• The extension is applicable to both deposits as well as debentures maturing this fiscal • The extension is given in view of the requests received from various stakeholders seeking more time on account of covid-19 • The move comes at a time when businesses are struggling with a weak balance sheet after the national lockdown
The government has given a three-month extension to companies to set aside a part of the deposits and debentures maturing in FY21 in a dedicated account, a statutory requirement under the Companies Act.
The Ministry of Corporate Affairs (MCA) said in a circular that the due date of April end, which was extended till end of June in a circular in March, has been further extended till end of September, 2020.
The circular, signed on Friday, said the extension was given in view of the requests received from various stakeholders seeking more time on account of covid-19.
The extension is applicable to both deposits as well as debentures maturing this fiscal. The Companies (Share Capital and Debentures) Rules of 2014 said every company needs to set up a Debenture Redemption Reserve before end of April every year and deposit in that not less than 15% of the debentures maturing in that year. This investment could be in the form of bank deposits or central and state government securities or specified corporate bonds.
Similarly, companies accepting deposits from its members have to deposit not less than 20% of such deposits maturing in a financial year and in the subsequent financial year in a scheduled bank in a separate account called deposit repayment reserve account. For this requirement under the Companies Act too, the government had in March given three months extra time till end of June. Due dates for both the requirements now stand extended till end of September, 2020.
The move comes at a time when businesses are struggling with a weak balance sheet after the national lockdown to check the spread of coronavirus infections wiped out two months of business. The government’s over ₹20 trillion stimulus package relied mostly on bank credit to businesses rather than on more upfront measures.
The Ministry of Corporate Affairs (MCA) has in the last few months taken a series of steps that will reduce the compliance burden and lower the cost of capital for businesses.
Institute of Chartered Accountants of India enable generation of UDIN (Unique Document Identification Number) for certification by its members
A provision for generating UDIN in bulk for Certificates has been incorporated in UDIN Portal.
Using this facility now the members will be able to generate UDIN in bulk (uptil 300 UDINs) for various types of Certificates in one go. It can be done through uploading of excel file.
Process for bulk UDIN
Step-wise complete process for generating bulk UDINs is as under:
i) After login, from the Menu bar, click on Bulk UDIN for Certificates. Minimum 3 certificates and Maximum 300 certificates can be generated using this procedure.
ii) Download template file from Download Template button and open in Excel. Please note that the .xlsx file can be opened in Excel 2007 and later versions.
iii) Select Certificate type from drop down.
iv) Input dates in the format as per your system/computer (generally it is in mm/dd/yyyy or as 10 June 2020). Excel will format dates automatically in required format i.e dd-mm-yyyy. Do not use copy paste in this cell.
v) Fill in all the parameters and values.
vi) Save the file.
vii) Click on the upload file on the Certificate Form on UDIN Portal.
viii) Select the file just saved now.
ix) Portal will populate the data in the Form. Verify the data so populated.
x) If correct, Send and Verify OTP and Submit.
xi) Alternatively, the option of filling the details of Type of Certificates, Dates and key fields etc. is available on the form itself.
In a view of the pandemic situation due to COVID-19 outbreak and several representations made, by the stake holders, Ministry of Corporate Affairs (MCA) has came out with a new scheme called “Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013” for the purpose of condoning the delay in filing certain forms related to creation/ modification of charges.
This important relaxation by MCA in relation to creation and modification of Charges under the Companies Act, 2013 is very significant, especially during the pandemic situation due to COVID-19, is detailed as below:
F.No. 02/05/2020 CL-V
Government of India
Ministry of Corporate Affairs
5th Floor, ‘A’ Wing, Shastri Bhawan,
Dr. Rajendra Prasad Road, New Delhi-1.
General Circular No. 23/2020
Dated: 17th June, 2020
To
All Regional Directors,
All Registrar of Companies,
All Stakeholders.
Subject: Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013.
Sir/Madam,
The companies are required to file forms related to creation or modification of charges within the timelines provided in section 77 of the Companies Act, 2013 (Act), i.e. a total of 120 days of the creation or modification of charge. In case, the company fails to register the charge within the period of thirty days referred to in sub-section (1) of section 77, the charge holder may file the form related to creation or modification of charges under section 78 of the Act, within the overall timelines for filing of such form under section 77.
On account of the pandemic caused by the COVID-19, representations have been received in this Ministry, requesting that the timelines related to filing of certain charge related forms may be suitably relaxed so as to provide a window of compliance for the registration of charges. Under the Companies Fresh Start Scheme, 2020 as laid out in the General Circular No. 12/2020, dated 30.03.2020, the benefit of waiver of additional fees was not extended to the charge related documents. Therefore, it has been suggested that some dispensation may be provided for filing of charge related documents as well.
In view of the above, the Central Government in exercise of its powers under section 460 read with section 403 of the Act and the Companies (Registration Offices and Fees) Rules, 2014 (Fees Rules) has decided to introduce a Scheme, namely “Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013” for the purpose of condoning the delay in filing certain forms related to creation/modification of charges.
