Increase in Penalty for Not Filing Annual Return
The Companies (Registration Offices and Fees) Second Amendment Rules, 2018 was notified by the Ministry of Corporate Affairs on 7th May, 2018. This rule is a very important rule for all professionals and Entrepreneurs who are Directors of a company. By implementing this rule, there will be a very significant increase in penalty for not filing annual return from 1st July 2018. Hence, any person who is a shareholder or Director in Private Limited Company must take steps to immediately file any overdue compliance to prevent heavy penalty which would become due from 1st July 2018.
Announcement by MCA
The Ministry of Corporate Affairs on 8th May 2018 announced the following on their home page:
“The Companies (Registration Offices and Fees) Second Amendment Rules 2018 has been notified on 7th May 2018. Accordingly, in case the due date of filings under Section 92 (Annual Return) or 137 (Annual Financial Statement) of the Companies Act, 2013 expires after 30/06/2018, the additional fee @Rs.100 per day shall become payable in respect of MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS.
In all other cases where the belated annual returns or balance sheet/financial statement which were due to be filed whether under the Companies Act,1956 (23AC,23ACA,23AC XBRL,23ACA XBRL,20B,21A)or the Companies Act, 2013 (MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS) additional fee as per the applicable slab for the period of delay up to 30th June 2018 plus @Rs.100 per day w.e.f 1st July 2018 shall become payable. Stakeholders are advised to take note and plan accordingly.”