New Corporate & Professional Update May 2020

New Corporate & Professional Update:

“Ups and downs are part of life, but to change this time of crisis into a time of opportunity is what gives us a special identity”

Holding this in mind, let us begin by reflecting on our mission and dream, and let us ensure that we have made no mistake in complying with the organization. A few General Conformities referred to in the attached photo. The business and the industry that vary in their wise compliance.

KEY PRACTICAL TAKEAWAYS:

Income Tax:

# CBDT has issued Circular No. 12/2020 dated 20.05.2020 in order to exempt B2B suppliers with 95% or more receipts through non-cash mode to not maintain prescribed payment modes as per Section 269SU such as POS, UPI, UPI-QR, etc.

Note-These assesses can disable these facilities if they are not in operation.

# CBDT released Notification No. 25/2020 dated 20.05.2020 to ensure that the ‘Safe Harbor Principles’ applied in the case of Overseas Transactions shall extend to FY 2020-21 in the same manner as those applied in previous years.

# In the case of a company that opts to pay tax under the “New 22% Scheme” under Section 115BAA, the MAT credit standing in the books must be written off because you will not be eligible to claim the same amount.

Note-Carefully opt for the scheme as the blind application of the 22% tax would eventually cause you a loss.

# TDS The rates have been lowered by 25 percent of the current rates, e.g. 14.05.2020. Here are a few clarifications in this regard:

  • The rate cut shall not extend to TDS for non-residents u / s 195.
  • The rate cut does not occur in non-PAN cases (20 percent FLAT rate) or 206AA cases.
  • The decrease in the TDS rate will apply to invoices due or payments made on or after 14.05.2020, even if the invoice date is before 14.05.2020. What you’ve got to do is “Due or Fee.” When all days occur on or after 14.05.2020, the reduced rate will apply.

# The due dates of ITR for FY 2019-20 have been extended to 30.11.2020 for all assesses. In fact, the due date of the tax assessment in the case of ALL the assesses has been extended to 31.10.2020.

Note-In brief, we should assume that irrespective of whether or not the assessee is subject to a tax audit OR TP audit, the above due dates are valid.

# For the calculation of depreciation under the Income Tax Act, 1961 for the year 2019-20, consider the following:

  1. Remember the effect of the “Leap Year” (i.e. 29.02.2020) on the estimate of 180 days. This period taking 100 percent depreciation for assets underuse after “04.10.2019” instead of 03.10 earlier and 50 percent depreciation for assets underuse after “04.10.2019.”
  2. In the case of a company, whether you take the “22% tax limit” or 115BAA, do not take the “additional depreciation” deduction.

Goods & Services Tax:

# The government. Subsequently, the amendment to Section 140 of the CGST Act 2017 was notified in order to provide the legislative authority to have a time limit for the claim of transitional credit and the invalidation of Delhi HC ‘s decision to offer a time limit for the claim of transitional credit until 30.06.2020.

# whilst still trying to prepare GSTR-9 (Annual Return) for FY 2018-19, in scenario you have paid less tax in your GSTR-3B, you will have to pay the balance tax along with Interest by filing DRC-03 through the common portal.

Note-If paid in DRC-03, the auditor shall not recommend any responsibility in GSTR-9C.

# GST Portal has allowed the Input Service Distributor (ISD) facility to change negative ITC to its Units in the event that no ITC is to be delivered for a month and ISD is needed to distribute ITC reversal via CN.

# Filing of GST Return is compulsory along with payment in case of opting for 15 days relaxation of GSTR-3B filing for taxpayers with a revenue of more than INR 5 crores.

Note-If you pay tax under Cash Ledger and do not file GSTR-3B within the due date + 15 days period, you will have to pay interest at 9 percent before 24.06.2020.

Corporate & Allied law:

MSME Definition: MSME is divided into two main categories:

  1. Manufacturing enterprise; and
  2. Service enterprise.

They are described as below in terms of investment in plant and machinery/equipment.

Illustration 1.

  • Investment: 50 Lakhs
  • Turnover: 4 Cr

As investment is less than 1 Cr and Turnover is less than 5 Cr. It fulfilled both conditions of the Micro category. Hence, it is a Micro-Enterprise.

Illustration 2.

  • Investment: 2 Cr
  • Turnover: 4 Cr

As investment is more than 1 Cr. Therefore, it is outside the purview of Micro Enterprise. As investment is less than 10 Cr and Turnover is less than 50 Cr. It fulfilled both conditions of the small category. Hence, it is a Small Enterprise.

Illustration 3.

  • Investment: 2 Cr
  • Turnover: 60 Cr

As turnover is more than 60 Cr. Therefore, it is outside the purview of Small Enterprise. As investment is less than 20 Cr and Turnover is less than 100 Cr. It fulfilled both conditions of the medium category. Hence, it is a Medium Enterprise.

# In the case of a corporation formed between 01.01.2020 and 31.03.2020, there is no annual compliance with FY 2019-20 except for the appointment of an auditor to the Board of Directors (no requirement for ADT-1) and the submission of an ITR. In other words, the following:

  • There is no need to schedule FS for these three months and the first FS will be prepared as of 31.03.2021.
  • There is no need to schedule the first AGM now and the due date of the First AGM will be 31.12.2021.
  • There is no need to file MGT-7 (Annual Return), AOC-4 (FS Filing).

Note-For the tax audit of these firms for these three months, Form 3CB-3CD (not 3CA-3CD) must be used.

# MCA explained w.r.t. timelines and length of name allocation, name transition, and resubmissions as follows:

  • Approved NEW Names from 15.03.2020 to 31.05.2020 will be held until 20.06.2020.
  • Approved CHANGE in Names expiring between 15.03.2020 and 31.05.2020 will be reserved until 30.07.2020.
  • Resubmission of any MCA type on which the last resubmission date expired between 15.03.2020 and 31.05.2020 has been extended until 15.06.2020.

# The government. Notified lowered PF prices (10 percent instead of 12 percent) for all workplaces for the months of May, June, and July 2020 for both employers and workers. If the employer contribution is still part of the CTC, you will take home 4 percent of the diminished contribution otherwise it will save 2 percent for the company and raise the employee ‘s profitability by 2 percent.

Note-You may also contribute more than 10%.

# In the case of an organisation where up to 100 workers are working and out of which 90 percent are paying less than INR 15,000, no employer and employee payment (24 percent) will be payable and the whole payment will be borne by the State. Before August 2020.

# In the case of other PF companies (not mentioned above), the Contractor and Employee share is expected to be charged at 10% each (means 20% instead of 24%) in June, July and August, 20.

# The government. Plans to extend the ESI Act to all businesses that have 10 or more employees and the region-wise provisions that have already been issued would expire.

# There is no need to file the ADT-1 form in the case of the first appointment of an auditor because the ADT-1 file is regulated by Section 139(1) and the first auditor is named pursuant to Section 139(6) and not pursuant to Section 139(1) of the Companies Act 2013.

# In the event of the termination of the auditor, the new auditor named in place of the previous auditor may hold office only up to the next AGM date and not for a term of five years. You will name such an auditor again at the next meeting of the AGM.

Insolvency (IBC)

  • Debt accrued or sustained in a corona case shall not be included in the default.
  • No current insolvency up to 1 year
  • In the case of small and medium-sized companies, separate insolvency of 240A IBC and a minimum requirement of Rs . 1 Lakes to 1 Crore should be imposed.

Conveyance Deed Cancelled: Flat owners must sign their names in the Land Tax Card / Municipal Registry. This was accepted by the Maharashtra State Cabinet in Principle at its meeting held yesterday.

