Guidance and exmption request of penalty u/s 92(5) for late filing annual returns of previous years due to professional negligence of company ca.

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Rohini Kashyap

Professional Practice

37 Points Joined July 2009

Dear Sir/Madam, I would like to say that, we have a company client, whose Auditor has neither filled Annual returns on time, nor intimate to the company regarding due date of filling of such above returns. Company has not worked during the said periods and turnover is less than 2 Lacs of such periods, i.e. FY 13-14, FY 14-15, FY 15-16. Due to above reasons, company has attracted penalty u/s 92(5). Who is liable to pay above penalty i.e. Company or Company's Auditor (CA). Is there any provisions that can be exempt to the company for pay such penalties? Can company file above annual returns without payment of penalty now and remaining procedure of penalty may discuss later with authorities and departments? What should we do? Kindly guide us and oblige.

Replies (3)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

Filing annual return is the responsibility of the company and not the auditors. You can file pending returns now and then file application for compounding of offence.

Rohini Kashyap

Professional Practice

37 Points Joined July 2009

Dear Sir,

We had appointed a Chartered Accountant for this purpose. CA was never intimate to the company.

Can we claim a case of professional misconduct and serious negligence against CA and complain to the company affairs ministry also?

Muralidharan

Self Employed

1035 Points Joined December 2008

What was the directors doing all along these three years. They have a duty to check whether the annual accounts and annual returns are filed within the due dates. They should have prevailed upon the CA to ensure that the returns are filed without any delay. Without knowing the exact nature of the relationship between the CA and the company we cannot comment or give reply on the proposed action to be initiated against the CA. As regards ministry of corporate affairs they will initiate proceedings only against the company and its directors. First take steps to file the forms with penalty. As suggested you can go for compounding.

with regards

Murali