31 March 2020 News and Updates

Corporate Snippets on March 31

Ø S&P further slashes India's growth forecast to 3.5%

Ø Govt. relaxes compliance norms for SEZs

Ø Govt. may consider cash transfer to workers: Niti VC

Ø Lockdown to impact power demand: ICRA

Ø RBI changes SLBC convenors in view of bank mergers

Ø Economic outlook for India is turning grim day by day

Ø SBI-led lenders okay Suzlon loan recast

Ø Indian economy can contract 2.6%; US over 11% in worst case in 2020: Nomura

Ø SEBI asks exchanges to review expiry of agro derivative contracts

Ø Continue second phase of UPI for retail investors till further notice: SEBI

Ø Govt may slash borrowing from market in April amid lockdown: Report

Ø Govt. extends crop loan interest benefits for farmers till May 31

Ø Existing foreign trade policy likely to be extended

Ø Implementation of Stamp Act changes deferred by 3 months till July 1

Ø Covid-19: ONGC contributes ₹300 crore from CSR to PM CARES fund

Ø RIL pledges ₹500 crore to PM CARES Fund

Ø Govt releases ₹10,000 crore for VRS payments of BSNL, MTNL

Ø GMR Airports’ international partner Groupe ADP raises €2.5 billion in bonds

 

Ø Infosys Foundation commits ₹100 crore towards Covid-19 relief efforts

Ø Bombay HC gives relief to Future group against pledge invocation amidst Covid-19

Ø CAMS data shows arbitrage and debt fund exodus, steady equity flows

Ø India may slash borrowing from market in April amid lockdown: Report

Ø HPCL invokes force majeure on Iraqi oil: Report

Ø Sun Pharma’s ex-India biz at record low valuations, amid FDA troubles

Ø Finance Ministry asks banks to ensure adequate cash to meet cash demand post salary transfers

Ø Fitch Solutions cuts India GDP growth forecast to 4.6% for FY21

Ø ADB to invest $100 million in Indian infrastructure sector via NIIF

 

Ø Sensex plummets 1,375 pts; Nifty ends below 8,300

Ø Rupee settles 70 paise lower at 75.59 against US dollar

Ø COVID 19 effect: Surge in health insurance policies

Ø China slashes rate, adds $7 bn to banking system to counter virus

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MCA- Much awaited Scheme for filing of annual returns

MCA scheme  giving one time opportunity to complete  pending compliances ( including Annual complainces ) without additional fees and penalty.

1. Period : 1.04. 2020  to 30.09.2020.

2. After compliance, Roc will issue immunity certificate.

3. Withdrawal all penal cases.

4.MCA has waived off late fees on form and come up with a Companies Fresh Start Scheme 2020 

5. Scheme shall Not applicable on capital increase form, charge form, applied for strking of name of company, amalgamated company, vanishing company, applied for dormant company etc.

No Change in FY- 𝗠𝗔𝗥𝗖𝗛 𝗩𝗦 𝗝𝗨𝗡𝗘

This is the biggest confusion in the minds of the taxpayers. Following points clarifies some of the issues: 

1) FY 2019-20 is not at all extended till 30th June, only the date is extended for some compliances.

2) Belated returns or Revised returns for the FY 2018-19 can be filed till 30th June.

3) In the FY 2019-20, income is taxable till 31st March only and not upto 30th June, i.e. for taxability of income financial year is considered till 31st March only.

4) Deductions under 80C, 80D, etc. can be claimed by investing till 30th June.

5) New LIC, mediclaim, PPF, NPS, etc. policies taken till 30th June will be eligible for the deduction for the FY 2019-20.

6) Payment of Premium of old policies of LIC, mediclaim, PPF, NPS, etc. due upto 31st March can be claimed as deduction even if paid till 30th June.

7) Housing loan interest is eligible for deduction on accrual basis, so interest accrued till 31st March will be eligible for the deduction in FY 2019-20. However Installments due upto 31st March can be claimed as deduction ever if paid till 30th June.

Received the forwarded Message

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👉🏻Income Tax dept asks officers working from home to chase large taxpayers for dues

(Income-Tax Department has asked field formations to contact large taxpayers over phone or email to follow up on pending collections)

👇🏻 👇🏻 👇🏻

https://bit.ly/2xEbaVS

👉🏻Punjab National Bank unveils new logo ahead of merger

(PNB unveiled a new logo which bears the signage's of all the three PSU banks, from the next FY, PNB will become the second largest lender in India)

👇🏻 👇🏻 👇🏻

https://bit.ly/39x2g9A

 

👉🏻MCA introduces Companies Fresh Start Scheme 2020 and Revises LLP Settlement Scheme 2020

(MCA offers ‘fresh start’ to companies, LLPs to lower compliance burden)

👇🏻 👇🏻 👇🏻

https://bit.ly/3av7R1L 

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 The Ministry of Corporate Affairs issued Companies Fresh Start Scheme 2020 vide Circular 12/2020 dt 30.3.2020 which applies both public and private companies incorporated under Co Act 1956/2013.

The salient features are as follows:-

(1) Permits filing all pending Returns, Statements, Documents for any number of years.

(2) It shall come into operation on 1.4.2020 and remain effective up to 30th Sep 2020.

(3) It applies to all companies both public or private who failed to file all returns statements or Documents including Annual Return remain for any number of years as on date of filing.

(4) Only normal fees as  prevailing on the date of filing shall be payable.

(5)No late fee no penalty no prosecution only normal fees payable.

(6) Prosecution if any pending shall be disposed off after payment

(7) Scheme not apply to those companies against whom final notice under Section 248 has been given by ROC for striking off or   who applied for striking off or applied for being declared dormant co; vanishing company or  dormant company or companies under CIRP

(8) Companies who name struck off cannot avail this scheme and have to get their name restored;

(9) Companies can avail this scheme for the purpose of (i) getting themselves dormant under Section 455 and also (ii) getting their name struck off

(10) After payment of normal fees and documents return statement is taken on record, an application shall be filed electronically (without any fees) for obtaining Immunity Certificate but it shall not be filed beyond six month from the date of expiry of scheme.

 

(11)Scheme grants immunity against filing of forms returns and documents but not against any punitive action being done by the company for which suitable can be taken by ROC. 

This is golden opportunity to file all pending Returns Annual Accounts, Statements including all pending Annual Returns pending for any number of years.

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ICAI For the year 2020-21, invite expression of interest for empanelment as Resource Persons (at https://forms.gle/CbjSJ84xCDf8kArh7) from members of ICAI having knowledge and flair of capital market and public speaking skills to conduct Investor Awareness Programs. The Institute reimburses upto Rs. 5,000/- per IAP inclusive of TA/DA, honorarium and other costs incurred conducted across the country except for IAPs conducted in North East States where the reimbursement is upto Rs. 7,000/- per program. last date for filling up the aforesaid form is 30thApril, 2020.

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MCA Update

DIN holders of DINs marked as ‘Deactivated’ due to non-filing of DIR-3KYC/DIR-3 KYC-Web and those Companies whose compliance status has been marked as “ACTIVE non-compliant” due to non-filing of Active Company Tagging Identities and Verification(ACTIVE) eform are encouraged to become compliant once again in pursuance of the General Circular No. 11 dated 24th March, 2020 & General Circular No.12 dated 30th March 2020 and file DIR-3KYC/DIR-3KYC-Web/ACTIVE as the case may be between 1st April, 2020 to 30th September, 2020 without any filing fee of INR 5000/INR 10000 respectively.

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👉  The National Company Law Appellate Tribunal (NCLAT) directed that the lockdown period, as announced by the government, would be excluded for the purpose of counting of days for all ongoing insolvency matters, which are time bound.

Passing a suo motu order, a three-member NCLAT bench headed by Acting Chairperson Justice B L Bhat said that it would applicable in all the corporate insolvency resolution process, which has been initiated or pending, or pending in Appel before the benches of NCLTs or before the appellate tribunal.

Besides, any interim order passed by the NCLAT or National Company Law Tribunal (NCLT) would continue till the next date of hearing, which would be notified once the tribunal and the appellate tribunal starts functioning.

The NCLT and the NCLAT have closed their hearing amidst the three weeks lockdown imposed by the government to contain the spread of pandemic of Covid-19.

"The period of lockdown ordered by the central government and the State Governments including the period as may be extended either in whole or part of the country, where the registered office of the corporate debtor may be located, shall be excluded for the purpose of counting of the period for 'Resolution Process under Section 12 of the Insolvency and Bankruptcy Code, 2016, in all cases where ‘Corporate Insolvency Resolution Process' has been initiated and pending before any Bench of the NCLT or in Appeal before this Appellate Tribunal,” it said.

👉  The National Company Law Appellate Tribunal (NCLAT) is the Apex Tribunal in the country dealing with all aspects of corporate law. The judgments pronounced by the Appellate Tribunal in the areas of Insolvency, Competition and Company law regulate all elements of a company’s functioning in India; from its registration to its functioning, and operation to its interaction with the market and various stakeholders, to its insolvency and potential resuscitation.

This monthly column seeks to cover the landmark judgments delivered by the National Company Law Appellate Tribunal and to offer a brief summary of the same in a capsule-form for the benefit of the reader.

The judgments of the National Company Appellate Tribunal (NCLAT) have been demarcated into those dealing with the provisions of the Insolvency and Bankruptcy Code, 2016 (Code), the Competition Act, 2002 and that of the Companies Act, 2013. The judgments dealing with the Code have been further categorized and dealt with in the following three stages i.e. Pre-admission stage, Corporate Insolvency Resolution Process (CIRP) stage and the Liquidation stage.

