Government of India has been making tremendous efforts in clearing backlogs/disputes/appeals under direct and indirect taxes which has resulted in the launched settlement schemes under Direct Tax (Vivaad Se Vishwas Scheme) & Indirect tax (Sabka Vishwas Scheme). On the similar lines, MCA i.e Ministry has come up with the scheme called Companies Fresh Start Scheme 2020 (also called CFSS -2020) vide its General Circular No. 12/2020 for one-time application of condonation of delay of filing the various forms, documents and returns.
APPLICABILITY OF THE SCHEME:
This Scheme shall be applicable to any “Defaulting Company”, Defaulting Company here means any company which made a default in filing of any of the documents, statement, returns, etc. including annual statutory documents on the MCA-21 registry on due time and under this scheme is permitted to file all belated documents which were due for filing without any Additional Fees except for two documents and out of which, some permitted documents are as follows:
- Annual Return -MGT-7
- Financial Statements – AOC-4
- INC-22A (Active Company Tagging Identities and Verification)
- INC-20A (Declaration for the commencement of business)
- PAS-3 (return of Allotment)
- ADT-1 (Appointment of Auditor)
- MGT-14 (Filing of Resolutions and agreements to the Registrar)
- DIR-12 (Particulars of appointment of Directors and the key managerial personnel and the changes among them)
Two Exceptions which is out of the purview of this Scheme:
- Increase in Authorised Share Capital (SH-7)
- Charger related documents (CHG-1, CHG-4, CHG-8, and CHG-9)
The Scheme shall come into force on 01st April 2020 and shall remain in form till 30th September 2020.
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BENEFITS OF SCHEME
- One-time opportunity to enable defaulting companies to complete their pending compliances regarding: annual filings forms, other returns, documents and statements without paying any additional fees.
- Immunity Certificate to save from launching of prosecution or proceedings for imposing a penalty on account of delay associated with such filings.
PROCEDURE TO AVAIL BENEFITS AND IMMUNITY IN RESPECT OF DOCUMENT(S) FILED UNDER THE SCHEME:
STEP 1. File all pending forms, documents, returns, statements, etc. as mentioned above with the MCA-21 registry during the currency of the Scheme without paying any additional fees.
STEP 2. File Form CFSS-2020 for seeking immunity in respect of belated documents filed under the scheme, after the closure of scheme and after the documents are taken on file or on record or approved by the designated authority as the case may be but not after the expiry of six months from the date of closure of the scheme.
STEP 3. An immunity certificate in respect of documents filed under this scheme shall be issued by the designated authority.
SCHEME FOR INACTIVE COMPANIES
The defaulting inactive companies, while filing due documents under CFSS-2020 can, simultaneously, either:
(a) Apply to get themselves declared as Dormant Company under section 455 of the Companies Act, 2013 by filing e-form MSC-1 at a normal fee on the said form; or
(b) Apply for striking off the name of the company by filing e-form STK-2 by paying the fee payable on form STK-2.