Urgent:income tax vs companies act

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Nagesh

CA Practice

27 Points Posted on 08 May 2013

Dear Members

I have a query regarding preparation of financial statements.

A Company was incorporated on 14-01-2013

So as per income tax, return has to be filed for every financial year i.e April to March.So Fiancial statements have to be prepared for the year ended 31st March,2013 in order to file income tax return.

But as per Sec.210 of the Companies Act, finalcial statements can be prepared for a period consisting of not more than 15 months. So the financial statements can be prepared for the year ended 31st March, 2014.

Also the minimum paid up capital requirement of Rs.1,00,000 was not met till 31st March, 2013. and the Compay wants to prepare financial stmts upto 31st March, 2014

Is there any way we can comply with both laws by preparing financial stmts upto 31st March, 2014

Replies (4)

VIKAS.A

SOMETHING IS BETTER THAN NOTHING

703 Points Posted on 08 May 2013

First A.G.M Should be held with in

1.18 months of incorporation or

2.with in 9 months from the end of financial year

WHICH EVER IS EARLIER.

So in your case u have to prepare accounts as on 31.03.2013 and A.G.M should be held before 31.12.2013.

correct me if i am wrong,

Thank u.

CA Kedar Sakhardande

Proprietor

851 Points Posted on 08 May 2013

What I feel is:

In order to file Income tax return, you need to draw balancesheet and profit and loss account. When you draw financial statements it needs to have auditors report and board report and all that needs to be placed before meeting of shareholders and you need to convene an AGM. not only that you have to file annual returns for the company form 23AC ACA and Form 20B

regards

CA Apoorva Gaurav

272 Points Posted on 08 May 2013

We have gone through Several such cases and what we do is :-

Just prepare a draft P&L and B/Sht as on 31.03.2013 just for I.T purpose not for co. act make sure you show it to your auditors for correct classification as per schedule VI and make entries into account as per the same and file your return accordingly. Regarding Non Receipt of Share application money just show that you have received it in cash and show certain expenditures out of it and rest as the Cash balances. and from nxt March '14 you can continue in normal course.