Thanks for reading

30 March 2020 News and Updates

Corporate Snippets on March 30

Ø FinMin, RBI set to decide first-half borrowing plan on Tue

Ø Hero MotoCorp suspends payments to suppliers

Ø SEA urges members to ensure edible oil supply

Ø Govt. may ease resolution rules for insolvent firms

Ø TRAI grants 6 weeks time to telcos to file Apr reports

Ø Cos. want a 15-month financial year because of virus

Ø Peak power demand falls 28% to 117GW in since Mar 20

Ø Power generators shut capacity as Covid-19 hits demand, upends normal life

Ø Discoms' outstanding dues to power gencos rise nearly 32% in January

Ø Banks face operational hurdles in implementing 90-day loan moratorium

Ø Coronavirus shutdown puts Rs 15-trillion debt at risk, to impact finances

Ø CII requests Govt. to allow passing resolutions without board meeting

Ø Saudi Arabia assures India of LPG supplies: Pradhan

Ø As lockdown hits supply, dal millers want Govt. to release NAFED stocks

Ø PSA to continue with longer free storage time for import containers till April 15

Ø Audit firms not enthused with MCA proposals to tighten norms

Ø Future Group denies report on selling stake in retail unit

Ø Look ahead of the current crisis to plan for an economic revival

Ø Coronavirus: Govt. approves 47 private labs for Covid-19 tests

Ø 'This crisis is also an opportunity to radically transform economy'

Ø IndiaNivesh shuts PMS business amid Covid-19 outbreak, market volatility

Ø Transportation of all essential, non-essential goods allowed during lockdown

Ø India to grow fastest among G20 economies despite Coronavirus; these countries to be worst-hit

Ø Lenders game for loan repayment moratorium

Ø Anil Agarwal for the 1st time takes board position on Vedanta Ltd

Ø USFDA classifies Sun Pharma’s Halol facility as official action indicated

Ø Union Bank expects Rs 2,500 cr benefits due to amalgamation: CEO

Ø Mega merger of state-run banks comes into force from April 1: RBI

Ø Coronavirus scare: Foreign investors pull out over Rs 1 lakh cr in March

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GST: Government Clarifies On Utilisation Of Tax Credit For M&A:

READ MORE- https://www.gststation.in/gst-government-clarifies-on-utilisation-of-tax-credit-for-ma/

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Mobile phone makers seek rollback of GST increase:

READ MORE- https://www.gststation.in/mobile-phone-makers-seek-rollback-of-gst-increase/

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Gift and GST returns added to postponed tax and filing deadlines:

READ MORE- https://www.gststation.in/gift-and-gst-returns-added-to-postponed-tax-and-filing-deadlines/

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👉🏻Extension of Last date for Empanelment as Stock and Receivable Auditor for SBI

(State Bank of India invites applications for Empanelment as Stock and Receivable Auditor for conducting Stock and Receivable Audit for the Bank)

👇🏻 👇🏻 👇🏻

https://bit.ly/3dAd9Lf

👉🏻Govt to pay employer, employee’s PF contribution for 3 months

(Govt will pay the employee provident fund (EPF) contribution both of the employer and the employee (12 per cent each) for the next three months)

👇🏻 👇🏻 👇🏻

https://bit.ly/3bv0neZ

👉🏻Finance Act 2020 | Finance Bill 2020 gets Presidential assent

(The Finance Bill, 2020, after being passed by Lok Sabha & Rajya Sabha respectively; has received the assent of the President of India on 27th March, 2020)

👇🏻 👇🏻 👇🏻

https://bit.ly/39nQ9Mi 

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GST: Enforcement ramped up to check fleecing by traders:

READ MORE- https://www.gststation.in/gst-enforcement-ramped-up-to-check-fleecing-by-traders/

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Central Board of Indirect Taxes and Customs (CBIC) has issued clarifications under GST law for companies under the IBC in connection with the notification issued on Saturday.

Central Government through gazette notification dated March 24, 2020 specified one crore rupees as the minimum amount of default for initiation of proceedings under the Insolvency and Bankruptcy Code, 2016 (‘the Code’). This represents a hundred-fold increase from the current level of one lakh rupees.  

RBI GIVES BOOSTER DOSE TO THE ECONOMY Repo rate reduced by  75 basis point, CRR ration reduced by 1 % and Intt on working capital loan deferred by 3 month. 

RBI Monotorium of 3 month for term loan RBI inject liquidity of more than 5 lac crore in the system. 

ICAI has decided to Postphone the examinations Scheduled  to be held in May 2020 and Now will be held from 19th June, 2020.

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Relief to 2.75 lakh taxpayers in Bihar, waived late fee-penalty on GST returns till this date:

READ MORE- https://www.gststation.in/relief-to-2-75-lakh-taxpayers-in-bihar-waived-late-fee-penalty-on-gst-returns-till-this-date/

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GST: Gujarat government estimates Rs 4,000 crore hit on revenues:

READ MORE- https://www.gststation.in/gst-gujarat-government-estimates-rs-4000-crore-hit-on-revenues/

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👉🏻PM Modi Appeal to Contribute in PM CARES fund

(Prime Minister Narendra Modi has announced the constitution of the PM's Citizen Assistance and Relief in Emergency Situations (PM-CARES) fund. Citizens and organisations can go to the website pmindia.gov.in and donate to PM CARES Fund.) 

👇🏻 👇🏻 👇🏻

https://bit.ly/2JjxLJT

👉🏻RBI approves amalgamation of 10 public sector banks from April 1

(RBI said it has approved the amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank, Syndicate Bank into Canara Bank, Andhra Bank and Corporation Bank into Union Bank of India and Allahabad Bank into Indian Bank) 

👇🏻 👇🏻 👇🏻

https://bit.ly/3bvz4Bt

👉🏻Defaulters must settle dues within 15 days of agreeing on amount under VSVS - CBDT

(CBDT has clarified that defaulters need to settle their tax dues within 15 days from the time the disputed amount is mutually agreed upon, under its dispute settlement mechanism that has now been extended till June 30) 

👇🏻 👇🏻 👇🏻

https://bit.ly/2vVNR9k

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CGST Rate Notifications

Notification No.03/2020-Central Tax (Rate)-Seeks to amend notification No. 1/2017-Central Tax (Rate) to prescribe change in CGST rate of goods.

Notification No.02/2020-Central Tax (Rate)-Seeks to amend Notification No. 11/2017-Central Tax (Rate) dt. 28.06.2017 reducing CGST rate on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft from 18% to 5% with full ITC.

READ MORE- https://www.gststation.in/cgst-rate-notifications-4/

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👉🏻Contributions to PM CARES fund will help Companies to meet CSR obligations

(It is clarified that any kind of contribution made to the PM-CARES Fund shall qualify as CSR expenditure under the Companies Act - MCA)

👇🏻 👇🏻 👇🏻

https://bit.ly/2wDs8DH

👉🏻Lockdown period won’t be counted in IBC timeline - IBBI

(IBBI has issued a fresh regulation to amend the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, which will come into effect from Sunday)

👇🏻 👇🏻 👇🏻

https://bit.ly/3auAlbI

👉🏻Notification for increasing threshold of default under section 4 of IBC,2016

(MCA issue Notification for increasing threshold of default under section 4 of IBC,2016)

👇🏻 👇🏻 👇🏻

https://bit.ly/2yk3NDd

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Ministry of Corporate Affairs in view of COVID-19 taken following measures to reduce their compliance burden and other risks:

No additional fees shall be charged for late filing during a moratorium period from 01st April to 30th September 2020, in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date, which will not only reduce the compliance burden, including financial burden of companies/ LLPs at large, but also enable long-standing noncompliant companies/ LLPs to make a ‘fresh start'. The Circulars specifying detailed requirements in this regard are being issued separately.

Special Measures under Companies Act, 2013 (CA-2013) and Limited Liability Partnership Act, 2008 in view of COVID-19 outbreak

The mandatory requirement of holding meetings of the Board of the companies within the intervals provided in section 173 of the Companies Act, 2013 (CA-13) (120 days) stands extended by a period of 60 days till next two quarters i.e., till 30th September. Accordingly, as a one-time relaxation the gap between two consecutive meetings of the Board may extend to 180 days till the next two quarters, instead of 120 days as required in the CA-13.

The Companies (Auditor's Report) Order,2020 shall be made applicable from the financial year 2020-2021 instead of being applicable from the financial year 2019- 2020 notified earlier. This will significantly ease the burden on companies & their auditors for the financial year 2019-20. A separate notification has been issued for this purpose.

As per Para VII (1) of Schedule IV to the CA-13, Independent Directors (lDs) are required to hold at least one meeting without the attendance of Non-independent directors and members of management. For the financial year 2019-20, if the lDs of a company have not been able to hold such a meeting, the same shall not be viewed as a violation. The lDs, however, may share their views amongst themselves through telephone or e-mail or any other mode of communication, if they deem it to be necessary.

Requirement under section 73(2)(c) of CA-13 to create the deposit repayment reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 shall be allowed to be complied with till 30th June 2020.

Requirement under rule 18 of the Companies (Share Capital & Debentures) Rules, 2014 to invest or deposit at least 15% of amount of debentures maturing in specified methods of investments or deposits before 30th April 2020, may be complied with till 30th June 2020.

Newly incorporated companies are required to file a declaration for Commencement of Business within '180 days of incorporation under section 10A of the CA-13. An additional period of 180 more days is allowed for this compliance.

Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the CA-1 3 shall not be treated as a non-compliance for the financial year 2019-20.

Companies Affirmation of Readiness towards COVID-19 Form MCA has issued Companies Affirmation of Readiness towards COVID-19 Form which is a simple web form with minimum fields and which can be filed from anywhere. There

is no requirement of DSC and does not involve payment of any fee. Companies/LLPs have been advised to use the service w.e.f 23rd March 2020 onwards at the earliest convenience. Stakeholders have been requested to please note that there is no fee applicable for FORM CAR (Companies Affirmation of Readiness Towards COVID-19). SHs may also

please note that the form has been deployed as a purely confidence building measure to assess the readiness of the companies to deal with COVID-19 Threat in India. As such no penalty or enforcement related action is applicable. Stakeholders may at their convenience file this form. It is purely voluntary as part of our contribution towards joining the movement to fight against the spread of the disease. Since the portal may experience heavy load, it would indicate 'Busy' alert whenever peak traffic is reached

Board meetings under the Companies Act, 2013: Considering the need to take precautionary steps to overcome the outbreak of the

coronavirus (Covid-19), the Government has in-principle decided to relax the requirement of holding Board meetings with physical presence of directors under section 173 (2) r/w rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 for approval of the annual financial statements, Board’s report, etc. Such meetings may till 30th June, 2020 be held through video conferencing or other audio visual means by duly ensuring compliance of rule 3 of the said rules.

