Relaxations of time for filling CHARGE Creation/Modification forms

In this editorial author shall discuss Relaxation in time of filing of form for Creation of Charge, Relaxation in time of filing of form for Modification of Charge, Applicability of relaxations to Form CHG-1 & CHG-9 and not to form CHG-4 (Satisfaction of Charge). Further it explains that If charge is Created or modified on or before October 31, 2019 then this scheme is not applicable for such forms. General Circular No. 23/2020 Dated June 17, 2020.

I. Effective Date:

This Scheme come into effect from June 17, 2020.

II. Applicability:

As per provisions of Section 77 of Companies Act, 2013 form CHG-1 and CHG-9 relating to Creation and Modification of Charge need to be file in maximum 120 days from date of creation or modification.

Scheme shall be applicable in following Manner:

PART I: If date of creation or modification of charge is before March 01, 2020.

If date of creation or modification of charge is before March 01, 2020, but the timeline for filing of such form had not expired under Section 77 (i.e. 120 days) as on March 01, 2020

EG.

a) Charge created/modified before March 01,2020 but as on March 01, 2020 One hundred Twenty Days (120 days) has not expired.

**In other word we can say that, charge is created or modified on or after November 01, 2019 is eligible for this scheme.

PART II: If date of creation or modification of charge is between March 01, 2020 to September 30,2020.

If date of creation or modification of charge is between March 01, 2020 and September 30, 2020 then all such form shall fall under this scheme.

EG.

a) If Charge Created or modified after March 01, 2020 then this scheme is also applicable on all such forms.

III. Relaxation of TIME/ FEEunder Scheme:

PART I: If date of creation or modification of charge is before March 01, 2020.

TIME LINE

• The period beginning from March 01, 2020 and ending on September 30, 2020 shall not be reckoned for the purpose of filing of form u/s 77 & 78.
• In case form not filed till September 30, 2020 the first day after February 29, 2020 shall be October 01, 2020.

EG.

a) If Charge created/ modified on January 15, 2020, then what shall be due date as per scheme.

Ans: Maximum time for filing of form is 120 days. Till Feb 29, 2020 | 45 days passed. Remaining days 75 days. As per above provision:

• If company file form between March 01 to September 30 then as form filed after 30 days but before 60 days i.e. 45 days on February 29, therefore, company is required to pay normal fees as well as additional fees.
• If Company file form till September 30, then October 01, shall be considered as 46^th day for the purpose of fees payable on Charge Form

FEES:

• If company file form between March 01 to September 30 then fees applicable on such form as on February 29, required to be pay till September 30.
• If Company file form till September 30, then October 01, shall be considered as next day of February 29, for the purpose of fees payable on Charge Form.

PART II: If date of creation or modification of charge is between March 01, 2020 to September 30,2020.

• The period beginning from March 01, 2020 and ending on September 30, 2020 shall not be reckoned for the purpose of filing of form u/s 77 & 78.
• In case form not filed till September 30, 2020 then October 01 shall be first day to count 120 days u/s 77

EG.

b) If Charge created/ modified on March 15, 2020, then what shall be due date as per scheme.

Ans: Maximum time for filing of form is 120 days. As per above provision:

• If company file form between March 01 to September 30 then no need to pay any additional fees, only payment of actual form fees is enough.
• If Company file form after September 30, then October 01, shall be considered as 01^stday for the purpose of fees payable on Charge Form

FEES:

• If company file form between March 01 to September 30 then no need to pay any additional fees, only payment of actual form fees is enough.
• If Company file form after September 30, then October 01, shall be considered as 01^st day for the purpose of fees payable on Charge Form. In other word in this situation, 1 day of creation/ modification of charge shall be October 01.

Not Applicability of Scheme:

• If the form i.e. CHG-1 and CHG-9 had already been filed before the date of Circular (i.e. March 17, 2020)
• If the 120 days already been expired on March 01, 2020.
• Form CHG-4 don’t cover under this Scheme.

Quick Question:

a) If Charge is created/ modified on or before October 31, 2019. Company fails to file such form. Whether such Company can take benefit of this Scheme?

As per applicability of Scheme. If 120 days already been expired on March 01, 2020, then such form can’t take benefit of this scheme. In the given question charge created/ modified on or before October 31, therefore, 120 days already passed on March 01.

Therefore, no benefit of this scheme to such Companies.

b) If any company file CHG-1/ CHG-9 during lockdown with additional fees as well as advolerum fees, whether such company can file form for refund of fees other than actual from fees from MCA?

It is specifically mentioned in scheme, If the form i.e. CHG-1 and CHG-9 had already been filed before the date of Circular (i.e. March 17, 2020) then such form can’t take benefit of scheme.

Therefore, not eligible for any refund.

Note

https://taxguru.in/company-law/mca-relaxes-time-file-forms-creation-modification-charges.html

Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at [email protected]).