A Complete Guide On Special Provisions For MCA Updation Of KYC

MCQ SELF CHALLENGE # 0069 ON SPECIAL PROVISIONS RELATING TO THE UPDATION OF KYC OF DIRECTORS IN MCA

Special Provisions Relating to Updation of KYC of Directors in MCA

Dear Professional Seniors & Friends,

Warm Greeting!

Here is the Next post of #MCQ on concept-based practical professional knowledge on special provisions relating to the updation of KYC of directors in MCA uniquely to be self-answered by participants. The detailed answers to these MCQs shall be posted the next day for the self-assessment of the participants.

MCQ 69.1: Mr. X is holding valid DIN, but not having any directorship in any company during the F.Y. 2017-18. Which of the following is correct about the filing of form DIR-3 KYC?

A) He is not having any directorship during the year so he is not required to file the form.

8) He does not have any directorship as of 31st Mar 2018 so he is not required to file the form.

C) He is required to file the form since he is holding DIN as of 31st Mar 2018.

D) None of the above.

MCQ 69.2: What if in the above question. Mr. X was holding directorship in one company but resigned from that company on 28th Feb 2018.

A) He is not having any directorship during the year so he is not required to file the form. B) He does not have any directorship as of 31st Mar 2018 so he is not required to file the form.

C) He is required to file the form since he is holding DIN as of 31st Mar 2018.

D) None of the above

Answer MCQ Self Challenge # 0069

As the best chartered accountant firm in India, we have his post of MCQ is on the concept relating to provisions relating to the updation of KYC of directors in MCA in a case where directors do not hold any directorship as of 31st March 2018.

Answer to MCQ 69.1: C) He is required to file the form since he is holding DIN as of 31 Mar 2018.

Answer to MCQ 69.2: C) He is required to file the form since he is holding DIN as of 31 Mar 2018.

Practical Analysis for MCQ 69.1& 69.2:-

1. The Ministry of Corporate Affairs as part of updating its registry, is conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC.

2. Every Director who has been allotted DIN on or before 31st March 2018 and whose DIN status is Approved would be mandatorily required to file form DIR-3 KYC.

3. Filing of DIR-3 KYC would be mandatory for Disqualified Directors.

4. The due date of filing of DIR-3KYC is on or before 31st August 2018.

5. In the case of Indian nationals, the Income-tax Permanent Account Number (Income-tax PAN) is mandatory in all cases even if there is no change in Income-tax PAN In such cases, director details should be as per Income-tax PAN. In case the details as per income-tax PAN are incorrect, the director/designated partner is advised to first correct the details in Income-tax PAN.

6. Mandatory Information required in DIR-3 is a unique Personal Mobile Number and Personal Email ID. One-time Password (OTP) on Email ID and OTP on Mobile No.

7. The e-form has to be certified by Practicing CS/CA/CWA.

8. If a director fails to file DIR-3 KYC, the MCA 21 system will mark all approved DINS (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as 'Deactivated with reason as Non-filing of DIR-3 KYC.

9. After the due date of filling DIR-3 KYC in respect of such deactivated DINS shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.

10. MCA notifies "Nil Fee' and Delayed Fee of Rs. 5,000 for Filling e-Form DIR-3 KYC under rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, applicable w.e.f, 10th July 2018.

IF A PERSON NOT HAVING A DIRECTORSHIP IN ANY COMPANY, HOWEVER, HOLDS DIN WHETHER SUCH A PERSON REQUIRED TO FILE E-FORM DIR-3 KYC?

11. As per Rules, every person holding a DIN has to file an e-form DIR-3 KYC, irrespective of whether such person has directorship in any

Company or not.

12. Therefore, we can opine that directorship is not any base for filing of DIR-3 KYC Base for the same is DIN. If a person has a DIN as of 31 Mar 2018, it's mandatory to file a DIR-3 RTC.

13. Based on the above analysis, correct answer MCQ 1: C) He is required to file the form since he is holding DIN as of 31 Mar 2018.

14. Correct answer MCQ 69.2: C) He is required to file the form since he is holding DIN as of 31st March 2018.

(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as a professional opinion: you can definitely have your own opinion.)

Sincere Regards!

CA Sanjay Kumar Agrawal

Mobile: 9810116321