MCA has issued Companies (Registration of Charges) Amendment Rules, 2019 by a notification dated 30th April, 2019 and Companies (Registration Offices and Fees) Third Amendment Rules, 2019.
The following significant changes have been brought by the aforesaid amendments:
Increase in Advalorem fee:
Earlier, for the late filing of Form CHG-1 and Form CHG-9 within 30 days from the date of creation or modification of charge, additional fee was levied at multiples of original fees only. As per the amendment, for charges to be created or modified w.e.f 01 August 2019, in case the delay exceeding 90 days the advalorem fee can be levied at 3 time the normal fees plus a percentage [0.025% for small companies and 0.5% for others] of loan amount secured by the Charge with a cap of Rs 1 Lakh for small companies and Rs 5 Lakhs for other Companies.
In addition, if the company fails to register the Charge, as per the amendment, the charge-holder shall be entitled to recover from the company the amount of any fees or additional fees or advalorem fees paid by him to the Registrar to create/ modify the charge.
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No Condonation of Delay to register charge beyond 300 days
Rules has now be amended in accordance with the amendment to the Companies Act, 2013 by way of the Companies Amendment Ordinance, 2018. Now as per Rule 12, Condonation of delay by Central Government is not allowed for delay in creation or modification of charge. However, Central Government may condone delay of filing of satisfaction of charge, if such filing is not made within a period of 300 days from the date of such payment or satisfaction.
Amendment in Forms
New Form Nos. CHG-l, CHG-8 and CHG-9 have been brought with effect from 1st August, 2019.
Click here for the amendment.
