Private Company Statutory Requirement
This query is : Resolved
06 March 2009
Hi Sir
I want to Know what all things a Private Ltd company has to do w.r.t Income Tax Dept & ROC yearly.
I want to Know what all things a Private Ltd company has to do w.r.t Income Tax Dept & ROC yearly.
07 March 2009
Income Tax Deptt. - Income tax return along with accounts audited by a CA.
07 March 2009
ROC - Annual Return.
07 March 2009
One company assesse gave books etc for audit of AY 2008-09 to Auditors they appointed in Jul 08. Till 30/09/2009 evening they were under the illusion that their audit is completed & their return would be submitted on due date. But in Evening of 30/09/2008 the auditors said they will not be able to file the ROI. So after taking the auditors permission the client approasched other auditor but as they didnt have sufficient time they couldnt file ROI. Later the second auditors did work on the same completed audit & preapred Financial Statements & ROI. Later they came to know that the first auditor filed form 23B in ROC on 7/10/2008 without knowledge of Client. So the second auditors asked the client to tka ethe file to them & file the return to avoid penalty etc. The first auditor accepted and was ready to file the ROI. the data was given to him in Nov 2008 again. But for the surprise of client again on 6/03/2009 the first auditor send the resignation letter Dt 1/11/2008. The first auditor took whole fees before hand for issuing Resignation letter for other case of same client & dint file the ROI's.Now what the second auditors should do in this case to avoid futher consequenses & file ROI. Both in Income Tax Dept & ROC. Pls its very Urgent
10 August 2024
When dealing with statutory compliance for a private limited company in India, both under the Income Tax Department and the Registrar of Companies (ROC), it is crucial to understand the key requirements and address any issues promptly. Here’s a comprehensive overview of what needs to be done and the steps to resolve the situation described:
### **1. Annual Compliance Requirements for Private Limited Companies**
#### **Income Tax Department**
1. **Annual Income Tax Return Filing:**
- **Due Date:** The due date for filing the Income Tax Return (ITR) for a private limited company is usually 30th September of the assessment year (for financial year ending 31st March).
- **Audit Report:** Ensure the tax audit report (Form 3CD) is filed along with the ITR if the turnover exceeds the prescribed limit.
2. **Tax Audit Report:**
- **Form 3CD:** The auditor must prepare and sign the tax audit report in Form 3CD.
- **Form 3CA/3CB:** Depending on whether the company is required to get its accounts audited, this form should be submitted along with Form 3CD.
3. **Advance Tax Payments:**
- **Due Dates:** Advance tax should be paid in quarterly installments as per the due dates specified by the Income Tax Act.
4. **TDS Returns:**
- **Quarterly Filing:** Ensure timely filing of TDS returns for the respective quarters and compliance with TDS provisions.
5. **Tax Payments:**
- **Payment of Tax:** Ensure all tax payments, including self-assessment tax, are made on time.
#### **Registrar of Companies (ROC)**
1. **Annual Return Filing:**
- **Form MGT-7:** The annual return should be filed within 60 days from the date of the Annual General Meeting (AGM).
2. **Financial Statements:**
- **Form AOC-4:** Financial statements and the Board’s report should be filed within 30 days from the date of the AGM.
3. **Compliance with Corporate Governance:**
- **Board Meetings:** Ensure that board meetings are held as per the requirements, and minutes are documented.
- **Shareholding and Other Changes:** Report any changes in shareholding, directors, or registered office to the ROC.
### **Addressing the Specific Issue:**
1. **Filing the Income Tax Return:**
- **Late Filing Penalty:** The return for AY 2008-09, if not filed on time, will attract penalties and interest. The second auditor should file the ITR as soon as possible to mitigate further penalties.
- **Form 3CD:** Ensure that the audit report is included in the ITR filing.
2. **Filing with ROC:**
- **Form 23B:** This form was used to appoint the auditor and is now replaced by Form ADT-1. If the first auditor filed this form without proper authorization, it may need correction.
- **Form AOC-4 and MGT-7:** Ensure that the financial statements and annual return are filed. Given the delay, prepare to pay any additional fees for late filing.
3. **Addressing the Auditor’s Resignation:**
- **Inform ROC:** If the first auditor's resignation has not been communicated properly, update the ROC with the resignation details and appointment of the new auditor using Form ADT-1.
- **Documentation:** Collect all relevant documentation from both auditors to ensure there is a clear record of the transition and responsibilities.
4. **Penalties and Consequences:**
- **Income Tax Penalties:** Pay any penalties for late filing as assessed by the Income Tax Department.