Sensitization of Nidhi companies Sensitization of Nidhi companies towards compliance of provisions of section 406 of Companies Act, 2013 and Nidhi Rules, 2014 as amended vide Nidhi (Amendment) Rules, 2019 w.e.f 15.08.2019 and general public to invest in genuine and compliant Nidhis only(40 KB)

Non Availability of MCA21 Voice and Ticketing Helpdesk services: Please be informed that in view of present total lockdown imposed on transport and people movement by the Government, availability of MCA21 Voice and Ticketing Helpdesk services have been severely impacted. The same would not be available till

further notice. Stakeholders may kindly note and cooperate.

View Public Document (VPD) requests disabled till 31st March, View Public Document (VPD) requests would be disabled till 31st March 2020. Stakeholders are requested to plan accordingly.

Clarification on spending of CSR funds for COVID-19.(40 KB) Spending of CSR funds for COVID- 19 is eligible CSR Activity. Funds may be spent for various activities related to COVID- 19 related to health care including preventive health care and sanitation, and, disaster management.

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 🤘🏻😇🤘🏻 Advanced Authority Ruling in GST

✓✓ M/s Columbia Asia Hospitals Private Limited – Karnataka AAR

Facts

👩🏻‍🎓 The company operates a chain of hospitals operating across six states. 

Separate GST registrations have been obtained in relevant states

👨🏻‍🎓 Employees at the corporate office (CO) in Karnataka carry out activities such as accounting, administration, IT maintenance etc. pertaining to units 

located in other states.

Issues

Whether centralized activities performed by employees at the CO for units located in other states shall be treated as a supply in terms of the CGST Act.

Observations and ruling

👩🏻‍🎓 CO and units in other states covered in the definition of related persons. Any supply of goods and services 

from the CO to other units shall amount to a supply, even without consideration

👨🏻‍🎓 Employees employed by the CO are providing services to the CO and hence there is employee-employer relationship only to the extent of the CO. Other offices are distinct persons under the GST regime and employees have no employer-employee relationship with other offices even if they belong to the same legal entity

👨🏻‍🎓 Services by employees at the CO, in so far as they benefit the other registered offices, cannot be termed as “employer-employee relationship” and hence, shall be treated as taxable supplies from the CO to the other offices in terms of the CGST Act.

 #keeplearning #keepgrowing #keepsharing🤘🏻

Further Development

👩🏻‍🎓 The above ruling of the AAR has been upheld by the Karnataka AAAR holding that the CO is 

providing a service to other distinct units by way of carrying out activities such as 

accounting, administrative work etc. Further, since the activities have been carried out using the 

services of employees working at the CO and the same benefit all other units, such activities are to be treated as taxable supplies in terms of the CGST Act

👨🏻‍🎓A circular to clarify levy of GST on services provided by an office of an organization in one state to

another is expected to be issued soon. 

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 𝗖𝗢𝗡𝗙𝗨𝗦𝗜𝗡𝗚 𝗬𝗘𝗔𝗥 𝗘𝗡𝗗 𝗠𝗔𝗥𝗖𝗛 𝗩𝗦 𝗝𝗨𝗡𝗘

This is the biggest confusion in the minds of the taxpayers. Following points clarifies some of the issues: 

1) FY 2019-20 is not at all extended till 30th June, only the date is extended for some compliances.

2) Belated returns or Revised returns for the FY 2018-19 can be filed till 30th June.

3) In the FY 2019-20, income is taxable till 31st March only and not upto 30th June, i.e. for taxability of income financial year is considered till 31st March only.

4) Deductions under 80C, 80D, etc. can be claimed by investing till 30th June.

5) New LIC, mediclaim, PPF, NPS, etc. policies taken till 30th June will be eligible for the deduction for the FY 2019-20.

6) Payment of Premium of old policies of LIC, mediclaim, PPF, NPS, etc. due upto 31st March can be claimed as deduction even if paid till 30th June.

7) Housing loan interest is eligible for deduction on accrual basis, so interest accrued till 31st March will be eligible for the deduction in FY 2019-20. However Installments due upto 31st March can be claimed as deduction ever if paid till 30th June.

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👉  The Insolvency and Bankruptcy Board of India (IBBI) has issued fresh guidelines that will give them more time on account of the lockdown.

The guidelines stated that “the period of lockdown imposed by the central government in the wake of Covid-19 outbreak shall not be counted for the purposes of the timeline for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency  resolution process.”

The IBBI notification came into effect from March 29.  The government had recently raised the threshold for default from Rs 1 lakh to Rs 1 crore to prevent triggering of insolvencies.  The step was taken especially to safeguard the small and medium enterprises facing the brunt of lockdown.

The government may also consider scrapping the provision for triggering insolvencies for a period of six months by suspending section 7, 9 and 10 of IBC which enables a financial creditor, operational creditor or the promoter respectively to initiate proceedings against a company.

As Covid-19 grips the markets and economy, companies and lenders are bracing for the impact it would have on corporate bankruptcies.

The government is drawing up a relief package for industry with steps such as relaxation of asset-classification norms by banks, thus allowing companies to delay the repayment of loans, and tax holidays for the worst-hit sectors like aviation and hospitality.

👉  Providing leeway to resolution professionals amid the coronavirus outbreak, the Insolvency and Bankruptcy Board of India (IBBI) has relaxed the timelines to be followed under the overall 330-day deadline for completion of insolvency resolution processes. Against the backdrop of the 21-day lockdown to curb spreading of coronavirus infections, IBBI has amended certain regulations. The lockdown period would not be counted for the purpose of timelines set under the IBBI regulations for Corporate Insolvency Resolution Process, according to a notification.

“Every activity in a CIRP has a timeline. In view of the national lockdown, it may not possible for an insolvency professional to continue to conduct process, for members of committee of creditors to attend the meetings, and for prospective resolution applicants to prepare and submit resolution plans, within the specified timeline.

“We have therefore amended regulations to provide that the period of lockdown shall not be counted for the purpose of timeline for any activity in a CIRP,” IBBI Chairperson MS Sahoo told PTI on Sunday. IBBI is a key authority in implementation of the Insolvency and Bankruptcy Code.

Sahoo also clarified that the flexibility is subject to overall time limit available under the Code. There is a deadline of 330 days for completion of a resolution process. There is no change to timelines given in the Code and it is "relaxation of timeline given in the regulations," he noted.

The nationwide lockdown is to end on April 14.

Thanks for reading

27 March 2020 News and updates

Corporate Snippets on March 27

Ø SEBI asks states to exempt capital mkt entities

Ø White House, Congress agree on $2tn virus rescue bill

Ø Financial services dept for unhindered banking services

Ø Eco census survey will take longer post lockdown

Ø Indian airlines may incur $ 3.6 bn loss in June qtr

Ø ONGC gas output drops as shut factories refuse supplies

Ø World Bank, IMF urge debt relief for poor nations

Ø Govt. likely to unveil Rs 1.5 trn stimulus for coronavirus downturn: Report

Ø Flipkart to resume sales of products after assurance on staff's safety

Ø ONGC, Oil India stare at steep earnings cut as crude price crashes

Ø YES Banks needs up to Rs 13,000 crore in equity in 1-2 years: ICRA

Ø Rural sector stressed as Covid-19 disrupts supplies, spikes unemployment

Ø SEBI to limit commodity futures trading till 5pm: Sources

Ø Chinese firms resume export of pharma inputs to India

Ø NTPC’s installed capacity touches 58,816 MW

Ø Suzlon postpones EGM to April 7

Ø Centre extends permission to Tata Power to operationalise Bengaluru defence SEZ unit

Ø Coronavirus: Lockdown forces 1.7 lakh Infosys techies to work from home

Ø COVID-19: South Korean firm's testing kit gets NIV’s validation for use in India

Ø IndianOil cuts refining capacity by around a third, cooking gas demand up

Ø Fiscal stimulus is new unknown for India’s jittery bond traders

Ø India’s crude steel output grows 1.5% to 9.56 million tonnes in February: worldsteel

Ø Nationwide lockdown to impact housing sales, say realtors

Ø Moody’s downgrades DIAL rating by one notch to Ba2

Ø Lenders worried: Loan repayments start drying up

Ø CBI grills three in DHFL scam

Ø Indian Bank announces additional funding facility

Ø Mylab’s gets nod for first Made-in-India Covid-19 test kit

..  

Ø CRISIL cuts FY21 growth estimate sharply to 3.5 per cent

Ø PSBs announce COVID-19 emergency credit line

Ø COVID-19 effect: US jobless claims hit 3.3 million

Ø United Spirits shuts down manufacturing ops in India

Ø Bank merger on track; to take effect from April 1: FM

Ø SEBI allows top 100 companies to delay AGMs

Ø Moody's warns of downgrading Tata Motors

Ø Covid-19: Rs 1.7-trn relief package welcome, but more support needed

Ø With 75% economy under lockdown, analysts see sharp fall in GDP

Ø Banks plan to shut down most branches during coronavirus lockdown: Report

Ø US Senate offers $58 bn aid to airlines as they struggle to stay afloat

Ø Centre asks states to allow manufacture, distribution of packaged foods

Ø Covid-19: Apollo Hospitals plans to set up 5,000 isolation rooms

Ø Cipla gets USFDA nod for generic acid reflux drug

Ø Centre signs agreement for sale of Kamarajar Port, THDC and NEEPCO

Ø Covid-19 impact: CII sets up a fund for MSMEs

Ø Covid-19: Govt to pay employer, employee’s PF contribution for 3 months

Ø G-20 video conference: PM pitches for new crisis management protocol on Covid-19

Ø Yes Bank to raise up to ₹5,000 crore after govt-led rescue

Ø 45 distilleries, 564 manufacturers get permission to produce hand sanitisers

Ø Coronavirus: M&M ready with ventilator prototype, to cost less than ₹7,500

Ø SEBI disposes of case against IDFC Asset Management, BNP Paribas Asset Mgmt

Ø G20 leaders pledge USD 5 trillion, ‘united’ response to coronavirus crisis

Ø Coronavirus effect: Smartphone, consumer appliance companies extend product warranties

