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Penalty or Additional Fee for delay in Filing ROC Forms.

Penalty or Additional Fee for delay in Filing ROC Forms.


In Northern region comprising Punjab, Chandigarh and Himachal Pradesh, around 51% of the active companies were served notice last year for violating Company laws who have not submitted their balance sheets and annual returns since 2014-2015.

As per Companies Act 1956 (Old Companies Act), the companies had to pay only Rs. 3,000/- for not filling balance sheets and annual returns.  The last date of filling annual returns and balance sheet is October 31 of every financial year. Moreover, the maximum penalty was 11 times of the filling fees. Now, in the current bill, there is no upper limit.

In addition, there was protection of 270 days in case of non-compliance which means there was immunity for 270 days, but now in the current bill it has been withdrawn, Now, if a company doesn’t file its balance sheet and annual return in specific period then the prosecution can be filed even in next month.

This Move will increase the compliance rate in the region.

NOTIFICATION: _______________________________________________________________

The Ministry of Corporate Affairs (MCA ) notified the Companies (Registration Offices and Fees) Second Amendment Rules 2018 has been on 7th May 2018.

As per Companies Act, the due date of filing of Annual Account is 30 days from the conclusion of the AGM (In case of OPC within 180 days from the close of the financial year) and the name of the Form is AOC-4 and Form AOC-4 CFS (in case of Consolidated financial statements). In addition, the due date of filling of Annual return is 60 days from the conclusion of AGM and Form is MGT-14.

It is imperative to mention here, If a company fails to file the return in due date of filings under Section 92 (Annual Return) or 137 (Annual Financial Statement) of the Companies Act i.e. Form AOC-4/ MGT 14 before the due date, the company will be punishable with fine of one thousand rupees for every day during which the failure continues up to a maximum amount of Rs.10 lakhs. Further, the Managing Director, Directors and the Chief Financial Officer of the company, could be punished with imprisonment for a term which may extend to six months or with fine which will not be less than Rs.1 and upto Rs.5 lakhs.

In addition to the above penalty, as the mentioned above earlier the upper limit of the maximum penalty is 12 times of normal filing fees.



Moreover, As per the amendment, The penalty for late filling of return will be additional fee @Rs.100 per day of default.(Please note: The additional fee as per the applicable slab for the period of delay up to 30th June 2018 plus @Rs.100 per day w.e.f 1st July 2018 shall become payable. Further, the company would be liable for penal action. Moreover, if a company defaults on filing the annual return or financial statements for two or more times, the penalty levied would be doubled.

The Additional Fees shall become payable in respect of 23AC, 23ACA, 23AC XBRL, 23ACA XBRL,20B,21A,MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS).

*Form details defined below

  1. 23AC – Filing Balance sheet and other document with the registrar 2(a)
  2. 23ACA – Filling of Profit and Loss account and other document in respect of balance sheet and other document with the registrar
  3. 23ACA XBRL – Form for filling XBRL document in respect of financial statement and other document with the registrar.
  4. 23AC XBRL – Form for Filling XBRL document in respect of balance sheet and other document with the registrar.
  5. MGT-7 – Form for filling annual return by a company
  6. AOC-4 – Form for filling financial statement and other documents with the registrar
  7. AOC- XBRL – Form of Filling XBRL document in respect of financial statement and other document with the Registrar.
  8. AOC-4- CFS – Form for Filling consolidated Financial Statement and other document with the Registrar.


The entire content of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION. This is only a knowledge sharing initiative and author do not intend to solicit any business or profession.



CS Advocate Surbhi Khanna

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Neetu Patwa 27/07/2018 at 1:46 pm

I think Annual Return Form MGT-7 hna??? Or It has been changed from MGT-7 to MGT-14???? Please clear the same…

prerna 27/07/2018 at 2:36 pm


Greetings from Taxcharcha

The form for Annual Filing of Return is MGT 7 and the form MGT 14 is for the purpose of filing resolutions and agreements to the registrar.

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