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ROC Form MGT 7 & AOC 4 Penalty for Non-filing Taxpayers

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After the introduction of the Companies Amendment Act, 2017 and the Companies Amendment Ordinance Act, 2018, drastic changes have been observed in the provisions related to the filing of documents and e-forms with the Registrar for companies. Earlier, a time period of 270 days has been given to companies to file any document with the Registrar (ROC) by paying additional fees, as per section 403 of the Companies Act 2013.

MGT 7 & AOC 4 Form Penalty

However, this section has been recently amended, and now companies have to file statuary documents within the time mentioned in the relevant section of the amended Companies Act. For instance, AOC 4 form must be filed within 30 days of AGM. Although after the expiry of the given period in the relevant section, a company can file a particular document by paying an additional fee and penalty in case the same receives a showcase notice from the Registrar:

Here are the consequences of non-filing or late filing of any statutory document with the Registrar of Companies (ROC).

In Case a Company Fails to Furnish AOC-4 within 30 Days of AGM:

In case, a company fails to file the copy of the financial statements, including consolidated financial statements within 30 days from the date of AGM, the company is allowed to file AOC-4 form after 30 days of AGM by paying an additional fee of INR 100/- per day.

Due Date of Filing AOC-4 Form

In India, companies must file Form AOC-4 within 30 days of their Annual General Meeting (AGM). This form reports financial statements and other documents to the Registrar of Companies. Note that there are exceptions and specific deadlines for different types of companies or filings.

Penalty Amount for the Delay in Filing AOC-4

In case a company fails to furnish the financial statement within 30 days, the company and it’s every Director must pay the following amount of Penalty:
Penalty
Period
INR 1000/- per day (but not more than INR 10,00,000/-)
Until the failure period continues

In Case a Company fails to file MGT-7 within 60 Days of AGM? 

In case of failing to furnish a copy of the Annual Return within 60 days from the date of AGM, any particular company is allowed to file MGT 7 form, 60 days post-AGM by paying an additional fee of INR 100/- per day.

Penalty Amount for the Delay in Filing MGT-7?

Stakeholders
Penalty Amount
Period
Company and it’s every officer (who is in fault)
INR 50,000/-
Fail to furnish MGT-7 within 60 days from AGM
Company and it’s every officer (who is in fault)
INR 100/- per day (subject to a maximum of INR 5,00,000/-)
Until the failure period continue

In both of the given cases above, the penalty needs to be paid only if a company receive notice from Registrar and is levied the only after an investigation by the adjudicating officer otherwise additional fees of INR 100/- per day will be applicable.

Consequences of Non-filing of AOC-4 and MGT-7 on Company? 

If a company do not carry business for a period of 2 years consecutive years, the ROC will assume that the same has been closed. Further, in case of non-submission AOC-4 form and MGT-7 form for a continuous period of 2 years, a notice will also be sent to the company from the registrar with an intention to strike off the company.
A reasonable opportunity of being heard will also be given to the company before being struck off.

Consequences of Non-filing of AOC-4 and MGT-7 on Directors?

In case, a company has not filled AOC-4 and MGT-7 for a regular period of 3 years, its directors are disqualified to be re-appointed or appointed in other companies for a period of 5 years.

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