Request for Extension of Companies Fresh Start Scheme by KSCAA

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The Karnataka State Chartered Accountants Association (in short ‘KSCAA’) is an association of Chartered Accountants, registered under the Karnataka Societies Registration Act, in the year 1957. KSCAA is primarily formed for the welfare of Chartered Accountants and represents before various regulatory authorities to resolve the professional problems faced by chartered accountants and the business community.

We congratulate and applaud the efforts of the Ministry of Corporate Affairs, Government of India for introducing CFSS 2020 with a view to bestow a chance to all the Companies to complete their pending compliances without the requirement of paying additional fees and penalty, and also to provide immunity from prosecution.

We draw your kind attention to General Circular No. 12/2020, dated 30-03-2020 whereby the Ministry of Corporate Affairs has provided relaxation/special measures in view of the Covid-19 pandemic and permitted the affected Companies to complete their pending compliances without the payment of additional fees & penalty and provides immunity from prosecution, by the last date of 30-09-2020.

The said CFSS 2020 is in operation from 01-04-2020 to 30-09-2020. This is a major step in the right direction from the Government which provides an excellent opportunity for all the Companies to regularize their pending compliances and to make a fresh beginning with a clean slate in the statutory compliances as required under the Companies Act, 1956 and Companies Act, 2013.

However, as you may be aware that the Covid-19 pandemic situation continues to badly impact even today in the conduct of normal operations of the Companies and also Chartered Accountants in practice. As the Covid-19 infections are unabatedly spreading at a rapid rate, many of the Companies are still not doing their normal activities for running the core businesses due to the widespread fear among employees and staff members of contracting the Covid-19 virus and in this unavoidable situation where normal functioning of Companies is disrupted, a very less can be expected from such Companies on completing statutory compliances in these trying times. As a consequence of which, the task to complete pending compliances as espoused under CFSS 2020 has taken a back seat and priority is being given to run the business.

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The above-mentioned hardships are being mainly faced by mid-segment and small categories of Companies due to several practical difficulties in terms of infrastructure bottlenecks and the availability of manpower to carry on the operations. The Chartered Accountants who provide professional services to Companies in these segments are also handicapped in running of their own operations coupled with restrictions on physical visits to Company offices due to pandemic Therefore in these trying times as faced by Small & medium-sized Companies and Chartered Accountants, insisting on making necessary compliances in our sincere view cannot be overemphasized by the Government.

In view of genuine hardships that have arisen due to the Covid-19 pandemic, we from Karnataka State Chartered Accountants Association and also on behalf of Companies hereby request your good selves to kindly consider our request and extend the validity of the CFSS 2020 at least by 3months until 31st December 2020.

We also request your good selves to please provide a similar relief to LLPs who are covered under LLP Settlement Scheme 2020 by General Circular 13/2020, dated 30-03-2020.

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Author: admin

BharaTax is an online Blog portal for reporting all the latest articles, judgments, Circulars, orders, and notifications relating to Taxation Laws in India.

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