Compliances at 25% additional fees still possible,CLSS 2014 gets extended till 31/12/2014

Modi Sarkar is really trying to bring in ‘Acche Din’ for the businesses and start-ups in India. The ongoing Company Law Settlement scheme (CLSS 2014) has been further extended to 31/12/2014. Yes…you read it right!!! Compliances at 25% additional fees still possible,CLSS 2014 gets extended till 31/12/2014!This scheme was brought in by the Ministry of Corporate Affairs for a period starting from 15th August, 2014 and ending on 15th October, 2014. As per this scheme, companies were given a chance to  file all the annual documents of the company which were pending for filing before 30th June, 2014. These filings are proposed to be with only 25% additional fees and no penalty. Owing to huge pressure of compliances and receipt of corresponding requisitions from the stakeholders, the MCA extended the validity of this scheme till 15th November, 2014, which now stands further extended till 31/12/2014.  Deadlines

“Annual Documents” refers to Annual Return, Balance Sheet, Profit &Loss Account and other certificates (if any).

Only the following documents are allowed to be filed under this scheme:

  • Form 23AC, 23 ACA, 23AC XBRL, 23ACA XBRL– Filing of Balance Sheet & P/L
  • Form 20B– Filing of Annual Returns
  • Form 21A– Filing of Annual return of Companies ( for companies without share capital)
  • Form 23B– Intimation of Appointment of Auditor
  • Form 66– Filing of Compliance Certificates

The initial years of a start-up are very crucial. In these years, they are not very conversant with the compliance regulatory framework. This is the time when they are most vulnerable. Due to this lack of awareness, they miss out on the compliances part. When it ultimately comes to their notice, the additional fees levied are so high that most of the businesses have no option left but to shut down its operations. Most of the time their DIN Numbers get blocked and they are unable to continue with a new business as well. Our recent survey confirmed that fact: Every 2nd Startup get Income Tax Notice for tax demands or for non-compliance, 3 out of 7 Startups finds place on the default list of Registrar of Companies due to non-compliance, 2 out of 4 Startups incur unnecessary pay-out by way of interests and penalties.

In the light of the above situation, this indeed is a very welcome move,especially for start-ups. Taxmantra has been helping more than 3500 businesses with its real-time annual compliance solutions.Visit our Start-up Offer  page for more details.

Download the extension circular from MCA: Pending Compliances at 25% additional fees still possible,CLSS 2014 gets extended till 31/12/2014

Write to us at info@taxmantra.com or reach us at +91-9038335433/+91-9230033070 for more assistance.

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