A Pvt. Ltd. Co. is a company registered under The Indian Companies Act, 1956
with a minimum share capital of Rs. 1 Lakh and at least 2 directors. A Pvt. Ltd.
Co. is required to get their books of accounts audited and file the Income Tax
Returns and Registrar of Companies (ROC) Compliances every financial year
irrespective of the size and nature of the company. There are Penal Provisions
is such compliances are not made and the department are very stringent nowadays.
This write up along with the video would throw light on annual Tax and ROC
compliances which a Private Limited Company needs to undertake
Statutory Company Audit
The word Statutory Audit in India means which is prescribed by a Statute. Thus, in respect to a Company it is prescribed by The Indian Companies Act, 1956. Statutory Company Audit is an Audit of books of accounts of the company done by a practicing Chartered Account stating true and fairness of the books of accounts. It is mandatory for every company incorporated under the Indian Companies Act, 1956 as mentioned u/s 165. There is no such due date for getting the Statutory Audit done by the Companies Act but the Act is very clear to hold an AGM within 180 days from the end of the financial year and present the audited accounts. Now, a company is required to give a clear notice of 21 days before holding an AGM and practically it is required to get the books audited before 9th of September.
Penal Provisions: If default is made in complying with the section 165, penalty of up to Rs. 5000 may be applicable to every director or officer of the company. Unless the company auditor is not appointed by an appointment letter duly authenticated by the Board of Directors on the letterhead of the company, the auditor is not in a position to intimate his appointment to the Registrar of Companies by filing Form 23B. Non-filing of Form 23B can attract penalty up to Rs 5000.
Statutory Tax Audit
A company is require to get its Tax Audit done as prescribed u/s 44AB under the Income Tax Act, 1961 if it Gross Turnover is equal or greater than 1 Crore. The company is required to file Form 3CA-3CD online with the Income Tax Department duly signed by a Chartered Accountant within the due date i.e. 30th September.
Penal Provisions: Non compliance of the provisions of this Act shall attract penalty under Sec 271B, which is computed as 0.5% of turnover, subject to a maximum limit of Rs 1 lac.
ROC Annual Compliances
Every Company is mandatorily required to comply with Registrar of Companies (ROC) by filing various online forms on the website of the ROC (Ministry of Corporate Affairs), providing financial and other details of the company periodically. Registrar of Companies (ROC) is the official agency that deals with administration of Companies Act 1956 and it falls under Ministry of Corporate Affairs. The below mentioned forms are to be filed:
Form 23AC : For filing Balance Sheet by all Companies
Form 23ACA : For filing Profit & Loss Account by all Companies
Form 20B : For filing Annual Return by Companies having share capital
Form 66 : For filing Compliance Certificate by Companies having paid up capital of Rs. 10 lakh – Rs. 2 crore
Form 21 A : For filing Annual Return by Companies not having share capital
Form 66, 23AC, 23ACA should be filed within 30 days from the date of AGM. Form 20B should be filed within 60 days from the date of AGM.
Penal Provisions: Non-filing of the aforesaid forms can attract penalty up to Rs 5000 per form for companies.
Holding of AGM
A newly incorporated Company is required to hold its First Annual General Meeting hold its first annual general meeting within a period of not more than eighteen months from the date of its incorporation and if such general meeting is held within that period, it shall not be necessary for the company to hold any annual general meeting in the year of its incorporation or in the following year, subject to the condition that the Company must comply with the provisions of Section 210 of the Companies Act 1956.
I n case of a subsequent AGM, the company is required to hold an AGM within six months from the end of the financial year i.e. 30th September. This is prescribed us 166 of The Indian Companies Act, 1956.
Penal Provisions: If the provisions of section 166 in not complied then us 168 of the Indian Companies Act, 1956 penalty up to Rs. 50000 may be applicable to the company and every officer in charge of the company. In case of continuing default a penalty of Rs. 2500 per day may be applicable.
Income Tax Return Filing
As per the Income Tax Act, 1961 every company is required to file their income tax return based on the audited books of accounts as per the provisions within 30th September irrespective of profit or loss incurred during a financial year. A Pvt. Ltd. Co. is required to fill ITR-6 form electronically using digital signature. No ITR will be acceptable unless a digital signature is attached to it. The digital certificate while filing return should be that of the authorized signatory that i.e., in case of Company, Digital Signature Certificate of Managing Director or Director of the company.
