LEGAL UPDATES
IMPACT OF COVID 19
Prepared by: CA Shubham Aggarwal
CA. Shubham Aggarwal
CONTENT
INCOME TAX
01
GST
02
CORPORATE LAWS
03
OTHER LAWS
04
PART 01
INCOME TAX
CA. Shubham Aggarwal
INCOME TAX
1. The due date of TDS/TCS Return for Q4 (FY 2019-20) has been extended from 15.05.2020/31.05.2020 to 30.06.2020.
2. CBDT has clarified that for the purpose of TDS on Salary for FY 2020-21, employer is required to obtain a declaration from each employee about opting of scheme of taxation (with deductions OR without deduction) and deduct TDS for whole year basis such declaration.
3. CBDT has further extended the applicability of reporting under Clause 30C and clause 44 of the Tax Audit Report and the same shall be kept in abeyance till 31 -Mar-2021.
4. The order under section 119 of the IT Act,1961 for lower deduction of TDS/TCS u/s 195/197/206C(9) states that Forms filed for FY 2019-2020 shall also be valid for the first quarter of FY 2020-21 except for application for New /different TANs.
Clarification regarding short deduction of TDS/TCS due to increase in rates of surcharge by Finance (No.2) Act, 2019.
It is clarified a person responsible for deduction/collection of tax under any provision of the Income-tax Act shall be considered to be an assessee in default if the person fails to fulfill any of the conditions as laid down below, Further, if the deductor/collector has deducted/collected shortfall of tax after 5
thof July, 2019 from the transaction(s) made subsequently after the said date, interest, if any, for delay in
deduction/collection of such tax shall not be levied.
COMPLETE AND PAYMENT
Such transaction completed & entire payment made to the deductee/payee on or before 5th July, 2019 and
NO TRANSACTION
No next transaction between the parties in the financial year 2019-20
RATES IN FORCE
TDS deducted/TCS Collected as per the rates in force.
DEPOSITION
Tax deducted or collected has been deposited with
CG by the
deductor/collector on or before the due date of depositing the same
TDS RETURN
TDS/TCS statement has been furnished by such person on before the due date of filing of the said statement.
CA. Shubham Aggarwal
INCOME TAX
Due Dates for Payments/Returns,Forms Relaxation
Nature of Compliance Tax
period
Without interest /late fees
With interest @9%
but without late fees
Consequences Post 30-Jun-2020
TDS deposit
Mar-20 30-Apr-20 30-Jun-20
With Interest @12% / 18% and late fees
Apr-20 7-May-20 30-Jun-20
May-20 7-Jun-20 30-Jun-20
TCS deposit
Mar-20 07-Apr-20 30-Jun-20
With Interest @12% / 18% and late fees
Apr-20 7-May-20 30-Jun-20
May-20 7-Jun-20 30-Jun-20
Advance tax
(First instalment for FY 2020-21) FY 2020-21 15-Jun-20 30-Jun-20 With Interest @ 1%
p.m. or for part of month
INCOME TAX
Due Dates for Payments/ Returns, Forms Relaxation
Nature of Compliance Period Due Date
Income tax return FY 2018-19 30-Jun-20
Investment for rebate in income tax return (Deductions, Sec. 54 Exemptions
FY 2019-20 30-Jun-20
Vivad se Vishwas Scheme
For any Assessment year where appeal is pending at any forum as on Jan 31,
2020.
30-Jun-20
Linking of Aadhar with PAN NA 30-Jun-20
Issue of notices, orders, filling of appeals, furnishing of return, statements, applications and reports and any other document and Benami
Laws
Between March 20, 2020
to June 29, 2020 30-Jun-20
Form G/ H Order u/s 119 dated April 3,
2020 FY 2020-21 30-Jun-20
CA. Shubham Aggarwal
PART 02
GOODS AND SERVICE TAX
(GST)
GST UPDATES
1. CBIC has clarified that application of refund can be filedGST
till 30.06.2020 where the period of two years is expiring between 20.03.2020 to 29.06.2020.2. CBIC has clarified that application for Letter of Undertaking (LUT) for export without tax payment can be filed till 30.06.2020 for F.Y. 2020-21. CBIC has clarified that where the taxes have been paid in relation to any supply which got returned/cancelled subsequently, taxpayer can raise a refund claim in Form GST RFD-01 if no subsequent output liability exist for adjustment of Credit Note.