The New Legislation will be passed to Surpass The Continuation of the Conveyance Contract. Draft New Law will be Available in Few Weeks and the Law will be approved at the Budget Session or Monsoon session of the Maharashtra Legislative Assembly. Now experience Land Ownership along with Flat.

Supreme Court Decision on the transition of Flat to Nominee. Land Mark Judgment

  • Deceased Member Nominee is entirely entitled to Ownership through the transition to the Co-op Society.
  • Society Can’t Challenge the Right to Nominate a Land Law.
  • No legitimate inheritance, no court order or certificate of succession is required.
  • Please Circulate, Essential to Members of the Society and Office Bearers.
  • After the nomination is registered with the organization You Don’t Need
    1. To Prove Legal Heirship.
    2. No Further Court Order Required.
    3. No Succession Certification

Thus, Transfer to Registered Nominee is Automatic.

KEY DUE DATE:

Tax on income:

# 30.06.2020 is the due date for filing Form 61A (SFT Compliance) in the event that you have such substantial financial transactions as the issue of shares worth more than INR 10 lakhs.

Note-In the case of no such SFT activity, the tax audit assesses are required to file the “Preliminary SFT Reponse” on the e-filing platform by the said due date.

# 07.06.2020 is the due date for payment of TDS / TCS for the month of May 2020.

# 30.06.2020 is the due date for the TDS / TCS returns file for Q4 (F.Y. 2019-20).

# 30.06.2020 is the due date for the ITR / Revised ITR register for the 2018-19 fiscal year.

Note-The ITR for FY 2017-18 can not now be submitted as the due date for the paper lapsed.

# 31.05.2020 is the due date for filing Form 61A (SFT Compliance) in the event that you have such substantial financial transactions as the issue of shares worth more than INR 10 lakhs.

Goods and Services Tax

# 04.06.2020 is the due date for filing GSTR-3B for the month of April 2020 in the case of taxpayers with a gross turnover of more than INR 5 crores in the previous year.

Note-You can delay filing above GSTR-3B until 24.06.2020 without any late fees but with 9 percent p.a. Responsibility for interest.

Corporate & Allied law:

# MCA has declared a “Moratorium Period” from 01.04.2020 to 30.09.2020 for the filing of ROC Forms and no further penalties will be paid during this time due to the late submission of any form submitted during this time.

We hope that no deadline will be skipped because of COVID-19.

Please feel free to return should you have any questions or uncertainty.

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

RBI Governor Press Announcements highlights: RBI reduces the rate, extends the loan relief

Announcements: RBI of the Government: 22/05/2020

  1. Term loan moratorium extends to August 31, 2020-The debt moratorium will be continued to August 31 , 2020. Which gives it a six-month moratorium.
  2. Interest deferral on working capital-Interest on working capital is deferred by another 3 months, i.e. until 31 August 2020.
  3. Conversion of interest on working capital to fixed-term loans-Loan agencies is permitted to turn accrued interest on working capital facilities over the deferment period (until August 31, 2020) into a secured interest-term loan (repayable by March 31, 2021).
  4. The margin for Working Capital – Drawing Power – Lending institutions was required to return working capital margins to the original amount by 31 March 2021.
  5. Reduce the repo rate by 40 bps to 4%. The interest rate should then be reduced.
  6. Export Credits-Maximum Allowable Export Credit (Pre and Post Shipping) extended from 12 months to 15 months.
  7. Payment against imports-Extension of the time limit to allow payments against imports from 6 months to 12 months
  8. Help to EXIM Bank-Facility of Rs 15.000 crore credit line for 90 days for US dollar swap facility will be given to EXIM Bank.
  9. Extension of Resolution Timelines-Deferment or moratorium time shall be removed when measuring the 180-day resolution deadline.
  10. Group Financing -Group exposure increased from 25% to 30%
  11. SIDBI support – In order to provide greater flexibility to SIDBI, a further 90-day extension of the 90-day loan facility will be offered.
  12. Trade Impact -Loan moratorium shall have no effect on improvements in asset classification, financial history, and aging requirements, etc.
  13. Trade Impact-The The volume of world trade can fall by 13 percent-32% this year.

    Post by Rajput Jain & Associates

    Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

SUMMARIES OF SEBI RELAX & ENCOURAGED PROVISIONAL RELIEF FOR RIGHTS ISSUE

SEBI relaxed and welcomed short track rights issues generating capital on the stock market until 31 March 2021.

COVID-19: SEBI Relaxes Regulatory Provisions for Rights, Public ...

Steps to further promote the collection of funds from capital markets in the light of the COVID-19 disease outbreak

In the face of the threats to the Indian economy emerging from the Covid-19 pandemic and with a view to enhancing access to corporate finance through capital markets, SEBI has agreed to offer some temporary relief from regulatory obligations related to rights / public concerns to listed entities.

Right Issues

Fast Track Rights issuances

SEBI has relaxed the following requirements in order to broaden the scope of mentioned organizations for the benefit of fast track rights issues:

1) The qualification requirement for the total market capitalization of the public shareholding of INR 250 crores has been lowered to INR 100 crores.

(2) The requirement relating to the period of listing of the shares of the issuer for at least three years has been reduced to a listing of only eighteen months.

3) The provision relating to no audit credentials in the audited reports of the issuer has been replaced by the obligation to report the effect of the audit credentials on the financial statements of the issuer.

4) Some other requirements of registration with respect to the time of compliance with the terms of the listing regulations, the pending proceedings were taken by SEBI against the issuer/promoter/director, and the enforcement of the violation of the securities laws have now been relaxed.

Minimum Subscription

For order to have more consistency for collecting funds, the threshold for minimum subscription thresholds for rights issues has been reduced from the current 90 percent to 75 percent of the bid value, subject to some limitations.

The threshold for failing to apply a request for a letter of a bid to SEBI

In order to minimize the time involved in raising funds and to simplify compliance requirements, identified organizations collecting funds up to INR 25 crores in rights issues would not be required to request a draft bid paper.

The official requirement for this is INR 10 crores. Such relaxations shall extend to the correct problems which are accessed on or before 31 March 2021. It can be recalled that SEBI revised the ICDR Regulations last year in order to substantially shorten the timeline for the resolution of the T+ 55-day rights question to T+ 31 days and to implement the dematerialization and exchange of rights entitlements. Such steps will make the system for rights more functional and successful.

Flexibility on Issue size

An issuer whose offer document is awaiting receipt of SEBI observations may increase or decrease the size of the fresh issue by up to 50 per cent of the expected issue size (instead of the existing limit of 20 per cent) without allowing the Board to send a fresh draft offer document. Relaxation shall extend to all tender contracts awaiting receipt of SEBI findings by 31 December 2020.

Validity of the findings of SEBI

Having respect to the current economic scenario and on the basis of demands from different industrial bodies, It has been agreed that SEBI ‘s observations on all public issues / rights issues will be extended by six months from the date of expiry for issuers whose observations have expired / expired between 1 March 2020 and 30 September 2020.

To sum up, these steps are aimed at widening the number of listed organisations that are entitled to collect funds by fast track privileges, minimizing the time required and ensuring more flexibility in raising funds rather than relaxing regulatory conditions.

