MINISTRY OF CORPORATE AFFAIRS: NEW RELAXATIONS AMID COVID 19 SURGE 

In view of difficulties arising due to resurgence of covid-19 and representations received from stakeholders requesting relaxation of timelines for filing of Forms and relaxation on levy of additional fees on filing of certain forms, Ministry of Corporate Affairs (MCA) has decided to provide the following relaxations to the stakeholders:

1- RELAXATION ON LEVY OF ADDITIONAL FEES IN FILING OF CERTAIN FORMS UNDER THE COMPANIES ACT, 2013 AND LLP ACT 2008.

  • MCA vide its General Circular No. 06/2021 dated 03-05-2021 decided to grant additional time upto 31st July, 2021 for Companies and LLPs to file forms (other than Form CHG 1, Form CHG 4 and Form CHG 9) without any additional fees, which were/would be due for filing during 1st April 2021 and 31st May 2021.
  •  Therefore, for such delayed filings upto 31st July, 2021, only normal fees shall be payable.
  •  This circular shall be applicable to all companies and LLPs.
  •  Only forms whose due date falls between the period of 1st April 2021 to 31st May 2021, can be filed without additional fees only upto 31st July 2021.
  •  Charge related forms i.e. Form CHG 1, Form CHG 4 and Form CHG 9 are not covered under this circular.

2– RELAXATION OF TIME AND FEES FOR FILING OF FORMS RELATED TO CHARGE CREATION OR MODIFICATIONS OF CHARGES UNDER THE COMPANIES ACT, 2013.

  • MCA vide its General Circular No. 07/2021 dated 03-05-2021 decided to allow relaxation of timeline and condone the delay in filing of forms related to creation or modification of charges.
  •  The circular shall be applicable in respect of filing of Form CHG 1 and Form CHG 9 by the company or a chargeholder, where the date of creation or modification, as the case may be :

(a) Is before 1st April, 2021 and the due date for filing such form had not expired as per section 77 of the Act as on 01-04-2021 or

(b) Falls between 1st April 2021 and 31st May, 2021 (both dates inclusive).

  • Under Section 77 of the Companies Act, 2013, Form CHG 1 for creation of charge and Form CHG 9 for modification of charge shall be filed within 30 Days from the date of creation or modification as the case may be, without any additional fees. Further 30 Days shall be allowed for filing by paying additional fees and another 60 Days by paying Advalorem duty.
  • Relaxation has been provided, in respect of time period and fees applicable for filing of Form CHG 1 and Form CHG 9 depending upon two time periods.

I- WHERE CREATION OR MODIFICATION DATE IS BEFORE 01-04-2021 AND DUE DATE HAD NOT EXPIRED UNDER SECTION 77:

The time period from 01.04.2021 to 31.05.2021 shall not be considered for the purpose of counting the number of days under section 77 or section 78 of the Act.

In case the form is not filed within such period i.e. 01-04-2021 to 31-05-2021, the first day after 31.03.2021 shall be considered as 01.06.2021 for the purpose of counting the number of days within which the form is required to be filed under section 77 or section 78 of the Act.

Illustration: If the Form CHG 1 or Form CHG 9 is filed after 31-05-2021, then the days between 01-04-2021 to 31-05-2021 shall not be counted for the calculation of 30 days + additional 30 days and further 60 days, as the case may be, after 31.03.2021.

Event Date Filing date Calculation of days Fees
18-03-2021 24-04-2021 Filed within time allowed. Normal fees
15-03-2021 06-05-2021 Filed within time allowed. Normal fees
22-03-2021 12-06-2021 22.03 to 31.03 + 01.06 to 12.06 = 22 days Normal fees
26-03-2021 28-06-2021 26.03 to 31.03 + 01.06 to 28.06 = 34 days Normal   + Additional

APPLICABLE FEE:

  • If the form is filed on or before 31-05-2021, the fees payable as on 31-03-2021 under the fees rules for the said form shall be charged.
  • If the form is filed thereafter, the applicable fees shall be charged under the fees rules after adding the number of days beginning from 01-06-2021 till the date of filing plus the time period lapsed from the date of creation of charge till 31-03-2021.

II- WHERE CREATION OR MODIFICATION DATE FALLS BETWEEN April 1& May 31:

The time period from the date of creation or modification of charge to 31-05-2021 shall not be considered for the purpose of counting of days under section 77 or section 78 of the Act.

In case the form is not filed within such period, the first day after the date of creation or modification or charge shall be 01-06-2021 for the purpose of counting the number of days within which the form is required to be filed under section 77 or section 78 of the Act.

Illustration: If the Charge creation date is 25-04-2021, the form shall be filed upto 31st May 2021 with normal fees.

But if the form is filed after 31st May, 2021, then the period of 30 days shall be calculated from 01-06-2021 not from the date of creation or modification as the case may be.

APPLICABLE FEE:

  • If the form is filed before 31-05-2021 normal fees shall be payable.
  • If the form is filed thereafter, the first day after the creation or modification date shall be taken as 01-06-2021 and the number of days till filing date shall be counted accordingly for the purpose of payment of fees under the Fees Rules.

NON-APPLICABILITY: 

  • The circular shall not be applicable in case:
  • The Form CHG 1 and CHG 9 had already been filed before the date of issue of this circular.
  • The timeline for filing the Forms has already expired under Section 77 or 78 of the Act prior to 01-04-2021.
  • The timeline for filing the form expires at a future date, despite exclusion of the time provided in para (Relaxation of Time) above.
  • Filing of Form CHG 4 in respect of Satisfaction of Charges.

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DISCLAIMER: The content of this article is for informative purposes only and should not be considered as any legal advice on the topic covered. The information is based on the facts and relevant provisions of the applicable laws.

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