Month: February 2019

MSME Returns & ACTIVE Company Tag

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We have our new website for Zappy. Now you can search our articles by topic and check for any news archives. You are welcome to give us the feedback and suggest or give your articles to publish in our next ZappyNews. Mail us at newsletter@zappyconsults.com for any assistance. There are lots of amendments and reforms made by MCA in recent days. We will be seeing two of the amendments in this edition along with our usual Legal terms and News Bites related to notifications by MCA, SEBI, RBI, IT and GST.

CEO Saranya Deivasigamani,
CEO

MSME RETURNS & Active Company tag

MSME Returns

The Central Government vide notification number S.O.5622 (E), dated the 2nd November, 2018 has directed that all Companies, who get supplies of goods or services from micro and small enterprises and whose payments to micro and small enterprise suppliers exceed 45 (forty five) days from the date of acceptance or the date of deemed acceptance of the goods or services as per the provisions of Section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) (hereafter referred to as “Specified Companies”), shall submit a half yearly return to the Ministry of Corporate Affairs stating the following: (a) the amount of payment due; and (b) the reasons of the delay; And whereas, in exercise of power under section 405 of the Companies Act, 2013,(18 of 2013} the Central Government, considers it necessary to require “Specified Companies” to furnish above information under said section of the Act. In exercise of the powers conferred by section 405 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes an Order, namely the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019 which has come in to effect from the 22nd January, 2019. Every specified company shall file in MSME Form I details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order within thirty days from the date of deployment of the form i.e. 25th February, 2019. Every specified company shall file a return as per MSME Form I annexed to this Order, by 31st October for the period from April to September and by 30th April for the period from October to March. If your clients are dealing with MSME suppliers / vendors, rush out advising them to file the forms at the earliest.

ACTIVE Company Tagging

After having introduced KYC of directors of Companies in 2018, Ministry of Corporate Affairs (MCA) has introduced KYC of Companies by way of notification dated 21st February, 2019. The said notification shall be effective from 25th February, 2019. By way of above notification, MCA the amended the Companies (Incorporation) Rules, 2014 by insertion of Rule 25A. Every Company incorporated on or before 31st December 2017 is required to file e-Form ACTIVE (Active Company Tagging Identities and Verification) latest by 25th April, 2019. Any Company which has not filed its due financial statements under section 137 or due annual returns under section 92 or both with the Registrar shall be restricted from filing e-Form-ACTIVE unless such company is under management dispute and Registrar has recorded the same on the register. Also Companies have been struck off or are under process of striking off or liquidation or amalgamated or dissolved, as recorded in the register, shall not be required to file e-Form ACTIVE. In case of default in filing of e-Form ACTIVE, on or after 26th April, 2019 the status of the Company in MCA records shall be changed from Active to ACTIVE-non compliant and it shall attract penalties under Section 12(9) of Companies Act, 2013. Further, defaulting Company shall not be able to report the Corporate Actions to Registrar of Companies like i. SH-08 Changes in Authorised Capital ii. PAS-03 Change in Paid-up Capital iii. DIR-12 Changes in directors except cessation iv. INC-22 Change in registered office v. INC-28 Corporate Restructuring. Belated filing will attract an additional fees of Rupees Ten Thousand. In the e-form ACTIVE, the following details are required to be intimated to Registrar of Companies:
  • Address of registered office with photo of registered office also showing at least one Director/Key Managerial Personnel who will sign the e-Form ACTIVE.
  • Email ID of Company: Email ID shall be verified through One time password (OTP).
  • Number of Directors with list of directors as on date of filing of e-form.
  • Details of Auditors – Statutory and Cost Auditor.
  • Details of Managing Director, Chief Executive Officer or Manager or Wholetime Director, Chief Financial Officer and Company Secretary.
  • Details of annual returns filed for financial year 2017-18.
  • Photograph of registered office showing external building and inside office also needs to be attached to e-form.
For all Private or Public Limited Companies incorporated before December 2017 in your clientele, complete the Annual Filing and proceed with e-Form ACTIVE at the earliest. Remember Zappy on any help at the rush hour.

 Legal Term

Turpitude
Depraved or wicked behaviour or character.

NewsBites

MCA Updates

SEBI Updates

RBI Updates

Income Tax Updates

GST Updates