10 May 2022
Is Filing of Form 5 (Statement of Annual Accounts) for the F.Y. 2020 - 2021 is mandatory for the Private Limited Company having nature of activities - Construction Activities, if the project has been completed and OC has been received on 31.10.2020 ?Please Guide
09 July 2024
For a Private Limited Company engaged in construction activities, the requirement to file Form 5 (Statement of Annual Accounts) depends on whether the company falls under the criteria for exemption provided by the Ministry of Corporate Affairs (MCA) in India.
Here are the key points to consider:
1. **Nature of Activities (Construction Activities):** Companies engaged in construction activities typically fall under the category that requires filing annual financial statements (Form 5) with the Registrar of Companies (RoC).
2. **Completion of Project and OC Received:** The completion of a project and receipt of Occupation Certificate (OC) in October 2020 suggests that the company may have ceased significant operational activities related to the project. However, it doesn't automatically exempt the company from filing Form 5 unless specific conditions are met.
3. **Exemption Criteria for Filing Form 5:** According to the MCA, a company is exempt from filing Form 5 if it meets any of the following conditions: - The company has not carried on any business since its incorporation or for the previous financial year. - The company is not carrying any asset or liability at the end of the financial year. - The total income of the company does not exceed the basic exemption limit under the Income Tax Act, 1961.
If the company meets any of these conditions, it can claim exemption from filing Form 5. Otherwise, filing is mandatory.
4. **Consultation with a Professional:** Given the specific details of project completion and OC receipt, it's advisable to consult with a qualified Chartered Accountant or Company Secretary. They can assess the company's eligibility for exemption and provide guidance based on the latest regulatory requirements and exemptions applicable to your situation.
In conclusion, while the project completion and OC receipt are significant milestones, they do not automatically exempt a Private Limited Company from filing Form 5 for the financial year 2020-2021. The decision should be based on meeting the exemption criteria outlined by the MCA.
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