Summarised Changes in Statutory and regulatory compliances matter in light of Covid-19 outbreak by Finance Minister Nirmala Sitharaman

Change in compliance related to Company Act

  • Applicability of Companies (Auditor’s Report) Order 2020, which was supposed to come in to force from 2019-2020, will now come into force from the F.Y. 2020-21.
  • For newly incorporated companies, the requirement for filing a declaration for the commencement of business is 6 months, which is being extended by another 6 months.
  • Mandatory requirement of holding board meetings is being relaxed by a period of 60 days, this relaxation is for the next two quarters i.e. 30th September.
  • As per Companies Act, 2013, Independent Directors are required to hold at least one meeting without Non-Independent Directors and members of management which has been relaxed for FY19 –20.
  • MCA-21 registry, moratorium issued from April 1 to September 30. There shall not be any additional fee for late filing.
  • Requirement to create a Deposit Reserve of 20% of deposits maturing during FY 2020-21 before 30th April 2020 shall be allowed to be compiled with till 30th June 2020.
  • Requirement to invest 15% of deposits maturing during particular year n specified instrument before 30th April 2020 shall be allowed to do so before 30th June 2020.

Change in compliance related to Income Tax

  • Last date for filing income tax return for F.Y 2018-19 extended to June 30,2020.
  • Various other dates for filing, notice, intimation, notification, appeal, filing of appeal etc. where the limit is expiring between 20th March, 2020 to 29th June, 2020 extended to June 30,2020.
  • Aadhaar-PAN linking deadline extended to June 30.
  • Vivad-se-Vishwas extended to June 30, no 10% additional charge.
  • Delayed deposit of T.D.S is reduced to 9% from 18%.
  • Interest rate reduce from 12 to 9% for delayed Tax payment made between 20th March, 2020 and 30th June 2020.

Changes in compliances related to Indirect taxes

  • Extending Sabka Vishwas scheme on indirect tax disputes to June 30 No interest to be levied if disputed indirect tax dues paid by June 30.
  • The 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.
  • Interest rate reduce from 12 to 9% for delayed Tax payment made between 20th March, 2020 and 30th June 2020.
  • Sabka Vishwas Scheme extended to June 30, no 10% additional charge.

Changes related to Custom Clearance

  • During the period of lockdown, customs will do their duty 24×7.
  • Various other dates for filing, notice, intimation, notification, appeal, filing of appeal etc. extended to June 30,2020.
  • Various other dates for filing, notice, intimation, notification, appeal, filing of appeal etc. where the limit is expiring between 20th March, 2020 to 29th June, 2020 extended to June 30, 2020.
  • Date for opting composition scheme extended till the last week of June 2020.
  • Last date of filing of returns for composition dealers for quarter ended March 31, 2020 is extended till the last week of June, 2020.

Changes related to I.B.C

The threshold for default raised to Rs 1 crore from Rs 1 lakh, to prevent triggering of insolvency proceedings against MSMEs.

In case the situation continues to be similar beyond April 30, 2020, Ministry may consider suspending Section 7, Section 9 & Section 10 for a period of 10 months.

Changes related to Banks

  • (a) No Minimum Bank Charges.
  • (b) Debit cardholders can withdraw cash from any other bank’s ATM for next 3 months.
  • (c) No fee will be levied if minimum balance is not maintained in accounts.
  • (d) Bank charges for digital trade have been reduced.

Priyansh Minocha

Priyansh Minocha is C.E.O and Director at Amonest India Private Limited and Founder at Casolutionsglobal

Leave a Reply