Point no-1

Whether we need to update the information and transition period in classification, every year?

As we know ministry of MSME has issued a notification as on 26th June 2020 which notifies certain criteria for classifying the enterprises as micro, small, and medium enterprise and specifying the form and procedure for filling memorandum w.e.f 1st July 2020.

So here the point of discussion is-

Updation of information and transition Period in classification

1. An enterprise having Udyam Registration Number shall update its information online in the Udyam Registration portal, including the details of the ITR and the GST Return for the previous financial year and such other additional information as may be required, on self declaration basis.

2. Failure to update the relevant information within the period specified in the online Udyam Registration portal will render the enterprise liable for suspension of its status.

3. Based on the information furnished or gathered from Government’s sources including ITR or GST return, the classification of the enterprise will be updated.

4. In case of graduation (from a lower to a higher category) or reverse-graduation (sliding down to lower category) of an enterprise, a communication will be sent to the enterprise about the change in the status.

5. In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise will maintain its prevailing status till expiry of one year from the close of the year of registration.

6. In case of reverse-graduation of an enterprise, whether as a result of re-classification or due to actual changes in investment in plant and machinery or equipment or turnover or both, and whether the enterprise is registered under the Act or not, the enterprise will continue in its present category till the closure of the financial year and it will be given the benefit of the changed status only with effect from 1st April of the financial year following the year in which such change took place.

An Enterprise having Udyam Registration Number

Point No-2:

Whether there is required to file Form CFSS 2020 in case of any form or any documents filed for FY 2019-20 on or before 30th September 2020.

There are Circulars

*Note- CFSS is not overriding the Circular dated 24.03.2020. CFSS is in furtherance of the Circular date 24.03.2020.

Hence as per the Circular dated 24.03.2020 the due date of filling documents, Return, & Forms (FY- 2019-20 whose due date was falling in between April 2020 to 30 Spt. 2020 in normal situation ) is 30th  September 2020 Irrespective of their due dates, due to CoVID 19.

Hence, there is not any question of CFSS because CFSS is only for defaulting company and CFSS is in force from 1st April 2020 to 30th September 2020.

In such a case no need of filling CFSS relating to Documents, Returns or Forms whose due date was falling between April to Spt 2020 in normal situation because they already under moratorium period as per Circular date 24.03.2020 i.e the due date 30.09.2020.

CFSS is only for defaulting Company who had made default in filling documents, Forms, Returns, in any previous year.

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  1. CS DIVESH GOYAL says:

    If you read the circular dated 24.03.2020 read with 30.03.2020. It is very clear that 30.03.2020 is complete big form of moratorium. But for immunity it is mandatory to file CFSS form. You can raise such query with MCA also or can take opinion of any CS firm. use the law of interpretation.

  2. Divesh says:

    Moratorium was simple combined circular. Which came with detailed scheme in cfss. Cfss also provide moratorium

    Further if u say moratorium is there for all forms from April to September, then why ministry came with specific scheme for charged for April to Sept?

    Bcoz if moratorium not overrides then charge form also part of moratorium and doesn’t required specific scheme

    1. CS Vikram Sirohi says:

      I am not talking about the Charge forms here, because scheme not covers it. I am only talking about the basic understanding of two circulars that how the relevancy and implementation of two circulars.

      1. CS DIVESH GOYAL says:

        Exactly you are on same track now. See as you said you are not talking about charge form here bcoz scheme dont cover it. See thats y i m saying scheme is wider version of that moratorium circular. If i will go on your answer given in above article, according to that moratorium circular have different standing then cfss. If you are saying moratorium circular have different standing for period april to september then why corporate wants scheme for charge form for this period. analys i this way. i m totally open for discussion on this my contact no is 8130757966

    2. Brajesh Kumar says:

      Divesh Ji if we see the language of charge scheme it exclude the period from March to September from calculation of 120 days. If Charge is created on any date between March to Sept. it can be file with normal fees till 30th September without any immunity certificate.

