Finance Minister announces relief on Statutory Compliances due to COVID-19 CRISIS
Union Finance Minister Nirmala Sitharaman tended to the media at 2 pm today, on March 24, 2020. She reported the government’s monetary bundle to manage the COVID-19 emergency and keep the economy above water.
The declaration was made by the finance minister to serve herself through a tweet on her official Twitter account. Sitharaman expressed that the legislature is setting up an economic package that is relied upon to enable the country to overcome the total lockdown, which has been forced by 32 states and association regions to battle coronavirus episode.
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They have thought of a far-reaching alleviation on statutory and administrative consistency matters identified with annual assessment, GST, indebtedness and liquidation code, fisheries, bank-related compliance, and business-related declarations.
Tax-related matter:
1. The last date for filing income tax returns has been reached out from March 31 to June 30, 2020.
2. Vivaad se Vishwas plot has likewise been reached out to June 30 and from now there is no extra charge till June 30. Prior there was no extra charge till March 31.
3. The last date for filing of March, April and May GST returns all are being reached out to June 30.
4. For organizations that have under 5 crore turnover, no interest, late expense or punishment will be charged.
5. For bigger organizations, no late expense or punishment for an initial 15 days, however, interest will be charged at a decreased pace of 9 percent.
6. The last date for filing return under the composition scheme has likewise been stretched out to June 30.
Central custom and Central excise:
1. The last date of Sabka Vishwas plot (for settling questions in indirect tax regime) has additionally been reached out from March 30 to June 30, 2020. No interest to be collected if individuals settle up to June 30, 2020.
2. During this period, in spite of the fact that there is a lockdown, customs clearance will work 24x7 till June 30, 2020.
Companies related issues under Ministry of corporate affairs:
1. In regard to the MCA 21 registry, there is a moratorium issued from April 1 till September 30. There will not be extra expenses for late recording.
2. In an instance of holding of the compulsory board meetings, the finance ministry is loosening up it by a time of 60 days till the following two quarters.
3. The appropriateness of the companies’ auditor reports order 2020, which should have been brought into power in 2019-20, will currently be made pertinent from the financial year 2020-21.
4. For 2019-20, if the independent directors of the organization have not had the option to hold even one meeting, the equivalent will not be viewed as an infringement.
Company’s provisions:
1. For a newly incorporated company, there is a prerequisite of filing a declaration for the commencement of business within 6 months of incorporation. The time has been reached out by 6 additional months.
2. If there is a company’s director who doesn't comply with the base residency necessity, which presently is 180 days or progressively, under section 149 of the companies acts it was treated as an infringement. It won't be treated as an infringement now.
3. There is a necessity to contribute 15 percent of debentures maturing during a specific year in indicated instruments before April 30. Presently it can be done by June 30.
Insolvency and Bankruptcy Code:
1. The thresh hold for default, is presently Rs1 lakh, they are raising the threshold of default to Rs 1 crore with the goal that we can forestall activating insolvency Bankruptcy procedures against MSMEs.
2. However, they will watch the circumstance, in the event that it shows signs of improvement, at that point, we will proceed with like this. Notwithstanding, on the off chance that the circumstance keeps on resembling this significantly after April 30, at that point we will consider suspending section 7,9 and 10 of the IBC for a half year with the goal that organizations can be halted from being constrained into bankruptcy procedures
Other changes:
1. CARO 2020, will be imposed from financial year 20-21, instead of financial year 19-20
2. No extension on the TDS date. Only interest @ 9% for payments up to 30 June 2020
3. Aadhaar PAN linking extended to 30th June 2020 from 31st March 2020.
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