{"id":39185,"date":"2022-01-04T11:23:03","date_gmt":"2022-01-04T05:53:03","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=39185"},"modified":"2023-03-30T17:11:44","modified_gmt":"2023-03-30T11:41:44","slug":"penalty-for-non-filing-of-annual-return-with-roc-under-companies-act-2013","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/penalty-for-non-filing-of-annual-return-with-roc-under-companies-act-2013\/","title":{"rendered":"Penalty for Non Filing of Annual Return with Roc under Companies Act 2013"},"content":{"rendered":"\n<p class=\"has-drop-cap\">RoC returns refer to an annual return of a company that should be filed in a timely manner with the MCA each year. All companies under MCA are mandated to disclose their financial report with RoC on annual basis. This is similar to <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>income tax return filing<\/strong><\/a> with the IT department. According to the Companies Act, 2013, the non-filing of annual returns attracts certain penalties. Therefore, it is compulsory to file the same with sixty days of the AGM and within thirty days for a financial statement. Form AOC 4 &amp; MGT-7 is used to file with MCA within 30 days &amp; 60 days from the date of the company&#8217;s AGM respectively. The timely filing of said forms avoids the trouble of being penalized. In this write-up, we would unveil the penal provisions cited under the <strong>Companies Act, 2013<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/Ministry\/pdf\/CompaniesAct2013.pdf\"><strong>[1]<\/strong><\/a><\/sup> for non filing of annual return on time.<\/p>\n\n\n\n<p>As a part of the annual filing, entities\noperating under the Companies Act, 2013 are required to file the given e-forms\nwith RoC:<\/p>\n\n\n\n<ul><li><strong>Form\nAOC-4<\/strong>: It is an e-form\nused for filing financial statement and director&#8217;s report <\/li><li><strong>Form\nAOC4\u2013 CFS<\/strong>: It is an\ne-form for filing statement reflecting relevant details of consolidated\nfinancial statement of a group<\/li><li><strong>Form\nAOC4-XBRL<\/strong>: It is an\ne-form for filing XBRL documents relating to financial data and other documents<\/li><li><strong>Form\nMGT-7<\/strong>: It is used for\nfiling company&#8217;s annual return <\/li><\/ul>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/penalty-for-non-filing-of-annual-return-with-roc-under-companies-act-2013\/#Penalties_levied_on_late_filing_of_annual_returns\" >Penalties levied on late filing of annual returns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/penalty-for-non-filing-of-annual-return-with-roc-under-companies-act-2013\/#Penalties_for_non_filing_of_annual_return_via_Form_MGT-7_and_AOC-4\" >Penalties for non filing of annual return via Form MGT-7 and AOC-4<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/penalty-for-non-filing-of-annual-return-with-roc-under-companies-act-2013\/#Consequences_for_company_and_its_director_for_non-filing_of_annual_returnsstatements\" >Consequences for company and its director for non-filing of annual returns\/statements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/penalty-for-non-filing-of-annual-return-with-roc-under-companies-act-2013\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalties_levied_on_late_filing_of_annual_returns\"><\/span>Penalties levied on late filing of annual returns <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The table below manifests the monetary\npenalties levied in case of delayed filing of annual returns <\/strong><\/p>\n\n\n\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td style=\"width: 303.641px;\">\n<p><strong><em>Period of Delay<\/em><\/strong><\/p>\n<\/td>\n<td style=\"width: 303.359px;\">\n<p><strong><em>Additional fee<\/em><\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 303.641px;\">\n<p>Till 30 days<\/p>\n<\/td>\n<td style=\"width: 303.359px;\">\n<p>2x normal filing fees<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 303.641px;\">\n<p>More than 30 days and up to 60 days<\/p>\n<\/td>\n<td style=\"width: 303.359px;\">\n<p>4 x of normal filing fees<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 303.641px;\">\n<p>More than 60 days and up to 90 days<\/p>\n<\/td>\n<td style=\"width: 303.359px;\">\n<p>&nbsp;6 x normal filing fees<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 303.641px;\">\n<p>More than 90 days &amp; up to 180 days<\/p>\n<\/td>\n<td style=\"width: 303.359px;\">\n<p>10 x of standard filing fees<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 303.641px;\">\n<p>180 days and beyond<\/p>\n<\/td>\n<td style=\"width: 303.359px;\">\n<p>12 x of&nbsp; standard filing fees<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalties_for_non_filing_of_annual_return_via_Form_MGT-7_and_AOC-4\"><\/span>Penalties for non filing of annual return via Form MGT-7 and AOC-4<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The section below explains the penal\nprovisions cited under Company Act, 2013 for non filing of annual return via\nForm MGT-7 and AOC-4<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Form MGT-7<\/h3>\n\n\n\n<p>According to Section 92(4) of