All About Condonation of Delay Scheme 2018

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Condonation of Delay Scheme 2018 is formulated to provide a three-month window for defaulting companies and their director to submit their annual filings.It will be operational from January 1 to March 31, 2018 to provide a big Relief to disqualified directors. During the period of 3 months, DIN (Director Identification Number) of disqualified directors will be re-activated temporarily to facilitate Directors of defaulting companies to file all overdue annual returns. If Director of defaulting company fails to utilise scheme and regularise compliance after the end of the three month window period, his DIN will be deactivate and he will be disqualified for period of 5 years.

Introduction:

As MCA issued the list of approx 309,614 Director who has been disqualified under section 164(2) and whose DIN has been blocked by the MCA. Due to this action many representations made from industry, defaulting companies and their directors seeking an opportunity for the defaulting companies to become compliant and normalize operations.

With a view to give them opportunity the CG has decided to introduce a scheme namely “Condonation of delay scheme 2018” [CODS-2018].” The scheme shall be into effect from w.e.f. 01st January, 2018 and shall remain in force upto 31st March, 2018 (Companies have to comply with the scheme within this period of 3 months).

Some Definitions to be used for the Compliances:

Terms Used in the Scheme

Meanings

Over Due Documents 

- Financial Statements or

- The Annual Returns or

- Or documents as mentioned in below List

- Other associated documents, as applicable, In the case of a

defaulting Company or

Defaulting Company

Company which has not filed its

- Financial Statements, or

- Annual Return

As required under the Companies Act, 1956 or Companies Act, 2013, as the case may be, and the rules made there under for a continuous period 3 years.

Forms Allowed filing under the Scheme – Over Due Documents:

S.No. Form No.  Purpose of File
1. 20B / MGT – 7 Annual Return by Company having Share Capital
2. 21A / MGT -7 Annual Return for Company not having Share Capital
3.

23AC, ACA, AOC-4- XBRL, non-XBRL, CFS

Form for filing of Balance Sheet/ Financial Statement and Profit and Loss Account

4. 66  Compliance Certificate with Roc
5. 23B/ ADT-1  Intimation for appointment of Auditor

Procedure to be Followed for the Purpose of the Scheme

This Scheme is for the Defaulting Companies “Whose name have not been removed from the record of the Registrar” means the Companies which are defaulting but whose status in the record of the ROC is Active.

STEP – I- DIN Activate

The DIN of the disqualified directors shall be activate during the validity of the scheme i.e. 01.01.2018 to 31.03.2018 to enable them to file the documents.

STEP – II- Filing of Pending ROC Forms

The defaulting Company shall file the overdue documents (list mentioned above in table form) in respective form with addition fees i.e. as per section 403 (maximum additional fees 12 time of actual fees).

STEP – III- Seeking of Scheme

After filing documents in STEP II Company shall seek condonation of delay by filing of eform e-CODS 2018 with Fees Rs. 30,000/-.

EFFECT OF NON- AVAILING OF SCHEME

The DIN of Directors associated with defaulting Company that have not done the below mentioned shall be liable to deactivated on expiry of the scheme period:

- Have not filed over due documents and

- The eform CODS 2018 and

- These are not taken on record in the MCA21 and

- Are still found to be disqualified on the conclusion of scheme

EFFECT ON DEFAULTING COMPANIES – WHICH HAS STRUCK OFF

In case of defaulting – struck off Company have filed applications for revival under section 252 of the Act upto the date of this scheme (i.e. 31.03.2018). The DIN of such directors shall be re-activated only NCLT order of revival subject to the Company having filing of all overdue documents.

FAQs

I. Whether Struck Off Companies can take benefit of this Scheme CODS – 2018?

Solution: This scheme can be avail by the Defaulting Company – which has not struck off in the record of the Registrar of Companies. Therefore, Struck Off companies can’t take benefit of this scheme.

II. Applicability of Scheme CODS – 2018?

Solution: This scheme can be avail by the Defaulting Company – (other than the companies which have been struck off/ whose names have been removed from the Register of Companies under Section 248(5) of the Act):

III. Time period for avaibility of benefits of Scheme CODS – 2018?

Solution: This scheme shall be available for the period: Start from 1st January, 2018 TO End on 31st March, 2018

IV. Fees to be paid under Scheme CODS – 2018?

Solution: Following fees required to pay under the Scheme:

- Late Filing Fees of all the Pending form i.e. ( Actual + 12 times additional Fees)

- Fee of e-CODS 2018 i.e. Rs. 30,000/-fsdf

In case of Any Queries, Please Contact us at support@legalsuvidha.com or call us at 09599937963, 08130645164.

 



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