Recent Tax Announcements made and Regulatory Reliefs given due to the COVID-19 Effect : An Indian Context

As the world battles the COVID-19 pandemic, countries are moving to stringent measures like lockdowns and curfews. With markets crashing, the global economy is staring at a deep distress.

Entire world is fighting against epidemic COVID 19 outbreak and Hon’ble Prime Minister of India Sh. Narendra Damodardas Modi has taken much need precautionary step of complete lockdown from midnight 12’o clock of 24^th March, 2020 onwards for next 21 days and again extended to 3^rd May, 2020 for another 19 days.

In this difficult environment, each regulatory body is releasing relief measures and guidelines for easing out the impact of COVID 19. On the financial and compliance front, announcements have been flowing from the Government authorities in the form of deferment of statutory due dates or relaxation in payment terms to overcome the financial crisis being faced due to lock-down.

Similar to several countries, the Government of India has begun working on an economic package to deal with the impact of the pandemic. Realising the hardships faced by its citizens, the Union Finance & Corporate Affairs Minister Smt. Niramla Sitharaman has announced several important relief measures on tax and regulatory aspects.

The Finance Minister also announced that necessary legal circulars and legislative amendments for giving effect to these relief measures will be issued by the concerned Authority.

Following is the summarised form of the key announcements made by the Finance Minister here below:

Direct Taxes

1. Extension of tax return filing deadline

The deadline for the following types of tax return have been extended from 31 March 2020 to 30 June 2020

Belated income-tax return for tax year 2018-19
Revised income-tax return for tax year 2018-19

2. The timeline for linking Aadhaar with PAN has been extended to 30 June 2020

3. Relief with regards to delay in payment of taxes

Interest at the reduced rate of 9% (i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged on delay in respect of following payments made between 20 March 2020 and 30 June 2020:
1. Advanced tax
2. Self-assessment tax
3. Regular tax
4. Taxes withheld or collected at source
5. Equalization levy
6. Securities Transaction Tax and
7. Commodities Transaction Tax
Penalty and late fees in relation to the above mentioned payments are to be waived off

4. Extension of compliance due dates

In respect of the following, where the due dates fall between 20 March 2020 and 29 June 2020, the revised due dates shall be 30 June 2020:

Issue of notice
Intimation
Notification
Approval order
Sanction order
Filing of appeal
Furnishing of return, statements, applications, reports, any other documents
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

5. The Direct Tax Vivad se Vishwas Act, 2020:

The timeline for payment of disputed arrears without attracting additional 10% amount under the Vivad se Vishwas Scheme extended from 31 March 2020 to 30 June 2020.

Indirect Taxes

1. Extension of GST return filing deadlines:

The last date for filing the forms GSTR-3B due in months of March, April and May 2020 (i.e. returns of February, March and April 2020) will be extended till 30 June 2020 (in staggered manner)
Date for filing GST annual returns of FY 18-19, which is due on 31 March 2020 is extended till the last week of June 2020

2. Relief in respect of payment of taxes

For those having aggregate annual turnover less than INR 50mn, no interest, late fee, and penalty will be charged for the period
However, for those having an aggregate annual turnover of more than INR 50mn, a reduced rate of interest @ 9% per annum will be charged from 15 days after due date (current interest rate is 18 % per annum) for the delayed payment between 20 March 2020 and 30 June 2020, but no late fee and penalty will be charged if complied before 30 June 2020
Last date for making payments by the Composition dealers for the quarter ending 31 March 2020 will be extended till the last week of June 2020
Payment under Sabka Vishwas Scheme shall be made without interest till 30 June 2020

3. Extension of compliances due dates

In respect of the following under GST law, where the due date falls between 20 March 2020 and 29 June 2020, shall be extended to 30 June 2020:

Issue of notice
Notification
Approval order
Sanction order
Filing of appeal and
Furnishing of return, statements, applications, reports, any other documents

4. Date for opting for composition scheme for the F.Y. 2020-2021 is extended till 30 June 2020

5. 24X7 Custom clearance till end of 30 June 2020

Corporate Laws

1. CARO 2020

Applicability of Companies (Auditor’s Report) Order, 2020 will be effective from FY 2020-2021