3. Form GST PMT-09 is now available on GST Portal which can be used to transfer cash ledger balances from one tax head to another tax head.
4. Composition Taxable Person to file CMP-08 for Q4 (2019- 20) by 07.07.2020 instead of 18.04.2020 and file GSTR-4 for FY 2019-20 by 15.07.2020 instead 30.04.2020.
5. The tax-payers whosoever furnished Form GSTR-3B to save themselves from late fees and interest. For them the requirement to furnish Form GST CMP-08 and GSTR-1 for financial year 2019-20 has been waived off through notification 12/2020 dated March 23, 2020.
CA. Shubham Aggarwal
GST
S.No. RETURN/FORM Period Due Date Revises Due Date
Remarks
1 GSTR3B (Turnover more than 5 Cr.)
Feb, Mar, Apr Month
20th of next
month 24th Jun 2020
CBIC Notification no.32/2020 dt. 03.04.2020 - Late fee waived only if filed before this date CBIC Notification no.31/2020 dt. 03.04.2020 - Interest payable will be @NIL for first 15 days from original due date and @9% thereafter (this rate will be applicable only if filed before this date)
2
GSTR3B (Turnover more than 1.5 Cr.
but upto 5 Cr.)
Feb, Mar Month 20th of next month
29th Jun 2020 CBIC Notification no.32/2020 dt. 03.04.2020 for late fees & CBIC Notification no.31/2020 dt.
03.04.2020 for interest
Both Interest and Late fee waived only if filed before this date.
Apr Month 20th of next month
30th Jun 2020
3
GSTR3B (Turnover
upto1.50 Cr.) Feb Month 20th of next 30th Jun 2020 Mar Month 20th of
next 3rd Jul 2020 Apr Month 20th of
next 6th Jul 2020 4 GSTR1 - Monthly
Filings
Mar, Apr, May Month
11th of next month
30th Jun 2020 CBIC Notification no.33/2020 dt. 03.04.2020 Late fee waived only if filed before this date.
5 GSTR1 - Quarterly filings
quarter ended qtr.
30th Apr 2020 30th Jun 2020
GST
S.No. RETURN/FORM Period Due Date Revised Due
Date Remarks
1 GSTR3B (Turnover more than 5
Cr.)
May Month
20th Jun 2020 27th Jun 2020 CBIC Notification No.36/2020 dt. 03.04.2020
2 GSTR3B (Turnover upto 5
Cr.) May
Month 20th Jun 2020 12th Jul 2020
3 Form 9 and Form 9C 2018-19 31st Mar 2020 30th Jun 2020 CBIC Notification no. 15/2020 4 Exemptions from issuing e-
invoicing and capturing QR code for the the following :
Insurance co, Banking co, Financial Institutions
including NBFC.
• Goods Transport Agency
• Passenger Transport Services
• Services by way of
admission to exhibition of cinematograph films in multiplex screens
01st Apr 2020 01st Oct 2020 CBIC notification 13/2020 and 14/2020
CA. Shubham Aggarwal
PART 03
CORPORATE LAWS
RELAXATION UNDER VARIOUS PROVISIONS OF COMPANIES ACT,2013
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 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;
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.
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.
CA. Shubham Aggarwal
RELAXATION UNDER VARIOUS PROVISIONS OF COMPANIES ACT,2013
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.;
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
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.
Companies whose financial year (other than first financial year) has ended on 31st December, 2019, can hold their AGM for such financial year within a period of nine months from the closure of the financial year (i.e. by 30th September, 2020), the same shall not be viewed as a violation. General Circular No. 18/2020 Dated: 21st April, 2020.
Clarification on passing of ordinary and special resolutions by companies under the Companies Act, 2013 and rules made thereunder on account of the threat posed by COVID-19 (General Circular Number 14/2020)
PERIOD/DAYS OF EXTENSION FOR NAMES RESERVED AND RESUBMISSION OF FORMS
• Names expiring any day between 15th March 2020 to 3rd May would be extended by 20 days beyond 3rd May 2020.
