The Companies Act, 2013 lays down a stricter regime for the defaulting companies with higher additional fees. The quantum of punishment has been enhanced under the above mentioned provisions of the Act vis-a-vis the earlier Act i.e. Companies Act, 1956. A specific provision for enhanced fine in case of repeated default also been included in the form of section 451 of the Act. Additionally, the provisions section 164(2) of the Act, inter alia, providing for disqualification of directors in case a company has not filed financial statements or annual returns for any continuous period of three financial years has been extended to all companies.
In order to give such an opportunity to the defaulting companies to enable them to make their default good by filing these belated documents has decided to introduce a Scheme namely “Company Law Settlement Scheme 2014″ [CLSS-2014] condoning the delay in filing the above mentioned documents with the Registrar
Benefits of CLSS:
- A reduced additional fees of 25% of the actual additional fee payable on the date of filing of each belated document
- Withdrawal of appeal against prosecution launched for the offences
- Immunity from prosecution from delayed return filing
- Escape for directors disqualified under companies act 2013
Any “defaulting company” Is permitted to file belated documents which were due for filing till 30th June 2014 In accordance with the provisions of this Scheme
Validity of CLSS 2014:
From 15th August 2014 to 15th November 2014, earlier it was till 15th October 2014 but the same was extended via General Circular No 40/2014 dated 15.10.2014 to 15th November 2014.
CLSS Applicable For:
Scheme applicable only for following e-forms
- Form 20B – Form for filing annual return by a company having share capital.
- Form 21A — Particulars of Annual return for the company not having share capital.
- Form 23AC, 23ACA, 23AC-XBRL and 23ACA-XBRL – Forms for filing Balance Sheet and Profit & Loss account.
- Form 66 – Form for submission of Compliance Certificate with the Registrar.
- Form 238 – Form for Intimation for Appointment of Auditors.
CLSS Not Applicable for:
This Scheme shall not apply
- to companies against which action for striking off the name under sub- section (5) of section 560 of Companies Act, 1956 has already been initiated by the Registrar of Companies or
- where any application has already been filed by the companies for action of striking off name from the Register of Companies or
- where applications have been filed for obtaining Dormant Status under section 455 of the Companies Act, 2013;
- to vanishing companies
Forms to Be used:
Application to made in E-form CLSS 2014 for taking benefit of the scheme