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FAQs on Circular on Relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013 issued by the Ministry of Corporate Affairs on 03.05.2021
May, 05th 2021

Corporate Laws & Corporate Governance Committee
The Institute of Chartered Accountants of India

4th May, 2021

FREQUENTLY ASKED QUESTIONS

Sub: Frequently Asked Questions on Circular regarding Relaxation of time for
filing forms related to creation or modification of charges under the
Companies Act, 2013 issued by the Ministry of Corporate Affairs on
03.05.2021

The Ministry of Corporate Affairs vide its General Circular no 07/2021 dated 03rd May, 2021,
has provided relaxation of time for filing forms related to creation or modification of charges
under the Companies Act, 2013.

Under section 77 & 78 of the Companies Act, 2013, the companies or the charge holders are
required to file forms related to creation or modification of charges within the timelines as
provided, i.e. a total of 120 days of the creation or modification of charge. In case, the
company fails to register the charge within the period of thirty days referred to in sub-
section (1) of section 77, the charge holder may file the form related to creation or
modification of charges under section 78 of the Act, within the overall timelines for filing of
such form under section 77.

In view of the difficulties being faced by the stakeholders due to resurgence of COVID-19
pandemic, the Ministry of Corporate Affairs has allowed relaxation in respect of filing of
forms relating to creation or modification of charges under the Companies Act, 2013.
Q 1. What is the relaxation of time for filing forms related to creation or
modification of charges under the Companies Act, 2013?

A 1. Relaxation of time for filing forms related to creation or modification of charges
under the Companies Act, 2013 is a scheme introduced by the Ministry of Corporate
Affairs for the purpose of condoning the delay in filing certain forms related to
creation/ modification of charges particularly due to the difficulties being faced by
COVID-19 pandemic.

Q 2. What is the objective of Circular no 07/2021 issued by MCA on 3rd May
2021?

A 2. The objective of the said circular is to provide relaxation of time to Companies or
Charge holder for condoning the delay in filing certain forms related to creation/
modification of charges under section 77 of the Companies Act, 2013 (Act).

Q 3. For which Forms, the aforesaid Circular is applicable?

A 3. The Circular shall be applicable in respect of filing of Form No. CHG-1 and Form No.
CHG-9 (both referred as 'form' or 'forms’) by a company or a charge holder, as per
the date of creation / modification of charge. (Refer Q 4.)

Thus, the Scheme is not applicable to the following forms relating to charges:

CHG-4 Particulars for satisfaction of charge thereof
CHG-6 Notice of appointment or cessation of receiver or Manager

Q 4. What is the time period for applicability of the relaxation w.r.t. filing of
charge form(s)?

A 4. The relaxation is applicable in respect of filing of Form No. CHG-1 and Form No.
CHG-9 by a company or a charge holder, where the date of creation / modification
of charge:

a) is before 01.04.2021, but the timeline for filing such form has not expired u/s 77
of the Act as on 01.04.2021, or

a) falls on any date between 01.04.2021 to 31.05.2021 (both dates inclusive)
Q 5. What relaxation is provided in case, where the date of
creation/modification of charge is before 01.04.2021 but time limit of 120
days has not expired?

A 5. In such a case, the period beginning from 01.04.2021 and ending on
31.05.2021 shall not be taken into consideration for the purpose of counting the
number of days under section 77 or section 78 of the Act.

Further, in case, the form is not filed within such period, the first day after
31.03.2021 shall be reckoned as 01.06.2021 for the purpose of counting the
number of days within which the form is required to be filed under section 77 or
section 78 ofthe Act.

Q 6. What relaxation is provided in case, where the date of
creation/modification of charge is between 01.04.2021 to 31.05.2021
(both dates inclusive)?

A 6. In such a case, the period beginning from the date of creation/ modification of
charge to 31.05.2021 shall not be taken into consideration for the purpose of
counting of days under section 77 or section 78 of the Act.

Further, in case the form is not filed within such period, the first day after the date
of creation / modification of charge shall be reckoned as 01.06.2021 for the
purpose of counting the number of days within which the form is required to be
filed under section 77 or section 78 ofthe Act.

Q 7. What fee shall be charged where the date of creation / modification of
charge is before 01.04.2021 and the timeline for filing such form had not
been expired under section 77 of the Act as on 01.04.2021?

A 7. Under such circumstances, there are two criteria’s for Fee:

a) If the form is filed on or before 31.05.2021, the fees payable as on 31.03.2021
under the Fees Rules for the said form shall be charged.

b) Further, if the form is filed thereafter, fees shall be paid after adding the
number of days beginning from 01.06.2021 till the date of filing plus the time
period lapsed from the date of the creation of charge till 31.03.2021.

Q 8. What fee shall be charged where the date of creation / modification of
charge falls on any date between 01.04.2021 to 31.05.2021 (both dates
inclusive).

A 8. Under such circumstances, there are two criteria’s for Fee:
a) If the form is filed on or before 31.05.2021, normal fees under the Fees Rules
for the said form shall be charged.

b) Further, if the form is filed thereafter, the first day after the date of
creation/modification of charge shall be reckoned as 01.06.2021 and the
number of days till the date of filing of the form shall be counted accordingly for
the purposes of payment of fees under the Fees Rules.

Q 9. For which cases the Scheme is not applicable?

A 9. The Scheme is not applicable under the mentioned circumstances:-

a) The forms i.e.CHG-1 and CHG-9 had already been filed before the date of issue
of this Circular.

b) The timeline for filing the form has already expired under section 77 or section
78 of the Act prior to 01.04.2021.

c) The timeline for filing the form expires at a future date, despite exclusion of the
time provided above.

d) Filing of Form CHG-4 for satisfaction of charges
e) Filing of Form CHG-6 for Notice of appointment or cessation of receiver or

Manager

Q 10. Whether the requisite changes have been made on the MCA 21 portal for
implementing the above referred circular?

A 10. The changes as required in the MCA-21 System to implement the aforesaid decision
are being made and stakeholders would be informed in this regard in due course
through a similar notice.

Chairman and Vice Chairman
Corporate Laws & Corporate Governance Committee
The Institute of Chartered Accountants of India

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