Circulars released by SEBI in respect of the measure referred to above are accessible on the SEBI website at http:/www.sebi.gov.in under the category-‘Legal-Circulars’. Mumbai 21 April 2020

 

11 VERIFIED STRATEGIES THAT CAN MAKE YOU SUPER ACCOMPLISHERS IN EVERYTHING YOU DO, THOUGH

11 VERIFIED STRATEGIES THAT CAN MAKE YOU SUPER ACCOMPLISHERS IN EVERYTHING YOU DO, THOUGH # WORKFROMHOME # STAYSAFE # STAYATHOME # INDIAFIGHTSCORONA: PHYSICAL GAP

11 Tested Marketing Strategies for Outstanding Business Growth

  1. TRACK HOW YOU ACTUALLY SPEND YOUR TIME: If your day seems to be passing by too quickly, try to build a list of your everyday activities. When you see where you invest your time, you can recognize and concentrate on things that deliver the greatest personal and financial returns for you. Start recording by writing down the time you wake up, get ready and start work. Calculate how much time you spend on individual things such as email, social media, television, telephone calls, and client/office jobs. In your settings, you can use the Smartphone app to track your online activities.
  2. CALCULATE WHY YOUR DAY IS WORTH: Time is time. Knowing how much your time is really worth will help you make better choices about whether to do or outsource a job. It’s easy to calculate; simply divide your annual income by the number of hours you currently spend on daily income generation activities. This will say your present Hourly Time Value.
  3. CREATE A DAILY SCHEDULE: Do not begin your day without a list to do. Create a list of tasks and categorize them into activities related to company development, client activities, income-generating activities, and personal objects. Then break up larger, unmanageable projects into smaller “doable” chunks so that they are less intimidating and easier to achieve. Create this list to remain concentrated and prepared one day before.
  4. PRIORITIZE: Is there more to do in the day than hours? Through prioritizing your activities, you can ensure you address the things that matter most. Build a framework which will work for you. A typical way to give priority is to label objects with A, B , and C.
  • Put these main questions to yourself:
  • What items would need to be done today?
  • What events should be rescheduled?
  • What can you delegate?
  • Which tasks fit my priorities and targets most closely?
  • What things are removable?
  1. LEARN TO SAY NO: Are you adding yet another thing to your endless TO DO list? You have the power over your time. Be strong, and maintain your own personal boundaries. When you’re well prepared and continue to treat yourself and the entire family to the time off you deserve when it’s time to get back to actually work you’ll feel happier and more successful.
  • Tell yourself these questions before you say Yes:
  • Would you have the time or resources to do this extra job, really?
  • Do I like the client? Could they be good for me?
  • Does it make a profit?
  • Is it intruding on your personal time?
  • Does it involve something that you enjoy doing?
  • Will this match in with your goals and objectives list?
  1. Delete DISTRACTIONS AND TIME SUCKS: Time sucks because viruses lurk everywhere. Think about what your time is eating up on activities. Such things include email , phone calls, unwelcome whatsapp groups, never ending e-meetings, binge watching, and telemarketers for me personally. I ‘conquer’ the demon email by turning off my Outlook or Gmail while I’m working. When a family member calls in during working hours, I politely ask if I can call them back in the afternoon and remind them of my working hours. Caller ID valiantly saves me from the telemarketer time thefts “should” be. I can easily identify telemarketers from valuable consumer calls with a single glance. 7. STICK TO THE PLAN: Try not to get your strategy sidetracked. One of my friends has a slogan, “Failure to plan for you is not an emergency for me.” It’s a nice way to live by. Unless it’s a real emergency, or you’re paying “rush” time, today you probably don’t have to push a last-minute order. You will also stay on top of assignments by setting yourself project deadlines and avoiding those dreaded last-minute emergencies.
  2. CHOOSE AN INSPIRING PLACE AND TIME: We all have different “buildings.” Do the things that take your “brain-power” most when you’re at your best.Are you a person in the morning, or do you best burn the oils at midnight? Build a safe, distraction free, and motivating ultimate haven of work.
  3. Create your Digital Resources that work for you: try to automate your activities using productivity tools, effective use of list creation, automating follow-ups, using CRM, shortening communication time with your staff, design routine and copy-paste items as you work through your regular list. Develop standard catalogues, kit tools for sales, presentations, etc.
  4. STOP INTERRUPTIONS: It can be maddening to try to do the same thing over and over with interruptions. Seek to finish it off to the end once you start a mission.If something comes up you need to recall or do, just add it to your list and continue with your current project unless it’s urgent.
  5. BE ORGANIZED: This saves you time when things are orderly, so it frees you to concentrate on the job at hand. The job environment is not really conducive to searching through a pile of papers and discovering a squished Twinkie. Follow your own form of organisation.

12. PHONE LISTS: I organize my phone lists into classes, for example, according to how I use them: friends, relatives, employers, partners, doctors, playmates for my children, etc.

13. ONE GOOGLE CALENDAR FITS ALL: it can be incredibly difficult to keep track of job schedules, e-meetings, and committee meetings. My trick to holding family and job commitments top is to schedule all of them on one Google calendar.

14. DAYTIMER SPECIAL SECTION: Build a special section of your Daytimer for babies, hobbies or special interests. Create a list of 5 people you will call every day to remain linked to your family and friends in this tough time of lockdown Covid19.

Conclusion:                                                                                           Why wait for your life, company, career or profession to be productive when you can schedule it literally! You can accomplish much more with less effort by mastering the time. Pick how you’re spending or I’d say you ‘re wasting your money. Reflect on the # DigitalAsset building activities that suit your priorities most closely. You’ll achieve an abundance of prosperity and satisfaction by taking the time to track, calculate, and control your time.

#RJA #covid19 #fightingcoronavirus #economicrecovery #economicimpact #businessimpact #staysafe #businessvalue #growthstrategy

Amendment in Section 140 of the CGST Act 2017: Intends to formalise the gap in the law and to put an end to legal proceedings.

Backdated amendment in Section 140 of the CGST Act 2017: intends to formalise the gap in the law and to put an end to legal proceedings. – Notification No. 43/2020-Central Taxes, dated 16.05.2020

TRANSITIONAL PROVISIONS FOR ITC NOTIFY U / S 140 OF CGST ACT

  • CBDT INFORMED PROVISIONS U / S TRANSITIONAL PROVISIONS FOR ITC
  • TRANSITIONAL CENVAT CREDIT – ENACTED PROVISIONS EFFECTIVE FROM 18.05.2020

CBDT, Ministry of Finance, (Department of Revenue) vide Notification No. 43/2020 –Canter  Tax dated 16 May 2020 has released notification requesting the entry into force of Section 128 of the Finance Act 2020 to amend Section 140 of the CGST Act w.e.f. 01.07.2017.

What was the change to Section 140 of the CGST Act, 2017?

Section 140 of the CGST Act deals with transitional GST payments. The terms “within that period” have been used in the various clauses of Section 140 of the CGST Act, 2017 of the Finance Act, 2020. The said change has a retrospective effect from 1 July 2017, i.e. the very first day of introduction of the GST. However, until now, that provision of the Finance Act 2020 has not been put into force. The reform has now been enforced by CBIC empty Notice No. 43/2020-Central Tax dated 16.05.2020 from 18 May 2020.

What was the need for an amendment?

Previous to the amendment referred to above, Section 140 did not include a time limit on the use of transitional GST credits. However, Rule 117 of the CGST Rules 2017 does contain a time limit, but in the past two years, different writs have been filed by taxpayers before the High Courts challenging the validity of the time limit laid down in Rule 117 of the CGST Rules 2017 for the use of transitional credits under the GST.

The High Courts held that the CGST Rules could not supersede the CGST Act. Since the CGST Act does not allow any time limit for the use of transitional credits under the GST, therefore, the CGST Rules that set the time limit for the use of transitional credits are unconstitutional. There has since been pending lawsuits surrounding the legitimacy of Rule 117.

