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.
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