Ø Coal India relaxes payment terms, reschedule e-auctions

Ø Rupee settles 78 paise higher against USD after govt measures to fight covid 19

Ø Singapore unveils USD 33.17 bn economic package to tide through coronavirus crisis

Ø Sensex ends 1,400 pts up, Nifty above 8,600 after FM unveils relief package

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SECTION 179 OF THE INCOME-TAX ACT, 1961 - COMPANY IN LIQUIDATION - LIABILITIES OF DIRECTORS

Scope of : Where Assessing Officer issued a notice under section 179 against assessee-director of a company seeking to recover tax dues of said company from assessee, since said notice was totally silent about fact that tax dues could not be recovered from company and, further, there was no whisper of any steps being taken against company for recovery of outstanding tax amount, impugned notice under section 179 against assessee was to be set aside - Sonal Nimish Patel v. Assistant Commissioner of Income-tax Cirlce-4(1)(2) - [2020] 114 taxmann.com 705 (Gujarat)

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✅ Website for CORONA updates. Updating every 4 hrs about CORONA virus situation in India.. 

 www.covid19india.org

✅ ICAI Learn to earn Free Structured cpe hours

https://www.icai.org/onlineresources/

✅ MCA - Special Measures under Companies Act, 2013 (CA-2013) and Limited Liability Partnership Act, 2008 in view of COVID-19 outbreak

http://www.mca.gov.in/Ministry/pdf/Circular_25032020.pdf

✅ CARO 2020 dated 24.03.2020

http://www.mca.gov.in/Ministry/pdf/Notification_25032020.pdf

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👉🏻Extension of Statutory Audit of Annual Accounts of Public Sector Banks

(Department's Letter of even number, dated 10-02-2012 regarding the above subject is hereby withdrawn. Now Due Dates postponed and will be as per SEBI timeline (which has relaxed by a month)

👇🏻 👇🏻 👇🏻

https://bit.ly/3aoXhcs

👉🏻FinMin writes to RBI for relaxing NPA norms for farm loan

( Finance Ministry has asked the RBI to relax asset classification norms for farm loans extended by banks following the stress faced by the agriculture sector)

👇🏻 👇🏻 👇🏻

https://bit.ly/33QnGh0

👉🏻PM announces WhatsApp helpdesk number for providing Coronavirus information

(PM announced that the Centre has tied up with WhatsApp to create a helpdesk for providing credible information on coronavirus. The number is 9013151515)

👇🏻 👇🏻 👇🏻

https://bit.ly/39kEcqH

 

👉🏻Benami Law and its interplay with other Laws

(Benami Law and its interplay with other Laws explained by CA (Adv) Ashwani Taneja, Ex Member - ITAT.)

👇🏻 👇🏻 👇🏻

https://bit.ly/33Tt7vC 

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Finance Minister  announced a slew of measures ranging from extension of deadline for filing income tax returns to waiving cash withdrawal fee for using automatic teller machine (ATMs) of other banks and relaxing threshold for insolvency proceedings to Rs 1 crore. The relaxations announced by the finance minister came in the backdrop of lockdown in numerous cities to contain the spread of deadly coronavirus. 

Finance Minister  said that the deadline for filing income tax returns for the financial year 2018-19 has been extended to June 30, 2020 from March 31, 2020. The interest rate on delayed payment of returns has also been cut to 9 per cent from 12 per cent. The government also extended the last date for linking PAN with unique biometric ID Aadhaar to June 30 from March 31.

GST:  it is extending the filing of Return for the month of March, April and May 2020 and composition returns under GST June 30. Now  30th June as the date, specific regions will have dates like 27, 29 or 30th. Significantly, the FM also said companies which have less than Rs 5 crore turnover will not have to pay interest, late fee or penalty. For bigger companies late fee and penalty will not apply and only interest at a reduced rate of 9% will be charged.

Sebi said the entities providing capital and debt market services will remain operational during the nationwide lockdown for 21 days, announced by Prime Minister Narendra Modi as part of efforts to curb spread of COVID-19 pandemic. 

Finance Minister said that companies' expenditure to fight the coronavirus (COVID-19) pandemic will be considered valid under corporate social responsibility (CSR) activities. The coronavirus outbreak will be treated as a disaster. 

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FM Sitaraman Package of 1.7Cr Lakh

1. Pradhan Mantri Ann Yojna- 5 Kg Cereals (Rice or Wheat) and 1 Kg Pulses for Next 3 Months in addition to what they are Getting Write now through PDS. This they can take in two Instalments.

2. Cash Transfer- Person who will be covered -Farmers, MANREGA, Poor Widows, Poor Pensionors, Poor Handicap, Women Having Jan Dhan Accounts, Ujwala Scheme Beneficeirys, Women in Deen Dayal Upadhya Schemes, Construction Workers. 

3. Farmers- Already Receiving 6000 annually. Out of this 2000 will be given upfront now.

4. MANREGA- Wage increase and will benefit 5cr Families. Daily Wages increased from 182 to 202. Annual benefit of Rs 2000.

5. Old Age People, Disabled and Widow- Additional Exgrasia of Rs 1000 in two instalments will help 3cr Person will get benefited.

6. Women Jan Dhan Account Holder Exgratia Amount of Rs 500 per Month for next 3 Month. Will benefit 20cr Womens.

7. Ujwala Scheme Beneficiary- 8Cr of BPL Family will Be given Free Cylinders for Next 3 Months.

8. Women Self Help Group 63 Lakh SHG - Will Get Colletral Free Loan of 20 Lakh earlier it was 10Lakh. These SHG impact 7cr Households.

9. Organised Sector- Govt of India will pay the EPF Contribution of Employer and Employee that comes to 24% for Next 3 Months. This is for all those organisation having are less than 100 Employees and out of those 90% of employee are drawing less than 15000/- salary. And For the benefit of 80 Lakh Employees EPFO regulation will be amended to allow non refundable advances* of 75% of EPFO account Balance or Equivalent to 3 Month of Wages whichever is Less. So All Workers can withdraw money from EPFO Account. This will benefit 4Cr Workers registered with EPFO.

10. Construction Workers- We have 3.5Cr Registered workers in a Central Act specifically made for Construction workers. The govt have 31000cr of Fund in it. Govt to use this fund. Govt to give direction to state govt to utilise this fund for the benefit of construction workers.

11. District Mineral Fund- Will be utilised for Medical Testing Facility, Medical Screening, Providing Health attention. Distt have been given direction to utilise this fund.

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Corona Impact on Ind AS Reporting:

1. Impairment of non-current assets and goodwill – e.g. impact on future cash flows due to low demand for products or services.

2. Provisions for Onerous contracts – e.g. Delay in fulfilment of contractual obligations may also result in penalties to be provided for. 

3. Valuation of inventory – e.g. impact of decline in net realisable value.

4. Expected Credit Losses (ECLs) – e.g. understanding of credit risk, timing and uncertainty of future cash flows such as impact on recoverability of trade receivables including estimate of expected credit losses

5. Deferred tax assets – e.g. recoverability of deferred tax assets in future.

6.Insurance claims – e.g. estimate possible compensation surrounding loss of profits and business disruption including timing of recognition of such claims.

7. Fair value measurement – e.g. considering significant change in the assumptions used to measure fair value of the assets and liabilities of a company at the end of the reporting period.

8. Revenue Recognition – e.g. revision of estimates of variable consideration and also timing of revenue recognition including assessment of whether consideration is probable in case of sales to customers in COVID-19 affected states in India.

9. Leases – e.g. determination of lessee’s incremental borrowing rate on account of change in its borrowing costs consequent to decline in its credit rating, assess the right-of-use assets for impairment, etc.

10. Employee benefits – e.g. changes to remuneration policies, modifications to share-based payment arrangements, etc.

11. Govt. Grants – e.g. monitor government actions and legislation to identify all assistance given by the Govt. that may meet the definition of a government grant, etc.

12. Going Concern – e.g. assess whether the current events and conditions cast significant doubt on the company’s ability to continue as a going concern.

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 RBI Governor Presser Highlights :

1. Repo rate reduced by 75 basis points to 4.4%

2. Rev repo reduced by 90 basis points to 4%

3. GDP growth for Q4 19-20 and FY 20-21 to be affected

4. Aggregate demand may weaken

5. Future outlook uncertain and negative

6. CRR reduced by 100 basis points to 3% for 1 year to release 1.37 lakh crores

7. Min daily CRR balance reduced from 90% - 80% till 30/06/2020

8. 3.74 lakh crore liquidity injected

9. 3 month moratorium on payment of instalments of Term Loan outstanding

10. Interest on WC facilities to be deferred by 3 months

11. Such deferment not to be considered for NPA

12. Revised DP calculations by reassessing WC cycle

13. All measures not to effect credit history

14. Total liquidity injection 3.4% of GDP

Regards 

Thanks for reading

25 March 2020 News and Updates

Corporate Snippets on March 25

 

Ø No financial emergency, fears unfounded, says FM

Ø Coronavirus sinks U.S. business activity to record low

Ø Nestle, Coke suspend production temporarily over virus

Ø Govt. bans export of sanitisers, all types of ventilators

Ø FY19-20 tax saving deadline extended till June 30

Ø ICRA upgrades YES Bank, places it on rating watch

 

Ø Centre tells states to ensure smooth movement of bank, ATM staff

Ø Future group seeking buyers for insurance arm to pay off its debt

Ø Stock market needs to be deemed as an essential service

Ø European banks struggle to survive coronavirus as cash crunch looms

Ø Whistleblower case: SEC concludes probe; no action expected, says Infosys

 

Ø FPIs’ monthly sell-off hits historic high in March

Ø Covid-19 readiness form for India Inc purely voluntary: MCA

Ø IndiGrid completes acquisition of ENICL from Sterlite Power

Ø Covid-19: Amara Raja Group shuts plant operations

Ø VLCC starts manufacturing hand sanitizers

Ø Hero Cycles sets aside ₹100 cr contingency fund to deal with coronavirus

Ø Facebook holds talks for 10% stake in Reliance Jio: Report

Ø Amazon India stops sales of low-priority products, disables shipments

Ø Asia-Pacific to suffer $2.0 bn loss in sports revenue in 2020 due to Corona

Ø Moody's downgrades ONGC's rating, outlook negative

 

Ø Three-month credit to states on FCI grains; no pay cut for contract workers

Ø FM Sitharaman rescues MSMEs from insolvency proceedings amid Coronavirus; raises default threshold

Ø Coronavirus lockdowns to impact 45% of rated mall portfolio, says ICRA

Ø CPAI urges SEBI to close stock markets till Mar 31

Ø Key tax, other deadlines extended; ATM charges waived

Ø Mylab’s gets nod for first Made-in-India Covid-19 test kit

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Ministry of Finance vide Press Release dated March 24, 2020 has given relief in Regulatory and Statutory Compliance due to COVID-19. Key takeaways are:

Income Tax :1. Extend last date for income tax returns for (FY 18-19) from 31st March, 2020 to 30th June, 2020;

Aadhaar-PAN linking date to be extended from 31st March, 2020 to 30th June, 2020; 

Vivad se Vishwas scheme – no additional 10% amount, if payment made by June 30, 2020; 

Due dates for  issue  of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains  under Income Tax Act,  Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act,  STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas  law  where the time limit is expiring between 20th March 2020  to 29th June 2020 shall be extended to 30th June 2020. 

