One of the Major proposed Amendment”
Removal of reference of Section 403 from the Section 92 (Annual Return) and Section 137 (Financial Statement). Due to removal of 403 from the section 137 & 92 there are lot of questions arise in the mind of the professionals and the Corporates due to non clarity as follow.
I. No Upper Cap on Additional Fees:
In the proposed Companies (Amendment) Bill, 2017 as passed by Lok Sabha, It is proposed that if any company fails to comply with the provisions of Section 92 & 137 the Companies Act, 2013 i.e. filing of e-form MGT-7 and AOC-4 with in period of 60 days and 30 days of date of Annual General Meeting “Then it proposed in the bill that the Company can file such form subject to additional fees of Rs. 100/- per day”. Here the questions are;
II. Double / Higher Additional FeesOnline GST Certification Course by TaxGuru & MSME- Click here to Join
In the proposed Companies (Amendment) Bill, 2017, it is proposed that if the Company commits default of 2 or more occasions in filing of documents, facts or information required u/s 92 and 137 of the Act, the Company has to pay higher additional fee, as may be prescribed and which shall not be lesser than “Twice the Additional Fees” as mentioned above. Here the questions are;
III. Trigger of Compounding:
As per provisions of Companies Act, 2013 if company fails to file Annual form within the additional time prescribed under Section 403 (i.e. 270 days) then company have to file application with NCLT for compounding of offence u/s 137 and 92.
However, it can be opined that as per the provisiosn of Companies Act, 2013 Compounding shall be triggered after completion of additional 270 days.
In the proposed Companies (Amendment) Bill, 2017 if is proposed to remove the reference of Section 403 from the section 137 and 92. Here the questions are;
Therefore, one can opine that due to non clarity, it is urgent and important for all the Corporates and professionals to file all the pending annual e forms if any, with the ROC at the earliest before passing of Amendment Bill, 2017 from the Rajya Sabha and becomes the final Act.
(Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at email@example.com)
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION.
This is only a knowledge sharing initiative and author does not intend to solicit any business or profession.