- **ROC Penalties:** Similarly, address any penalties for late filings with the ROC.
### **Steps to Avoid Further Consequences:**
1. **Resolve the Auditor’s Issues:**
- Obtain written confirmation from the first auditor regarding the resignation and ensure all paperwork is updated.
2. **File All Necessary Returns and Forms:**
- Ensure that all forms, both with the Income Tax Department and ROC, are correctly filed.
3. **Consult a Professional:**
- Given the complexity, consult with a chartered accountant or legal advisor to ensure compliance and to handle any potential disputes.
### **Summary**
- **Immediate Actions:** File the overdue ITR and ROC forms, address penalties, and update the records with the appropriate authorities.
- **Consult Experts:** Seek guidance from a qualified professional to navigate the complexities and ensure compliance with all legal requirements.
Addressing these compliance issues promptly and accurately will help in mitigating further penalties and ensuring that the company adheres to regulatory requirements.
### **1. Annual Compliance Requirements for Private Limited Companies**
#### **Income Tax Department**
1. **Annual Income Tax Return Filing:**
- **Due Date:** The due date for filing the Income Tax Return (ITR) for a private limited company is usually 30th September of the assessment year (for financial year ending 31st March).
- **Audit Report:** Ensure the tax audit report (Form 3CD) is filed along with the ITR if the turnover exceeds the prescribed limit.
2. **Tax Audit Report:**
- **Form 3CD:** The auditor must prepare and sign the tax audit report in Form 3CD.
- **Form 3CA/3CB:** Depending on whether the company is required to get its accounts audited, this form should be submitted along with Form 3CD.
3. **Advance Tax Payments:**
- **Due Dates:** Advance tax should be paid in quarterly installments as per the due dates specified by the Income Tax Act.
4. **TDS Returns:**
- **Quarterly Filing:** Ensure timely filing of TDS returns for the respective quarters and compliance with TDS provisions.
5. **Tax Payments:**
- **Payment of Tax:** Ensure all tax payments, including self-assessment tax, are made on time.
#### **Registrar of Companies (ROC)**
1. **Annual Return Filing:**
- **Form MGT-7:** The annual return should be filed within 60 days from the date of the Annual General Meeting (AGM).
2. **Financial Statements:**
- **Form AOC-4:** Financial statements and the Board’s report should be filed within 30 days from the date of the AGM.
3. **Compliance with Corporate Governance:**
- **Board Meetings:** Ensure that board meetings are held as per the requirements, and minutes are documented.
- **Shareholding and Other Changes:** Report any changes in shareholding, directors, or registered office to the ROC.
### **Addressing the Specific Issue:**
1. **Filing the Income Tax Return:**
- **Late Filing Penalty:** The return for AY 2008-09, if not filed on time, will attract penalties and interest. The second auditor should file the ITR as soon as possible to mitigate further penalties.
- **Form 3CD:** Ensure that the audit report is included in the ITR filing.
2. **Filing with ROC:**
- **Form 23B:** This form was used to appoint the auditor and is now replaced by Form ADT-1. If the first auditor filed this form without proper authorization, it may need correction.
- **Form AOC-4 and MGT-7:** Ensure that the financial statements and annual return are filed. Given the delay, prepare to pay any additional fees for late filing.
3. **Addressing the Auditor’s Resignation:**
- **Inform ROC:** If the first auditor's resignation has not been communicated properly, update the ROC with the resignation details and appointment of the new auditor using Form ADT-1.
- **Documentation:** Collect all relevant documentation from both auditors to ensure there is a clear record of the transition and responsibilities.
4. **Penalties and Consequences:**
- **Income Tax Penalties:** Pay any penalties for late filing as assessed by the Income Tax Department.
- **ROC Penalties:** Similarly, address any penalties for late filings with the ROC.
### **Steps to Avoid Further Consequences:**
1. **Resolve the Auditor’s Issues:**
- Obtain written confirmation from the first auditor regarding the resignation and ensure all paperwork is updated.
2. **File All Necessary Returns and Forms:**
- Ensure that all forms, both with the Income Tax Department and ROC, are correctly filed.
3. **Consult a Professional:**
- Given the complexity, consult with a chartered accountant or legal advisor to ensure compliance and to handle any potential disputes.
### **Summary**
- **Immediate Actions:** File the overdue ITR and ROC forms, address penalties, and update the records with the appropriate authorities.
- **Consult Experts:** Seek guidance from a qualified professional to navigate the complexities and ensure compliance with all legal requirements.
Addressing these compliance issues promptly and accurately will help in mitigating further penalties and ensuring that the company adheres to regulatory requirements.
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