Penalty for late filing or failure to file Company’s annual return – Form MGT7

Company’s annual return is to be filed with registrar of
companies within 60 days from the date of annual general meeting. Where annual
general meeting has not been held for the year then within 60 days from the
date on which AGM should have been held.

In this article, we will discuss normal fees that every company
is required to pay while filing annual return in form MGT7
with registrar of companies and penalty that gets attracted in case of delay in
filing or failure to file company’s annual return. From financial
year 2014-2015 form MGT7 has to be filed in place of form 20B.
Normal fee to be paid for filing company’s annual return
Normal filing fee is required to be paid by every company while
filing company’s annual return. Normal fee gets calculated based on company’s
authorised capital. If your company’s authorised capital is 1000000 rupees then
normal fee to be paid while filing annual return for your company is Rs. 400.
Similarly, you can calculate normal
fee applicable to you based on your authorized capital as per below table:
Nominal share capital of the
Company
Normal Fee to be paid for filing
annual return i.e. form MGT7
(Amount in Rs.)
Less than Rs. 1 lakh
200
Rs. 100000 to Rs. 499999
300
Rs. 500000 to Rs. 2499999
400
Rs. 2500000 to Rs. 9999999
500
Rs. 10000000 or more
600
Additional fees to be paid for filing of company’s annual return
Additional fee gets attracted when company has crossed the due
date of filing i.e. 60 days from the date of AGM and when AGM not
held then 60 days from the date when AGM should have been held.
Additional fee is to be paid in addition to normal fee and gets
calculated based on the days of delay and normal fees applicable.
Period of delay
Additional fee or penalty for late filing annual return or
form MGT7
Delay up to 30 days
2 times of normal fee
More than 30 days and up to 60 days
4 times of normal fee
More than 60 days and up to 90 days
6 times of normal fees
More than 90 days and up to 180
Days
10 times of normal fees
More than 180 days
12 times of normal fees
Penalty in addition to additional and normal fee for filing
annual return
Like any other penalty provisions, not filing or late filing of
company’s annual return also attracts additional penalty and late payment fee.
Such penalty provision is specified in section 92(5)
of Companies Act, 2013.
As per section 92(5) of Companies Act 2013, if a company fails
to file its annual return under sub-section (4), before the expiry of the
period specified under section 403 with additional fee then the company shall
be punishable with fine which shall not be less than 50,000 rupees but which
may extend to 5 lakh rupees and every officer of the company who is in default
shall be punishable with imprisonment for a term which may extend to 6 months
or with fine which shall not be less than 50,000 rupees but which may extend to
5,00,000 rupees or with both.
Section 92(6) of Companies Act 2013 specified penalty for
company secretary for non compliance to section 92 of Companies Act 2013. As per
this sub section, if a company secretary in practice certifies the annual
return otherwise than in conformity with the requirements of this section or
the rules made thereunder, he shall be punishable with fine which shall not be
less than 50,000 rupees but which may extend to 5 lakh rupees.

 Company’s annual return is to be filed with registrar of
companies within 60 days from the date of annual general meeting. Where annual
general meeting has not been held for the year then within 60 days from the
date on which AGM should have been held.
In this article, we will discuss normal fees that every company
is required to pay while filing annual return in form MGT7
with registrar of companies and penalty that gets attracted in case of delay in
filing or failure to file company’s annual return. From financial
year 2014-2015 form MGT7 has to be filed in place of form 20B.
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