the Companies Act, 2013 every MCA-regulated entity is required to file annual returns via <a href=\"https:\/\/corpbiz.io\/form-mgt-7\"><strong>Form MGT-7<\/strong><\/a> and standard fees with the RoC within sixty days from the holding of the AGM. Failure to file would compel the company to pay a per-day penalty of Rs 100 without any exemption. <\/p>\n\n\n\n<p>Further, the non-filing of such a return\nwould incur penalties for every director administering different affairs in the\ncompany. <\/p>\n\n\n\n<p>The said section compels the company and\nits every serving officer in default to pay a penalty of Rs. 50,000\/-. In case\nof continuing failure, with further penalty amounting to Rs 100\/day during\nwhich such non-compliance continues, subject to a max penalty of Rs 5,00,000\/-<\/p>\n\n\n\n<p><em>(It&#8217;s worth noting that the submission of\nthe said penalties should only be done after receiving the notification from\nthe RoC and the same would be imposed after due adjudication by AO otherwise\nthe standard penalty of Rs 100\/day is sufficed. <\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">AOC-4<\/h3>\n\n\n\n<p>As per the aforesaid Act, every MCA\u2013regulated entity is liable to file a copy of the financial statements, including financial statement, in addition to the relevant documentation cited under the Act with the RoC within thirty days of the date of AGM in <a href=\"https:\/\/corpbiz.io\/form-aoc-4\"><strong>form AOC-4<\/strong><\/a> with standard fees. <\/p>\n\n\n\n<p>Any failure in this context would pose a\nmonetary penalty against the company and its directors. A fine amounting to Rs\n1000\/day shall be imposed which can go up to Rs 10,00,000. <\/p>\n\n\n\n<p>The company&#8217;s MDs and CFO (if any), and\nan absence of them any other director who has been vested with the obligations\nto comply with the norms of the section relating to Form AOC-4 and, in absence\nof such a director rest of the directors are liable to pay a charge of Rs.\n1,00,000.<\/p>\n\n\n\n<p>if the said default prevails further, a\npenalty of Rs. 1000\/day shall be imposed which cannot exceed the max threshold\nof Rs 5,00,000 in total. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consequences_for_company_and_its_director_for_non-filing_of_annual_returnsstatements\"><\/span>Consequences for company and its director for non-filing of annual returns\/statements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Consequences for Company<\/strong><\/p>\n\n\n\n<p>Where the company fails to comply with\nthe filing requirement of annual returns for the continuous period of 2 years,\nthe authority may flag such company as &#8220;inactive company&#8221;. Once that\nhappens, the company&#8217;s bank account could cease to exist. Moreover, the RoC can\ndiscard the company&#8217;s name from the MCA records after rendering an opportunity\nof being heard. <\/p>\n\n\n\n<p><strong>Consequences for directors<\/strong><\/p>\n\n\n\n<p>Non filing of annual return via AOC-4 and\nMGT-7 for continuous three years would be detrimental for the person serving\ndirectorship post. Under such default, they would attenuate their rights of\nbeing re-elected as a director in the same company or being appointed as a\ndirector in the new company for the next five years. Such a penalty would come\nto effect from the date of the default. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is now evident that the timely filing of annual forms enables the companies to avoid penalties as mentioned above and keep their credibility intact in the eye of investors. Ensuring adherence to filling related compliances is not a choice but a legal compulsion. Therefore, non filing of annual returns can prove to be detrimental for companies, from a compliance and goodwill standpoint. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/the-memorandum-of-association-u-s-4-company-act-2013\/\">Memorandum of Association u\/s 4 Company Act, 2013: Explained<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>RoC returns refer to an annual return of a company that should be filed in a timely manner with the MCA each year. All companies under MCA are mandated to disclose their financial report with RoC on annual basis. This is similar to income tax return filing with the IT department. According to the Companies [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":39186,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[2067],"acf":{"service_id":"321"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":15975,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39185"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=39185"}],"version-history":[{"count":9,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39185\/revisions"}],"predecessor-version":[{"id":54196,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39185\/revisions\/54196"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/39186"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=39185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=39185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=39185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}