FIRST AGM AND FIRST ACCOUNTS

Question A:How to go with the Income Tax Provisions and The Companies Act Provision in case of a newly incorporated company?

Answer:Lets start with the example of a company incorporated 01.01.2012.

Situation under New Companies Act,2013

Question A:What will be the first financial Year?

Answer: As per section 2(41) of the Act,The first financial year shall be 01.01.2012 -31.03.2013.

Text of Section 2(41) of Companies Act,2013

41) “financial year”, in relation to any company or body corporate, means the

period ending on the 31st day of March every year, and where it has been incorporated

on or after the 1st day of January of a year, the period ending on the 31st day of March

of the following year, in respect whereof financial statement of the company or body

corporate is made up:

Provided that on an application made by a company or body corporate, which is

a holding company or a subsidiary of a company incorporated outside India and is

required to follow a different financial year for consolidation of its accounts outside

India, the Tribunal may, if it is satisfied, allow any period as its financial year, whether

or not that period is a year:

Provided further that a company or body corporate, existing on the

commencement of this Act, shall, within a period of two years from such commencement,

align its financial year as per the provisions of this clause;

Question B:From the above calculation the second question which should come in your mind is that  whether a financial year can be more than 12 months?

Answer:Yes,As per provisions of Section 210(4) of The Act,the first financial year of a company can be more than 12 months but cannot exceed 15 months.

QuestionC:What will be the date of first Annual General Meeting?

Answer:Section 166 read with Section 210 of the Act,says that the First  AGM can be held within 18 months from date of incorporation of the company  and upto a period of 9 months from the date of First accounts of the Company which ever is earlier.

In our Case:

As per Section 166 :Date of   First AGM Shall be 18 months from the date of incorporation i.e.  01.01.2012+18 months=30.06.2013

As per Section 210(3):Date of First AGM shall be 9 month from end of First Financial Year i.e.

31.03.2013+9 months=31.12.20103

So earlier of 30.06.2013 and 31.12.2013 is 30.06.2013.So the last date to hold the first AGM is 30.06.2013

QuestionD:When will the forms 23AC,23ACA AND 20B filed and for what period?

Answer:Form 23ACA and Form 23AC shall be filed within a period of 30days from the date of First AGM.

i.e. upto 30.07.2013

Form 20B shall be filed within a period of 60 days from the date of First AGM i.e. upto 30.08.2013.

The period for both the forms shall be 01.01.2012-31.03.2013 i.e. 15 months.

QuestionE:Do we need to file separate form 23ACA or form 20B for each previous year?

Answer:No,as the filing of all these form is dependent on date of AGM only.So no need to file separate form.

Situation under Income Tax ,1960

Section 3 of Income Tax Act defines a previous year and also advises for a uniform previous year ending on 31^st March every year unlike the Companies Act.

Question1:Do we need to prepare two balancesheet for the previous years concerned separately?

Answer: Yes, you need to prepare two balancesheet under the income tax act .

The first one for the period :01.01.2012-31.03.2012

The Second One for the period:01.04.2012-31.03.2013

Question 2: Do we need to file the Income Tax Return?

Answer:  Yes .

Question3:Do we need to hold AGM  within 31.12.2012 if we are preparing the balancesheet for the year 01.01.2012-31.03.2012?

Answer:No,there is no such requirement as the AGM legal requirement is goverened by the companies Act and not by the Income Tax Act.Preparing a separate balancesheet is only for the purpose of Income Tax laws.