COVID-19 has hit almost all sectors of the economy, Union FM Smt Nirmala Sitharaman has announced some reliefs for businesses to cope up with the difficult times of COVID-19. The press briefing was held around 2:30 p.m. via video conferencing on the 24th of March 2020 where the FM was accompanied by Shri Anurag Thakur, the Union MoS for Finance & Corporate Affairs.
Income Tax, GST and MCA announcements on 24th March 2020
The following announcements under Income Tax will need to be passed or notified through the legal circulars and legislative amendments:
- Interest
at a reduced rate of 9% p.a. shall be charged instead of 12% or 18% p.a.
towards the delayed payment/deposit of the following income tax levies,
made between 20th March 2020 and 30th June 2020. Note that there is no
extension in the deadlines.
- Advance
Tax
- Tax
Deduction at Source (TDS)
- Tax
Collection at Source (TCS)
- Self-assessment
tax
- Equalization
levy
- Security
Transaction Tax (STT
- Commodity
Transaction Tax (CTT)
- The last
date for the belated/revised filing of the income tax returns for the FY
2018-19 (AY 2019-20) is extended from 31st March 2020 to 30th June 2020.
- The last
date for Aadhaar-PAN linking is extended from 31st March 2020 to 30th June
2020.
- The time
limit to avail the Vivad Se Vishwas scheme is extended up to 30th June
2020. The waiver of the 10?ditional charge continues up to 30th June
2020 instead of the earlier time limit of 31st March 2020.
No late fee/penalty shall be charged for any delay relating
to this period.
- The
assessees and/or the tax authorities have got an extended time limit of up
to 30th June 2020 where the time limit for the following compliance matter
expires between 20th March 2020 and 29th June 2020:
- Issue
of notice/intimation/notification/approval order/sanction order
- Filing
of an appeal/furnishing of a return/statements/reports or any other
documents
- The
time limit for the completion of proceedings by the tax authority
- Investment
in saving instruments or investments for rollover benefit of capital
gains under the Income Tax Act, Wealth Tax Act, Prohibition of Benami
Property Transaction Act, Black Money Act, STT law, CTT Law, Equalisation
Levy law, and the Vivad Se Vishwas law
The
following announcements under GST, Excise and service tax will need to be
passed or notified through the legal circulars and legislative amendments,
after being approved by the GST Council:
- Taxpayers
with an annual aggregate turnover of up to Rs 5 crore: The due dates for filing GSTR-3B
for February 2020, March 2020, and April 2020 have been extended up to the
last week of June 2020. Accordingly, no late fee, interest or penalty
shall be levied for them.
- Taxpayers
with an annual aggregate turnover of more than Rs 5 crore: Except for a reduced
interest charge, the due dates of GSTR-3B for February 2020, March 2020,
and April 2020 stand extended up to the last week of June 2020. No late
fee or penalty shall be levied. Any tax payments made after a delay of 15
days from the original due dates will attract a reduced interest at 9%
p.a. instead of 18% p.a. The reduced interest charge will apply for the
tax payments made between 20th March 2020 and 30th June 2020.
- Taxpayers
registered under the composition scheme: The due date for filing the statement-cum-challan in
CMP-08 for the last quarter of FY 2019-20, i.e. Jan-Mar 2020 is extended
till the last week of June 2020. Similarly, the due date for filing GSTR-4
for FY 2019-20 is extended from 30th April 2020 to the last week of June
2020.
- The
last date for opting into the composition scheme for the FY 2020-21 has
been extended from 31st March 2020 up to 30th June 2020. It applies to taxpayers
availing both the schemes under Section 10 of the CGST Act as well as the
Notification no. 2/2019 dated 7th March 2019.
- Sabka
Vishwas Scheme LDRS: The
last date to avail the scheme is extended up to 30th June 2020. No
interest will be charged for this period if the dues are paid before 30th
June 2020.