2. Board meeting

The mandatory requirement of holding Board meetings within prescribed interval provided by the Companies Act, 2013 (120 days) shall be extended by a period of 60 days till next two quarters i.e. till 30 September

3. Meeting of Independence Directors

For FY 2019-20, if mandatory one meeting of independent directors is not held, the same will not be treated as non-compliance

4. Form INC-20A- Declaration of commencement of Business

New Companies being given 6 more months for filing declaration of commencement of business

5. Debenture

Time line to invest 15% of debentures maturing in a particular year has been extended from 30 April 2020 to 30 June 2020

6. Deposit Reserve

Requirement of creating a Deposit Reserve (equal to 20%) of deposits maturing during FY 20-21, extended to 30 June 2020 instead of 30 April 2020

7. Minimum residency

Non-compliances with 182 days residency in India by Director will not treated as non-compliance

8. No Additional Fees

Moratorium period from 1 April 2020 to 30 September 2020, during which no additional fee would be charged in respect of any filing, irrespective of its due date

9. Insolvency and Bankruptcy Code 2016 (IBC)

Minimum amount of default required to initiate insolvency and liquidation on corporate debtors raised from INR 1 lakh to INR 1 crore, effective immediately, in order to prevent admission of MSMEs defaulting due to economic conditions in lieu of COVID-19
Proposed Suspension of new initiations of Corporate Insolvency Resolution Process under Sections 7, 9 and 10 of IBC for 6 months, contingent upon scenario beyond 30 April 2020 as a safeguard companies from defaults attributable to financial downturn pursuant to the COVID-19 pandemic

Among the measures announced late on Tuesday, the government extended the e-way bill validity for the second time since the lockdown was imposed. The e-way bill generated on or before March 24 and expiring during the March 20-April 15 period would now be valid till May 31. This is likely to help trucks stuck en route to reach their destinations.

Further, the notification extended by three months the deadline for furnishing the annual return and GST audit for financial year 2018-19 to September 30. Additionally, a taxpayer can now furnish monthly return GSTR-3B showing nil sales through SMS using the registered mobile number. This return would be verified by a registered mobile number based one-time password (OTP) facility, the notification said.

WEBSITES REFERRED

1)https://www.mondaq.com/india/operational-impacts-and-strategy/915470/covid-19-impact-indian-government-announces-tax-and-regulatory-reliefs

2)https://vjmglobal.com/blog/covid-19-statutory-businesss-regulatory-relief/

3)https://www.financialexpress.com/economy/procedural-relief-to-gst-payers-but-experts-say-no-substitute-for-financial-package/1950617/

4)http://www.lawstreetindia.com/experts/column?sid=354

5)https://www.a2ztaxcorp.com/fm-releases-ordinance-on-direct-tax-on-relaxation-provided-on-24th-march-2020/

6)https://www.a2ztaxcorp.com/fm-releases-ordinance-on-indirect-tax-on-relaxation-provided-on-march-24-2020/

7)https://dashnews.org/tax-day-in-the-u-s-causes-confusion-within-the-crypto-space/

The New Consumer Protection Act,2019 in India is an upper hand and an added advantage for the consumers in manifold ways

The Consumers can now cheer as the Consumer Protection Act, 2019 has recently replaced the three decade old Consumer Protection Act, 1986. The Consumer Protection Act, 2019 which came into effect on Monday (July 20) has replaced the earlier Consumer Protection Act, 1986.

The new Act as per the Experts say that “it gives more power to the consumers”. It seeks to revamp the process of administration and settlement of consumer disputes, with strict penalties, including jail term for adulteration and misleading ads by firms.

On July 20, 2020 certain provisions of the Consumer Protection Act, 2019 came into force as notified by the Central Government. Following the the key features of the relevant provisions:-

Key features of the Consumer Protection Act, 2019 which came into effect on July 20, 2020:-

1) Consumers can now institute a complaint from where they reside or work for gain.

2) The original pecuniary jurisdiction of the District Commissions has increased upto ₹1 crore from ₹20 lakh earlier.

3) The Pecuniary jurisdiction of State Commissions has been increased from ₹1 crore to Rs. 10 crore.

4) The National Commission can hear cases above ₹10 crore when compared to above ₹1 crore earlier.

5) While the provisions relating to e-commerce are not yet notified, a section relating to electronic service provider (covering software services, electronic payments) is notified.

