Time to file forms for Creation & Modification of Charges relaxed

• June 19, 2020
• CA Chandan Agarwal's Office

The Ministry of Corporate Affairs (MCA) has introduced a new scheme vide General Circular No. 23/2020 for relaxing the time for filing of e-Form CHG-1 / CHG-9 for creation or modification of Charges beyond 120 days of such creation or modification.

Background

As per the provisions of Section 77 of the Companies Act, 2013 (Act), every charge created or modified whether in India / outside India has to registered within 30 days of its creation or modification. Whereas, the Companies (Amendment) Ordinance, 2019 allowed further 30 days period on payment of such additional fees as may be prescribed and registrar may allow further 60 days on payment of such additional fees plus Advalorem Fees.

In short, Section 77 allows a total of 120 days for registration of creation or modification with Registrar of Companies on payment of such additional fees plus Advalorem Fees. After 120 days, no charge can be registered.

Read on me: https://taxguru.in/company-law/time-file-forms-creation-modification-charges-relaxed.html