Compliances :- Section 8 Companies
Section 8 Companies in India, also known as Not-for-profit Companies, are entities formed for promoting charitable or non-profit objectives. These companies are registered under Section 8 of the Companies Act, 2013, and enjoy certain benefits, including tax exemptions and reduced compliance requirements. However, they are still subject to some annual compliances to maintain their legal status and comply with regulatory norms. Below are the key yearly compliances for Section 8 Companies in India:
Annual Return (Form MGT-7): Section 8 Companies must file an annual return in Form MGT-7 with the Registrar of Companies (RoC). The annual return contains details of the company's activities, financial position, and particulars of its members. Form MGT-7 must be filed within 60 days from the close of the financial year, i.e., by May 30 each year.
Financial Statements (Form AOC-4): Section 8 Companies are required to prepare and file financial statements in Form AOC-4 with the RoC. The financial statements include the company's balance sheet, profit and loss account, and other required financial disclosures. Form AOC-4 must be filed within 30 days from the end of the financial year, i.e., by April 30 each year.
Statutory Audit: Every Section 8 Company is required to undergo a statutory audit of its financial statements by a qualified chartered accountant. The auditor's report must be attached to the financial statements while filing Form AOC-4.
Income Tax Return (ITR): Section 8 Companies are required to file income tax returns annually, reporting their income and financial transactions. The due date for filing income tax returns for Section 8 Companies is generally September 30 each year.
TDS (Tax Deducted at Source) Compliance (if applicable): If the Section 8 Company makes payments subject to TDS (e.g., salary, interest, or rent payments), it must deduct the TDS and deposit it with the government within the prescribed time. The company is also required to file TDS returns as per the Income Tax Act.
GST Returns (if applicable): If the Section 8 Company is registered under the Goods and Services Tax (GST), it must file regular GST returns, such as GSTR-3B (monthly) and GSTR-9 (annual), in accordance with the GST law.
Compliances under FCRA (Foreign Contribution Regulation Act), if applicable: If the Section 8 Company receives foreign contributions, it must comply with the provisions of FCRA, including filing annual returns with the Ministry of Home Affairs (MHA).
It is essential for Section 8 Companies to adhere to these yearly compliance requirements to avoid penalties and maintain their legal status.