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Compliance Checklist: Annual Compliances for Private Limited Companies
Once you obtain private limited company registration in India, you shall adhere to certain compliances under the Companies Act, 2013. The Companies Act, 2013 lays down explicit provisions that the companies shall comply with. However, apart from the Companies Act, 2013 being the primary regulatory law, the companies shall also comply with the two major taxation laws. These are:
- Income Tax Act, 1961
- Goods and Services Tax Act, 2017
What are the major compliances for private limited companies and what are their due dates? Find out here!
Compliance checklist for Private Limited Companies
1. The Companies Act, 2013
Following are the major compliances that a private limited company registered in India shall adhere to under the Companies Act, 2013:
|
Sr. No. |
Compliances |
Due Date |
|
1 |
Commencement of Business: The private limited company shall file a declaration of the commencement of business in Form 20A with the registrar of companies. However, this form is not required to be filed by the companies not having share capital. |
Within 180 days after the incorporation of the company. |
|
2 |
Appointment of Auditors: Every company shall appoint the auditors of the company in their annual general meetings. The company shall file form ADT-1 with the registrar of companies intimating about the appointment of the auditors of the company. |
Within 15 days of the meeting in which the appointment of auditor is made. |
|
3 |
Filing of Financial Statements: The company shall file its financial statements with the MCA in form AOC-4. In the case of consolidated financial statements, the form applicable shall be AOC-4 (CFS). |
Within 30 days after the annual general meeting of the company. |
|
4 |
Filing of Annual Return: The company shall file the annual return of the company in Form MGT-7. |
Within 60 days after the annual general meeting of the company. |
|
5 |
Update KYC Details: Every person who has been allotted DIN or DPIN on or before the end of the financial year and whose DIN status is ‘Approved’ shall file Form DIR-3 KYC. In the case of non-filing of Form DIR-3 KYC, the DIN shall be marked as ‘Deactivated due to non-filing of DIR-3 KYC’. |
On or before 30th September of the immediately next financial year. |
|
6 |
Annual General Meetings: Every private company shall call an annual general meeting provided that the gap between two such meetings shall not exceed 15 months. |
Within 6 months from the close of the financial year. |
|
7 |
Board Meetings: The company shall hold at least 4 board meetings every year such that the gap between two consecutive board meetings shall not exceed 120 days. |
- |
|
8 |
Event based compliances: Certain compliances may arise owing to specific events such as a change in director, change in the registered office of the company, change in auditors, related party transactions, maintenance of statutory registers etc. These are event based compliances and shall be undertaken only when any such event occurs. |
- |
|
9 |
Director’s Report: The director’s report shall be prepared containing all the information as required under section 134. |
- |
*The last date for holding the annual general meeting is 6 months from the end of the financial year.
2. The Income Tax Act, 1961
Following are the major compliances that a private limited company shall adhere to under the Income Tax Act, 1961:
- Income Tax Returns: Every private limited company shall file its income tax return in Form ITR-6 for each year.
- Income Tax Audits: In case the turnover of the company crosses the threshold limit of Rs. 1 crore (Rs. 10 crores if aggregate of all the amounts received in cash and all the payments made in cash does not exceed 5% of the total receipts and payments respectively), then the company shall be liable to tax audit.
- TDS / TCS: The companies shall deposit the TDS / TCS deducted or collected each month on or before the 7th of the next succeeding month. However, for the month of March TDS can be deposited till 30th April. Further, the companies shall also file the TDS and TCS returns as per the following due dates:
TDS Due Dates:
|
Quarter |
Period |
Filing Date |
|
1st Quarter |
April-June |
31st July |
|
2nd Quarter |
July-September |
31st October |
|
3rd Quarter |
October-December |
31st January |
|
4th Quarter |
January-March |
31st May |
TCS Due Dates:
|
Quarter |
Period |
Filing Date |
|
1st Quarter |
April-June |
15th July |
|
2nd Quarter |
July-September |
15th October |
|
3rd Quarter |
October-December |
15th January |
|
4th Quarter |
January-March |
15th May |
Advance Tax: The companies shall be liable to pay advance tax on or before the following due dates:
|
Due Dates |
Advance Tax Payable |
|
On or Before 15th June |
15% |
|
On or Before 15th September |
45% |
|
On or Before 15th December |
75% |
|
On or Before 15th March |
100% |
3. Goods and Services Tax Act, 2017
GST registration for private limited company becomes mandatory if the aggregate turnover crosses the threshold limit of Rs. 20 lakhs (Rs. 40 lakhs in case of exclusive supply of goods). Following are the major compliances that a private limited company shall adhere to under the Goods and Services Tax Act, 2017:
GST Returns: The companies shall file their GST returns on or before the due dates based on the GST form applicable. Following are the due dates of some of the forms applicable to the companies:
|
GST Returns |
Due Dates |
|
GSTR-1 (Monthly) |
11th of subsequent month |
|
GSTR-1 (Quarterly) |
13th of the month after the quarter ends |
|
Invoice Furnishing Facility (IFF) |
13th of subsequent month |
|
GSTR-3B (Monthly) |
20th of subsequent month |
|
GSTR-3B (Quarterly) |
22nd / 24th of the month (depending upon the state) after the quarter ends |
|
CMP-08: Composition scheme holders |
18th of the month after the quarter ends |
|
GSTR-4: Composition scheme holders |
30th April after the financial year ends |
|
GSTR-6: Input Service Distributor |
13th of subsequent month |
|
GSTR-7: Every person who deducts TDS |
10th of subsequent month |
|
GSTR-8: Person who collects TCS i.e., e-commerce operators |
10th of subsequent month |
Annual Returns and Reconciliation: The company shall be required to file GSTR-9 i.e., annual return in case the aggregate turnover exceeds Rs. 2 crores. The due date for filing GSTR-9 is 31st December after the end of the financial year. Further, reconciliation in Form GSTR-9C shall also be required to be filed mandatorily in case the turnover exceeds Rs. 5 crores. It shall be submitted along with the annual return.
- Compliance with Other Specific Laws
There are certain other laws that may become applicable to the company. This might include FEMA, FERA etc. In such a case, the company shall ensure compliance with such specific laws as well.
Author : Dipen
Date : 02-Jul-2022
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