LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Fast track exit scheme

09 January 2012

At the timing of filling "Form FTE" for striking off the Company name under Fast Track Exit Scheme, 2011, the field "Reserve and Surplus" was required to be field. I was writing Rs. 1,00,000 in that field but the form is not accepting and a message is appearing "Reserves and Surplus must be equal to zero". However, in the aforesaid company, it is not possible to make the Reserves zero.

Plz give the solution.

Thanks in advance.

Reply
Follow
Share

3 Replies

Mayur Agrawal (Audit and Tax Practice) (657 Points)
Replied 09 January 2012

I think Fast track exit scheme is applicable only for comapnies which had not done any business.

Sonam Bidasaria (CA) (770 Points)
Replied 10 January 2012

As per the Guidelines isued by the MCA for FTE mode

(a) Any company will be called as “defunct company” for the purpose

of these guidelines, which has nil asset and liability and

(i) has not commenced any business activity or operation

since incorporation; or

(ii) is not carrying over any business activity or operation for

last one year before making application under FTE.

In my case, the Company is not carrying any business for last 5 years. Hence this scheme is aplicable to the Company.

CA Adesh Gupta (Finance Manager) (160 Points)
Replied 21 February 2014

Can a company having Rs 90000 as Preliminay exp, Rs 50000 as cash in hand and Rs 140000 as share capital be wound under Fast track exit scheme?? Read more at: