Recently the Finance Minister announced extension in the due date for the Companies Fresh Start Scheme 2020 and LLP Settlement Scheme- 2020. However, there is a lot of confusions going on amongst the companies and stakeholders whether they require to file the form CFSS or not. Some are thinking that they have filed a particular form like DPT 3, DIR 3 KYC, PAS 6, MSME 1 etc. during the scheme CFSS 2020 so they do not need to file the form CFSS 2020, while the others are under the impression that they require to file the form CFSS 2020 irrespective of the date they filed a particular form on.

However, these all depend on which date you filed a particular form. In this article we have explained in detail about the Form CFSS- 2020, conditions under which you need to file Form CFSS-2020 to avoid the penalties etc.

Companies Fresh Start Scheme, 2020 and LLP Settlement Scheme, 2020

“Companies Fresh Start Scheme, 2020″ and LLP settlement Scheme 2020 is a scheme which will give a chance to enable companies and LLPs to make good of any filing-related defaults, irrespective of the duration of default, and make a fresh start as a fully compliant entity.”

Under the scheme all the defaulting companies, who have made a default in filing necessary documents and forms with ROC. These forms include the form DPT 3, DIR 3 KYC, PAS 6, MGT 7, AOC 4 LLP 11 etc. Know the full list of Forms covered under CFSS scheme, 2020.

Note: The Companies Fresh Start Scheme- 2020 (CFSS-2020) and LLP Settlement Scheme 2020 (LSS 2020) was due to be concluded on 30.09.2020. But now the MCA has extended the availability of the scheme till 31st December, 2020.

Also note: that the to get the benefit under the scheme one needs to file the form CFSS 2020 within 6 months of the conclusion of the scheme. Here the last date for filing form CFSS 2020 is 31st August 2021.

Explanation: whether you need to file the Form or not?

Form CFSS 2020 is a scheme which as per the extended due date will end on 31.12.2020. So all the necessary form filings done till 31st December, even if filed after the due date, will not be liable for any kind of penalties. Provided such forms needs to be backed up by filing form CFSS- 2020 between the 1st January, 2021 to 31st March 2021. (Now CFSS Form can be filed till 31st August- as extended) Following are certain forms for which the due date has already passed, so if you have filed check whether you still need to file the form CFSS 2020 or not:

Form DPT 3

• DPT-3 is a return of Deposits or particulars of a transaction not considered as deposit or both which is to be filed by every company, other than Government Company.
• The purpose is to provide the information to the Registrar of Company about the loan/money received by the Company.
• The due date to file Form DPT 3 was 30.06.2020 for the FY 2019-20.

Whether need to file form CFSS 2020 for form DPT 3?

• If you have filed form DPT 3 on or before the due date that was 30.06.2020, then you are not required to file form CFSS 2020.
• But if you filed form after 30.06.2020 or it is still pending to be filed then you will be required to file form CFSS-2020 to avoid the penalties before 31.03.2021.
• However, you may get the benefit of the scheme CFSS 2020, only if you filed the form DPT 3 before 31.12.2020.

Form MSME-1

• Form MSME 1 is a form that needs to be filed by Every company which has a payment outstanding for MSME companies for more than 45 days.
• It is a Declaration with list of creditors outstanding along with reasons.
• The due date for half yearly filing of form MSME 1 was 30.04.2020.

Whether need to file form CFSS 2020 for form MSME 1?

• If you have filed form MSME 1 on or before the due date that was 30.04.2020, then you are not required to file form CFSS 2020.
• But if you filed form after 30.04.2020 or it is still pending to be filed then you will be required to file form CFSS-2020 to avoid the penalties before 31.03.2021

DIR 3 KYC

• Every Director who has been allotted DIN on or before the end of the financial year, and whose DIN status is ‘Approved’, would be mandatory to file form DIR-3 KYC in the next financial year.
• For the financial year 2019-20, the due date to file form DIR 3 KYC was extended till 30.09.2020.

Whether need to file form CFSS 2020 for form DIR 3 KYC?

• If you have filed for DIR 3 KYC before 30.09.2020, you will not be liable to pay any penalty even If you don’t file form CFSS 2020.
• But if you filed form after 30.09.2020 or it is still pending to be filed then you will be required to file form CFSS-2020 to avoid the penalties.
• To get the benefit of the scheme CFSS 2020, only if you filed form DIR 3 KYC before 31.12.2020 followed by filing form CFSS 2020 before 31.03.2021.

Form PAS 6 

• PAS 6 is a form which is used for the reconciliation of the share capital audit report on the half-yearly basis.
• It is required to be filed by the Unlisted Public Companies.
• The due date for PAS 6 filing was 13.09.2020 for the FY 2019-20.

Whether need to file form CFSS 2020 for form PAS 6?

• If you have filed for PAS 6 before 13.09.2020, you will not be liable to pay any penalty even If you don’t file form CFSS 2020.
• But if you filed form after 13.09.2020 or it is still pending to be filed then you will be required to file form CFSS-2020 before 31.03.2021 to avoid the penalties.

Form LLP 11 and Form LLP 8 (LLP Annual Filing)

• Every LLP registered in India is required to file form 11 within 60 days from the closure of the financial year i.e before 30th May every year.
• This year as well, the due date for filing form LLP 11 was 30.05.2020.
• While Form LLP 8 is to be filed by every LLP registered in India within within 30 days after completion of six months of Financial Year i.e before i.e. 30th October.

Whether need to file form CFSS 2020 for form LLP 11? 

• If you have filed form LLP 11 before 30.05.2020 and form LLP 8 before 30.10.2020, you do not need to worry.
• However, if you have not filed your LLP Annual Filing forms within the due dates, then also you may file the same before 31.12.2020 without any late filing fees.
• Also, for availing benefits under the LLP Settlement Scheme 2020, Unlike companies, LLPs will not be required to file any such form.

Note: To avail the benefit of these scheme i.e. Companies Fresh Start Scheme, 2020 and LLP Settlement Scheme, 2020 one needs to complete the filings before 31.12.2020. And under the Companies Fresh Start Scheme, the benefit needs to be claimed by filing form CFSS- 2020 before the 30th June 2021. There is no need to file any form for claiming benefit under the LLP Settlement Scheme.