An Indian Pvt Ltd co. engaged in certain services classified under export of services under GST.
The company received advance worth 2cr from an overseas customer in March 2020 in USD in their bank account as advance against the travel-based services to be provided. From March 2020 the international travel ceased so, the company has not provided any services for last two years to the said client.
The issue : How will the above advance be treated under section 73 and Deposit rules.
-Whether it falls under Public Deposit/Loan
-Whereas it's simply a business advance against services to be provided in future but outstanding for more than 365 days.
-What options the company has to not the same be treated as deposit/loan.
Please give resolutions
Procedure to be followed for shifting of registered office within the same Special Economic Zone area. it will be within state compliances or what ?
Click here to view / answer Share it onShare the procedure for registration and other compliances if any needs to be done.
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Required drafts formats for First Board Meeting Agenda, Notes of Agenda and Minutes Format.
Please share as per SS-1 & SS-2 Applicability
Company will be considered as Public company since where a company being a private company alters its articles in such a manner that they no longer include the restrictions and limitations which are required to be included in the articles of a private company under this Act, the company shall, as from the date of such alteration, cease to be a private company.
Name Change will be effective from the date of COI or EGM ?
Which sections of the Companies Act applicable or having exemption for NBFC Companies in regard to loan, investment and borrowings ?
share procedure for Conversion of Nidhi company to Private Limited
CHG-8 Filed through new MCA portal and the status of the same is got Approved - Pending for payment and the cost is reflecting Zero on the portal but haven't received a copy of the order yet for the approved form.
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No, In case of failing of commencement of business and fileing of form INC-20A not leads to Disqualification.
According to Section 164(2) of the Companies Act, 2013, if a company fails to file its annual returns or financial statements for a continuous period of three financial years, then the directors of the company shall be disqualified from being appointed as directors of any other company for a period of five years from the date on which the company fails to file such documents.
However, in your scenario, the company has not filed Form INC-20A which is required to be filed within 180 days of incorporation to declare that the company has commenced its business. The MCA has struck off the company for non-compliance. As per the information provided, the company has not filed its annual returns or financial statements for any financial year as it has not commenced its business.
In this case, it is unlikely that the directors will be disqualified under Section 164(2) as the company has not filed its annual returns or financial statements for any financial year. However, the directors may face other penalties and legal actions for non-compliance with the Companies Act, 2013.