Note on Relaxation on Filing of forms for creation/ modification of Charge (Form CHG-1)
SCHEME FOR RELAXATION OF TIME FOR FILING FORMS RELATED TO CREATION OR MODIFICATION OF CHARGES UNDER THE COMPANIES ACT, 2013
Every Company which creates/modifies the charges needs to file the form CHG-1 (Creation and modification) within 30 days from the creation/modification. If the company fails to file within 30 days the charge holder may file the form related to creation or modification of charges under section 78 of the Act, within the overall timelines for filing of such form under section 77.
On account of COVID -19 Ministry has given certain relaxation on filing of these forms under Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013.
The details of the scheme are as under:
1. Effective Date: The scheme is effective from the date of issue of this circular (i.e., 17th June, 2020)
2. Applicability: It is applicable in respect of filing of form CHG-1 and form CHG-9 by a company or charge holder where date of creation/modification of charge:
a. is before 01.03.2020, but the timeline for filing such form had not expired under section 77 of Act as on 01.03.2020, or
b. falls on any date between 01.03.2020 to 30.09.2020 (both dates inclusive)
3. Relaxation of time and applicable fee:
| Date of Creation | Relaxation | Applicable fee |
| Before 01.03.2020, but the timeline for filing such form had not expired under section 77 of Act as on 01.03.2020 | ♣ The period from 01.03.2020 to 30.09.2020 shall not be reckoned for the purpose of counting number of days under section 77 of the Act
♣ If the form is not filed within such period the, the first day after 29.02.2020 shall be reckoned as 01.10.2020 for the purpose of counting the number under section 77 of the Act. |
♣ If the form is filed on or before 30.09.2020, the fees payable as on 29.02.2020 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. 10.2020 and, ending on the date of filing plus the time period lapsed from the date of the creation of charge till 29.02.2020 |
| Falls on any date between 01.03.2020 to 30.09.2020 (both dates inclusive) | ♣ The period beginning from the date of creation / modification of charge to 30.09.2020 shall not be reckoned for counting the number of days under section 77 of the Act
♣ If the form is not filed within such period, the first day after the date of creation / modification of charge shall be reckoned as 01.10.2020 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. |
♣ If the form is filed before 30.09.2020, normal fees shall be payable under the Fees Rules
♣ If the form is filed thereafter, the first day after the date of creation/ modification of charge shall be reckoned as 01.10.2020 and the number of days till the date of filing of the form shall be counted accordingly for the purposes of payment of fees under the Fees Rules. |
4. Non-applicability of the scheme:
The scheme is not applicable in following cases:
- The forms (CHG-1 and CHG-9) had already been filed before the date of the issue of this circular
- The timeline for filing the form has already expired under section 77 or section 78 of the Act prior to 01.03.2020.
- The timeline for filing the form expires at a future date, despite exclusion of the time provided in sub-para (iii) above.
- Filing of Form CHG-4 for satisfaction of charges.
The Notifications of the MCA are available on the following link:
https://taxguru.in/company-law/mca-relaxes-time-file-forms-creation-modification-charges.html
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