As we all are well aware that the Ministry vide its notification no. G.S.R. 159(E). dtd. 05th March, 2021, amended Rule 11(1) of Companies (Management and Administration) Rules, 2014 and introduced a new form of annual return exclusively for OPC and Small Companies.
The amended rule states that:
'Every company shall file its annual return in Form No.MGT-7 except One Person Company (OPC) and Small Company. One Person Company and Small Company shall file annual return from the financial year 2020-2021 onwards in Form No.MGT-7A.'
On giving the above provision a plain reading, it can be inferred that MGT-7A is applicable for filings pertaining to F.Y. 2020-21 onwards.
But in actual practice, it does not hold true.
It has to be noted that, if a Company wants to file its Annual Return pertaining to any year preceding F.Y. 2020-21, say for the F.Y. 2019-2020 then it has to proceed with filing keeping in view the amended provisions.
For e.g., ABC Private Limited, a small company, wants to file its annual return of F.Y. 2019-2020, post the introduction of form MGT-7A & revised form MGT-7, then which form will the Company file?
Ans. If we read the provisions of Rule 11(1), then it can be inferred that the Company needs to file MGT-7 as the filing relates to F.Y. 2019-2020 but if we look at the practical side, then it can be noted that the revised form MGT-7 is not accepting CIN of a Small Company (which is small in the F.Y. 2019-2020) and is delivering a prompt message to file form MGT-7A. Further, it is also pertinent to note that, in the help kit of form MGT-7A, in the section of 'Financial year' it is mentioned, 'Enter the start and end dates of the financial year for which the annual return is being filed. Filing is allowed if financial year end date is after 1st April 2014.'
Keeping in view the above deliberations, it can be concluded that a Company which is intending to file its Annual Return pertaining to any F.Y. preceding the F.Y. 2020-2021, has to consider the amended provisions and proceed with the filing accordingly.
Snapshot of MGT-7 & MGT-7A help kit
Disclaimer: The author is based in Jabalpur and is a Practicing Company Secretary dealing in Corporate, Legal & Taxation services. The information contained in this write up, as provided by the author, is to provide a general guidance to the intended user. The information should not be used as a substitute for specific consultations. Author recommends that professional advice is sought before taking any action on specific issues.
The author can also be reached at cstanveersaluja@gmail.com
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