Skip to main content

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

Image
By Arpit Kulshrestha
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.

Comments

Post a Comment

Popular posts from this blog

Why Small Firms Should Consider Gen Payroll Software?

By Arpit Kulshrestha
Businesses in this competitive era would be required to manage the payroll. Payroll software has multiple operations such as paying employees, following tax laws, managing employee benefits, filing important documents, and keeping accurate records. Businesses that manage tasks manually or with spreadsheets can result in inappropriate compliance and issues, wasting time in doing operations. Gen Payroll software arrives to manage payroll with accuracy and resolve the issues that come therein. The merits and demerits of Gen Payroll software are mentioned below. Gen Payroll Software Gen Payroll is a payroll management software made by SAG Infotech . It eases and automates the process of payroll. The software’s features are tracking employee attendance, calculating salaries, ensuring compliance with laws like PF (Provident Fund), ESI (Employee State Insurance), and TDS (Tax Deducted at Source), as well as generating payslips. Businesses, whether small or large, can use this software. ...
2 comments
Read more

How ITR Software Assists Individuals in Filing Tax Returns

By Arpit Kulshrestha
Every assessee's process of income tax return (ITR) filing is significant, as it contributes to Indian's economy. The Income Tax Department has made efforts to facilitate this approach in recent years, but numerous people still see themselves steering a difficult financial system, multiple tax deductions, miscellaneous exemptions, and changing tax laws. This complexity can turn what must be an easy task into a significant challenge. In this context, income tax software evolves into an important partner, presenting a useful variety of accuracy, efficiency, and reassurance. The software enables return filing that permits taxpayers to handle their financial responsibilities when complying with the law. 1. Accurate Tax Calculations An incorrect income tax calculation of taxes could result in messages from the Income Tax Department or missed refunds. The tax software helps in finding taxable income and tax deductions that you may be allowed, like insurance or home loans. The co...
Post a Comment
Read more

Major Income Tax Rule Changes to Simplify Return Filing

By Arpit Kulshrestha
Income Tax Return Filing- The normal Income tax return filing due date for AY 2024-25 ended on July 31, 2024. On December 31, 2024, the due date to file a belated ITR with a penalty amount of Rs 5000 will end. The Income Tax Department after the July 31 deadline will provide different categories of taxpayers with specific deadlines to furnish income tax return filing (ITR) . For instance, the tax department has extended the ITR filing date for those who require the audit of their accounts from 31st October 2024 to 15th November 2024. Below we talk 5 amendments in the rules of the income tax concerning tax returns filing via the taxpayers. With New Form 26AS Improved Tax Transparency The introduction of the new Form 26AS furnishes the complete data to the taxpayer along with the details of tax deductions or collections at source, demands, payment of taxes, specified financial transactions (SFTs) and refunds. Also, the inclusion of SFT data assures that the taxpayers know about their tra...
Post a Comment
Read more