Penal Provisions: Penalty can be levied up to Rs. 5,000 for non-filing of tax return us 271F.
Statutory Company Audit
The word Statutory Audit in India means which is prescribed by a Statute. Thus, in respect to a Company it is prescribed by The Indian Companies Act, 1956. Statutory Company Audit is an Audit of books of accounts of the company done by a practicing Chartered Account stating true and fairness of the books of accounts. It is mandatory for every company incorporated under the Indian Companies Act, 1956 as mentioned u/s 165. There is no such due date for getting the Statutory Audit done by the Companies Act but the Act is very clear to hold an AGM within 180 days from the end of the financial year and present the audited accounts. Now, a company is required to give a clear notice of 21 days before holding an AGM and practically it is required to get the books audited before 9th of September.
Penal Provisions: If default is made in complying with the section 165, penalty of up to Rs. 5000 may be applicable to every director or officer of the company. Unless the company auditor is not appointed by an appointment letter duly authenticated by the Board of Directors on the letterhead of the company, the auditor is not in a position to intimate his appointment to the Registrar of Companies by filing Form 23B. Non-filing of Form 23B can attract penalty up to Rs 5000.
Statutory Tax Audit
A company is require to get its Tax Audit done as prescribed u/s 44AB under the Income Tax Act, 1961 if it Gross Turnover is equal or greater than 1 Crore. The company is required to file Form 3CA-3CD online with the Income Tax Department duly signed by a Chartered Accountant within the due date i.e. 30th September.
Penal Provisions: Non compliance of the provisions of this Act shall attract penalty under Sec 271B, which is computed as 0.5% of turnover, subject to a maximum limit of Rs 1 lac.
ROC Annual Compliances
Every Company is mandatorily required to comply with Registrar of Companies (ROC) by filing various online forms on the website of the ROC (Ministry of Corporate Affairs), providing financial and other details of the company periodically. Registrar of Companies (ROC) is the official agency that deals with administration of Companies Act 1956 and it falls under Ministry of Corporate Affairs. The below mentioned forms are to be filed:
Form 23AC : For filing Balance Sheet by all Companies
Form 23ACA : For filing Profit & Loss Account by all Companies
Form 20B : For filing Annual Return by Companies having share capital
Form 66 : For filing Compliance Certificate by Companies having paid up capital of Rs. 10 lakh – Rs. 2 crore
Form 21 A : For filing Annual Return by Companies not having share capital
Form 66, 23AC, 23ACA should be filed within 30 days from the date of AGM. Form 20B should be filed within 60 days from the date of AGM.
Penal Provisions: Non-filing of the aforesaid forms can attract penalty up to Rs 5000 per form for companies.
Holding of AGM
A newly incorporated Company is required to hold its First Annual General Meeting hold its first annual general meeting within a period of not more than eighteen months from the date of its incorporation and if such general meeting is held within that period, it shall not be necessary for the company to hold any annual general meeting in the year of its incorporation or in the following year, subject to the condition that the Company must comply with the provisions of Section 210 of the Companies Act 1956.
I n case of a subsequent AGM, the company is required to hold an AGM within six months from the end of the financial year i.e. 30th September. This is prescribed us 166 of The Indian Companies Act, 1956.
Penal Provisions: If the provisions of section 166 in not complied then us 168 of the Indian Companies Act, 1956 penalty up to Rs. 50000 may be applicable to the company and every officer in charge of the company. In case of continuing default a penalty of Rs. 2500 per day may be applicable.
Income Tax Return Filing
As per the Income Tax Act, 1961 every company is required to file their income tax return based on the audited books of accounts as per the provisions within 30th September irrespective of profit or loss incurred during a financial year. A Pvt. Ltd. Co. is required to fill ITR-6 form electronically using digital signature. No ITR will be acceptable unless a digital signature is attached to it. The digital certificate while filing return should be that of the authorized signatory that i.e., in case of Company, Digital Signature Certificate of Managing Director or Director of the company.
Penal Provisions: Penalty can be levied up to Rs. 5,000 for non-filing of tax return us 271F.
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