Generally, the following timeline is applicable for filing the charge creation/ modification forms:
| S. No. |
Timeline |
Small Companies and OPC |
Other than Small Companies and OPC |
| 1. |
Up to 30 days |
Normal fees |
Normal fees |
| 2. |
More than 30 days and up to 60 days |
Normal fees
+
Additional fees (3 times of normal fees) |
Normal fees
+
Additional fees (6 times of normal fees) |
| 3. |
More than 60 days and up to 120 days |
Normal fees
+
Additional fees (3 times of normal fees)
+
Advalorem fees (0.025% of the amount secured by charge, subject to the maximum of Rs. 1 lakh) |
Normal fees
+
Additional fees (6 times of normal fees)
+
Advalorem fees (0.05% of the amount secured by charge, subject to the maximum of Rs. 5 lakh) |
On account of the pandemic caused by the COVID-19, MCA has introduced a ‘scheme for relaxation of time for filing forms related to creation or modification of charges’ for the purposes of condoning the delay in filing certain forms related to creation/ modification of charges.
Important FAQs on the Scheme are as follows:
1) What is applicability of the Scheme?
The scheme is applicable in respect of filing of Forms CHG-1 and CHG-9 by a company or a charge holder:
a) where the date of creation/ modification of charge is before 01st March, 2020, but the timeline for filing such forms had not expired (i.e. 120 days) as on 01st March, 2020; or
b) where the date of creation/ modification of charge falls on any date between 01st March, 2020 to 30th September, 2020 (both date inclusive).
2) Whether Form CHG-4 for satisfaction of charge can be filed under the Scheme?
No.
3) Whether the Form CHG-1 or CHG-9 can be filed if the timeline (i.e. 120 days) for filing such forms has already been expired prior to 01st March, 2020?
No.
4) What is the relaxation in timeline and applicable fees under the Scheme?
| Situation |
Relation of time |
Applicable Fees |
| Date of creation/ modification of charge is before 01st March, 2020, but the timeline for filing such forms had not expired (i.e. 120 days) as on 01st March, 2020 |
- Period beginning from 01st March, 2020 and ending on 30th September, 2020 shall not be reckoned for the purpose of counting the number of days (i.e. 120 days).
For example: Charge is created on 01st January, 2020. If the company will file the form on 30th September, 2020. Then the form shall be deemed to have been filed within 59 days of creation or modification of charges (i.e. 59 days up to 29th February + 0 days from 01st March to 30th September).
- In case, the form is not filed within 01st March, 2020 and ending on 30th September, 2020, the first day after 29th February, 2020 shall be reckoned as 01st October, 2020 for the purpose of counting the number of days within which the form is required to be filed.
For example: Charge is created on 01st January, 2020. If the company file the form on 15th October, 2020. Then it shall be deemed that the form has been filed within 74 days of creation or modification of charges (i.e. 59 days up to 29th February + 0 days from 01st March to 30th September + 15 days from 01st October to 15th October).
|
- If the form is filed on or before 30th September, 2020, the fees payable as on 29th February, 2020 under the Fees Rules for the said form shall be charged.
- If the form is filed thereafter, the applicable fees shall be charged under the Fees Rules after adding the number of days beginning from 01st October, 2020 and, ending on the date of filing plus the time period lapsed from the date of the creation of charge till 29th February, 2020.
So, as mentioned in the example , the form is being filed within 74 days , therefore additional fees and advalorem fees will be levied
|
| Date of creation/ modification of charge falls on any date between 01st March, 2020 to 30th September, 2020 |
- Period beginning from the date of creation/ modification of charge to 30th September, 2020 shall not be reckoned for the purpose of counting of days (i.e. 120 days).
For example: Charge is created on 15th March, 2020. If a company file the form on 30th September, 2020. Then form shall be deemed to have duly within prescribed period of 30 days (i.e. Days from 15th March to 30th September shall not be counted).
- In case, the form is not filed within such period, the first day after the date of creation / modification of charge shall be reckoned as 01st October, 2020 for the purpose of counting the number of days within which the form is required to be filed.
For example: Charge is created on 15th March, 2020. If the company file the form on 15th October, 2020. Then form shall be deemed to have duly within prescribed period of 30 days (i.e. 0 days from 15th March to 30th September + 15 days from 01st October to 15th October).
|
- If the form is filed before 30th September, 2020, normal fees shall be payable under the Fees Rules.
- If the form is filed thereafter, the first day after the date of creation/ modification of charge shall be reckoned as 01st October, 2020 and the number of days till the date of filing of the form shall be counted accordingly for the purposes of payment of fees under the Fees Rules.
|
5) What if Form CHG-1 or CHG-9 has already been filed before commencement of this Scheme (i.e. 17th June, 2020) by paying additional fees?
The Scheme is not available for such forms and no refund can be claimed.
6) What if Form CHG-1 or CHG-9 has already been filed before commencement of this Scheme (i.e. 17th June, 2020) by paying additional fees but are pending for resubmission?
The Scheme is not available for such forms and no refund can be claimed.
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