For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy,  STT, CTT  made between 20th March 2020  and 30th June 2020,  reduced interest rate  at 9% instead of 12 %/18 % per annum ( i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged  for this period.  No late fee/penalty shall be charged for delay relating to this period. 

GST: 1. Last date for filing GSTR-3B in March, April and May 2020 will be extended till the last week of 30th June, 2020 for those having aggregate annual turnover less than Rs. 5 Crore. No interest, late fee, and penalty to be charged; 

For any delayed payment made between 20th March 2020 and  30th June 2020  reduced rate of interest @9 % per annum   ( current interest rate is  18 % per annum)  will  be charged. No late fee and penalty to be charged, if complied before till 30th June 2020.  

Date for opting for composition scheme is extended till the last week of   June, 2020.  Further, the  last date for making payments for the quarter ending 31st March, 2020 and filing of  return for 2019-20 by the composition dealers  will be extended  till the last week of June, 2020. 

Date for filing GST annual returns of FY 18-19, which is due on 31st March, 2020 is extended till the last week of  June 2020;

Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws where the time limit is expiring between 20th March 2020  to 29th June 2020 shall be extended to 30th June 2020; 

Payment date under Sabka Vishwas Scheme shall be extended to 30th June, 2020. No interest for this period shall be charged if paid by 30th June, 2020;

24X7 Custom clearance till end of 30th June, 2020;

Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing applications, reports, any other documents etc., time limit for any compliance under the Customs Act and other allied Laws where the time limit is expiring between 20th March 2020  to 29th June 2020 shall be extended to 30th June 2020.

MCA: 1. No additional fees shall be charged for late filing during a moratorium period from 01st April to 30th September 2020, in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date, which will not only reduce the compliance burden, including financial burden of companies/ LLPs at large, but also enable long-standing non compliant companies/ LLPs to make a ‘fresh start’; 

The mandatory requirement of holding meetings of the Board of the companies within prescribed interval provided in the Companies Act (120 days), 2013, shall be extended by a period of 60 days till next two quarters i.e., till 30th September; 

Applicability of Companies (Auditor’s Report) Order, 2020 shall be made applicable from the financial year 2020-2021 instead of from 2019-2020 notified earlier. This will significantly ease the burden on companies & their auditors for the year 2019-20. 

As per Schedule 4 to the Companies Act, 2013, Independent Directors are required to hold at least one meeting without the attendance of             Non-independent directors and members of management. For the year 2019-20, if the IDs of a company have not been able to hold even one    meeting, the same shall not be viewed as a violation. 

Requirement to create a Deposit reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 shall be allowed to be complied with till 30th June 2020. 

Requirement to invest 15% of debentures maturing during a particular year in specified instruments before 30th April 2020, may be done so before 30th June 2020. 

Newly incorporated companies are required to file a declaration for Commencement of Business within 6 months of incorporation. An additional time of 6 more months shall be allowed. 

Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the Companies Act, shall not be treated as a violation. 

Due to the emerging financial distress faced by most companies on account of the large-scale economic distress caused by COVID 19, it has been decided to raise the threshold of default under section 4 of the IBC 2016 to Rs 1 crore (from the existing threshold of Rs 1 lakh). This will by and large prevent triggering of insolvency proceedings against MSMEs. If the current situation continues beyond 30th of April 2020, we may consider suspending section 7, 9 and 10 of the IBC 2016 for a period of 6 months so as to stop companies at large from being forced into insolvency proceedings in such force majeure causes of default.

Thanks for reading

24 March 2020 News and Updates

Corporate Snippets on March 24

Ø UNCTAD estimates economic impact of virus at $1-tn

Ø Lok Sabha passes Finance Bill without discussion

Ø RBI extends priority-sector tag for bank loans to NBFCs

Ø Covid-19 may shave off $245 mn exports in March: WTC

Ø Govt. asks banks to provide liquidity support to corporates

Ø Asia-Pacific region staring at $620 bn income loss: S&P

Ø UBS cuts India's FY21 real GDP growth forecast to 4%

Ø RBI advances OMO date, announces repo of Rs 1 trn in two tranches

Ø Hindustan Unilever acquires hygiene brand VWash from Glenmark Pharma

Ø High-debt companies face risk of default amid coronavirus spread: Analysts

Ø Govt. amends law to get power to hike tax on petrol, diesel by Rs 8 per ltr

Ø MFI operations come to halt in lockdown districts; biz severely impacted

Ø Softbank plans $41-billion asset sale to expand buyback, cut debt

Ø As buyers stock up, exports of cereals, processed food, spices spike

Ø South-based auto makers suspend production in fight against Covid-19

Ø With April 1 deadline looming, more than 7 lakh BS-IV vehicles are lying unsold

Ø Airbus adds 15 billon euro credit line, scraps dividend

Ø Fitch Ratings assigns stable outlook to Tata Chemicals

Ø Sterlite Power concludes $100-million assets sale in Brazil

Ø Coronavirus impact: SEBI eases compliance requirements for traders, MFs

Ø Eros Now expands on English offerings, strikes deal with NBC Universal

Ø Policyholders get an extension on insurance premiums due in March

Ø 70,000 companies report preparedness to fight coronavirus

Ø Companies can spend social responsibility fund to fight coronavirus crisis

Ø Nirmala Sitharaman’s food bags for people in need; allows states to take foodgrain from FCI, pay later

Ø Loan on every Indian doubles in 7 years; Govt’s incentives on credit bears fruit

Ø MSMEs may not survive if cash flow problem occurs amid lockdown, FICCI tells Govt.; suggests steps

Ø SENSEX sinks close to 4,000 points, Nifty tanks 1,100 points below the 7,650 mark

Ø RBI prepones second tranche of g-sec buying to March 26

Ø Global markets sink as pandemic deaths soar

Ø IGL to close two-third CNG outlets as demand drops on corona lockdown

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GST Circulars Issued by CBIC dated on 23.03.2020:

Circular No.134/04/2020- Seeks to clarify issues in respect of issues under GST law for companies under Insolvency and Bankruptcy Code, 2016.

Circular No.133/03/2020- Seeks to clarify issues in respect of apportionment of input tax credit (ITC) in cases of business reorganization under section 18 (3) of CGST Act read with rule 41(1) of CGST Rules.

READ MORE- https://www.gststation.in/cgst-circulars-5/

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👉🏻SC invokes its plenary power to extend limitation period of appeals

(SC invoked its plenary powers under Article 142 of the Constitution to extend limitation period of appeals from high courts or tribunals on account of coronavirus (COVID-19) pandemic) 

👇🏻 👇🏻 👇🏻

https://bit.ly/2J7bkrf

👉🏻Finance Minister sets Rs 15 Lakh income cap to tax NRIs

(FM softened the contentious budget proposal to tax non-resident Indians, putting in place a threshold of Rs 15 lakh for the levy of tax on incomes emanating from India)

👇🏻 👇🏻 👇🏻

https://bit.ly/3bj8ZW7

👉🏻Companies under IBC will need New GST Registration

(Companies under Insolvency and Bankruptcy process must avail a fresh GST registration within 30 days of a resolution professional being appointed for them)

👇🏻 👇🏻 👇🏻

https://bit.ly/39ggFXA

👉🏻Covid-19 related spends to be treated as CSR activity - MCA

(MCA said that spending of CSR funds for Covid-19 would be treated as eligible CSR activity)

👇🏻 👇🏻 👇🏻

https://bit.ly/3ahxJ0P

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Income Tax

1. Income Tax Return Date for Financial Year 18-19 extended to 30-06-2020

2. Delay Payment Interest rate reduction to 9% till 30-06-2020

3. Interest on Delay Payment of TDS will be 9% till 30-06-2020

4. Adhar PAn linking extended till 30-06-2020

5. Vivad se Viswas Scheme extended till  30-06-2020 without 10% additional payment

6. Investment in savings Instruments for deduction and for capital gains extended 30-06-2020

7. Filling of appeals, Issue of notice and others extended till 30-06-2020

GST

1. Last date for filling of all GST returns (for March, April, may) extended till 30-06-2020 in staggered manner

2. No late fee, Interest and penalty for turnover upto 5 crs

3. Last date to opt for composition scheme extended till 30-06-2020

Custom

9. Customs - 24x7 Clearance till 30.06.2020

Companies Act

10. MCA - moratorium from 01.04.20 to 30.09.20 - there shall be no additional fees for late filings.

11. Board meetings are relaxed for 60 days for next 2 quarters

12. Revised CARO to get applicable from FY 20-21 instead of FY 19-20

13. For newly incorporated companies - Commencement of business is to be filed within 6 months, which is now extended for another 6 months.