      MCA came with this scheme because CFSS is not applicable on them and giving benefit to those charge created before 1st March, 2020.

      Form CHG-1, CHG-4 and SH-7 are also covered in the Circular dated 24th March, 2020 if due date falls between 01.04.2020 to 30.09.2020.

  3. CS DIVESH GOYAL says:

    Circular dated March 23, 2020 talked about moratorium from April to Sep 2020 but linked it to fresh start (thereby not only covered new filings coming up as per due date but also the belated filings)
    It also talked about the fact that circular specifying detailed requirements in this regard would be issued separately.

    On March 30, Ministry issued a circular regarding CFSS.
    Circular began w ith “ In Furtherance of the Circular dated 24th March….

    And gone on talk about moratorium period (Apr to Sep) and compliance ritual i.e CFSS form filing.

    Moratorium period of Apr to Sep is for all filings( new and old forms); and
    CFSS Form is required to be filed after Sep 2020 for all forms filed after due date : for example, if you file DPT 3 today- then you must fole CFSS form as there is a delay of 1 day.

    1. CS Vikram Sirohi says:

      What is the real meaning of Form CFSS 2020 ?

      It is just like a notice in which the defaulting Companies will inform after the expiry of the scheme or after filed any belated form or return (except the 4 point on which CFSS not applicable), on MCA, In CFSS 2020 the defaulting Companies will inform that they had filed the belated form or docs or return in between April to Sep, by mentioning the SRN of the form in the Form CFSS 2020 so that they can save themselves from any further proceedings or Prosecutions etc.

      Do you really things that CFSS is also required to be file for the forms for example DPT-3 for financial year 2019-20 because there are already relaxation has provided in the Circular dated 24.03.2020. Circular said that for any documents, forms, returns who is required to be file from April to September the due for the same shall be 30.09.2020 irrespective of their due date. As per this there is not any question of default any where is not a default there is no CFSS.

  4. Cs divesh goyal says:

    Further if u read definition of defaulting companies in cfss circular its no where mentioned thay defaulting companies means which made default in filing of form till 31.3.2020.

    As per definition if company fails to file any form, return, document shall be considered as defaulting company.

    That form can be related to any period till duration of scheme i.e. 31.9.2020.

    1. CS Vikram Sirohi says:

      It is a general understanding,As we knows that the Ministry has already provides the relaxation for any forms or returns or Documents which required to be file between April to Sept. as per Circular dated 24.03.2020.

      What about the forms or any returns whose due date was before April?
      They are not Covered under Circular dated 24.03.2020 and the Companies who not filed these forms, returns they are the defaulting coz they covered under circular dated 24.03.2020. and they are subject to heavy fines or penalties, so by considering this issue MCA has introduced CFSS Scheme so that during moratorium period they can also file belated forms and documents.
      Once they have file these belated documents returns except 4 points on which CFSS not applicable, They have to Inform to Ministry in Form CFSS that they had file these belated docs or form or return, so that they can save themselves from the prosecutions.

      1. CS DIVESH GOYAL says:

        you have asked this question “What about the forms or any returns whose due date was before April?” yes actually to cover these forms also ministry came with a full fledge circular i.e. cfss. CFSS is form all the form filed with delayed till 30.09.2020.

    2. Brajesh Kumar says:

      See the motives of both the circular, one is for compliant Company and another for long standing Non-compliant Company.

      1. CS DIVESH GOYAL says:

        Sir, if you read the definition of defaulting company in CFSS circular no where its mentioned that it is for form requird to file before 31.3.2020. Its just mentioned that, defaulting company means a company which fails to file any form. that form can relate to any period relating to scheme i.e. till 30 september.

      2. CS DIVESH GOYAL says:

        Further no where its mentioned that CFSS is for long standing non-compliant company. It is simply mentioned scheme is for defaulting company. Please refer the definition and confirm.

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February 2021