MCA Reporting
MCA Reporting
Ministry of Corporate Affairs' Requirements
In 2011, MCA mandated that Companies in India that meet any of the following criteria need to file their financial statements and other documents under section 137 of the Act with the Registrar in e-form AOC-4 XBRL.
All companies incorporated under the Companies Act, 1956 and having a paid up capital of Rs 50 million or more, or a turnover of Rs 1,000 million or more.
All companies that are listed in an Indian stock exchange and their Indian subsidiaries irrespective of their capital or turnover
Banking companies, Insurance companies, Power companies and Non-banking financial companies are exempt from this requirement.
Country By Country Reporting
The BEPS (Base Erosion and Profit Shifting) Action Plan 13 by OECD describes the Country-by-Country Reporting (or CbCR) framework for multinational companies to report the key metrics with an appropriate tax authority.
The Indian Government has implemented CbCR filing requirements for Multinational Enterprises based on group revenue and country of residence of parent entity of the group.
In India the governing authority is the Central Board of Direct Taxes (CBDT).
The mandate which came into force for fiscal year beginning on or after 1 April 2016 applies to Multinational Enterprises with annual consolidated group revenue equal to or exceeding INR 5,500 crore in the previous year. Regulations extend to subsidiary entities as well, and Indian entities are allowed to act as surrogate of foreign entities. An Indian entity with a foreign parent must notify the Indian authority in form 3CEAC, on or before sixty days prior to the date of furnishing the Country by Country Report. Usually, the CbCR should be filed within 12 months from the end of reporting accounting year.
According to the offline utility available on the Income-tax Department’s website, Form 3CEAD has been divided into the following four parts:
- Form 3CEAD, which includes the basic details of an Indian reporting entity
- Part A, which is in the same format as Table 1, according to OECD CbCR
- Part B, which is in the same format as that of Table 2, according to OECD CbCR
- Part C, which contains additional information similar to that included in Table 3, according to the OECD CbCR, and contains verification details, i.e. details pertaining to the MD or Director.
Accordingly, while the xml (according to the OECD format) cannot be used as it is, but to a large extent this information can be used while filing CbCR in India. In this regard, Table 1 and Table 2 data in the Microsoft excel or CSV format needs to be collated, arranged in a format compatible with the Indian xml schema, certain additional details need to be added, and thereafter, xml can be generated.
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What are SEC Which companies should file in XBRL format with MCA?, and why are they important?
The MCA requirement of filing annual reports in XBRL format applies to :
The mandate for filing applicable to companies meeting the criteria above was released by MCA in March 2011. For updated information, please visit the MCA website
What documents need to be filed with MCA in XBRL format?
- Balance Sheet
- Profit & Loss Statement
- Cash Flow Statement
- Schedules related to Balance Sheet and Profit and Loss Statement
- Notes to Accounts
- Statement pursuant to Section 212 of the Companies Act, 1956 relating to subsidiaries
Recent Circular (Financial Year 2011-12):
- Cost Audit Report (Form I)
- Compliance report (Form A)
The MCA circular emphasizes that these reports, including overdue reports pertaining to previous years, are to be submitted in XBRL formats.
What taxonomy should be used in preparing XBRL documents for filing with MCA?
What is the deadline for filing XBRL documents with MCA?
What are the penalties for non-filing of AOC-4, and who is liable?
- Company: Faces a fine of Rs.1,000 for each day of default (up to a maximum of Rs.10,00,000).
- Directors, CFO, and Authorized Director: Liable to a minimum fine of Rs. 1 lakh and a maximum of Rs. 5 lakhs, or imprisonment for up to 6 months.