 IBC

- Default threshold increased from Rs. 1 lakh to Rs. 1 crore

- Section 7, 9, 10 may be suspended for 6 months

Thanks for reading

23 March 2020 News and Updates

Corporate Snippets on March 23

📝 Domestic flights will continue to operate as usual from Delhi airport: DGCA

📝 Angela Merkel in quarantine after doctor tests positive for coronavirus

📝 Coronavirus impact: Hyundai temporarily suspends operations in Chennai

📝 SC could hear plea on extension of registration of BS-IV vehicles on March 27

📝 ATF price cut by 12 pc; freeze on petrol, diesel price continues

📝 IOC becomes 1st company to begin supply of BS-VI fuel across country

📝 India to spend $1.3 billion to boost pharmaceutical production

📝 Australia announces nearly $40 billion in virus relief

📝 Centre nod to incentive scheme of Rs 40,995 cr for electronics firms

📝 Data demand sees a 10% surge as people step up work from home over Covid-19

📝 CoSara bags licence to make Covid-19 test kits, says will price it low

📝 ICRA downgrades ratings of Future group holding company over debt pile-up

📝 CII writes to PM Modi, seeks fiscal stimulus package of Rs 2 trillion

📝 Govt approves Rs 13K-crore package to boost bulk drugs manufacture

📝 US to restrict movement, one in five Americans to be ordered to stay home

📝 Govt caps maximum retail price of 200ml hand sanitiser at Rs. 100 till June

📝 No need for panic buying of milk, other dairy products, says Amul MD

📝 LIC eyes sale of 2.5 crore individual policies, Rs 55,000 crore in premium collection for FY’20

📝 Air India’s engineering subsidiary AIESL to send re-employed staff on ‘leave without pay” till Mar 31

📝 DoT asks states to permit movement of telecom infra staff; says robust operation of networks critical at this juncture

📝 Subhash Chandra appears before ED in Yes Bank case; Naresh Goyal in another probe

📝 MTNL's special work from home offer! Double data in all broadband plans of landline, mobile

📝 Hero MotoCorp shuts down all plants globally as coronavirus spreads

📝 RBI extends restrictions on PMC Bank for three more months

📝 Dalmia Bharat, Motilal Oswal announce share buybacks

📝 MyGov Corona Helpdesk launched on Whatsapp to provide COVID-19 information

📝 SBI opens emergency credit line for borrowers amid coronavirus scare

📝 General Motors to make ventilators amid coronavirus crisis

📝 US blames China, Russia and Iran for spreading 'disinformation' on coronavirus

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CBDT vide notification dated March 19, 2020 notifies procedure for making declaration in Form-1 and Form-2 under The Direct Tax Vivad se Vishwas Rules, 2020 which will be effective from the date of their publication i.e. March 19, 2020.

MCA: Board Meetings till 30.6.2020 can be held without physical presence,through video conferencing or other audio visual means. MCA Notification of 19.3.2020.

ESI for February 2020 can be deposited upto 15-4-20 & that for March 2020 upto 15-5-20. ESIC Notice No. P-11/14/Misc./1/2019-Rev dated 16.3.2020.

Employers who did not file ESI contribution for April to September 2019 within 42 days after end of the contribution period, can file it by 15.5.2020.

Competition Commission of India (CCI) has allowed pre-filing consultation to those seeking informal guidance on determining filing-related requirement and information to be given for a proposed combination and the green channel.

ICAI vide announcement dated March 19, 2020 announced re-opening of On-line facility for seeking change of Examination Centre/Group/Medium for appearing in May 2020 CA Examinations from 21-23 March 2020. https://icaiexam.icai.org.

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👉🏻RBI to inject Rs 30,000 Cr liquidity into market next week

(RBI will inject liquidity of Rs 30,000 crore through open market operations next week to maintain financial stability in the system in the wake of the coronavirus outbreak.) 

👇🏻 👇🏻 👇🏻

https://bit.ly/2wsVvbr

👉🏻Companies, LLPs to be told to submit Covid-19 readiness form

(MCA come up with a simple web-based form for companies and limited liability partnerships (LLPs) to confirm their readiness to deal with the Covid-19 threat) 

👇🏻 👇🏻 👇🏻

https://bit.ly/2J4Kr77

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ICAI: Exemption from Completion of Management and Communication Skills Course (MCS Course) & Advanced Information Technology Training (Adv.ITT) to appear in Final May 2020 Examination.

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In the difficult times of COVID 19, many of our professional colleagues have shared their concerns over 31st March compliances, etc.

it’s not only a National issue but a world-wide issue. Just to inform that ICAI on 20th March 2020 itself has already made necessary suggestions to the Government related to 31st March compliances. 

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-Functioning of Delhi High Court and courts subordinate to it suspended till 04.04.2020

- Extraordinarily Urgent mentioning before registrar (original)/(filing) on phone - number to be released soon and only if allowed on phone, will the same be listed and hearing to take place through video conferencing.

- in subordinate courts : district and sessions judge to prepare fresh roster of judges for fresh arrest cases & admin officer (judicial) be nominated in each district who can be contacted telephonically for urgent listing.

-this period of suspension shall be treated as closure of court within the meaning of Section 4 of the Limitation act.

- all court rooms and other parts of the court complex (including lawyers chambers) in high court and courts subordinate thereto would remain closed till further directions except as needed by the Court for the purpose of urgent hearing.

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Approval of the Finance Bill, 2020 - Amendments affecting Non Residents Indian are being withdrawn. Efforts of all concerned to persuade the Government to not to amend the law on this issue succeeds.

The Lok Sabha has approved the Finance Bill, 2020. While moving the Bill for consideration and approval, the Finance Minister normally moves amendment to the Bill introduced on the Budget day in the light of feedback received and the issues arising thereon.

This time there were 5 major changes proposed in the Finance Bill, 2020:

1. Option of new tax rate structure with no exemptions and deduction.

2. Abolition of Dividend Distribution Tax and taxation of Dividend in the hands of shareholders

3. Taxation of non-residents: reduced period of 120 days, deemed resident status for stateless Indian Citizen, and extending period of resident but not ordinary resident to 7 out of 10 preceding years instead of 9 out of 10 preceding years.

4. Renewal of registration of charitable trust and institution every 5 years.

5. Widening the scope of TDS and TCS provision including applicability of TCS on sale of goods.

A. Considering the fact that the proposed amendment on the status of non-resident was going to affect all non-residents, such proposal is being withdrawn by the FM while moving the bill for consideration and approval. The objective of such amendment as was stated in the press note issued by CBDT after the budget was to tax that income of business or profession which accrues or arises from the business controlled in or a profession set up in India. Accordingly, the scope of amendment has been restricted to only Indian non-residents which have income from Business controlled in or from a profession set up in India and that too when such income exceeds beyond a threshold say Rs. 15 lakhs. Even in such cases, it will only be this income earned from business controlled in or a profession set up in India that will be taxable in India and not the entire global income as was proposed in the Finance Bill. Thus, such Indian no- residents who are not paying tax in any country by reason of domicile/ residence or any other criteria, such Indian non-resident will be deemed to be resident but not ordinary resident. Consequently, there will be no liability to pay tax on foreign income. The liability to pay tax on such deemed resident will be only in respect of business controlled in India or profession set up in India and that too when such income exceeds the threshold of say Rs. 15 lakhs.

B. The FM has not proposed any change in her original proposal of new optional reduced tax rates without claiming any exemption or deduction.

C. Further, there is no change on abolition of DDT and taxing dividend income in the hands of shareholders. Dividend income will be taxable in the hands of shareholders. However, it has been clarified that in respect of transition which is effective from 1st April, 2020, there will be no tax liability in respect of Dividend Income received by a shareholder after 1st April, 2020, in case such dividend has been distributed by the company before 1st April, 2020 and DDT has been paid by the company while distributing such dividend.

D. Further, the TDS rate on payment of dividend to non-resident and foreign company has been prescribed at 20%. The Finance Bill presently has not provided any specific rate of TDS in respect of payment of dividend to non-residents and foreign companies with the result such dividend would have fallen in residual clause of 40%. The TDS rate of 10% on dividend for resident is already prescribed in the Finance Bill.

E. Proposal to levy TCS on sale of goods to continue despite huge paperwork and compliance obligations. However, exemption of such TCS in respect of Export Sales and also to sellers in respect of Import being provided. However this provision along with TCS on foreign remittance will be applicable from 1st October, 2020.

F. The provision for Tax to be deducted @2% on withdrawal of cash from Bank, Co-opt Bank and Post Officer exceeding Rs. 1 crore in aggregate during the year being amended. Now, in case of a person who has not filed the returns for preceding 3 years then tax will be deducted @ 2% on withdrawal exceeding Rs 20 lakhs and @ 5% on withdrawal exceeding Rs 1.00 crore. This provision will be applicable from1st July, 2020.

G. No TDS on Growth oriented Units on redemption.

H. New TCS provision to be effective from 1st October, 2020 as against proposed earlier from 1.4.2020

I. Scope of equalization levy of 6% introduced by Finance Act, 2016 in respect of payment to a non resident service provider exceeding RS 1 lac for online advertisements or digital advertising space or facilities is likely to be expanded to include payment for services for e commerce trade and services.

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Extension of Limitation Period

Category: Income Tax, Posted on: 23/03/2020

Extension of limitation period:

Supreme Court passes order extending period of limitation under all Central and State Acts with effect from 15th March,2020 to till further orders . Supreme Court exercises its power under Article 142 to declare it as law. 

To obviate difficulties caused by CoronaVirus in filing petitions/ applications/ suits/ appeals/ all other proceedings within the period of limitation prescribed under the general law of limitation or under Special Laws (both Central and/or State) , it is ordered that the period of limitation in all such proceedings, irrespective of the limitation prescribed under the general law or Special Laws, whether condonable or not, shall stand extended w.e.f. 15th March 2020 till further order/s to be passed by this Court in present proceedings. Order is being forwarded separately.