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<!--[endif]--> - The
taxpayers and/or the tax authorities have got an extended time limit of up
to 30th June 2020, where
the time limit for the following compliance matter expires between 20th
March 2020 and 29th June 2020:
- Issue
of notice/notification/approval order/sanction order
- Filing
of an appeal/furnishing of a return/statements/applications/reports or
any other documents
Customs
- All
exporters or importers have been assured about not facing any challenges
in the customs clearance, as the facility will now operate 24×7 up to 30th
June 2020.
- The
taxpayers and/or the tax authorities have got an extended time limit of up
to 30th June 2020, where the time limit for the following compliance
matter expires between 20th March 2020 and 29th June 2020:
- Issue
of notice/notification/approval order/sanction order
- Filing
of an appeal/furnishing of applications/reports or any other documents
The following financial/banking services have
been relaxed for up to three months:
- Debit
cardholders can withdraw cash for free from any other banks’ ATM
- The
minimum balance fee has been waived
- The
trade finance consumers will be charged with a lower bank charge for all
the digital trade transactions.
The following corporate affairs have been relaxed
for up to three months:
- Relaxations
for any compliances on MCA 21 registry: A moratorium period has been defined from 1st April
2020 till 30th September 2020 during which companies and LLPs need not pay
any additional fees for any late filing of documents/returns/statements,
irrespective of its due dates. It will provide a breather to the existing
companies and LLPs as well as an opportunity for non-compliant
companies/LLPs to start afresh.
- The
conduct of the board meetings by the companies within an interval of 120
days is now extended by a further period of 60 days until the next two
quarters, i.e. 30th September 2020.
- Companies
(Auditor’s Report) Order 2020 (CARO, 2020) will be made applicable from FY
2020-21 instead of FY 2019-20, benefiting the companies and its statutory
auditors.
- Section
4 of the Companies Act, 2013 is not considered to be violated if the
independent directors of a company could not hold their exclusive meeting
during the FY 2019-20.
- The
newly incorporated companies will get an additional 6 months for filing
the declaration form for the commencement of business.
- Any
director of a company who has not stayed in India for more than 182 days
will still be considered as a resident of India in compliance with the
law.
- The
following requirements have been postponed from 30th April 2020 to 20th
June 2020:
- Creation
of a deposit reserve containing at least 20% of deposits maturing in the
FY 2020-21
- Investment
of 15% of debentures maturing in a specific year in specified
instruments
The COVID-19
crisis has severely hit the businesses across India, especially the MSMEs since
they are unable to operate at the same pace and scale. Accordingly, the
sections have been redefined to assess the applicability of IBC to the
distressed companies as a part of the relief.
- The
qualifying threshold amount has been raised from Rs 1 lakh to Rs 1 crore
for liquidating a company that has defaulted its corporate debtors under
Section 4 of the IBC 2016.
- If the
critical situation continues even after 30th April 2020, the Ministry may
suspend a few sections of IBC 2016 for six months. It may be done in
a bid to disallow the creditors/corporate applicants to initiate the
insolvency resolution process under Section 7, 9 and 10.
- Extension of timelines for various
compliance and procedures will be given by the Ministry of Commerce through
notifications.
Fisheries
- All the
Sanitary Permits (SIP) for the import of SPF Shrimp Broodstock and other Agriculture
inputs which expires between 1st March 2020 and 15th April 2020 has been
extended by three months.
- The late
arrival of import consignments by up to one month will not be considered
as ‘delayed receipts’.
- Rebooking
of quarantine cubicles for those cancelled consignments in the Aquatic
Quarantine Facility (AQF) of Chennai can be done without any additional
charges.
- The time
limit for the verification of documents and issuance of NOC has been
reduced from seven days to three days.
It will take a considerable period of time for
businesses to recoup from the aftermath of the COVID-19. Hence, the extended
time should be prudently used by the businesses to explore ways to be more
tech-focused. They should now completely alleviate compliance using digital
means. The steps include the use of cloud-based services, developing strong
controls and systems for their teams to work digitally and remotely. The Union
FM will also be announcing the economic package to beat COVID-19 crisis and
help the businesses recover from the fall in revenues for the coming
quarter.
Reference Source
– Cleartx website, press release.