The amendment referred to above seeks to regularize the gap in the law and to put an end to the dispute with regard to the validity of Rule 117 of the CGST Rules.

What will be the effective date of amendment?

While the above amendments to section 140 of the CGST Act is valid as of 01 July 2017, section 128 of the finance bill 2020 (through which the above amendment was made) has been in force as of 18 May 2020. This means that the law does not plan to reverse the actions of taxpayers until 18 May 2020.

KEY DIFFERENCE IN THE AMENDMENT IN SECTION 140 OF THE CGST ACT 2017 ARE PROVIDE IN THE BELOW ANALYSIS:

Before Amendment After Amendment (Section 128 of Finance Act, 2020)
(1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed: (1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the “within such time and” in such manner as may be prescribed:
(2) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: (2) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the  “within such time and” in such manner as may be prescribed:
(3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012—Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:–– (3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012—Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished  “goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to” the following conditions, namely:––
(5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the existing law, subject to the condition that the invoice or any other duty or tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day: (5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the  “existing law, within such time and in such manner as may be prescribed”, subject to the condition that the invoice or any other duty or tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day:
(6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:–– (6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to subject to the following conditions, namely:––
(7) Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as credit under this Act even if the invoices relating to such services are received on or after the appointed day. (7) Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as “credit under this Act, within such time and in such manner as may be prescribed, even if” the invoices relating to such services are received on or after the appointed day.
(8) Where a registered person having centralised registration under the existing law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished under the existing law by him, in respect of the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: (8) Where a registered person having centralised registration under the existing law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished under the existing law by him, in respect of the period ending with the day immediately preceding the appointed day  “within such time and in such manner”  as may be prescribed:
(9) Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of three months, such credit can be reclaimed subject to the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day. (9) Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of three months, such  “credit can be reclaimed within such time and in such manner as may be prescribed, subject to” the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day.

Enacted Provisions informed on 16 May and come into operation on 18 May 2020.

Link: https:/www.cbic.gov.in / sources/htdocs-cbec / gst / notfctn-43-central-tax-english-2020.pdf

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Overviews of Principles of Avoidable Preferential Transactions: IBC 2016

Elements of Avoidable Preferential Specified Transactions under IBC 2016

As per the 2016 Insolvency and Bankruptcy Code, Section 43 to 51 deals with avoidable transactions. These transactions are also kept referring to as vulnerable transactions. As per the code, there are three types of avoidable transactions. These are preferential transactions, undervalued transactions and extortionate credit transactions that the corporate debtor must avoid during the relevant period.

Section 43: Preferential Transaction  

To the advantage of the borrower, a sale of the assets or property of the corporate debtor shall be made on account of the previous financial obligation or other liabilities. Such a move has the effect of placing the borrower in a place of profit rather than the allocation of the properties referred to in section 53

Not considered as preferential transactions

  1. Transfer made in the ordinary course of business of the corporate debtor or the transferee
  2. Any transfer creating a security interest in the property acquired by the corporate debtor to the extent that,
  3. Such security interest secures “new value” and was given at the time of or after the signing of a security agreement that contains a description of such property as a security interest and was used by corporate debtor to acquire such property
  4. Such transfer was registered with an information utility on or before thirty days after the corporate debtor receives possession of such property
  5. Provided that any transfer made in pursuance of the order of a court shall not, preclude such transfer to be deemed as giving of preference by the corporate debtor

New Value: means money or its worth in goods, services, or new credit, or release by the transferee of property previously transferred to such transferee in a transaction that is neither void nor voidable by the liquidator or the resolution professional under this Code, including proceeds of such property, but does not include a financial debt or operational debt substituted for existing financial debt or operational debt.

Relevant Time: it is given to a related party (other than by reason only of being an employee), during the period of two years preceding the insolvency commencement date; or

A preference is given to a person other than a related party during the period of one year preceding the insolvency commencement date.

Section 44: Orders in case of Preferential Transactions

The Adjudicating Authority may on application made by the resolution professional or liquidator, by an order

  1. require any property transferred in connection with the giving of the preference to be vested in the corporate debtor
  2. require any property to be so vested if it represents the application either of the proceeds of sale of property so transferred or of money so transferred;
  3. release or discharge (in whole or in part) of any security interest created by the corporate debtor;
  4. require any person to pay such sums in respect of benefits received by him from the corporate debtor, such sums to the liquidator or the resolution professional, as the Adjudicating Authority may direct;
  5. direct any guarantor, whose financial debts or operational debts owed to any person were released or discharged (in whole or in part) by the giving of the preference, to be under such new or revived financial debts or operational debts to that person as the Adjudicating Authority deems appropriate;
  6. direct for providing security or charge on any property for the discharge of any financial debt or operational debt under the order, and such security or charge to have the same priority as a security or charge released or discharged wholly or in part by the giving of the preference; and
  7. direct for providing the extent to which any person whose property is so vested in the corporate debtor, or on whom financial debts or operational debts are imposed by the order, are to be proved in the liquidation or the corporate insolvency resolution process for financial debts or operational debts which arose from, or were released or discharged wholly or in part by the giving of the preference:

Provided that an order under this section shall not—

  1. affect any interest in property which was acquired from a person other than the corporate debtor or any interest derived from such interest and was acquired in good faith and for value;
  2. require a person, who received a benefit from the preferential transaction in good faith and for value to pay a sum to the liquidator or the resolution professional.

Section 45: Undervalued Transactions

If, as the case may be, the liquidator or the resolution professional finds, after reviewing the transactions of the corporate debtor, that such transactions have been made within the applicable time under section 46 which have been undervalued, he shall make an appeal to the adjudicating authority to declare certain transactions null and void and to reverse the effect of such transactions in compliance with that clause.

A transaction shall be considered undervalued where the corporate debtor

  1. makes a gift to a person; or
  2. enters into a transaction with a person which involves the transfer of one or more assets by the corporate debtor for a consideration the value of which is significantly less than the value of the consideration provided by the corporate debtor,
  3. and such transaction has not taken place in the ordinary course of business of the corporate debtor.

Section 46: Relevant period for avoidable transactions

In an application for avoiding a transaction at undervalue, the liquidator or the resolution professional, as the case may be, shall demonstrate that—

  1. such transaction was made with any person within the period of one year preceding the insolvency commencement date; or
  2. such a transaction was made with a related party within the period of two years preceding the insolvency commencement date.

Section 47: Application by creditor in case of undervalued transactions

Where an undervalued transaction has taken place and the liquidator or resolution professional, as the case may be, has not informed the adjudicator, the borrower, the employee or the spouse of the corporate debtor, as the case may be, the appeal to the adjudicator to render those transactions null and void in compliance with this Clause.

Where the Adjudicating Authority, after examination of the application made under sub-section (1), is satisfied that—

  1. undervalued transactions had occurred; and
  2. the liquidator or the resolution professional, as the case may be, after having sufficient information or opportunity to avail information of such transactions did not report such transaction to the Adjudicating Authority,

It shall pass an order—

  1. restoring the position as it existed before such transactions and reversing the effects thereof in the manner as laid down in section 45 and section 48;
  2. requiring the Board to initiate disciplinary proceedings against the liquidator or the resolution professional as the case may be.