Names reserved for 20 days for new company incorporation. SPICe+ Part B needs to be filed within 20 days of name reservation.
Names reserved for 20 days for new company incorporation. SPICe+ Part B needs to be filed within 20 days of name reservation.
• Names expiring any day between 15th March 2020 to 3rd May would be extended by 20 days beyond 3rd May 2020.
Names reserved for 60 days for change of name of company. INC-24 needs to be filed within 60 days of name reservation.
Names reserved for 60 days for change of name of company. INC-24 needs to be filed within 60 days of name reservation.
• SRNs where last date of Resubmission (RSUB) falls between 15th March 2020 to 3rd May 2020, additional 15 days beyond 3rd May 2020 would be allowed. However, for SRNs already marked under NTBR, extension would be provided on case to case basis.
Extension of RSUB validity of companies.
Extension of RSUB validity of companies.
• Names expiring any day between 15th March 2020 to 3rd May would be extended by 20 days beyond 3rd May 2020.
Names reserved for 90 days for new LLP incorporation/change of name.
FiLLiP/Form 5 needs to be filed within 90 days of name reservation.
Names reserved for 90 days for new LLP incorporation/change of name.
FiLLiP/Form 5 needs to be filed within 90 days of name reservation.
• SRNs where last date of resubmission (RSUB) falls between 15th March 2020 to 3rd May 2020, additional 15 days would be allowed from 3rd May 2020 for resubmission. However, for SRNs already marked under NTBR, extension would be provided on case to case basis.
RSUB validity extension for LLPs.
RSUB validity extension for LLPs.
CA. Shubham Aggarwal
COMPANIES FRESH START SCHEME/LLPS SETTLEMENT 2020
01
ABOUT THE SCHEME
To enable the companies to make good any filing related defaults irrespective of the duration of the default and make a fresh start as a fully compliance entity. This Scheme incentivize compliance and reduce compliance burden during the unprecedented public health situation caused by COVID-19. The motive of both the schemes is a one-time waiver of additional filing fees for belated filings by the companies or LLPs with the Registrar of Companies.
03
02 04
Moratorium Period
From April 1, 2020 to September 30,2020
Due Date of availability of
Scheme
September 30th ,2020
COST OF FILING
Non-applicability of additional fees for belated submission of any forms
Immunity from prosecution
Delayed filings during the Moratorium Period shall not result in prosecution
NON -APPLICABILITY OF SCHEME
Striking-off has already been initiated by the Designated Authority or STK-2 for strike off of Company with ROC has been filed by the companies;
CONVICTED COMPANIES
In case any court has ordered conviction in any matter or an order imposing penalty has been passed by an adjudicating authority under the Act and no appeal has been preferred.
APPELLANT COMPANIES
Where any increase in authorized capital is involved (Form SH-7) and all charge related documents (CHG-1, CHG- 4, CHG-8 and CHG-9);
SPECIAL COMPANIES
Any appeal pending before the court of law and in case of management disputes of the company pending before any court of law or tribunal;
01
STRIKING OFF COMPANIES
03
02 04 05
• Amalgamated companies
• Dormant Companies
• VANISHING COMPANIES
OTHER COMPANIES
CA. Shubham Aggarwal
PART 04
OTHER LAWS
OTHER LAWS
PF CONTRIBUTION
Month: Mar,Apr,May,2020
Employer Contribution 12% + Employee 12% to be paid fully by government if the establishment employs less than 100 persons and 90% of such employees are drawing wages less than Rs.15000
ESI CONTRIBUTION
Month: Feb’20 and Mar’20
Due Date: 15-03-2020 and 15.04.2020
Extended Due Date : 15-04-2020 and 15- 05-2020
FTP AMENDMENTS
The existing FTP 2015-20, which is valid up to March 31, 2020, is extended up to March 31 2021.
Various other changes are also made
— extending the date of exemption by one year and extending validity of DFIA and EPCG authorizations for import purposes
EPF CONTRIBUTION
Month: Mar’20
Due Date: 15.04.2020
Extended Due Date : 15-05-2020
CA. Shubham Aggarwal
