News & Updates

India Fights Against COVID-19

Apr 7, 2020

Sequence of Events

Relief Under Income Tax

CBIC provide Relief Under

Measures undertaken by the Ministry of Corporate Affairs

Measures undertaken by the SEBI

measures-india

FSSAI extends date of annual/half-yearly returns filing for manufacturers and importers

Sequence of Events

  • Janata Curfew – 14 Hrs – on Sunday 22nd March
  • Monday and Tuesday also most states observed Locked Down or Curfew based on local administration or State Government Orders
  • 21 Day – LockDown from Midnight of 24th March – i.e. from 25th March 2020 to 14th April 2020
  • Announcements by
    Finance Minister – 2 Tranches – 24th and 26th March 2020 Reserve Bank of India – 27th March 2020 MCA, NCLT, IBBI, etc
  • Extension of Lockdown by our Government on 14th April 2020 till 03rd May
    2020.

Relief Under Income Tax

Press Release ID : 1607942 dated 24-03-2020

  • 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, section 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 rollover 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 per cent per month) will be charged for this period. No late fee/penalty shall be charged for delay relating to this period.
  • Necessary legal circulars and legislative amendments for giving effect to the aforesaid relief shall be issued in due course.

CBIC provide Relief Under

Goods and Service Tax

S.No.

Notification No./Date

Remarks

01

15/2020-CT March 23,2020

The time limit for furnishing of annual return (GSTR-9 and GSTR- 9C) specified under section 44 of CGST Act, 2017 for the financial year 2018-2019 extend till 30.06.2020

02

30/2020-CT April 3,2020

Amendment in the CGST Rules so as to allow taxpayers opting for the Composition Scheme for the financial year 2020-21 to file their option in FORM CMP-02 till 30th June, 2020 and to allow cumulative application of the condition in rule 36(4) for the months of February, 2020 to August, 2020 in the return for tax period of September, 2020

03

31/2020-CT 32/2020-CT April 3,2020

CBIC provide relief by conditional lowering of interest rate and late fee for tax periods of February, 2020 to April, 2020

S.No.

Turnover Limit

Rate of Interest

Tax period

Condition- if return in FORM GSTR- 3B furnished on or before the Due Date

A

More than 5 Crore

Nil for the first 15 days from the due date, and 9% thereafter

February 2020, March 2020, April 2020

24th June 2020

B

More than 1.5 Crore but upto 5 Crore

Nil

February 2020, March 2020,

April 2020

29th June 2020

30th June 2020

C

Upto 1.5 Crore

Nil

February 2020

March 2020

April 2020

30th June 2020

3rd July 2020

06th July 2020

04

33/2020-CT April 3,2020

CBIC waive late fee for delay in furnishing the statement of outward supplies in FORM GSTR-1 for taxpayers for the tax periods March, 2020 to May, 2020 and for quarter ending 31st March 2020 if the same are furnished on or before 30th day of June, 2020.

05

34/2020-CT April 3,2020

Extension of due date of furnishing statement, containing the details of payment of self-assessed tax in FORM GST CMP- 08 for the quarter ending 31st March, 2020 till the 7th day of July, 2020 and filing FORM GSTR-4 for the financial year ending 31st March, 2020 till the 15th July, 2020.

06

35/2020-CT April 3,2020

CBIC notified that except for excluded provision, any compliance action failing during period from 20th March 2020 to 29th June 2020 can now be completed till 30th June, 2020

Excluded Provisions

  • Chapter IV- Time and Value Of Supply;
  • sub-section (3) of section 10, sections 25, 27, 31, 37, 47, 50, 69, 90, 122, 129;
  • section 39, except sub-section (3), (4) and (5);
  • section 68, in so far as e-way bill is concerned; and
  • rules made under the provisions specified at clause (a) to (d) above

The validity of E-way bill expires during the period 20th March, 2020 to 15th April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 30th April, 2020

Custom

S.No.

Notification No./Date

Remarks

01

Press Release ID : 1607942 March 24, 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.

02

Circular No. 17/2020- Customs April 03, 2020

Custom board relaxes certain measures to facilitate trade during the lockdown period

  • Board has approved relaxation of the requirement to submit bonds prescribed under section 18, section 59 and section 143, considering the importer/exporter may find it difficult to comply with requirement of furnishing bond.
  • In the period up to 30.04.2020, Customs field formations may accept request for submission of an undertaking from the importer/exporter in lieu of a bond prescribed under the above-mentioned provisions

Measures undertaken by the Ministry of Corporate Affairs

Notification Date

Details of provision

March 24, 2020

No additional filing fees shall be charged for late filing during amoratorium 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.

