Every Section 8 company has to carry out the annual compliance tasks listed under the Companies Act, 2013 and Income Tax Act, 1961. This ensures that the company is trustworthy and credible while avoiding penalties for non-compliance. Compliance tasks need to be carried out throughout the year and can be tedious.Vakilsearch’s annual compliance package for Section 8 Companies ensures these tasks are taken care of for you by experts. It saves your time and energy so that you can focus on the core activities of the company.
SECTION 8 COMPLIANCE
FREQUENTLY ASKED QUESTIONS (FAQS)
Can Section 8 companies claim full tax exemption?
Yes. By fulfilling the conditions specified by the relevant provisions under the Income Tax Act, Section 8 Companies can claim full exemption. Get started with Section 80G and 12A registration.
What is the penalty for failure to appoint an auditor within the prescribed time?
Failure to appoint an auditor is punishable with a fine of ₹25,000, which may extend up to ₹5,00,000.
What is the penalty for the non-filing of a director’s consent form with the RoC?
Failure to file director’s consent notice is punishable with a fine of up to ₹50,000 or imprisonment up to six months.
What happens if I don’t file my annual returns?
Failure to file annual returns is punishable with a fine of ₹50,000, which may extend to ₹5 lakhs.
What is the penalty for non-compliance of requirements regarding the annual general meeting?
Failure to send a copy of audited financial statements to the members before the annual general meeting, and record the minutes of the meeting are each punishable with a fine up to ₹25,000/-.Failure to conduct an annual general meeting is punishable with a fine of up to ₹1 lakh rupees.Failure to submit a report on the annual general meeting is punishable with a fine of 1 to ₹5 lakh rupees.
Can A Section 8 company accumulate profit without paying taxes?
Yes. A Section 8 company is allowed to accumulate or set apart up to 15% of its total income without paying tax.
Does the CSR requirement apply to Section 8 companies?
Yes, the CSR requirement is applicable to Section 8 companies.
Is GST applicable to a Section 8 company?
Yes, the provisions of GST are applicable to Section 8 companies.