MCA relaxes Deadlines and Additional Fee on certain Forms under Companies Act, 2013 [Read Circular]

MCA - Additional Fee - Forms - Companies Act 2013 - Taxscan

As the COVID-19 second wave is hitting the economy and businesses harder, the Ministry of Corporate Affairs(MCA) has notified certain relaxation for the rules relating to compliance and further relaxed the levy of certain additional fee on certain forms under the Companies Act, 2013.

As per the notification issued by the Ministry today, the time for filing forms related to creation or modification of charges under the Companies Act, 2013 has been extended.

This is in the light of resurgence of COVID-19 pandemic, representations have been received in this Ministry requesting relaxation of timelines related to filing of certain charge related forms.

The Circular shall be applicable in respect of filing of Form No. CHG-1 and Form No. CHG-9.

The method of registration of a charge is the filing of particulars of charge along with the instrument creating charge, with the Registrar of Companies within the period prescribed in Section 77(1) of the Act. However, in the event of failure to file the particulars within the prescribed period, the company can get the charge registered by seeking condonation from the Central Government. This is also known as “rectification of the register of charges.

As per a circular issued by the Ministry, a company or a charge holder, where the date of creation/modification of chargeis before 01.04.2021, but the timeline for filing such form had not expired under section 77 of the Act as on 01.04.2021, the first day after 1.4.2021 shall be reckoned as 1.0.2021 for calculating days under section 77 of the Act.

Further, for the Companies falls on any date between 01.04.2021 to 31.5.2021 (both dates inclusive), the period beginning from the date of creation/modification of charge to 31.05.2021 shall not be reckoned for the purpose of counting of days under section 77. For these companies, the first day after the date of creation/modification of charge shall be reckoned as 1.0.2021 for calculating days under section 77 of the Act, the circular said.

With regard to the relaxation on levy of additional fees in filing of certain Forms under the Companies Act, 2013 and LLP Act 200, the Ministry notified that “no additional fees shall be levied upto 31St July, 2021 for the delayed filing of forms (other than charge related forms referred above) which were /would be due for filing during 1st April, 2021 to 31st May, 2021. For such delayed filings upto 31St July, 2021 only normal fees shall be payable.”

“Requests have been received from stakeholders for relaxation on levy of additional fees for filing of various forms under the Companies Act, 2013/LLP Act, 2008/Rules made thereunder due for filing during 1st April 2021 to 31st May 2021 in view of the COVID-19 related restrictions and disruption. The requests have been examined and taking into account the difficulties which have arisen due to the resurgence of the COVID-19 pandemic, it has been decided to grant additional time up to 31st July 2021 for companies/LLPs to file such forms (other than a CHG-1 Form, CHG-4 Form, and CHG-9 Form) without any additional fees,” the notification said.

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