Relaxation in various Statutory Compliances

March 27, 2020 | Tax

Income Tax

  1. Extends last date for income tax returns for FY 2018-19 (AY 2019-20) from 31st March, 2020 to 30th June, 2020.
  2. Aadhaar-PAN linking date to be extended from 31st March, 2020 to 30th June, 2020.
  3. Vivad se Vishwas Scheme – No Additional 10% amount, if payment made by June 30, 2020.
  4. 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.  
  5. For delayed payments of Advance 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 month) will be charged for this period.  No late fee/penalty shall be charged for delay relating to this period.

GST/Indirect Tax

    1. Last date for filing GSTR-3B in March, April and May 2020 will be extended till the last week of 30th June, 2020 (staggered filing will apply)
    2. No Interest, Late Fee, and Penalty to be charged for those having aggregate annual turnover less than Rs. 5 Crore. In case of turnover more than Rs 5 crore, no late fee and penalty will be charged, only interest will be charged at reduced interest rate of 9%.
    3. 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. 
    4. Date for opting for composition scheme is extended till the last week of June, 2020. 
    5. 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.
    6. Date for filing GST Annual Returns of FY 18-19, which is due on 31st March, 2020 is extended till last week of June 2020.
    7. 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.  
    8. Payment date under Sabka Vishwas Scheme shall be extended to 30th June, 2020. No interest for this period shall be charged if paid by 30th June, 2020. 

Customs

  1. 24X7 Custom clearance till end of 30th June, 2020
  2. 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.  

Financial Services

  1. Relaxations for 3 months
  • Debit cardholders to withdraw cash for free from any other banks’ ATM
  • Waiver of minimum balance fee
  • Reduced bank charges for digital trade transactions for all trade finance consumers

 

Corporate Affairs

  1. No additional fees shall be charged for late filing during a moratorium period from 1st April, 2020 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’
  2. 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;
  3. Applicability of Companies (Auditor’s Report) Order, 2020 shall be made applicable from the FY 2020-2021 instead of from FY 2019-2020 notified earlier.
  4. If no Independent Directors meeting is held during FY 2019-20, then the same shall not be viewed as a violation.
  5. Requirement to create a Deposit reserve of 20% of deposits maturing during the FY 2020-21 before 30th April, 2020 shall be allowed to be complied with till 30th June, 2020.
  6. 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.
  7. 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.
  8. Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company shall not be treated as a violation.
  9. 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.

 

Employees’ Provident Fund
  1. The Government of India will pay the EPF contribution both of the Employer and the Employee (12% each) for the next three months. This will be applicable for establishments with up to 100 employees, where 90% of employees drawing less than Rs 15,000 salary.
  2.  The Government also amended EPFO regulations to allow workers under EPFO to draw up to 75% of their non-refundable advance or 3 months of wages, whichever is lower.

Necessary legal circulars and legislative amendments for giving effect to the aforesaid relief shall be issued in due course by the respective departments

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