Section 48: Order in case of undervalued transactions

The order of the Adjudicating Authority under sub-section (1) of section 45 may provide for the following:

  1. require any property transferred as part of the transaction, to be vested in the corporate debtor;
  2. release or discharge (in whole or in part) any security interest granted by the corporate debtor;
  3. require any person to pay such sums, in respect of benefits received by such person, to the liquidator or the resolution professional as the case may be, as the Adjudicating Authority may direct; or
  4. require the payment of such consideration for the transaction as may be determined by an independent expert.

Section 49: Transactions defrauding creditors

Where the corporate debtor has entered into an undervalued transaction and the Adjudicating Authority is satisfied that such transaction was deliberately entered into by such corporate debtor—

  1. for keeping assets of the corporate debtor beyond the reach of any person who is entitled to make a claim against the corporate debtor; or
  2. in order to adversely affect the interests of such a person in relation to the claim,
  3. the Adjudicating Authority shall make an order—
  4. restoring the position as it existed before such transaction as if the transaction had not been entered into; and
  5. protecting the interests of persons who are victims of such transactions:

Provided that an order under this section—

  1. shall not affect any interest in property which was acquired from a person other than the corporate debtor and was acquired in good faith, for value and without notice of the relevant circumstances, or affect any interest deriving from such an interest, and
  2. shall not require a person who received a benefit from the transaction in good faith, for value and without notice of the relevant circumstances to pay any sum unless he was a party to the transaction.

Section 50: Extortionate credit transactions

Where a corporate debtor has been a party to an extortionate credit facility involving the acquisition of financial or operational liability for a period of two years before the date of commencement of insolvency, the liquidator or the resolution professional may, as the case may be, make an appeal to the Adjudicating Authority to prevent such an agreement if the terms of that transaction are met.

Section 51: Orders of Adjudicating Authority in respect of extortionate credit transactions

Where the Adjudicating Authority after examining the application made under sub-section (1) of section 50 is satisfied that the terms of a credit transaction required exorbitant payments to be made by the corporate debtor, it shall, by an order—

  1. restore the position as it existed prior to such transaction;
  2. set aside the whole or part of the debt created on account of the extortionate credit transaction;
  3. modify the terms of the transaction;
  4. require any person who is, or was, a party to the transaction to repay any amount received by such person; or
  5. require any security interest that was created as part of the extortionate credit transaction to be relinquished in favor of the liquidator or the resolution professional, as the case may be.

Therefore, the rules for the prohibition of transactions ensure that transactions that have no other business intent and which have been conducted solely to the benefit of certain creditors or to obstruct the insolvency or liquidation process are put aside. The laws aim to remedy the condition when a certain transfer of assets is made merely to hold the property away from the pool of assets to be shared by creditors. However, the principles of deterrence must be strictly followed to ensure that legal activities conducted in the usual course of business are not overturned.

GOVERNMENT OF INDIA PLANS FIVE MODIFICATION IN THE EDUCATION SYSTEM FOR CHILDREN DURATION OF COVID-19

GOVERNMENT OF INDIA PLANS FIVE MODIFICATION IN THE EDUCATION SYSTEM FOR CHILDREN DURATION OF COVID-19

COVID-19: Press Releases and Updates by the Government of India ...

Union Finance & Corporate Affairs Minister of the Group Smt. Nirmala Sitharaman announced a variety of measures to improve the education sector in New Delhi on 17 May. The Minister said that investing in human capital is equivalent to investing in the productivity and prosperity of the nation. The current pandemic situation has presented new challenges and a number of opportunities for our education system.

The Minister pointed out that the education sector has taken the opportunity to plan a number of interventions, in particular in the field of the adoption of innovative curricula and pedagogy, focusing energy on gap areas, being more inclusive and integrating technology at all stages, to usher in a new era of targeted investment in human capital.

The Ministry of Finance of the Union has announced an urgent series of steps in this direction, including: 

  1. An extensive initiative called PM e-VIDYA will be launched to unify all efforts related to digital/online/on-air education. This will allow multi-mode access to education, including DIKSHA (one nation-one digital platform) which will now become the nation’s digital infrastructure for providing high-quality e-content in school education to all states / UTs; TV (one class-one channel) where one dedicated channel per grade for each of classes 1 to 12 can provide access to high-quality educational material: SWAYAM online courses in MOOCS format for school and higher education; IITPAL for IITJEE / NEET preparation; Air via Community radio and CBSE Shiksha Vani podcast; and materials for studies produced differently on Digitally Accessible Data This will benefit nearly 25 crore children’s schools across the country.
  2. At this time of the global pandemic, it is vital that we provide psychosocial support to students, teachers, and families for mental health and emotional well-being. The Mandarin initiative is being launched to provide such assistance through a website, a toll-free helpline, a national directory of consultants, an open chat channel, etc. This policy would help all school-going children in the region, along with their parents, teachers, and the school education community.
  3. The government is increasing e-learning in higher education – by liberalizing the regulatory system for free, distance, and online education. Top 100 colleges should launch their online courses. In addition, the online component of conventional universities and ODL programs will also be increased from currently 20 % to 40%. This will provide expanded learning opportunities for approximately 7 core students from various colleges and universities.
  4. Clear reasoning, imaginative and cognitive skills, along with experiential and positive learning for students focused on learning outcomes, need to be encouraged. The curriculum must be rooted in the Indian ethos and must be integrated with global skills requirements. To this final moment, teacher capacity building, a robust curricular framework, engaging learning materials – online and offline, learning outcomes and their measuring indices, assessment techniques, learning progress tracking, etc. – will be designed to take them forward in a systematic way. This project will address the learning needs of nearly four Crore children aged between 3 and 11 years.
  5. A National Foundational Literacy and Numeracy Mission will be initiated to ensure that every child in the country automatically achieves basic literacy and numeracy in Grade 3 by 202 Teacher capacity building, a comprehensive curricular structure, engaging learning resources – both online and offline, learning results and assessing indexes, appraisal strategies, learning to monitor, etc. This project will address the learning needs of nearly four Crore children aged between 3 and 11 years.

    Post by Rajput Jain & Associates

    Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Operations prohibited in the nation as per central government in Lockdown4

Operations prohibited in the nation as per central government in Lockdown4

Lockdown 4.0 Guidelines News State Wise LIVE: Lockdown 4 ...

