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Delay in audit of pvt ltd co

yashsr (CA) (2285 Points)

17 January 2012

No compliances of a pvt ltd company for the year ended 31/3/2011 have been done so far. And I've the following doubts in this regard:

1) AuditL What is the penalty then for late audit i.e. audit after 30th Sept 2011?

2) Returns with MCA: And what are the fees for late filing of 20B and 23AC assuming that AGM was called on 29th Sept 2011? Assume that the forms are filed on 25th January 2012. Authorised and paid-up capital is 100000.

3) Income Tax Return: Filing late Income Tax Return won't have any pennaty since there is no tax payable/TDS etc. The only flip side is that certain losses cannot be carried fwd, correct?

4) Is there anything else that a pvt ltd has to do? What is the penalty in that case if the time limit has finished. Obviously I know that it has to call a meeting(AGM) within 6 months ie.e before or on 30th Sept 2011.

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5 Replies

CS MOHIT SALUJA (PRACTICING CS Jalandhar 9914558709) (5155 Points)
Replied 17 January 2012

Dear Yash, yes you are right in respect of Income Tax return that there would not be any penality in filing late return but remember teh audit must have been done in case of Income tax other wise the penality may be Rs. 1, 00 000 under Income Tax Act.

With regard to, Comapnies Act, first thing is that the board meeting must have been done 23 clear days before conducting the AGM when notice will be sent to all the sahre holder for conducting of AGM. And in such Board meeting or before this board meeting the Annual Account shave to be approved and signed by the Board of Directors means Accounts i.e. Balance Sheet and Profit and loss accounts are to be signed in month of August or before sending the notice. In case accounts are not audited and you conduct teh AGM, then AGM will have to be adjourned to some other days but not more than 3 months after the date the meeting is to be held where the shareholders will approve the accounts and have to intimate the concerned ROC about approval of accounts in adjourned meeting.

In respect of Fees, the company will ahve to pay Rs. 3000 as Fees while uploading the E Forms in case the company is having capital of Rs. 100000 to 500000 and after 5 lakh till 25 lakh it will be Rs. 4500 and if more than Rs. 25 lakh capital then the fees will be 7500

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yashsr (CA) (2285 Points)
Replied 18 January 2012

1) Penalty of Rs.1 lac which you're telling is failure to get tax audit done and is subject to 0.5% of turnover, correct? In this case, the company's turnover is under Rs.5 lacs, hence tax audit is not applicable. Only the staturoty company audit is applicable, hence it is not liable to penalty u/s 271B, correct? What is the penalty for late statutory company audit?

2) Thanks for the estimation on filing annual returns and B/s and P/l with the ROC

3) In this case, since the accounts have not been audited till date, what is the way out with no or minimum penalty. The company in question and has only 2 shareholders who are also the directors of the company.

CS MOHIT SALUJA (PRACTICING CS Jalandhar 9914558709) (5155 Points)
Replied 24 January 2012

Dear Yash Ji, there was reecntly a scheme before Jan 15 which was known as CLSS i.e. Company Law Settlement Scheme where by any company could file the documents by paying just 25% of the penality to be impossed but ebven this was applicable only for the companies who have not filed the documents for 2010. So now while uploading the E Forms, the company will have to pay the fees along with the penality prevails although having two or more directors or share holders

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