Thanks for reading

21 March 2020 News and Updates

Corporate Snippets on March 21

📝 Indian banks seek more time over bad loan classification

📝 Stock brokers allowed to work from home for the first time

📝 Govt. mulls late repayment of loans for MSMEs to tide over coronavirus impact

📝 Tata Motors-owned Jaguar Land Rover suspends production in UK amid coronavirus pandemic

📝 Ashoka Buildcon arm executes concession pact with NHAI for Rs 1,036 crore road project

📝 14 firms get license to evaluate COVID-19 tests kits

📝 Jio tops mobile broadband speed chart, Vodafone in upload in February: TRAI

📝 Coronavirus outbreak: FM Nirmala Sitharaman takes stock of situation

📝 SEBI unveils measures to tackle market volatility, curbs short selling

📝 Hindustan Unilever sets aside Rs 100 crore to fight Covid-19 in India

📝 Japan's Kubota Corp to acquire 10% stake in Escorts for Rs 1,042 crore

📝 L&T turns to international business, financial services to power growth

📝 Cabinet passes a policy to promote manufacture and growth of bulk drugs

📝 Foreign exchange reserves fall $5.35 billion; first drop in six months

📝 RBI buys bonds worth Rs 10k cr, to conduct 2 more OMOs of Rs 30k cr

📝 Rupee drops by 8 paise to fresh life-time low of 75.20 vs US Dollar

📝 Airlines may ground 68% planes amid coronavirus outbreak, says Govt.

📝 Soap manufacturers keep off price hikes for now amid coronavirus spread

📝 Centre tells states to enhance hand sanitizer production as demand soars

📝 Banks push digital offerings, insurance amid corona scare

📝 Price hikes, drop in input costs help cement industry to post positive margins: CARE Ratings

📝 DoT holds meeting as industry seeks movement of essential staff, other waivers for biz continuity

📝 BSNL offers free broadband for a month to support work from home

📝 CII writes to PM seeking fiscal stimulus, tax cuts to combat coronavirus impact on economy

📝 RBI appoints R Gandhi, Ananth Narayan as additional directors on Yes Bank board

📝 Ready to supply uninterrupted power amid COVID-19 threat: NTPC

📝 Rajnath Singh speaks with US counterpart on virus cooperation

📝 RBI chalks out contingency plan for smooth functioning of services

📝 Act fast, next few weeks crucial: PM Narendra Modi

📝 UK court deadline to pay $100 millon ends for Ambani

📝 Karnataka Govt. asks Bengaluru tech firms to close non-key operations

📝 COVID-19 Janta curfew: Railways cancels 3700 trains on Sunday

📝 SBI moves to extend emergency credit line

📝 Coronavirus: Tata group companies commit full payment to daily wage earners

📝 Indian Agri export business hit hard by outbreak in European Union, West Asia.

Ø  Virus-hit India mulls easier loan, tax rules

Ø  Ambanis marginally increase stake in Reliance

Ø  Govt working on financial package for virus-hit sectors

Ø  'Covid-19 outbreak to hit growth, widen fiscal deficit'

Ø  L&T-run investment trust acquires 8 Sadbhav road projects

Ø  DoT to get 20 year time for payment of AGR dues

Ø  Ind-Ra revises rating watch on YES Bank to 'evolving' from 'negative'

Ø  YES Bank gets Rs 60k-cr line of credit from RBI to resume operations

Ø  Power demand shows signs of recovery as total generation rises by 11%

Ø  30.8 mn in tourism, hospitality may lose jobs because of coronavirus

Ø  Dilip Buildcon bags Rs 860-crore road project in Chhattisgarh from NHAI

Ø  Covid-19 impact: Next quarter critical for oil industry

Ø  Coronavirus impact: India’s fuel demand drops 11 per cent in March

Ø  Dr Reddy’s launches naloxone hydrochloride injection in US

Ø  Tata Power expands rooftop solar service to 90 cities

Ø  Supreme Court ruling brings Vodafone Idea closer to insolvency: Bernstein

Ø  Coronavirus: Govt caps prices of alcohols used in making hand sanitizers

Ø  Anil Ambani meets ED officials on Reliance Group's exposure to Yes Bank

Ø  Panel constituted to prescribe fresh fiscal consolidation road map for centre

Ø  IndInfravit completes acquisition of Sadbhav’s road assets for ₹6,300 crore

Ø  Govt eases import restrictions for certain chemicals, aviation gasoline

Ø  Bid to soften blow: Govt, RBI in talks for relief to critical sectors

Ø  Indian Bank NPA to rise, no change in board after merger with Allahabad Bank

Ø  Sensex ends 581 points lower, Nifty at 8,263 as covid 19 cripples global businesses

Ø  SEBI allows companies to report Q4, FY20 results by June 30

Ø  Countries that shut down and do testing could bounce back in weeks: Bill Gates

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New web EForm for COVID-19 Compliance by Companies/LLPs

In order to generate greater awareness and confidence on our state of readiness, the MCA is in the process of developing and deploying a simple web form for companies/LLPs to confirm their readiness to deal with the COVID-19 threat. The web form named CAR (Company Affirmation of Readiness towards COVID-19) should be filed by an authorized signatory of Companies & LLPs. CAR -2020 shall be deployed on the 23rd March, 2020. All companies/LLPs are requested to report compliance using the above mentioned web service on the 23rd instant.

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👉 CBDT notified DTVSV Rules, 2020. Online submission of Form 1 and Form 2 are enabled in e-Filing.

https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/Vivad_Se_Vishwas_PDF_Links/Notification.pdf

👉 Pr. DGIT(Systems) issued Notification on procedure to filing online Form 1 and Form 2 under Direct Tax Vivad Se Vishwas scheme

https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/Vivad_Se_Vishwas_PDF_Links/Notification_12-2020_DTVsVA_2020.pdf

👉 Re - Opening of On-line Facility for Seeking Change of Examination Centre / Group / Medium for appearing in May 2020 CA Examinations. - (19-03-2020)

https://resource.cdn.icai.org/58800exam190320.pdf

👉 Extension of last date of application for the post of AGM, and below in NFRA on deputation/short term contract basis from 11/03/2020 to 31/03/2020 

http://www.mca.gov.in/Ministry/pdf/ExtensionCGM_19032020.pdf

👉 Extension of last date of application for the post ofCGM, GM, and DGM in NFRA on deputation/short term contract basis from 11/03/2020 to 31/03/2020.

http://www.mca.gov.in/Ministry/pdf/ExtensionCGM_19032020.pdf

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👉🏻NCLT not to accept any fresh filings till March 27

(All benches of the National Company Law Tribunal (NCLT) will not accept fresh filings till March 27, said a notification) 

👇🏻 👇🏻 👇🏻

https://bit.ly/2WrZakn

👉🏻Important RBI Circulars for Bank Branch Statutory Audit

(List of Important RBI Circulars for Bank Branch Statutory Audit Compiled by CA. Ajay Kumar Jain)

👇🏻 👇🏻 👇🏻

https://bit.ly/2IZMSrD

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ICAI council approves to open window for change of their Examination Centre for May 2020 exams due to COVID 2019 for 3 days i.e., 21st, 22nd & 23rd March 2020.

19 March 2020 News and Updates

Corporate Snippets on March 19

Ø NCLT gives Jet 90-day extension for insolvency process

Ø Govt liabilities at Rs 93.89 lakh crore at December-end

Ø No timeline fixed for release of ecomm policy: Goyal

Ø Govt's broadband plan to see Rs 7 lk cr investment

Ø RBI withdraws moratorium on Yes Bank, banking services restored

Ø CCI adjourns all matters listed for hearing

Ø RBI announces OMO purchase of Rs 10,000-cr Govt. dated securities

Ø India not obliged to accept WTO panel's report on export schemes: Govt

Ø TCS again becomes most valued firm by market capitalisation, beats RIL

Ø Brent crashes to 17-year low in global markets as analysts see free fall

Ø IndusInd Bank says it's 'well-capitalised, profitable' after market rumours

Ø Govt to mobilise ₹51,000 cr more via Treasury-Bills to bridge cash flow mismatch

Ø Moody’s lowers outlook for global base metals industry

Ø Moody’s cuts global shipping industry outlook to negative

Ø ArcelorMittal refinances $5.15-billion loan availed for Essar Steel buy

Ø ITC fixes dividend payout ratio at 80-85% of PAT

Ø MCA suspends rules for holding physical meetings till 30 June

Ø Karur Vysya Bank enters precious metals business for corporate customers

Ø Self-assessment of AGR dues by telcos falls ₹82k crore short of DoT estimate

Ø Rupee falls to near record low against the US dollar

Ø ADB announces $6.5 billion package for developing member countries

Ø Bank of America cuts March quarter growth forecast to 4% on Covid-19 lockdowns

Ø Self-assessment of dues by Bharti Airtel, Vodafone Idea, Tatas Rs 82,300 crore short of DoT’s AGR maths

Ø Sensex falls by 1,700 points to three-year low, Nifty below 8,500

Ø SC pulls up Centre, warns telecom firms of contempt of court

Ø Vodafone Idea shares crack over 40 pc

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👉 Forms required to submit for availing benefit under 'DIRECT TAX VIVAD SE VISHWAS' Scheme will be available in the e-Filing soon.

https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/DTVSV_Act_2020.pdf

👉 MCA has invited Public Comments on Draft Companies (Corporate Social Responsibility Policy) Amendment Rules 2020 - (18-03-2020)

https://www.icai.org/new_post.html?post_id=16379&c_id=219

👉 Circular for engagement of Chartered Accountants in NFRA on Contractual basis

http://www.mca.gov.in/Ministry/pdf/NFRA_18032020.pdf

👉 Publication of notice u/s 75 of the LLP Act,2008 read with sub Rule 1 b read with Rules 372 

http://www.mca.gov.in/Ministry/pdf/notice_18032020.pdf

👉 RBI Announces OMO Purchase of Government of India Dated Securities

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49534

👉 20-03-2020 – Monthly return on the basis of finalisation of details of outward supplies and inward supplies along with the payment of amount of tax – GSTR 3B for February

Return for Non-Resident foreign taxable person – GSTR 5 for February

👉 28-03-2020 – Details of Inward Supplies to be furnished by a person having UIN and claiming refund – GSR 11 for February.

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ITAT Delhi in the case of Arihant Technology Pvt. Ltd. Vs Pr. CIT states that  Section 263 Jurisdiction cannot be assumed by Pr. CIT for making roving enquiries. 