March 24, 2020

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

March 19, 2020

Meetings through video conference – As per rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 read with the Companies Act, 2013, the following matters cannot be dealt with in any meeting held through video conferencing or other audio-visual means:

  • approval of annual financial statements
  • approval of the Board's report
  • approval of the prospectus
  • audit committee meetings for consideration of financial statements; and
  • approvals relating to amalgamations, merger, demerger, acquisition and takeover.

On March 19, 2020, Ministry of Corporate Affairs amended the above rules, as per which, from the date of the commencement of the Companies (Meetings of Board and its Powers) Amendment Rules, 2020 till June 30, 2020, meetings on the above-mentioned matters

may also be held through video-conferencing or other audio visual means.

March 24, 2020

CARO extended: Applicability of Companies (Auditor's Report) Order, 2020(CARO) shall be made applicable from the financial year 2020-2021 instead of from 2019-2020 notified earlier.

March 24, 2020

Independent Directors' meeting: As per Schedule IV 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.

March 24, 2020

Deposit repayment reserve: Requirement to create a 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.

March 24, 2020

Deposit repayment investment: 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.

March 24, 2020

Commencement of Business: Newly incorporated companies are required to file a declaration for Commencement of Business within 6 months of incorporation in the form INC-20A. An additional time of 6 more months shall be allowed.

March 24, 2020

Mandatory resident Director: 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 for the financial year 2019-20.

March 23, 2020

Spending CSR funds for COVID-19 is now eligible as CSR activity - On 23.03.2020, MCA vide its circular allowed companies to use their Corporate Social Responsibility (CSR) spending on measures to fight COVID-19.

March 20, 2020

A web based form CAR (Company Affirmation of Readiness towards COVID 19) shall be filed by the authorized Signatory of Company's and LLPs. III. The form shall be deployed on 23rd March, 2020 and is required to be filed instantly i.e. On 23rd itself.

  • No fees is applicable on filing Companies Affirmation of Readiness towards COVID-19 (CAR-2020) form.
  • There will be no penalty or enforcement related action and companies / LLPs may file this form at their convenience.
  • It is purely voluntary for companies / LLPs to file this form. It will be seen as part of their contribution towards joining the movement to fight against the spread of COVID-19.

March 30, 2020

Modifications in LLP Settlement Scheme 2020-

Key Highlights:

  • Earlier the period of Scheme was from 16 March, 2020 to 13 June, 2020. Now it has been modified and the revised period of Scheme is from 1 April, 2020 to 30 September, 2020.
  • Previously defaulting LLP is permitted to file belated documents, which were due for filing till 31 October, 2019 in accordance with the provisions of this Scheme. Now, defaulting LLP is permitted to file belated documents which were due for filing till 31 August, 2020.
  • Earlier the defaulting LLPs was allowed to file belated documents by making payment of additional fees of INR 10/- per day for the period of delay subject to maximum additional fees of INR 5,000/- per document.

March 24, 2020

  • Now, belated documents can be filed by paying normal fees only without paying any additional fees.
  • The defaulting LLPs, which have filed their pending documents till 30 September, 2020 and made good the default, will not be subjected to prosecution by Registrar for such defaults.
  • Earlier benefit of this Scheme could be availed for filing limited forms i.e. Form 3, Form 4, Form 8 and Form 11. Now, all documents and forms which were required to be filed with MCA21 registry under LLP Act, 2008 and Rules made there under can be filed under this Scheme.

April 8, 2020

MCA issues clarification on passing of Ordinary and Special resolutions-

Ministry of Corporate Affairs issued a circular allowing companies to hold Extraordinary General Meetings (EGMs) through video conferencing (VC) or other audio visual means (OAVM) complemented with e-Voting facility/simplified voting through registered emails, without requiring the shareholders to physically assemble at a common venue.

The companies are required to follow below mentioned procedures, in case of holding of an, on or before 30 June, 2020 in addition to any other requirement provided in the Companies Act, 2013 (the Act) or the rules made thereunder.

