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Due to this pandemic situation every person is limited with resources either in the terms of funds or in terms of compliance, so in this pandemic situation, to boost the entrepreneur and to encourage him the government comes forward and introduce an one time late fees waiver for all the previous returns in which Company is in default.

Now Govt. vides its Ministry of Corporate affairs circular No.11 dated 24.03.2020 introduce one time late fees waiver and allow to file all its pending annual return irrespective of the default time with normal fees.

The government vides its circular provide following relief:

No additional fees shall be charged for late filing during a moratorium period from 01st April to 30th September 2020, in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date, which will not only reduce the compliance burden, including financial burden of companies, but also enable long-standing noncompliant companies to make a fresh start.

CFSS 2020: A one time opportunity

Through this circular government gives a moratorium period from 01.04.2020 till 30.03.2020 and during this moratorium period Company can take an advantage and can file all its pending annual return without payment of any additional fees.

In continuation with Circular 11 government notified a detailed noted on the late waiver scheme vide its circular No.12 dated 30.03.2020 and through this circular a detailed note on the scheme explain which is mentioned below:

Detailed noted on the late waiver scheme

Detailed noted on the late waiver scheme

Detailed noted on the late waiver scheme

Detailed noted on the late waiver scheme


Importance of this scheme

Companies Act, 2013 requires all companies to make annual statutory compliance by filling the Annual return form through MGT 7 and AOC 4 normally and these annual return shall be filed on time otherwise a huge penalty shall be levied by the government in case of delay filing. Now there are many companies which fails to file their pending return on time and when they notice about the same the additional fees coming in lakhs, now to give the relaxations and also provide an one time waiver to the entrepreneur to complete all its pending return by paying only the normal fees without payment of any additional fees. Through this scheme the additional fees has been waived by the government and now the entrepreneur shall required to pay only normal fees.

Applicability of this scheme

The said scheme shall be started from 01.04.2020 and ends with 30.09.2020 i.e. if any Company files any form during this period irrespective of its due date than the Company shall required to pay only the normal fees without paying any additional fees.


The scheme grants only the waiver of late fees and shall not make the default good if committed by the Company in any manner ex. As per the relevant rules, the company shall not required to use the application money until and unless the return of allotment in PAS 3 filed before the Registry, now through this scheme Company will get waiver of only additional fees coming at the time of filing of PAS 3 but the Company can be prosecuted for making the use of the money before filing of the form as mentioned in the relevant section.

Waiver Vs Immunity

A big confusion comes into the mind that if Company has filed all its pending return than Company was immune and government will not show cause them for late filing but government makes it very clear in this scheme that to get the immunity every defaulting Company shall file before the government for the immunity certificate and once the government approved the same than only the immunity will be provided by the government.

For immunity, every defaulting Company shall after the closure of this scheme (i.e. 30.09.2020) apply before the government for the immunity certificate and once the immunity certificate granted by the government than only Company will be immune for any show cause in future for any late filing.

The Company shall also make sure that before filing any immunity, Company has to withdraw any appeal against any notice issued or complaint filed before a competent court or authority.

There are certain lists of forms which are covered under this scheme and the forms which are covered are mentioned below:

Imp Note: When the scheme was introduced initially the form related to charges was not covered under this scheme but several representation made before the government for charge related forms and after several representations government vides its circular No.23/2020 dated 17.06.2020 gives certain relaxations on charge related forms and the said circular is available and dealt separately at

Non-applicability of the scheme:

The scheme shall not apply:

1. to companies against which action for final notice for striking off the name u/s 248 of the Companies Act, 2013 has already been initiated by the designated authority;

2. where any application has already been filed by the companies for action of striking of the name of the Company from the register of companies;

3. to companies which have amalgamated under a scheme of arrangement or compromise under the Act;

4. where application have already been filed for obtaining Dormant status under Section 455 of the Act before this scheme;

5. where any increase in authorized capital is involved (E form SH 7);

6. Charge related documents (but certain relaxations has been given in charge related forms vide circular No.23 dated 17.06.2020.

After a long time government came with such a fresh start scheme where a defaulting Company need not to pay any additional fees and also there is no fees for the form CFSS whereas an amount of Rs.30000 was charges by the government in its last scheme which was introduced by the name of CODS but this time government will not charge any amount for filing such CFSS form.

Accordingly to take the advantage an entrepreneur shall come forward and make their compliances good by filling all its pending return without any additional fees during such moratorium period.

The author is available at


This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. The entire contents of this document has 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 users 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 I shall be liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information.


Published by

CS Deepak Singhal
(Business Consultant)
Category Corporate Law   Report

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