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.
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