6) The opposite party needs to deposit 50% of the amount ordered by the District Commission before filing an appeal before the State Commission. Earlier, the ceiling was a maximum of ₹25,000, which has been removed.

7) The limitation period for filing of appeals to the State Commission has been increased from 30 days to 45 days.

8) The Parties can be allowed to settle the disputes through mediation.

Following are the Sections which came into force:

Consumer Protection Act 2019- Sections to come into force from July 20,2020

Above mentioned provisions pertain to the Consumer Protection Councils, Consumer Disputes Redressal Forum, Mediation, Product Liability, punishment for manufacturing, selling, distributing etc spurious good or products which contain adulterant.

As per the rules, the e-commerce players will have to display the total ‘price’ of goods and services offered for sale along with break-up of other charges. Only a few certain miscellaneous provisions with regards and respect to the powers of the Central and State Government to make the rules and regulations have also been enforced.

On misleading advertisements there is provision for jail term and fine for manufacturers. There is no provision for jail for celebrities but they could be banned for endorsing products if it is found to be misleading.

For the first time there will be an exclusive law dealing with Product Liability. A manufacturer or product service provider or product seller will now be responsible to compensate for an injury or damage caused by the defective product or deficiency in services.

The Act has also defined an “e-commerce” as the buying or selling of goods or services including the digital products over digital or electronic networks. The existing definition of e-commerce has been adopted from India’s FDI Guidelines on e-commerce.

The definition of ‘e-commerce Entity’ as provided under the FDI Guidelines includes inventory and market place models.

There is also a provision for class action law suit for ensuring that rights of consumers are not infringed upon. The authority will have power to impose a penalty on a manufacturer or an endorser of up to 10 lakh rupees and imprisonment for up to two years for a false or misleading advertisement.

WEBSITES REFERRED

1)https://consumeraffairs.nic.in/acts-and-rules/consumer-protection

2)https://www.barandbench.com/news/law-policy/provisions-under-consumer-protection-act-2019-to-come-into-force-on-july-20-2020-centre-notifies

3)https://www.google.com/amp/s/www.thehindu.com/news/national/tamil-nadu/new-consumer-protection-act-gives-more-power-to-consumers-experts-say/article32135908.ece/amp/

4)https://www.google.com/amp/s/www.livemint.com/news/india/consumer-protection-act-rules-for-e-retailers-to-be-effective-by-this-weekend/amp-11595291549084.html

5)https://www.google.com/amp/s/zeenews.india.com/economy/new-consumer-protection-act-2019-comes-into-force-today-know-how-it-will-benefit-you-2297012.html/amp

6)https://www.google.com/amp/s/m.economictimes.com/wealth/spend/heres-how-consumers-will-benefit-under-the-new-consumer-protection-act/amp_articleshow/70711304.cms

7)https://www.google.com/search?q=consumer+protection+act%2C2019&tbm=isch&ved=2ahUKEwjOhv7-sN7qAhVIH3IKHTOCBfMQ2-cCegQIABAC&oq=Consumer&gs_lcp=ChJtb2JpbGUtZ3dzLXdpei1pbWcQARgAMgQIIxAnMgUIABCxAzIFCAAQsQMyBQgAELEDMgUIABCxAzoHCCMQ6gIQJzoCCAA6BwgAELEDEEM6BAgAEENQ0xRYzipg1jBoAnAAeACAAZABiAGHCJIBAzAuOJgBAKABAbABBcABAQ&sclient=mobile-gws-wiz-img&ei=e-QWX47dJsi-yAOzhJaYDw&bih=682&biw=393&prmd=ivn#imgrc=eILduqMFjleJaM

8)https://www.vecteezy.com/free-vector/consumer

9)https://www.google.com/amp/s/www.livelaw.in/amp/news-updates/most-provisions-of-consumer-protection-act-to-come-into-force-160003

Interesting facts that will surely make you think twice.

In this universe, there are many interesting facts that will blow up our mind and make us think twice about them.As it is said change of subject is rest of mind ,Knowing about interesting facts help us in relieving stress and keep mind updated, as such in this crisis times let us be worry less and tension free and explore some of the interesting facts:

1.It can take a photon 40,000 years to travel from the core of the sun to surface, but only 8 minutes to travel the rest of the way to earth.