My friend's company is under a major problem. please advise

Originally posted by : Rishi Agarwal
	Lag gyi uski to. Was that intentionally done?

The directors were in huge debt so they did not file it returns. I know that is not a valid reason. So normally what would happen in these type of cases ? any precedents ?

TO MY MIND

Just forget what was happened earlier you cant do any thing.

but you should complete the task which you can do now like:

Filing of personal ITR for A. Y. 2013-14 and 2014-15

start closing process of company without filing of ROC returns of all Previous year

than let see what will happen and face the things 

The company must have received notices for non-filing of IT returns as well as ROC return. What action was taken by the company after receiving the notice ? 

1.  Actually ROC is not issuing such type of notices

2. From Income tax department also there might not issued any notices because ITD is issuing notices for only who has some tax credit but not filed return.

Originally posted by : Mihir
	The company must have received notices for non-filing of IT returns as well as ROC return. What action was taken by the company after receiving the notice ?

The company was filing ROC and IT returns from 2004 to 2008 properly. No problem

After 2008 there was a change in address of the company. The company reduced in size and was having little or during some periods no employees at all So as you say there may have been IT notices to the old address but since the new address was never updated to IT dept or ROC there was never any notices received at all. So whatever notices received at the old address since now a new company is occupying the address may have been sent back.

Originally posted by : TAX PANDIT
	TO MY MIND Just forget what was happened earlier you cant do any thing.   but you should complete the task which you can do now like: Filing of personal ITR for A. Y. 2013-14 and 2014-15 start closing process of company without filing of ROC returns of all Previous year than let see what will happen and face the things

Ok will ask the directors to bite the bullet and file the above and go for company closure. But does anyone now any precedent personally, especially what happened next :(

They will have to hire a good independent Company Secretary to find out the penalties payable to file ROC returns of the previous years. When the company sends the notice of winding up to the ROC, they will discover that the company has not file ROC returns for previous years. DIN also must not have alloted to the directors, I suppose. There are many pvt ltd companies who have closed their business, they don't file IT returns nor ROC returns. Earlier, they were not bothered to go after the directors but now when everything is computerised, the chances of slipping away is remote. 

Also contact a proper CA, who will find a way to first file IT returns for the directors. The company should have deducted TDS from salary paid to the directors, and if not, then that too is a mistake. IT returns of the previous years of the company also has not been filed. You have mentioned the turnover of the company for the previous years, but was there any profit/loss?  

Originally posted by : Mihir
	They will have to hire a good independent Company Secretary to find out the penalties payable to file ROC returns of the previous years. When the company sends the notice of winding up to the ROC, they will discover that the company has not file ROC returns for previous years. DIN also must not have alloted to the directors, I suppose. There are many pvt ltd companies who have closed their business, they don't file IT returns nor ROC returns. Earlier, they were not bothered to go after the directors but now when everything is computerised, the chances of slipping away is remote.    Also contact a proper CA, who will find a way to first file IT returns for the directors. The company should have deducted TDS from salary paid to the directors, and if not, then that too is a mistake. IT returns of the previous years of the company also has not been filed. You have mentioned the turnover of the company for the previous years, but was there any profit/loss?

1. Ok penalties to be paid to ROC and  this is 1.5lakh capital company in ROC so I guess it will be quite huge as per the penalty table it works out to be more than 3 lakhs ! wow ! (i.e if roc filed after a delay of 2 years or more it is 10 Times the actual fee !)

2. Yes there is a problem with filing IT returns of director if the same has not been paid TDS for. SO it is really a mind boggling thing indeed . What is your advice regarding the same ?

3 Once you deduct the salaries of directors and actual expense bills (most of the bills are present right from 2008) there will be profit of around Rs 10,000 per year average for the last 6 years

This is a commercial adventure by two ill-informed people gone bad.

The CA will find a way to file the IT returns of the directors. Filing returns for directors should be a priority.

The CS may come up with some loophole here because without IT returns of the company, ROC return cannot be filed.      

My friend has bit the bullet and filed their company's IT returns for the last FIVE years ! yes one shot !

Next the friend has decided to file ROC too for the last  5 years !

Will keep you updated on what happens next now

Shanthi