Relaxation by MCA due to Covid 19 Pandemic

Due to the current situation of COVID-19 second wave, some relaxation have been provided by Ministry of Corporate Affairs (MCA) by issuance of general circulars dated 03/05/2021, which we have prepared a gist on it and the same is produced herein below for your ready reference:

S. No. Circular Relaxations
1. General Circular No. 06/2021 dated 03/05/2021 Relaxation of Additional fees in filing of Certain forms under the Companies Act, 2013 and LLP Act, 2008:-

In view of COVID-19 restriction and disruption, the Ministry has granted additional time to file the various forms which are due to be filed during the period of 01/04/2021 to 31/05/2021 (other than CHG-1 Form, CHG-4 Form, CHG-9 Form) upto 31st July, 2021 without any additional fees.

Therefore, the form (along with its extended due date) which due to be filed between 01/04/2021 to 31/05/2021 are

Forms Due Date of Filling Extended Due Date
MSME-1(Outstanding Payments of MSME (Half Yearly)) 30/04/2021 31/07/2021
PAS-6(Reconciliation of Share Capital Audit Report (Half Yearly)) 30/05/2021 31/07/2021
FC-4 (Annual Return of Foreign Company having Branch office, project office & Liaison Office) 30/05/2021 31/07/2021
Form-11 (Annual return of LLP) 30/05/2021 31/07/2021

 

2. General Circular No. 07/2021 dated 03/05/2021 Condonation of delay in filing forms related to Creation and Modification of Charges:-

General Circular No. 07/2021 is applicable in respect of filing of FormCHG-1 and CHG-9 by a company or a charge holder, where the date of creation/  modification of charge are:-

I. Is before 01/04/2021, but the timeline for filing form has not expired as on 01/04/2021

Relaxation of Time Applicable Fees
The period beginning from 01/04/2021 and ending 31/05/2021 shall not be counted towards the number of days under section 77 or 78 of the Act. If the form is filed before 31/05/2021, the fees as on 31/03/2021 as per fees rules shall be charged, but if form is filed after 01/06/2021, the fees shall be leviable as per fee rules after counting the number of days elapsed after 01/06/2021 till form is filed.

Example:- Company X created charge on its assets on 25/03/2021. As the charge is created before 01/04/2021 and the timeline for filling CHG-1 is not expire as on 01/04/2021, then there arise two situation –

a) Where company X filed CHG-1 before 31/05/2021– Then Fees applicable as on 31/03/2021 shall be applicable for filling Form CHG-1

b) Where company X filed CHG-1 after 31/05/2021-Then 1st June 21 shall be count as 1st day after 31/03/2021 and fees applicable after counting the number of days after 01/06/2021.

II. Falls on any date between 01/04/2021 to 31/05/2021 (both days inclusive)

Relaxation of Time Applicable Fees
The period beginning from 01/04/2021 and ending 31/05/2021 shall not be counted towards the number of days under section 77 or 78 of the Act. Hence period will start from 01/06/2021 If the form is filed before 31/05/2021, the fees as per fees rules shall be charged, but if form is filed after 01/06/2021, the fees shall be leviable as per fee rules after counting the number of days elapsed after 01/6/2021 till form is filed.

Example:- Company Y created charge on its assets on 30/04/2021. As the charge is created between period 01/04/2021 to 31/05/2021, then there arise two situation –

a) Where company Y filed CHG-1 before 31/05/2021– Then Fees applicable shall be as per rule for filling Form CHG-1

b) Where company Y filed CHG-1 after 31/05/2021– Then 1st June 21 shall be count as 1st day from date of creation of charge and fees applicable after counting the number of days after 01/06/2021.

Therefore, to calculate 120 days of filing of CHG-1 & CHG-9 period from 01st April, 2021 to 30th May, 2021 shall not be include.

Note- 1) This circular shall not apply in below mention situation-

  • The forms which are filed before the date of issuance of this circular i.e, 03/05/2021
  • The timeline under section 77 and 78 has been expired before 01/04/2021.
  • Satisfaction of Charge i.e, filling of Form CHG-4.
3. General Circular No. 08/2021 dated 03/05/2021 Gap between two Board Meeting:-

Due to the difficulties of holding Board Meetingsin this COVID-19 situation, the gap between two consecutive meetings for First Two Quarter of Financial Year 2021-22may be extend upto 180 days instead of 120 days.

Hence, Interval between two Board Meeting i.e, 120 days has been extended by further 60 days for April  2021 to June 2021 (1stquarter) and July 2021 to Sept 2021 (2ndquarter)

Disclaimer: Nothing contained in this document is to be construed as a legal opinion and based on the understanding and interpretation of author which is to be used for educative purposes only.

[The writer is a Company Secretary and can also be reached at [email protected]]

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