Have you paid excess or incorrect payment to MCA? Know the refund process

Last Updated On: Nov. 24, 2020, 9:56 p.m.
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HAVE YOU PAID EXCESS OR INCORRECT PAYMENT TO MCA?

The user is required to make various payments to avail of MCA21 services. A number of instances have been observed where the users make multiple payments or incorrect payment or excess payment while using these services. In order to allow the stakeholders to claim a refund of such payments, a refund process has been introduced by MCA for both Companies and LLPs.

Applicability:

The following are instances when the MCA refund process can be initiated:

1. Multiple Payments– This includes cases where the service seeker does multiple filings of e Form no. INC-2/INC-7/old Form 1 or e-Form No. SH-7/old Form 5 and makes payments more than once (multiple times) for the same service. However, the refund shall not be allowed in respect of approved e Forms.

2. Incorrect Payments– This includes cases where the service seeker has made payment in respect of an e Form or Stamp duty through an incorrect option under the Pay miscellaneous fee facility.

3. Excess Payment– This includes cases where any excess fee has been paid by the service seeker due to some incorrect data entered in the Form or incorrect data in the MCA21 system due to migration of data from the legacy system.

4. Incorrect payment via Neft– This includes cases where the user has selected Neft as the mode of payment and made the errors as mentioned in the note above.

 

Here are the basic questions which arise in minds of the user:

 

1. Can a refund for excess/ incorrect payments made for stamp duty payments be claimed?

Ans: No, for a refund of stamp duty, you are required to approach the concerned state/ union territory.

 

2. For which all payments, the refund process is not applicable?

Ans: The refund process is not applicable to the following services/ eForms:

  • Public Inspection of documents
  • Request for Certified Copies
  • Payment for transfer deeds
  • Stamp duty fee (D series SRN)
  • IEPF Payment
  • STP Forms i.e. Form 20B, 23AC, 66, 21A, 23ACA, Form 14 – LLP (even for cases when the same were non STP earlier)
  • Form No. DIR-3/old form DIN – 1
  •  

3. Is there any time limit for filing a refund eForm?

Ans: Yes, the refund form is to be filed within the stipulated time period. Also, there shall be a deduction in the amount to be refunded based on time period within which refund eForm is filed.

The following is the time slab for filing the refund form and the corresponding deduction in refund amount:

 

 

The time within which a refund application is made The default value for deduction
0-90 days 2.5%
91-180 days 5%
181- 270 days 7.5%
271-365 days 10%
>365 days 25%

 

4. If I choose the mode of payment of refund as “Direct deposit into your bank account”, which all Banks are available for the same purpose?

Ans: Currently, the facility for “Direct deposit into your bank account” is not available. The same will be made available later.

 

5. I have filed a refund eForm for a refund of multiple payments of Form No. INC-2/INC-7/old form 1. However the same has been rejected. Whether I can file the refund eForm again in respect of the same SRN?

Ans: Yes, filing of another refund form, in this case, is allowed. However, only one other refund form is allowed to be filed in respect of one transaction i.e. if the refund form in respect of the same request is rejected twice, filing of another refund eform shall not be allowed.

6.Status of my refund eForm is shown as “Eligible for refund”, however, I have not yet received the Cheque for the refund. What shall I do?

Answer: Once the refund eForm is found to be “Eligible for refund”, MCA shall intimate the same to you through email along with the format of G.A.R 33. This G.A.R 33 is also available at the ‘Track Transaction status’ functionality available on the MCA21 portal.

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