GST: Foreign airlines exempt from filing GSTR-9C. CA certified Statement of Receipts & Payments to be filed by 30 Sept of next Financial Year for each GSTIN.

MCA: Notice regarding Board meetings under the Companies Act, 2013 http://www.mca.gov.in/Ministry/pdf/Meeting_18032020.pdf

Government introduced the Companies (Amendment) Bill 2020 in the Lok Sabha. Introducing the Bill, Minister of State for Finance said that the proposed Bill will help in doing ethical and honest business in the country.  

MCA is set to make major changes to the framework of statutory audits to ensure that managements cannot arm-twist or tempt auditors into overlooking governance lapses. 

MCA has notified the Companies (Registration Offices and Fees) Second Amendment Rules, 2020 and the Companies (Incorporation) Second Amendment Rules, 2O20 which shall come into force on the date of their publication in the official Gazette i.e 12-03-2020.

MCA has provided further Relaxation of additional fees and extension of the last date for filing of forms MGT-7 (Annual Return) and AOC-4 (Financial Statement) under the Companies Act, 2013 for the companies having registered office in UT of J & K and UT of Ladakh upto 30.06.2020. 

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👉  NCLT: The National Company Law Tribunal (NCLT) has, on March 18, granted grounded airline Jet Airways another 90 days for resolution under the Insolvency and Bankruptcy Code (IBC), CNBC-TV18 reported.

The previous 270-day deadline for Jet Airways ended on March 15. The 90-day extension from the NCLT Mumbai Bench has given the troubled carrier a total of 360 days for resolution. Notably, IBC norms allow for a maximum of 330 days’ time for the process.

On March 12, the Jet Airways' Committee of Creditors (CoC) sought a two-month extension of the deadline for submission of bids from the NCLT.

The CoC, with no potential bidder to come forward, believes it might not get the desired results if it were to go for liquidation of assets at this stage due to the ongoing coronavirus (COVID-19) concerns, sources said.

The cash-strapped airline, grounded in April 2019, owes more than Rs 8,000 crore to banks, with those from the public sector having significant exposure.

On June 20, 2019, The NCLT admitted the insolvency petition filed by the lenders' consortium led by State Bank of India (SBI) against Jet Airways. The tribunal has also appointed Ashish Chhauchharia of Grant Thornton as the resolution professional for the crippled airline.

 

 👉  New Delhi: The newly constituted Chennai bench of the National Company Law Appellate Tribunal (NCLAT) will start taking matters from Wednesday from the premises of the Delhi-based Principal bench, the tribunal said.

The Chennai bench, which comprises judicial member Justice M Venugopal and Member (Technical) Kanthi Narahari, would start hearing of appeals filed from 18 March, 2020, from Delhi.

The bench would "admit, hear and dispose of such appeals as may be filed after constitution of Chennai Bench w.e.f. 18th March, 2020 in terms of Notification dated March 13, 2020 issued by the Ministry of Corporate Affairs," the NCLAT said in a notice.

Earlier, the NCLAT had informed that all filing related works for Chennai bench would also be handled at the Delhi-based Principal bench only as it would take around two months to create infrastructure there.

"...it is provided that since Infrastructure as also Human Resources is lacking and raising of the same is likely to consume not less than two months, all filings in respect of Chennai Bench Jurisdiction shall be done at the Principal Bench at New Delhi even after 18th March, 2020 i.e. the date of constitution of the Chennai Bench, till the Bench at Chennai is expected to become functional in all probability in the month of June, 2020," it said.

On 13 March, the government had notified the constitution of the National Company Law Appellate Tribunal, Chennai Bench.

Thanks for reading

18 March 2020 Updates

SECTION 244A OF THE INCOME-TAX ACT, 1961 - REFUNDS - INTEREST ON

 

Interest on delayed interest : Under section 244A interest on delayed refund becomes part of principal amount and, thus, delayed interest not only includes interest for not refunding principal amount but also interest on delayed refund - Principal Commissioner of Income-tax v. Ambuja Darla Kashlog Mangoo Transport Co-operative Society - [2020] 114 taxmann.com 527 (Himachal Pradesh)

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👉🏻Bank branches could be shut for 4 days next week due to strike, holidays

(Bank branches could be open only for three days next week due to a day-long bank strike and other bank holidays. To protest against the mega merger plan of 10 PSU banks into four larger banks,) 

👇🏻 👇🏻 👇🏻

http://bit.ly/2QoKr5T

👉🏻President Assents Direct Tax Vivad se Vishwas Act, 2020

(President Assents Direct Tax Vivad se Vishwas Act, 2020 on 17th March, 2020 the Act will help Govt to reduce Litigation on Direct Taxes and also offer an Opportunity to Taxpayers to get rid of Litigation)

👇🏻 👇🏻 👇🏻

http://bit.ly/2TZcjQh

👉🏻Govt set to overhaul Audit regime to check lapses in governance

(MCA is set to make major changes to the framework of statutory audits to ensure that managements cannot arm-twist or tempt auditors into overlooking governance lapses.) 

👇🏻 👇🏻 👇🏻

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👉 LIST OF FINALIZED CANDIDATES FOR getting empanelled on Mediation and Conciliation,South East Region,FOR THE YEAR 2020 Pdf formatNew link image

http://www.mca.gov.in/Ministry/pdf/Notice1_17032020.pdf

👉 Sale Notice in the matter of Triveni Infrastructure Development Company Limited(In Liqn.)

http://www.mca.gov.in/Ministry/pdf/Notice_17032020.pdf

👉 RBI Working Paper No. 04/2020: Macroeconomic Effects of Uncertainty: A Big Data Analysis for India

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49529

👉 Publication of RBI-Occasional Papers-Vol. 40, 2019

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49530

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Vivad se Vishwas Scheme 2020 notified. A golden opportunity to settle Income tax related disputes. Avail this by 31st March, 2020 to avoid higher payment at a later date. 

The government garnered Rs 16.89 lakh crore of tax revenue (net of refunds) in the first 11 months of the fiscal, compared with Rs 16.87 lakh crore in the same period last year. Due to corporate tax cut announced in September last year, the total direct tax collection for the April-February period came in 3.5% lower at Rs 8.14 lakh crore. However, indirect tax collection, which includes GST, saw a growth of 3.8% at Rs 8.75 lakh crore.

Union Minister of Finance informed that due date for filing the annual return and the reconciliation statement for the financial year 2018-19 to be extended till 30th June 2020.

Ministry of Corporate Affairs (MCA) has conducted an inspection on a bitcoin company through Registrar of Companies and prosecutions have been filed for violations under various provisions of the Companies Act. 

MCA has tightened compliance norms for Nidhi companies, a kind of NBFCs, which are created to borrow and lend money among its members. The move comes in the backdrop of the government revising corporate norms to ensure that investors are not duped through fraudulent activities.

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👉 NCLAT: The government is ramping up the capacity of the National Company Law Tribunal (NCLT) Benches to boost decision-making and reduce delays.

It will set up dedicated Benches for insolvency and bankruptcy cases and add 40 new positions for NCLT, said Injeti Srinivas, secretary, corporate affairs ministry to the standing committee on finance.

“When the NCLT was set up, IBC was never in the picture. It was only set up as a company law court. The IBC has now sort of dominated,” Srinivas said.

Because of the increase in IBC cases, which are getting primacy at the NCLT, company cases are getting badly delayed. The government is also planning to set up specialised Benches for competition law to reduce the burden of the appellate tribunal, which is referred to on all matters from company law and IBC to competition law and the national financial reporting authority.

The corporate affairs ministry has finalised the recruitment rules for NCLT Benches. The total sanctioned strength for regular staff in NCLT is 320. Around 725 people are engaged on outsource mode in NCLT. Separately, three to four law clerks have been engaged for each Bench.

 

 👉 JSW Steel had offered to pay Rs 19,350 crore to the financial creditors, implying a near 60% haircut for lenders of the total exposure of Rs 47,150 crore.

Lenders to Bhushan Power and Steel (BPSL) will have to wait beyond the March quarter to receive payment of Rs 19,350 crore from the approved bidder as JSW Steel has missed the payment deadline of March 16 and is unlikely to make payment this month, sources close to development told FE. This comes as a big jolt to banks who were pinning hopes on a major chunk of recovery coming due to BPSL resolution in March quarter. The lead lender State Bank of India (SBI) alone was expecting to recover around Rs 4,000 crore from BPSL resolution.

The National Company Law Appellate Tribunal (NCLAT) had approved bid of JSW Steel for acquisition of troubled BPSL. However, the erstwhile promoter of the company Sanjay Singhal had moved Supreme Court against NCLAT’s approval of the BPSL resolution plan. The apex court refused to stay the resolution plan, but admitted the plea against BPSL resolution. “We were hoping payment from BPSL by March 16 as per payment schedule but now it is unlikely in Q4,” a senior banker told FE. JSW Steel had earlier submitted in Supreme Court through its counsel Kapil Sibal on March 5 that they should not be declared as defaulter in the case of payment not being made by them for BPSL as there is no clarity.

👉 The National Company Law Appellate Tribunal (NCLAT) has dismissed a petition filed by Kerala Ayurveda challenging an NCLT order that held claims by Tata Global Beverages (now Tata Consumer) against the company as 'financial debt.

A two-member NCLAT bench headed by Acting Chairperson Justice B L Bhat said that the Kochi bench of the National Company Law Tribunal (NCLT) is yet to pass any final order over the insolvency plea filed by Tata Global Beverages Ltd (TGBL) against Kerala Ayurveda Ltd (KAL).

The appellate tribunal said it was "premature" to decide about the claim at this stage, as the NCLT would pass order over insolvency only after considering debt along with default and can appeal against that order before it.

"The appeal is accordingly, dismissed as being premature leaving it open to the learned Adjudicating Authority (NCLT) to decide the application on merit and in the event of the Appellant being aggrieved of order of admission passed under Section 7, it shall be open to the Appellant to raise all issues in appeal," said NCLAT.

KAL had challenged the order of NCLT, which had on February 10, 2020 held a default of Rs 4.25 crore claimed by TGBL as financial debt.