The details of the scheme are as under: –
(i) The scheme shall come into effect from the date of issue of this Circular.
(ii) Applicability: The scheme shall be applicable in respect of filing of Form No. CHG-1 and Form No. CHG-9 (both referred as ‘form’ or ‘forms’) by a company or a charge holder, where the date of creation/modification of charge:
(a) is before 01.03.2020, but the timeline for filing such form had not expired under section 77 of the Act as on 01.03.2020, or
(b) falls on any date between 01.03.2020 to 30.09.2020 (both dates inclusive).
(iii) Relaxation of time:
(a) In case a form is filed in respect of a situation covered under sub-para (ii)(a) above, the period beginning from 01.03.2020 and ending on 30.09.2020 shall not be reckoned for the purpose of counting the number of days under section 77 or section 78 of the Act. In case, the form is not filed within such period, the first day after 29.02.2020 shall be reckoned as 01.10.2020 for the purpose of counting the number of days within which the form is required to be filed under section 77 or section 78 of the Act.
(b) In case a form is filed in respect of a situation covered under sub-para (ii)(b) above, the period beginning from the date of creation/modification of charge to 30.09.2020 shall not be reckoned for the purpose of counting of days under section 77 or section 78 of the Act. In case, the form is not filed within such period, the first day after the date of creation/modification of charge shall be reckoned as 01.10.2020 for the purpose of counting the number of days within which the form is required to be filed under section 77 or section 78 of the Act.
(iv) Applicable Fees:
(a) In regard to sub-para (iii)(a) above, if the form is filed on or before 30.09.2020, the fees payable as on 29.02.2020 under the Fees Rules for the said form shall be charged. If the form is filed thereafter, the applicable fees shall be charged under the Fees Rules after adding the number of days beginning from 01.10.2020 and ending on the date of filing plus the time period lapsed from the date of the creation of charge till 29.02.2020.
(b) In regard to sub-para (iii)(b) above, if the form is filed before 30.09.2020, normal fees shall be payable under the Fees Rules. If the form is filed thereafter, the first day after the date of creation/modification of charge shall be reckoned as 01.10.2020 and the number of days till the date of filing of the form shall be counted accordingly for the purposes of payment of fees under the Fees Rules.
(v) The Scheme shall not apply, in case:
(a) The forms i.e.CHG-1 and CHG-9 had already been filed before the date of issue of this Circular.
(b) The timeline for filing the form has already expired under section 77 or section 78 of the Act prior to 01.03.2020.
(c) The timeline for filing the form expires at a future date, despite exclusion of the time provided in sub-para (iii) above.
(d) Filing of Form CHG-4 for satisfaction of charges.
This issues with the approval of the Competent Authority.
MCA extends the deadline for conducting extra ordinary general meetings (EGMs) through VC/ OAVM/ Postal Ballot and passing of ordinary/ special resolutions, from 30 June to 30 Sept. 2020, provided the other guidelines of the framework, prescribed earlier, are adhered to.
Subject: Clarification on passing of ordinary and special resolutions by companies under the Companies Act, 2013 read with rules made thereunder on account of Covid-19 – Extension of time- reg.
This Ministry has issued General Circular No. 14/2020 on 8 April, 2020 and General Circular No. 17/2020 on 13th April, 2020 for providing clarifications on passing of ordinary and special resolutions by companies by holding extraordinary general meetings (EGMs) through video conferencing (VC) or other audio visual means (OAVM) or passing of certain items only through postal ballot without convening general meeting. The framework provided in the said Circulars allows companies to hold relevant EGMs or transact relevant business through postal ballots, as per procedure specified therein, upto 30th June, 2020 or till further orders, whichever is earlier. Requests have been received from the stakeholders for extending the period upto which the framework provided in the aforesaid Circulars may be utilized by the companies.
The matter has been examined and it has been decided to allow companies to conduct their EGMs through VC or OAVM or transact items through postal ballot in accordance with the framework provided in the aforesaid Circulars upto 30th September, 2020. All other requirements provided in the said Circulars remain unchanged.
The ministry further said it has also taken a note of difficulties and concerns expressed by the taxpayers regarding filing of GSTR-3B and other returns.
The 40th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing here today- 12th June 2020. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance& States/ UTs.
GST Council, has recommended to reduce / waive the interest/ late fee for delayed filing of GSTR 3B by small taxpayers (having turnover upto Rs. 5 crores) for the tax period from July 2017 to July 2020, as under:
Reduction in Late Fee for Past Returns (July 2017 to January 2020)
As a measure for trade facilitation and to clean-up the pendency in filing of GSTR 3B for the period from July 2017 to January 2020, the GST Council has recommended to reduce/ waive the late fee for past returns, as under:
a) ‘NIL’ late fee if there is no tax liability;
b) Maximum late fee capped at Rs. 500/- per return if there is any tax liability.
The reduced rate of late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020.
