All you need to know about form MGT-7

Last Updated at: January 21, 2020
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All you need to know about form MGT-7

Tax collection is the backbone of any economy as it gives the government the money to spend on welfare projects and general law enforcement. Hence, the calculation, enforcement, and collection of taxes is an important feature of any economy and government. That is why the government has set up various organisations, ministries, and groups to control and monitor the collection of taxes in the country. There are also various compliance measures that have been put in place to ensure that no mishaps and corruption take place. This time around we will be taking a look at one such measure. The Ministry of Corporate Affairs expects every company registered in India to annually file their returns and also file Form MGT-7 as a prerequisite to it. Here’s a look at everything you need to know about Form MGT-7.

What is Form MGT-7?

This electronic form must be filed with the MCA by all corporates so as to file their IT return details and it is maintained by the Registrar of Companies online. The form is maintained online based on the various companies’ statement of correctness. All companies, whether they be One Person, Listed, Unlisted, Personal, Private or Public must file their Form MGT-7 annually to file its annual return.

Penalty for non-filing and Due Date

The penalty for not complying with this measure has been recently hiked. As per the new regulations, defaulters will have to pay INR 100 for every day they delay in filing the form. The form must, therefore, be downloaded from the MCA portal, under their Annual e-forms tab, filled and then submitted before the due date. The form must be filed at least within 60 days from the conclusion of the company’s Annual General Meeting. Since most companies must hold their AGM by the 30th of September every year, the MGT-7 must be at the latest be filed by 29th November.

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Purpose of Form MGT-7

Form MGT-7 contains the following details:

  1. Company’s registered address
  2. Company’s businesses, holdings, associate companies
  3. Shares, securities, and debentures of the company
  4. Company’s indebtedness 
  5. Details of members and debenture-holders/share-holders
  6. Directors, Managers and any changes made regarding top positions
  7. Meetings of the General Board and details regarding attendance and decisions are taken
  8. Salaries of top personnel
  9. Offences committed and penalties imposed on any top official

Documents Required

  • List of shareholders/equity holders/debenture holders/bondholder/investor
  • AGM extension order
  • Copy of MGT-8
  • Optional Attachment if required

MGT-7 Form Filing Fees

  • If there is no Nominal Share Capital – INR 200
  • If the nominal share capital is
    • Less than 1 lakh – INR 200
    • Between 1 lakh and 5 lakhsINR 300
    • Also, between 5 lakhs and 25 lakhsINR 400
    • Between 25 lakhs and 1 crore – INR 500
  • If the Nominal Share Capital exceeds 1 crore – INR 600

What is the procedure of Filing Form-MGT 7?

  1. First and foremost, the form must be downloaded from the MCA Portal.
  2. Next, the form must be filled carefully, and all the details it asks for must be provided. 
  3. Users can also avail of the pre-fill facility which auto-fills the form based on details that have already been collected.
  4. To fill additional details, make use of the instruction kit. 
  5. Next, upload the necessary documents and attachments as mentioned above.
  6. Before submitting go through the form once again and check for errors.
  7. Attach your digital signature to authorise the form, and then click Submit.
  8. Upload the form and pay the required transaction fees.
  9. Note down the SRN number which has been generated for future reference.

 

All you need to know about form MGT-7

159

Tax collection is the backbone of any economy as it gives the government the money to spend on welfare projects and general law enforcement. Hence, the calculation, enforcement, and collection of taxes is an important feature of any economy and government. That is why the government has set up various organisations, ministries, and groups to control and monitor the collection of taxes in the country. There are also various compliance measures that have been put in place to ensure that no mishaps and corruption take place. This time around we will be taking a look at one such measure. The Ministry of Corporate Affairs expects every company registered in India to annually file their returns and also file Form MGT-7 as a prerequisite to it. Here’s a look at everything you need to know about Form MGT-7.

What is Form MGT-7?

This electronic form must be filed with the MCA by all corporates so as to file their IT return details and it is maintained by the Registrar of Companies online. The form is maintained online based on the various companies’ statement of correctness. All companies, whether they be One Person, Listed, Unlisted, Personal, Private or Public must file their Form MGT-7 annually to file its annual return.

Penalty for non-filing and Due Date

The penalty for not complying with this measure has been recently hiked. As per the new regulations, defaulters will have to pay INR 100 for every day they delay in filing the form. The form must, therefore, be downloaded from the MCA portal, under their Annual e-forms tab, filled and then submitted before the due date. The form must be filed at least within 60 days from the conclusion of the company’s Annual General Meeting. Since most companies must hold their AGM by the 30th of September every year, the MGT-7 must be at the latest be filed by 29th November.

Get free legal advice now

Purpose of Form MGT-7

Form MGT-7 contains the following details:

  1. Company’s registered address
  2. Company’s businesses, holdings, associate companies
  3. Shares, securities, and debentures of the company
  4. Company’s indebtedness 
  5. Details of members and debenture-holders/share-holders
  6. Directors, Managers and any changes made regarding top positions
  7. Meetings of the General Board and details regarding attendance and decisions are taken
  8. Salaries of top personnel
  9. Offences committed and penalties imposed on any top official

Documents Required

  • List of shareholders/equity holders/debenture holders/bondholder/investor
  • AGM extension order
  • Copy of MGT-8
  • Optional Attachment if required

MGT-7 Form Filing Fees

  • If there is no Nominal Share Capital – INR 200
  • If the nominal share capital is
    • Less than 1 lakh – INR 200
    • Between 1 lakh and 5 lakhsINR 300
    • Also, between 5 lakhs and 25 lakhsINR 400
    • Between 25 lakhs and 1 crore – INR 500
  • If the Nominal Share Capital exceeds 1 crore – INR 600

What is the procedure of Filing Form-MGT 7?

  1. First and foremost, the form must be downloaded from the MCA Portal.
  2. Next, the form must be filled carefully, and all the details it asks for must be provided. 
  3. Users can also avail of the pre-fill facility which auto-fills the form based on details that have already been collected.
  4. To fill additional details, make use of the instruction kit. 
  5. Next, upload the necessary documents and attachments as mentioned above.
  6. Before submitting go through the form once again and check for errors.
  7. Attach your digital signature to authorise the form, and then click Submit.
  8. Upload the form and pay the required transaction fees.
  9. Note down the SRN number which has been generated for future reference.

 

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