  • EGMs may be held through VC or OAVM and the recorded transcript of the same will be maintained in safe custody by the company. In case of a public company, the recorded transcript of the meeting also needs to be made available on the website (if any) of the company.
  • In pursuance of section 112 and section 113 of the Act, representatives of the members may be appointed for the purpose of voting through remote e-voting or for participation and voting in the meeting held through VC or OAVM.
  • All resolutions passed in accordance with this mechanism will be filed with the ROCs within 60 days of the meeting, clearly indicating therein that the mechanism provided herein along with other provisions of the Act and rules were duly complied with during such meeting.
  • Meeting held through VC or OAVM facility must have a capacity to allow at least 500 members or members equal to the total number of members of the company (whichever is lower) to participate on a first-come-firstserved basis. Other conditions to participate on first-come-first-served basis are same as that for companies which are required to or opted for provide the facility of e-voting under the Act.

March 24, 2020

  • The company will provide a designated email address to all members at the time of sending the notice of meeting so that the members can convey their vote at such designated email address, in case of poll.
  • Where less than 50 members are present in a meeting, the Chairman may decide to conduct a vote by show of hands, unless a demand for poll is made by any member.

MCA issues additional clarification on passing of Ordinary and Special resolutions- April 13, 2020

  • For companies which are required to or opted for providing the facility of e-voting
    • Notices to members may be given only through e-mails registered with the company or with the depository participant.
    • While publishing the public notice, company has to mention various matters as stated in this circular.
    • Chairman of the meeting will satisfy himself before considering the business in the meeting that all efforts have been made by the company to enable members to participate and vote on the items being considered in the meeting.
  • For companies which are not required to provide the facility of e-voting
    • Company will contact all those members whose e-mail addresses are not registered with the company for registration of their e-mail addresses before sending the notice for meeting to all its members
    • Where contact details of any of members are not available with the company, it will cause a public notice by way of advertisement to be published in the manner given in this circular.

April 13, 2020

Ministry of Corporate Affairs issued circular providing relaxation in filings of various Investor Education and Protection Fund (IEPF) E-forms u/s 124 and 125 of the Companies Act 2013 r/w IEPFA(Accounting, Audit, Transfer and Refund) Rules Pursuant to MCA's previous General Circular allowing filing in MCA-21 registry without additional fees till 30 September, 2020, Ministry is further extending the coverage of its said General Circular by allowing relaxation in filing of various other IEPF e-forms i.e. IEPF-1, IEPF-1A, IEPF-2, IEPF-3, IEPF-4, IEPF -7 and IEPF-5 (everification of claims).

Measures undertaken by the SEBI

S. No

Notification Date

Regulation and associated filing

Filing due date

Extended date

A. SEBI has decided to grant the following relaxation from compliance stipulations specified under the SEBI LODR:

01

March 19, 2020

Regulation 7(3) - certificate on share transfer facility

April 30, 2020

May 31, 2020

02

March 19, 2020

Regulation 13(3) -Statement of Investor complaints

April 21, 2020

May 15, 2020

03

March 19, 2020

Regulation 24A - Secretarial Compliance report

May 30, 2020

June 30, 2020

03

March 19, 2020

Regulation 24A - Secretarial Compliance report

May 30, 2020

June 30, 2020

04

March 19, 2020

Regulation 27(2) Corporate Governance report

April 15, 2020

May 15, 2020

05

March 19, 2020

Regulation 31- Shareholding Pattern

April 21, 2020

May 15, 2020

06

March 19, 2020

Regulation 33- Financial Results

May 15, 2020 (Quarterly)

May 30, 2020 (Annually)

June 30, 2020

June 30, 2020)

07

March 26, 2020

Regulation 40(9)-PCS Certificate on timely issue of share certificate

April 30, 2020 (Half Yearly)

May 31, 2020

08

March 26, 2020

Regulation 44(5)- Holding A GM by top 100 listed entities by market cap for financial year 2019-20

August 31, 2020 (Annual)

September 30, 2020

09

Regulation 47- Publication of advertisements in the newspapers-

Regulation 47of the LODR requires publishing, in the newspapers, information such as notice of the board meeting, financial results etc. It has been brought to the notice of SEBI that some newspapers are not bringing their print versions for a limited period; some newspapers that are still printing are not accepting a 'e-copy' of the information to be published which acts as a challenge in ensuring compliance with this regulation. Hence it has been decided to exempt publication of advertisements in newspapers as required under regulation 47 for all events scheduled till May 15, 2020

B) Relaxation of time gap between two Board and Audit Committee meetings:

Authority

Notification Date

Details of Provision

Securities and Exchange Board of India

March 19, 2020

The Board of Directors and the Audit Committee of a listed entity have been exempted from maintaining time gap of 120 days between two Board Meetings to be held between the period December 1, 2019 and June 30, 2020. However, the board of directors / Audit Committee

ensure that they meet at least four times a year, as stipulated under regulations 17(2) and 18(2)(a) of the LODR.