Relief for filing of returns for February – April 2020
Further GST Council has recommended to provide relief for small taxpayers (having turnover upto Rs. 5 Crores) by way of reduced interest of 9% in lieu of 18% upto 30 Sept. 2020, for late filing of returns for the tax periods February, March and April 2020. This interest shall be charged beyond specified last date (staggered upto 6th July 2020) for filing of GSTR 3B return for the said tax periods.
Relief for filing of returns for May – July 2020
Also, GST Council has recommended to provide relief for small taxpayers (having turnover upto Rs. 5 Crores) by way of waiver of interest and late fee upto 30 Sept. 2020, for late filing of GSTR 3B return for the tax periods May, June and July 2020.
Recommendations of GST council related to Law & Procedure
The GST Council has made the following recommendations on Law & Procedures changes.
Measures for Trade facilitation:
Reduction in Late Fee for past Returns:
As a measure to clean up pendency in return filing, late fee for non-furnishing FORM GSTR-3B for the tax period from July, 2017 to January, 2020 has been reduced / waived as under: –
i) ‘NIL’ late fee if there is no tax liability;
ii) Maximum late fee capped at 500/- per return if there is any tax liability.
The reduced rate of late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020
b) Further relief for small taxpayers for late filing of returns for February, March & April 2020 Tax periods:
For small taxpayers (aggregate turnover upto Rs. 5 crore), for the supplies effected in the month of February, March and April, 2020, the rate of interest for late furnishing of return for the said months beyond specified dates (staggered upto 6th July 2020) is reduced from 18% per annum to 9% per annum till 30.09.2020. In other words, for these months, small taxpayers will not be charged any interest till the notified dates for relief (staggered upto 6th July 2020)and thereafter 9% interest will be charged till 30.09.2020.
c) Relief for small taxpayers for subsequent tax periods (May, June & July 2020):
In wake of COVID-19 pandemic, for taxpayers having aggregate turnover upto Rs. 5 crore, further relief provided by waiver of late fees and interest if the returns in FORM GSTR-3B for the supplies effected in the months of May, June and July, 2020 are furnished by September, 2020 (staggered dates to be notified).
d) One time extension in period for seeking revocation of cancellation of registration:
To facilitate taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of application for revocation of cancellation of registration up to 30.09.2020, in all cases where registrations have been cancelled till 12.06.2020.
Certain clauses of the Finance Act, 2020 amending CGST Act 2017 and IGST Act, 2017 to be brought into force from 30.06.2020.
Note: The recommendations of the GST Council have been presented in this release in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/ Notifications which alone shall have the force of law.
Council to meet again in July to specially discuss how the government can pay off states for the compensation cess dues, since the funds are falling short.
This would substantially improve ease of GST compliance for over 22 lakh registered taxpayers who had to otherwise log into their account on the common portal and then file their returns every month.
In a significant move towards taxpayer facilitation, the Government has today onwards allowed filing of NIL GST monthly return in FORM GSTR-3B through SMS.
This would substantially improve ease of GST compliance for over 22 lakh registered taxpayers who had to otherwise log into their account on the common portal and then file their returns every month.
Now, these taxpayers with NIL liability need not log on to the GST Portal and may file their NIL returns through an SMS.
For this purpose, the functionality of filing Nil FORM GSTR-3B through SMS has been made available on the GSTN portal with immediate effect.
The status of the returns so filed can be tracked on the GST Portal by logging in to GSTIN account and navigating to Services>Returns>Track Return Status.
The Central Board of Direct Taxes (CBDT) has notified new Income-tax Return (ITR) forms applicable for the Assessment Year 2020-21.
CBDT notified Income Tax Return forms of FY 2020-21
G.S.R. 338(E).— In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes has made the rules to amend the Income-tax Rules, 1962.
The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 969(E), dated the 26th March, 1962 and last amended by the Income-tax (11th Amendment) Rules, 2020, vide notification number G.S.R. 329 (E) dated 28.5.2020.
In essence, the following are the key changes:
House ownership: Individual taxpayers who are joint owners of house property cannot file ITR 1 or ITR4.
Passport: One needs to disclose the Passport number if held by the taxpayer. This is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam. Hopefully, it will be made mandatory in other ITR Forms as and when they are notified.
Cash deposit: For those filing ITR 4-Sugam, it has been made compulsory to declare the amount deposited as cash in a bank account, if such amount exceeds Rs 1 crore during the FY.
Foreign travel: If you have spent more than Rs 2 lakh on travelling abroad during the FY, you need to disclose the actual amount spent.
Electricity consumption: If your electricity bills have been more than Rs 1 lakh in aggregate during the FY, you need to disclose the actual amount.
Investment details: Details of investment qualifying for deduction under chapter VIA with bifurcation of details of investment made during the period from April 1, 2020 to June 30, 2020.
A new schedule ‘Schedule DI’ has been inserted to claim benefit of investment/ deposit/payments made between 01-04-2020 to 30-06-2020 for the previous year 2019-20.
