Saturday, August 17, 2019
Condonation of delay scheme
The Condonation of Delay Scheme (CODS) is a one-time opportunity provided by the Ministry of Corporate Affairs (MCA) in India to companies that have failed to file their annual financial statements, annual returns, and other related documents within the prescribed time frames. Under this scheme, companies are allowed to file their overdue documents with the Registrar of Companies (RoC) without facing stringent penalties for late filing.
Key features of the Condonation of Delay Scheme typically include:
1. Waiver of Additional Fees: Companies availing the scheme are granted immunity from the payment of additional fees and penalties that would otherwise be applicable for delayed filings.
2. Limited Period: The scheme is usually introduced for a limited period, during which eligible companies can take advantage of the condonation provisions.
3. Eligible Documents: Companies can file their overdue annual financial statements, annual returns, and other related documents under this scheme.
4. Active Compliance: By availing the scheme, companies can bring their compliance status up to date, ensuring that they are in good standing with the regulatory authorities.
5. Exclusions: Certain types of documents or filings might be excluded from the scheme, and companies need to carefully review the scheme guidelines to understand the scope of eligible filings.
It's important to note that the Condonation of Delay Scheme is introduced by the Ministry of Corporate Affairs as a temporary measure to encourage companies to regularize their compliance status. The specific terms and conditions, including the duration of the scheme and the types of filings covered, can vary based on the announcements made by the government. Therefore, companies seeking to avail of this scheme should refer to the official notifications and guidelines issued by the Ministry of Corporate Affairs during the specific period in which the scheme is active.