According to a senior government source, the Ministry of Corporate Affairs (MCA) intends to implement staggered deadlines for the filing of compliance paperwork. Let’s discuss the latest news of MCA planning to change company and LLP Annual Compliances due dates through this article.
MCA Portal Capacity issues during filing season
Capacity issues with the MCA portal only arise during the filing season. It is not a problem with the Portal’s capacity during the off-season. On the MCA Portal, several professionals such as Company Secretaries and Chartered Accountants vented their frustrations. The Chartered Accountants of India and Company Secretaries of India have petitioned the Finance Ministry to fix the MCA portal.
MCA planning a new solution to solve portal issues
Currently, MCA is aiming to divide the firms and LLPs into four or five groups, each with its own set of dates. This scheme would function similarly to the GSTN Portal’s GST Return Filing of GSTR-3B.
Aim behind changing company & LLP annual compliances due dates
This action is taken to address the problem of the MCA Portal being down during the busiest times of MCA Filing. History shows that the MCA portal is most heavily used in the last days of the filing period for Private Limited Companies and Limited Liability Partnerships (LLPs), which might cause bugs due to the portal’s inability to handle the volume of users.
Official’s statement on MCA Planning
“The MCA will definitely increase the portal’s server capacity over the period, but one also needs to look at its utility. During non-peak seasons, it doesn’t witness any major traffic and the current capacity is more than enough,” said the official. “So, instead, we can regulate the traffic by setting different deadlines for different regions. There will be around four-five different regions across the country.”
“Many of the companies and professionals choose to do their filings in the last week before the deadline, leading to an abnormal surge in the portal traffic during the peak season. This should be avoided,” the official said. “Depending on the increase in the traffic, the MCA will take a call on transitioning to a cloud server system which will allow a large increase in the capacity.