The Ministry of Corporate Affairs (MCA) has recently announced that additional fee waiver changes for the filing of Form CRA-4 for the financial year ending on March 31, 2025 are currently under development. These forthcoming changes, notified through Circular No. 07/2025, are expected to be completed and implemented shortly.
This update comes as part of the MCA’s continuous efforts to streamline compliance procedures and reduce the regulatory burden on companies. The Ministry has advised all companies whose due dates for CRA-4 filing have either already expired or are falling within this transitional period to take note of the upcoming changes and plan their filings accordingly.
Understanding Form CRA-4
Form CRA-4 is a critical compliance document filed under the Companies (Cost Records and Audit) Rules, 2014. It is used to submit the Cost Audit Report to the Central Government. As per the existing provisions, companies that are mandated to maintain cost records and have their cost audit conducted by a cost auditor must file the CRA-4 form within 30 days from the date of receipt of the cost audit report from the auditor.
Failure to file this form within the prescribed time frame typically attracts additional fees and may also result in penalties or other compliance consequences.
What the Circular Means for Companies
The MCA’s new circular signals that changes in the fee waiver structure are being designed to ease the filing process for companies, particularly those whose due dates coincide with the development and rollout of these updates.
In practical terms, this could mean:
- Temporary relaxation or waiver of additional fees for delayed filings of CRA-4.
- Potential extension of the filing deadline for certain companies impacted by the ongoing system updates.
- A smoother filing experience once the updated features are implemented on the MCA21 portal.
Until the changes are formally implemented, companies are advised to stay alert for further notifications or clarifications from the MCA to avoid any last-minute compliance issues.
Recommended Actions for Companies
- Monitor MCA Updates:
Regularly check the MCA website and professional forums for official updates related to Circular No. 07/2025 and the revised filing requirements. - Prepare Documentation Early:
Even though fee waiver changes are expected, companies should ensure their cost audit reports and related documents are ready for submission to avoid delays once the system updates are live. - Consult Professionals:
Engage with company secretaries or cost accountants to understand how the changes might impact your filing schedule or compliance obligations. - Plan for Timely Filing:
Use this transition period to align your internal processes so that once the updated filing mechanism is active, submissions can be made promptly without additional cost or penalty.
Conclusion
The MCA’s move to introduce additional fee waiver changes for CRA-4 filings demonstrates a proactive approach to ensuring smoother compliance and system efficiency. While the updates are still under development, companies are encouraged to stay informed and plan their filings strategically.
Once Circular No. 07/2025 is fully operational, it is expected to bring much-needed clarity and relief to businesses navigating their cost audit filing requirements for the financial year ending March 31, 2025.