C) Conduct of Committee meeting: -

S. No

Notification Date

Regulation

Requirement

Frequency

Due Date

Extended Date

01

March 26, 2020

Regulation 19(3A)

The nomination and remuneration committee shall meet at least once in a year

Yearly

March 31, 2020

June 30, 2020

02

March 26, 2020

Regulation 20(3A)

The Stakeholders Relationship committee shall meet at least once in a year

Yearly

March 31, 2020

June 30, 2020

03

March 26, 2020

Regulation 21(3A)

The Risk Management Committee shall meet at least once in a year

Yearly

March 31, 2020

June 30, 2020

D) SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (SAST Regulations).

Authority

Notification Date

Details of Provision

Securities and Exchange Board of India

March 27, 2020

The disclosures filing under Regulations 30(1), 30(2) and 31 (4) of the SAST Regulations require shareholders to compile, collate and disseminate information of their consolidated shareholding to the company and the stock exchanges within 7 working days from the end of the financial year, 31 March, 2020. These report as per the 2020 calendar is required to be filed by 15 April, 2020. SEBI has now granted a onetime extension on the due date of filing the above disclosures for the financial year ending 31 March, 2020 till 1 June, 2020.

E) SEBI relaxes compliance requirements for AIFs and VCFs-

Authority

Notification Date

Details of Provision

Securities and Exchange Board of India

March 30, 2020

Securities and Exchange Board of India (SEBI) has decided to extend the due date for regulatory filings for Alternative Investment Funds (AIFs) and Venture Capital Funds (VCFs). The due date for regulatory filings for AIFs and VCFs for the periods ending 31 March, 2020 and 30 April, 2020 is extended by 2 months, over and above the timelines prescribed under SEBI (Alternative Investment Funds) Regulations, 2012 and circulars issued thereunder.

F) SEBI relaxes compliance under InvIT and REIT Regulations-

Authority

Notification Date

Details of Provision

Securities and Exchange Board of India

March 23, 2020

Due to the spread of COVID 19 virus, the Securities and Exchange Board of India (SEBI) has decided to grant temporary relaxations in compliance requirements to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The Due dates for regulatory filings and compliances for REIT and InvIT for the period ended 31 March, 2020 has been extended by 1 month over and above the time lines prescribed under SEBI (Infrastructure Investment Trusts) Regulations, 2014 and SEBI (Real estate Investment Trusts) Regulations, 2014.

G) Relaxations to listed entities which have listed their Non-Convertible Debentures (NCDs), Non-Convertible Redeemable Preference Shares (NCRPS), Municipal Debt Securities (MDS) and Commercial Papers (CPs).

Authority

Notification Date

Details of Provision

Securities and Exchange Board of India

March 23, 2020

A) Relaxation to issuers who intend to list their NCDs / NCRPS / CPs Cut-off date for issuance of NCDs / NCRPS / CPs, if audited financials are available as on 30 September, 2019, has been extended from on or before 31 March, 2020 to on or before 31 May, 2020.

B) Extension of timeline for filings under SEBI (LODR) Regulation 2015 for the Half Year / Financial Year ending 31 March, 2020

Initial Disclosure and Annual Disclosure for Large Corporate ( SEBI Circular HO/DDHS/CIR/P/2018/144

dated 26 November, 2018)

A listed entity, identified as a Large Corporate (LC), needs to make certain disclosures to the stock exchanges, where its securities are listed. An Initial Disclosure, about their identification as a LC, has to be made within 30 days from the beginning of FY and an Annual Disclosure carrying details of the incremental borrowings done during the FY, has to be made within 45 days from the end of FY. Due date for Initial Disclosure has been extended from 30 April, 2020 to 30 June, 2020 and due date for Annual Disclosure has been extended from 15 May, 2020 to 30 June, 2020.