  1. The following practices will continue to be prohibited in the Delhi NCT:
  • Metro Rail Services;
  • All schools, universities, educational / training / coaching institutions, etc. shall remain closed. Online / distance learning is also allowed and supported.
  • Hotels and other Hospitality facilities, except for accommodation services for health / police / government officials / health workers / staffed people, including visitors and others used for quarantine services; and the operation of canteens at bus depots, train stations and airports.
  • All movie centers, shopping centres, gymnasiums, swimming pools, amusement parks, restaurants , bars and auditoriums, assembly halls and related venues.
  • All social / political / sports / entertainment / academic / cultural / religious functions / other meetings and large congregations.
  • All religious places / places of worship shall be closed to the public. Religious congregations shall be officially forbidden.
  • Barber shops, spas and lounges 
  1. Evaluates for the well-being and safety of the people:
  • The mobility of persons between 7.00 p.m. shall remain strictly prohibited. Around 7.00 a.m., with the exception of important tasks.
  • Persons over 65 years of age, persons with co-morbidities, pregnant women and children under 10 years of age shall stay at home, except for necessary and surgical reasons.
  • 3. The following practices are allowed subject to limitations as stated. No authorisation is needed by any authority to perform the following approved activities:
  • fast food chains can run kitchens for home delivery of food products.
  • Sports centers and arenas will be allowed to open, but fans will not be able to enter.
  • Movement of vehicles, rather than busses, shall be regulated as follows:
Mode of Transport Maximum Passengers allowed
A Auto rickshaws/ e-rickshaws/cycle-rickshaws 01
B Taxis / Cabs (including cab aggregators)/ School Cabs 02
C Grahmin Sewa/ Phat Phat Sewa/ Eco Friendly Sewa 02
D Maxi Cab 05
E RTV 11
  • Car-pooling / car-sharing by aggregators is not allowed.
  • The driver shall clean the passenger seating area after the disembarkation of each passenger.
  • Bus transport: Intra-State (within NCT of Delhi) Bus transport (DTC as well as Cluster) is permitted provided that no more than 20 passengers are allowed inside the bus at one time. In the case of busses, boarding is allowed only from the rear entrance, while de-boarding is allowed only from the front entrance. Before boarding the bus, each passenger shall be screened ‘best effort’ by means of a thermal device. In fact, it is compulsory to have 2 marshals within each bus at all hours, at the entry and exit doors respectively, to preserve the physical space inside the bus and to restrict the number of passengers to 20.
  • Social distances shall be maintained by the Transport Department at all bus stops / depots by the deployment of an appropriate number of marshals.
  • Transit of people and automobiles is allowed. In addition to the truck owner, four wheeler vehicles can have a limit of two passengers. Pillion driver is not permitted for two wheelers.
  • All private agencies and government departments shall be required to work in full power. However, the tradition of operating from home will be practiced for private employees as far as possible.
  • MARKETS AND SHOPS:
  • All marketplaces and market complexes shall remain open on an odd-even basis. Shops would open on alternate days depending on their number of stores. This means that only 50% of shops (excluding those selling essential goods) will be opened. Nonetheless, shops selling basic items, including books and stationery stores, fan stores in markets and market centers, are permitted to open all days. Business alliances & DDMA (District-level) and the Deputy Labor Commissioner will be responsible for enforcing this rule.
  • All (single) shops, neighborhood (colony) shops and shops in residential complexes may remain open without any distinction of essential or non-essential.
  • Social distance (2 Gaz ki doori) must be preserved in all situations. If the shop retains a social isolation, the shop may be closed due to the public safety danger involved in the dissemination of the COVID-19 pandemic and the shopkeeper will also be responsible for punishment under the applicable regulations.
    1. Manufacturing enterprises shall be required to run in staggered operating hours in order to ensure the stunning of work / business hours. Industrial firms whose registered name begins with M/s A to M/s L may operate from 7:30 a.m. to 5:30 p.m., while firms whose registered name begins with M/s M to M/s Z will operate from 8:30 a.m. to 6:30 p.m.
    2. Building operations shall be allowed anywhere workers are accessible on-site or may be transported from inside the Delhi NCT to the site.
    3. Marriage-related meeting subject to social distancing (maximum 50 guests allowed)
    4. ceremony / last associated gatherings subject to social distancing (maximum 20 persons allowed).
    5. RWAs shall not prohibit any person from performing the services and duties allowed under these Guidelines.

No passes / e-passes for movement of any permitted operation from any authority shall be required.

  1. Containment Zones

(a) Only critical operations shall be allowed in the containment areas. Strict boundary checks shall be in place to ensure that there is no movement of persons inside or beyond these areas, except for emergency emergencies and for the protection of the delivery of vital goods and services. Of the aforementioned reasons, the recommendations of the MoHFW shall be taken into account.

(b) Extensive touch monitoring, house-to – house surveillance and other clinical procedures as needed shall take place in the containment zones.

  1. All other operations (industrial / commercial) should be allowed, except those which are expressly banned.

Moreover, only critical operations are allowed in containment areas, as alluded to in paragraph 4(a) above.

  1. Clear guidelines for ensuring the flow of people and objects in some situations

(i) Inter-State and intra-State movement of medical practitioners, nurses and paramedical workers, sanitation services and ambulances shall be approved without limit.

(ii) Continental transport of all forms of goods / cargo, including empty trucks, is allowed.

(iii) Transit of any form of goods / cargo for cross-border trade under the Treaties with neighboring countries shall not be prohibited by the authorities of the NCT of Delhi.

  1. National Guidelines for COVID-19 Management as set out in Annex-II shall be implemented in the NCT of Delhi.
  2. Usage of Setu Aarogya

(i) Aarogya Setu allows early detection of the possible danger of contamination and thus serves as a protection for individuals and the group.

(ii) In order to ensure health in offices and workplaces, workers should make utmost efforts to ensure that Aarogya Setu is activated by all employees with compliant cell phones.

(iii) Local authorities may urge individuals to install the Aarogya Setu application on compatible mobile phones and update their health status on an app on a regular basis. This would encourage prompt delivery of medical care to all persons at risk.

  1. Penal provisions

Any person breaching these steps is liable to be brought under the provisions of Sections 51 to 60 of the Disaster Management Act of 2005, in addition to legal proceedings under Section 188 of the IPC and other legal provisions as applicable. The extracts of these penal provisions are set out in above. In fact, the violation proceeding alluded to in point (vii)(a) of subsection 3 shall be taken under the Shops & Establishments Act and other applicable statutes.

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Main point of announcements during the Press Conference by FM Sitharaman

Key Point of announcements during all the Press Conference by FM SitharamanNirmala Sitharaman's economic package finale: All key announcements

1st Steps announced 13/5/2020 : FM Sitharaman Key Highlights:

Actions on the MSME

1. Collateral Free Car Loans. 4 year tenor with a dxatorium of 12 m mor. 100 % debt guarantee on principal and interest-3L Cr (60k Cr)

2. Subordinated loans for troubled small and medium-sized businesses (which are NPA or bankrupt)-20k Cr (4k Cr commitment of the State to CGTMSE)

3. Fund of funds to be set up for the injection of resources (which are viable)-50k Cr

4. The concept of small and medium-sized businesses is being modified in favour of small to medium-sized firms. Investment limits to be revised upwards. Additional requirements on the level of turnover may also be added. Difference between production and distribution units to be reduced

Micro Units-Investment up to 1 Cr + Turnover up to 5 Cr

Small Units – 10 Cr + 50 Cr

Medium Units – 20 Cr + 100 Cr

5. Government tenders worth up to 200 Cr will no doubt be on a regional tender basis. Global tenders will not be approved for up to 200 Cr. It will allow small and medium-sized businesses to engage in government purchases

6. Post Covid, e-market connection to be offered to all small and medium-sized enterprises. MSME receivables from the Government will be resolved over the next 45 days.

EPF Measures

7. Liquidity relief for all EPF establishments (less than 100 employees with 90% less than 15k employees). 12 per cent of the employer contribution and 12 per cent of the employee contribution is paid by the Government for March April and May. 3 months of additional funding to be received by a combined payment of 24 per cent for June July and August-2,5 k Cr.

8. Employers need to contribute 10% (compared to 12% earlier) to EPF and other institutions. Not available to the State. PSU Enterprises-6.75k Cr Liquidity

NBFC Conduct

9. 30k Cr Liquidity Scheme by NBFC, HFC and MFI Investment Grade Debt Papers completely backed by GoI.

10. 45k Cr by expansion of the framework of the Partial Credit Guarantee Scheme. AA-rated articles and below, like unrated documents, will be included in the program. The first 20% deficit to be suffered by GoI.

Discoms measures

11.-11. One time Immediate liquidity infusion-90k Cr to all decompositions against all receivables. Gen Cos will offer discounts on discom for moving on to customers

Builders

Twelve. Continuing public works-Concessional span to be extended by 3-6 m for contractors. Policy entities must partly issue bank guarantees for partly concluded contracts

Real Estate

13. The Ministry of Urban Development could use the advice of regulators to declare Covid 19 to invoke Force Majeure on contracts signed.

