A Brief Explanation Of Relaxations Announced By MCA

Recent relaxations announced by Ministry of Corporate Affairs are for the sake of stakeholders in this crisis of Covid-19 and are explained below:

1. MCA CIRCULAR NO. 05/2021 DATED 22.04.2021

Earlier, funds spent for activities of COVID-19 were announced to be included in expenditure on activities relating to promotion of healthcare, including preventive healthcare and sanitation, and Disaster Management and shall form a part of CSR Activities.

Through Circular dated 22.04.2021, MCA has taken initiative to persuade more and more Companies and LLPs to put their efforts by converting their temporarily vacant offices and buildings into Temporary Covid Care Centres or Isolation Centres in order to fill the gap between the extreme demand of such centres and its minute supply.

Further, it has been clarified by the Ministry that the expenditures done in such 'Setting-up, Makeshift Hospitals and Temporary Covid Care Centres/facilities' shall form a part of CSR Activities under Schedule VII of Companies Act, 2013.

2. MCA CIRCULAR NO. 06/2021 DATED 03.05.2021

MCA has extended the due dates of below listed forms which were due to be filed between 01^st April, 2021 and 31^st May, 2021 by Companies and LLPs in order to give relaxation in Compliances to Stakeholders and the same has been extended till 31^st July, 2021 without Additional Fee:

A Brief Explanation Of Relaxations Announced By MCA

Name of Form	Applicability	Due Date of Filing	Extended Due Date
MSME-1	For all Companies	30.04.2021	31.07.2021
PAS-6	For all Unlisted Public Companies	30.05.2021	31.07.2021
NDH-3	For Nidhi Companies	30.04.2021	31.07.2021
LLP Form-11	For all LLPs	30.05.2021	31.07.2021
All other forms, due date of filing of which shall lie between 01^st April, 2021 and 31^st May, 2021 corresponding to their respective Event Dates.

Note: The Circular shall not be applicable to forms such as CHG-1, CHG-4 and CHG-9

3. MCA CIRCULAR NO. 07/2021 DATED 03.05.2021

MCA has decided to allow and condone the delay in filing of charge related forms, but strictly in relation to Creation and Modification of Charge, detailed below:

Applicability	CHG-1 and CHG-9, Case 1: Where date of creation/modification of charge is before 01.04.2021 and, but the due date of filing such form has not expired as on 01.04.2021 Or Case 2: Where date of creation/modification of charge is between 01.04.2021 and 31.05.2021 (both days inclusive)
Relaxation in Case 1	The period between 01.04.2021 and 31.05.2021 (both days inclusive) shall not be counted for the purpose of calculating due date of filing CHG-1 or CHG-9, as the case maybe.
Fee applicable for Case 1	If form is filed on or before 31.05.2021: Normal fee shall be applicable (Counting days from date of creation of charge till date of filing) If form is filed after 31.05.2021: Fee shall be payable by counting days from Date of Creation of Charge till 31.03.2021 and from 01.06.2021 till date of filing
Relaxation in Case 2	The period between date of creation/modification of charge and 31.05.2021 (both days inclusive) hall not be counted for the purpose of calculating due date of filing CHG-1 or CHG-9, as the case maybe.
Fee applicable for Case 2	If form is filed on or before 31.05.2021: Normal fee shall be applicable (Counting days from date of creation of charge till date of filing) If form is filed after 31.05.2021: Fee shall be payable by counting period between 01.06.2021 and date of filing.

Note: The Circular shall not be applicable in following cases:

CHG-1 and CHG-9 which has already been filed before such circular
Timeline for filing CHG-1 and CHG-9 has already expired before 04.2021
Timeline for filing CHG-1 and CHG-9 expires even after taking relaxation in any case mentioned above
CHG-4 for satisfaction of Charges

4. MCA CIRCULAR NO. 08/2021 DATED 03.05.2021

MCA has extended the maximum period of 120 days between 2 Board Meetings by 60 days for the Quarters April-June and July-September. Hence, the gap between two Board Meetings can be maximum of 180 days for the period between 01.04.2021-30.09.2021.

5. MCA CIRCULAR NO. 09/2021 DATED 05.05.2021

In continuation of MCA Circular No. 05/2021 dated 22.04.2021, MCA has made further addition to eligibility of CSR expenditure. It has clarified that spending of CSR funds for ‘creating health infrastructure for COVID care’, ‘establishment of medical oxygen generation and storage plants’, ‘manufacturing and supply of Oxygen concentrators, ventilators, cylinders and other medical equipment for countering COVID-19’ or similar such activities shall also be eligible CSR activities under Schedule VII of the Act.

Further, contribution of funds to specified research and development projects as well as contribution to public funded universities and certain Organisations engaged in conducting research in science, technology, engineering, and medicine in relation to Covid-19 shall also be an eligible CSR expenditure.

All the Companies including Government companies may undertake abovementioned activities by own or in collaboration with other Companies, for claiming CSR expenditure, subject to Companies (CSR Policy) Rules, 2014 and other guidelines issued by the Ministry from time to time.