H) SEBI relaxes certain compliance requirements for Mutual Funds-

Authority

Notification Date

Details of Provision

Securities and Exchange Board of India

March 23, 2020

A) Relaxation in timelines for certain disclosures:

  • Regulation 59 - Half yearly disclosures of unaudited financial results: Due date for disclosing unaudited financial results for the half year ended on 31 March, 2020 extended from 30 April, 2020 to 31 May, 2020.
  • Half yearly disclosure of commission paid to distributors under Point 2 (a) of SEBI circular No . SEBI/HO/IMD/DF2/CIR/P/2016/42 dated 18 March, 2016): Due date for disclosing commission paid to distributors for the half year ending on 31 March, 2020 extended from 10 April, 2020 to 10 May, 2020.
  • Yearly disclosure of investor complaints with respect to Mutual Funds (Point 4(b) of SEBI circular No. Cir/IMD/DF/2/2010 dated 13 May, 2010): Due date for yearly disclosure of investor complaints with respect to MFs for the FY ending on 31 March, 2020 has been extended from 31 May, 2020 to 30 June, 2020.

B) The access control in the AMCs dealing room, including call recording of deals, is temporarily relaxed subject to electronic confirmation by way of email or other system having audit trail are in place.

C) SEBI has also extended the effective dates of implementation of certain policy initiatives notified via different circulars, details of which are as below.

  • Risk management framework for liquid and overnight funds and norms governing investment in short term Review of investment norms for mutual funds for investment in Debt and Money Market Instruments dated 1 October, 2019-
  • I. For complying with the revised limits of exposure by open ended mutual fund scheme - Due date extended from 1 April, 2020 to 1 May, 2020
  • ii. 15% max investment cap in unlisted NCDs - Due date extended from 31 March, 2020 to 30 April, 2020.

Valuation of money market and Debt securities dated 24 September, 2019 - Due date of dispensing with amortization valuation extended from 1 April, 2020 to 1 May, 2020.

Measures undertaken by the Reserve Bank of India

  • Reduce Repo rate under the Liquidity Adjustment Facility (LAF) by 75 basis points from 5.15 per cent to 4.40 per cent with immediate effect.
  • Reverse Repo rate under the LAF stands adjusted from 4.90 per cent to 4.00 per cent with immediate effect.
  • Bank Rate is revised downwards by 75 basis points from 5.40 per cent to 4.65 per cent with immediate effect.
  • Reduce the minimum daily maintenance of the Cash Reserve Ratio from 90 per cent of the requirement to 80 per cent effective from March 28, 2020. This is a one-time dispensation available up to June 26, 2020.
  • Reduce the Cash Reserve Ratio (CRR) of all banks by 100 basis points from 4.00 per cent to 3.00 per cent of their Net Demand and Time Liabilities (NDTL) with effect from March 28, 2020, for a period of one year, ending on March 26, 2021.
  • Rescheduling of Payments: – In respect of all term loans (including agricultural term loans, retail and crop loans), all commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies) (“lending institutions”) are permitted to grant a moratorium of three months on payment of all instalments falling due between March 1, 2020, and May 31, 2020. The repayment schedule for such loans as also the residual tenor will be shifted across the board by three months after the moratorium period. Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period.

Note: Instalments will include the following payments falling due from March 1, 2020, to May 31, 2020: (i) principal and/or interest components; (ii) bullet repayments; (iii) Equated Monthly instalments; (iv) credit card dues.

 

  • defer the implementation of NSFR (Net Stable Funding Ratio) guidelines by six months. These guidelines will now come into effect from October 1, 2020, as against April 1, 2020.
  • Review of Foreign Direct Investment (FDI) policy for curbing opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 pandemic-

Present Position

Revised Position

A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, a citizen of Bangladesh or an entity incorporated in Bangladesh can invest only under the Government route. Further, a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment.

A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route. Further, a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment.

In the event of the transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in the beneficial ownership falling within the restriction/purview of the above para such subsequent change in beneficial ownership will also require Government approval.

FSSAI extends date of annual/half-yearly returns filing for manufacturers and importers

Food Safety and Standards Authority of India extended the annual/half-yearly returns filing up to 31 July 2020 for FY 2019-2020 and the half-year October 2019 to March 2020.

Need more Information or wish to Connect !!

Write to us and we shall get back to you at the earliest.

Copyright © 2022 All right reserved.
Share This