All registrations registered after 25 March 2020 and contracts expiring after 25 March 2020 can be extended by 6 m without unique requirements.

Taxation measures

14. TDS / TCS prices lowered by 25% on non-salary transfers from tomorrow to 31 March 2021. Will extend to all payments-50k Cr of extra liquidity

15. All outstanding refunds to charitable trusts and non-corporate taxpayers (including LLP) will be issued immediately.

The due date for all income tax returns shall be 30 November 2020 and the due date for the tax audit shall be 31 October 2020.

17. Assessments that will be barred on 30 September 2020 will be blocked on 31 December 2020.Cases that will be barred on March 31, 2021 will be delayed

18  Vivaad ka Vishwaas scheme continued until 31 December 2020 without any extra payments.

2nd Steps announced- which focus on 9 measures: 14/5/2020 : FM Sitharaman Key Highlights:

3 related to migrant workers;

• One Nation One Ration Card will be implemented-67 crore beneficiaries in 23 nations, representing 83% of the population of PDS, will be eligible for national portability by August 2020.

• Unlimited food grain deliveries to all migrants for the next 2 months. For non-card holders, 5 kg of wheat / rice per person and 1 kg of chana per family / month shall be granted for 2 months. 8 crore migrants would benefit – Rs 3500 crores to be spent on this.

It has already produced 14.62 crore working-days until 13 May, which is 40-50 per cent more enrolled than last May. Migrants returning to their states are actively enrolled.

• Policy has allowed state governments to use SDRF to set up shelter for migrants and provide them with food and water, etc.

1 was connected to Street Vendors

• Government to fund almost 50 Lakh Street Vendors with Rs 5000 Crore Special Credit Facility.

1 belonging to small merchants

• The Government of India will offer interest subsidies of 2 per cent to trigger MUDRA-Shishu Loans paid for a period of 12 months; Rs 1500 Crores to MUDRA-Shishu Loans paid.

Create employment opportunities for tribal / adivasis-plans worth Rs 6000 crores to be approved shortly under the Compensatory Afforestation Management & Planning Authority (CAMPA) Funds.

• 12,000 self-help groups (SHGs) produced more than 3 crore masks and 1.2 lakh liters of sanitizers during the period # COVID19. In the last two months, 7,200 new SHGs for urban poor have been created.

2 Local Farmers

• Rs 30,000 crores additional funding for emergency working capital by NABARD; 3 crore farmers to benefit.

• Rs 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards.

2 Small Farmers

• Rs 30,000 crores additional funding for emergency working capital by NABARD; 3 crore farmers to benefit.

• Rs 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards.

• NABARD to expand the additional re-financing funding of Rs 30,000 crores for the order for a crop loan from rural co-op banks and RRBs.

• Credit subsidy and early repayment incentive for farm loans due from 1st March to 31st May

1 for housing

• Government to initiate a scheme for affordable rental housing for migrant workers / urban poor to provide ease of living by transforming government-funded industrial housing into Affordable Rental Housing Complexes (ARHC) in the PPP mode by concessionaire. Government to extend the Credit Related Subsidy Scheme (CLSS) to the middle income community (Annual Revenue Rs 6-18 lakhs) by March 2021; 2.5 lakh middle income.

3rd days Announcement :  15/5/2020 : FM Sitharaman Key Highlights:

1. Fund of 1Lac Cr Generated for Agri Infra-Farm Gate Infra to be set up, New Warehouses will be set up, Cold Chain, Primary Agriculture Society, Aggregators in these industries, Start-up in this field.

2. Food Enterprise Micro in Nature-10000cr Micro Fund will be developed with a cluster-based approach. Will assist with infrastructure updates. Will be continuing with naming. Health & beauty products, Nutritional products, Vegan products. For eg, there’s Makhana Cluster in Bihar, Kashmir for Keshar Cluster, Kerela for Turmeric Cluster, Andhra Chilli Cluster.

3. Marine and Aqua Fund 20000Cr-Addition Fish Production 70lac Tonnes will be increased over the next 5 years. Current Lab should be set up, New Lab may be built, New Boats will be given, New Harbors will be made open. Easy Infra should be strengthened. 55 Lac Individual will gain additional jobs because of this and our exports will double because of this.

4. Animal Husbandry-Vaccination of all Livestock by Government-Various Livestock are suffering from Mouth and Foot Disease. 53Cr Patient should be vaccinated for a period of time. 13343cr is going to be invested on this. Owing to this, milk production would increase.

5. Dairy Farm – Cattle Feed Infra. For this reason, 15000cr Fund is established. Cheese, Milk Goods, Cattle Feed Plants for domestic and export consumption.

6. Promotion of Herbal Plantation-Medicinal Plants, Supplement of 4000cr for the development of an additional 10 Lake Hector of Land under Cultivation for the cultivation of herbal and medicinal plants. This will generate an extra 5000cr Income for Farmers in times to come.

7. Bees Sustaining Initiative-500cr For Bee Preserving Initiatives There is a shortage of bees in India. 2Lac Bee Keepers are going to get the advantage of it.

8. Potatoes, Onion and Tomatoes-50 per cent transport subsidies and 50 per cent storage subsidies. It is an existing scheme that is now being expanded to all vegetables. This is launched for 6 months on the basis of a 6-month pilot project.

9. Essential Goods Act should be amended-Amendment is provided by these Laws. No Limits will be imposed for the food processing industry, will not be limited and will not be punished for hoarding. This will not have an impact on the export of such items. Pulse, Onion, Potatoes, Oil Seeds and Cereals should be deregulated.

10. Farmers Get Options to market their product at an affordable price — Interstate obstacles should be eliminated. Farmers are currently allowed to market their goods to limited licensees. It is now planned to be updated.

11. Farmers do not have a common mechanism-we want to put about a regulatory system. Farmers when working with producers, aggregators, etc., we wilSingirbhar Economic Bundle

4th days Announcement :  16/5/2020 : FM Sitharaman Key Highlights:

1. Excess And Unused Land at Different 3376 Industrial Area, SEZ, etc-approximately 5Lac Hectors will be Geo Tagged and will be used for future requirements. It will help potential developers get the land soon

2. Sectors to be covered-Coal, Minerals, Defense Products, Air Storage, Power Supply Companies, Nuclear Industry, Atomic Fuel, Modern Solar Cell Manufacturing, Battery Manufacturing.

3. Reform of the Coal Sector-Government ownership will be ended. Commercial mining would be allowed on simple revenue sharing. India has the 3rd highest untapped deposits of coal.If Coal Turned to Gas, then opportunities would be given. 50000cr will be spent to build the Infra evacuation required by Ours. Today , India imports a lot of Coal, and now if the market is open to the private sector. It will now be available to everyone, and not just to the steel industry and the power industry. Partially mined mines must be re-assessed.

4. Mining of Minerals-Seamless Composite Discovery, Extraction and Development will take place from now on. There will be 500 new blocks under this scheme. The joint sale will also take place , for example Aluminum and Coal will now be auctioned together. Will eliminate the disparity between Captive and Non-Captive Mines. Now the individual may move the lease to the mine.Rationalization of stamp duties would also take place. Private corporations will now now be permitted to engage in the mining industry. The Mineral Index is also to be established.

5. Defence Production-1-The defense sector will also be introduced to make India self-reliant in India. Notify List of arms and systems that would be banned from being imported. Different products will be included in this list every year. Even the spare parts will be manufactured in India. And these weapons and systems will not be permitted to be imported. The additional allocation will be made in the form of capital for Indian companies.

