: Pratik & Associates
Location: New Delhi, New Delhi, IN
Member Since: 10 Jun 2017 | Total Posts: 55
Pratik Anand is the founder of youronlinefilings.com, an online startup for business registrations, annual business compliance services, Tax filings, book keeping, legal consultancy etc. He is a Chartered accountant by profession and has special flair and expertise in the area of direct Taxation. H View Full Profile

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