CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Disclosures and Website Disclosures
Tanmay Digital Pvt Ltd is a small company. It failed to comply with Section 134. Under Section 446B, what is the maximum penalty on the company?
The maximum penalty is Rs 1,50,000. Section 446B limits a small company's penalty to one-half of the specified amount, subject to Rs 2 lakh. Half of Rs 3,00,000 is Rs 1,50,000, which is within the cap.
- ARs 3,00,000
- BRs 2,00,000
- CRs 1,50,000Correct
- DRs 50,000
Explanation
Section 446B caps the penalty at one-half of the specified penalty, subject to a maximum of Rs 2 lakh for a company. Half of Rs 3,00,000 is Rs 1,50,000, which is below the Rs 2 lakh cap. Rs 2,00,000 ignores the one-half rule.
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