Delays in compliance could incur companies extra costs, resulting in significant increases in the fees they must pay to file certain forms. MCA has increased the fees of delay filing, this could encourage companies who have a tendency of delaying form files to get their things in order and focus on regulatory compliance.
The MCA has increased the additional fees for companies that fail to meet reporting requirements on a regular basis from up to 12 times normal fees to up to 18 times normal fees. The increased additional fees would apply to such defaulting organisations in all forms, with the exception of an increase in authorised capital, financials/annual returns submission, and charges. This latest MCA decision will take effect on July 1st of this year.
Section 403 of the Companies Act deals with charges for filing any document with the Registrar and the change from a slab-based to a day-based defaulting structure for extra fees. The additional charge on forms has been increased to 18 times the standard amount, up from the previous 12 times. This does not include annual filing, which is paid at Rs.100 each day with no maximum limit.
|NUMBER OF DAYS FOR DELAY||ADDITIONAL FEE OVER NORMAL FEE||HIGHER ADDITIONAL FEE OVER NORMAL FEE|
|Up to 15 days (sections 139 and 157)||1 time of normal||N.A.|
|More than 15 days and up to 30 days (Sections 139 and 157) and a maximum of 30 days in the remaining forms.||2 times of normal||3 times more than normal|
|More than 30 days and up to 60 days||4 times of normal||6 times the normal|
|More than 60 days and up to 90 days||6 times of normal||9 times of normal|
|More than 90 days to 180 days||10 times of normal||15 times of normal|
|Beyond 180 days||12 times of normal||18 times of normal|
The additional fees under the amended regime will vary based on the duration of the delay and will range from 3 times normal filing fees to as much as 18 times normal filing fees (for delays beyond 180 days). Two or more defaults in submitting either PAS-3 (Return of Allotment) or INC-22 (Change of Registered Office) within 365 days – computed based on the last submission of a belated return – would be the trigger point for the application of such a higher additional fee.