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March 24, 2020

Know all Income Tax, TDS, GST, MCA etc Statutory and Regulatory Compliance relief as Highlight by FM

by facelesscompliance in Compliance Law

1) Compliance and regulatory in Income Tax

FY 2018-19 Last date will be extended to 30 June 2020. Interest rate reduce from 12 to 9% for delayed Tax payment

Delay deposit of TDS will attract interest of 9% insted of 18% will be charged till June 2020

Various date for Notice etc will be extended 30 June, like approval, appeal, statments, reports, order, investment in saving instrument, capital gains benefit, black momey, STT, Equalisation Levy etc

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.

Due date for issue of notice for all laws linked to duty compliance extended till June 30

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.

Aadhaar Pan linking date extended to 30 June 2020

Vivad se Vishwas Scheme time line extended to 30th June 2020 and no extra 10% tax payment required

Sabka Vishwas dispute settlement scheme – last date for payment is now June 30.

2) Compliance and regulatory in GST

The last date for March, April, May 2020 GST returns and Composition returns extended to June 30th, 2020

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.

Composition Returns extended till 30 June 2020. Different staggering dates will be applicable for above. 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.

No Interest, late fee or penalty will be charged for Company with turnover of upto Rs 5 cr

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.

3) Compliance and regulatory in Corporate MCA

CARO 2020 will not be applicable for 2019-20 and will be applicable from 2020-2021

Mandatory requirement of holding board meetings is being relaxed by a period of 60 days, this relaxation is for the next two quarters.

Mandatory Independent Directors’ meeting requirement under company law relaxed for FY19 – if meeting not held yet.

Newly incorporated businesses have 6 months extra for commencement of business filing.

Limit for insolvency is increased from Rs. 100000 to Rs. 100,00,000

The threshold for default raised to prevent triggering of insolvency proceedings against MSMEs

We will watch the situation, but if it continues to be similar beyond April 30th, then we may consider suspending Section 7, 9, 10 of IBC for six months

Company director not complying with minimum residency of 182+ days is not violation for current year

Deposit reserve for maturing deposits before 30-4-2020 is to be complied with 30-6-2020

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’

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.

4) Compliance and regulatory in Customs & Excise

Customs clearance now an essential service, till June 30th, 2020 it will be working 24/7.

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.

5) Common Man and Banks

Debit card holders who withdraw cash from any bank ATM can do it free of charge for next 3 months.

There will be no minimum balance requirement fee imposed by banks

Bank Charges for digital trade transactions will be reduced for all trade finance consumes

6) Fisheries Related

Import permits of shrimps breed stock, aquaculture inputs which were to be expired between 1-3-2020 to 15-3-2020 extended upto 3 months

Delay upto 1 month of the artival of consignment will be condoned

Rebooking of quarantine cubical for cancelled consignment will be allowed without additional booking charges

The verification of documents and grant of quarantine will be done from 7 days to 3 days