Ministry of Corporate Affairs (MCA), regulatory body of corporate sector in India, vide its General Circular No 06/2020 dated March 04, 2020 and further modified vide General Circular No. 13/2020 dated 30th March, 2020, launched a one-time settlement scheme for the LLPs to grant one time immunity from additional fees and prosecution against the defaulting LLPs.
|1.||What is Revised LLP Settlement Scheme-2020?||One-time condonation of delay (one-time waiver of additional fees) Scheme for filing statutorily required documents/forms of LLP which were due for filing till 31st August, 2020 at no additional fees|
|2.||Duration of Scheme||1st April 2020 to 30th September 2020|
|3.||Scheme Applicable to||Defaulting LLPs/ Non-Compliant LLPs means those LLPs who have failed to file following forms:
|4.||Scheme NOT Applicable to||LLPs that made an application in Form 24 to the Registrar, for striking off its name from the register as per provisions of Rule 37(1) of the LLP Rules, 2009.|
|5.||Additional fees during the Scheme||NO ADDITIONAL FEES|
|6.||Consequences if the Defaulting LLP doesn’t take benefit of LLP Settlement Scheme-2020||If the Defaulting LLP doesn’t take benefit of LLP Settlement Scheme – 2020, then the said LLPs have to file forms with additional fees ₹ 100/- for each day of such delay in addition to any fee as is payable OR Registrar may Initiate Prosecution against Defaulting LLPs.|
|7.||Advantages to the Defaulting LLPs those took benefit of LLP Settlement Scheme-2020||
In view to promote ease of doing business, a one-time opportunity has been given to the LLPs. Those who have defaulted in filing their returns can avail of this scheme so as to protect them from huge monetary expends and prosecution.
This article is co-authored by Asha Diwakar (Practicing Company Secretary) who is co-founder and Designated Partner of M/s CLAAT Corporate Advisors LLP (Chhota CFO).
Chhota CFO offers a range of services and integrated solutions in the areas of India corporate regulations, compliance, accounting and taxation for Start-ups, SMEs and Corporates – right from incorporating new companies, statutory registrations, secretarial compliance, bookkeeping and accounting, tax consulting & filing, audit & assurance and other associated professional services to start, maintain and grow your business.
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