6. Defence Production-Corporateization of the Ordinance Factory Boards and not privatization.They will also be listed in the stock exchanges.

7. Defense Production-FDI cap of 49 per cent will be raised to 74 per cent for the defense manufacturing sector under the automated path.

8. Civil Aviation — Air Space Management. Just 60% of Indian Airspace is publicly accessible. Optimum use of Airspace can now be done by rationalization. This will help to save commuting time as well as fuel bills.

9. Civil Aviation—6 More Airport will be auctioned on a PPP basis. The Airport Authority will receive 2300cr for this reason.

10. Civil Aviation-Create the India MRO Centre. Maintenance and maintenance of aircraft is done outside India. It’s scheduled to take place in India already. Both the Private and the Security Aircraft are going to be finished here

11. Farmers Get Options to market their product at an affordable price — Interstate obstacles should be eliminated. Farmers are currently allowed to market their goods to limited licensees. It is now planned to be updated.

12. Farmers do not have a common mechanism-we want to put about a regulatory system. Farmers when working with producers, aggregators, etc., we wilSingirbhar Economic Bundle

5th days ANNOUNCEMENTS FOCUS ON 8 SECTORS:  17/5/2020 : FM Sitharaman Key Highlights:

FIFTH AND LAST TRANCHE OF ANNOUNCEMENTS FOCUS ON 8 SECTORS:

1.  MNGERA

•           Budget estimate was Rs 61,000 crores

•           Additional Rs 40,000 crores allotted

2.  HEALTH

•           Ramping up the health infrastructure

•           All districts to have infectious diseases block

•           Public health labs to be set up in all districts at the block level

3.  Tech-driven EDUCATION

           PM e-Vidya programme for multi-mode access

•           One nation one digital facility under DIKSHA for school education

•           One year-marked TV channel for every class

•           Extensive use of radio

•           Special e-content for Divyang children

•           Top 100 universities will automatically be allowed to start online courses by May 30, 2020

 4.  Big boost for struggling businesses

•           Debts related to Covid will be excluded from default under IBC

•           No fresh insolvency case will be initiated for up to a year

•           For MSMEs, a special insolvency framework will be notified

•           Minimum threshold for insolvency raised from Rs 1 lakh to Rs 1 crore

 5.  Government moves to decriminalise Companies Act defaults

•           Majority of compoundable offences sections to be shifted to internal adjudication mechanism (IAM) and powers of RD for compounding enhanced.

•           7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework.

 6.  Ease of doing business for corporates

•           Direct listing of securities by Indian public companies in permissible foreign jurisdictions. Pvt companies that list non-convertible debentures (NCDs) on stock exchanges not to be regarded as listed companies.

All sectors to be now open for private players

 7.  New Public Sector Enterprise Policy introduced

 •           pvt sector will be allowed to participate in all sectors while public sector enterprises will continue to play an important role.

•           new policy which will broadly categorise strategic sectors and others.

•           List of strategic sectors requiring the presence of PSEs in public interest will be notified.

•           In such strategic sectors, at least one PSE will be there but pvt sector will also be allowed.

•           In other sectors, PSEs will be privatised.

•           TO minimise wasteful administrative costs, number of enterprises in strategic sectors will ordinarily be only one to four, others will be privatised/merged/brought under holding companies.

8.  State govt and resources

•           Centre has decided to increase borowing limit of states from 3% to 5% for FY21. This will give extra resources of Rs 4.28 lakh crore to states.

•           Part of the borrowing will be linked to specific reforms. Reform linkage will be in four areas:

1. One Nation One Ration Card,

2. Ease of Doing Business,

3. Power distribution,

4. Urban local body revenues.

A specific scheme will be notified by the Department of Expenditures

•           Unconditional increase of 0.50%

•           1% in 4 tranches of 0.25% with each tranche linked to clearly specified, measurable and feasible reform actions

•           0.5% of milestones are achieved in at least three out of four reform areas

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Important Updates on the reduction compliance obligation under Atmanirbhar Scheme:

Important Relevant updates on the reduction of compliance obligation under Atmanirbhar Scheme:

Covid-19 related debts shall be excluded from 'default' under IBC ...

TODAY ‘S FIFTH AND LAST TRANCH OF ANNOUNCEMENTS FOCUS ON 8 SECTORS:

1. MGNREGA Scheme 

Total budget was Rs 61,000 crores

• The extra Rs 40,000 crores allotted

2. HEALTH’s

• Setting up the public system

• Block all districts to avoid infectious diseases

• Public health laboratories to be set up at block level in all districts;

3. EDUCATION-driven technology

• PM e-Vidya multi-mode control system

• One-nation interactive school under DIKSHA for school education

• One-year Television channel for each class;

• Extensive use of radios

• Special e-content for children of Divyang

 Top 100 universities must ultimately be allowed to start online courses by 30 May 2020.

 4.  Significant support to distressed firms: Fresh IBC has been suspended for one year. As per the declaration of FM.

A.    IBC related – debts related to COVID 19 are out of IBC default

B.    No further insolvency lawsuits can be launched for up to a year. i.e No fresh insolvency case will be initiated for up to a year

C.   Minimum limit of IBC would be Rs. 1 Cr. i.e Total insolvency requirement lifted from Rs 1 lakh to Rs 1 crore

D.   Decriminalised all the sections. Few Non Compoundable offenses would become compoundable offenses.

E.    Compounding by ROC

F.    Direct listing in foreign destinations

G.   NCD listing would not be treated as listed companies for the purpose of Companiesct

H.   Covid-related loans should be exempt from default under IBC

I.      For MSMEs, a special insolvency framework will be notified

Fresh IBC proceedings suspended for a year; debts related to Covid ...

 5. State seeks to decriminalize losses under the Companies Act

• Bulk of compound crimes parts to be transferred to the Internal Adjudication System (IAM) and improved RD forces for compounding.

• 7 compounding crimes dropped entirely and 5 to be dealt with in an alternate system.

 6. Simplify of doing business for companies

• Clear listing of shares by Indian listed corporations within international jurisdiction. Pvt firms that issue non-convertible bonds (NCDs) on stock exchanges not to be considered as public entities.

All industries are now open to private parties

7. Fresh Public Sector Business Strategy

• The Pvt sector will be able to invest in all markets, while public sector companies will continue to play a significant role.

• a new policy that will categorize strategic sectors and others.

• The list of strategic sectors requiring the presence of PSEs in the public interest shall be notified.

A list of strategic sectors needing the participation of PSEs in the public interest will be identified.

• There will be at least one PSE in these strategic sectors, but the pvt sector will also be authorized.

• The PSEs should be privatized in other industries.

• To reduce unnecessary operating expenses, the number of firms in key markets will usually be just three or four, while others will be privatized / mixed / brought under holding companies.

 8. Policy management and services

• The Center has agreed to raise the State Borowing Limit from 3% to 5% for FY21. This will provide extra Rs 4.28 lakh crore capital to states.

A.   Part of the loan would be related to specific reforms. The relation between the reforms will be in four areas:

1. One Nation One Ration Card,

2. Ease of Doing Business,

3. Power distribution,

4. Urban local body revenues.

 B.   The Department of Spending should be told of a particular scheme

• Unconditional 0.50 percent rise

• 1% in 4 tranches of 0.25% for each tranche linked to specifically specified, tangible and feasible policy actions;

• 0.5 per cent of targets was reached in at least three of the four improvement regions.

Post by Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)