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)

 

What’s Better: on-line CFO or in-house full-time CFO services

CFO OUTSOURCED – INTRODUCTION

CFO Services Financial Risk Management Strategy Plan

Numerous times, the Company needs someone to take over the duties of their CFO immediately. This could happen when the new CFO unexpectedly fails or is ill for a long period of time. In such a circumstance, you could either make every attempt to look for an applicant, and waste valuable time and resources before the potential hire begins working with the company, or you could bring in an accomplished CFO from our staff, as the Interim CFO. It would help the organization bridge the void generated between the outgoing CFO and the incoming CFO.

While your required CFO is out of the frame, save the energy and time to recruit a skilled CFO for your business. Hiring our interim CFO would save your money and get an expert on board without any effort!

Our agile interim CFO would relieve you of the burden that surrounds you and provide you with the right financial outlook. We ‘re giving you the best proportion of expertise and experience that doesn’t call for a fat paycheck as your CFO did.

Outsourced CFO Services will help you analyze the financial weaknesses and strengths of your company. They will also suggest a strategic plan for you and help you grow your business.

If you are involved in all non-core operations and suffer a lot from negligence against your core business, consider recruiting an experienced outsourced CFO company like us. With us by your side, you and your company would be in a stronger place to succeed in terms of financial success.

A growing company needs a good financial buffer and the development of this must be left to experts. Remember, you can’t waste your money on solely enhancing your finances or recruiting a full-time CFO.

Try recruiting outsourced CFO resources who can produce the optimal outcomes without burning a hole in your wallet!

Reasons to outsource your CFO Services with big, medium and small companies

1.      The outsourced CFO operation is free.

Hiring a full-time CFO will cost you a fortune. Plus, the in-house CFO will provide you with the same services as our external CFO specialist. So why spend more if you can enjoy all the benefits and high-quality work at an affordable price?

You’ll also save more money because you don’t have to pay for the CFO’s insurance and retirement coverage.

2.    Brings a new take on economic uncertainty

When you have an outside individual working on your problems, you get a new perspective on the situation. This can be crucial if the issues are to be handled rapidly and efficiently. Your CFO may only be trained to work in a specific financial situation, but outsourced CFOs often have extra knowledge. They know just what you need, and they’ve struggled with various financial issues.

3.       It’s definitely a smart idea to have a financial soundboard

Getting someone to speak to and get advice helps you feel safe. Get this protection by contracting the CFO Services as a team of experts even works as a consultant!

4.    For the appropriate financial performance

Outsourcing CFO Resources lets you collect reliable financial details. Accurate financial reports tells you the current state of your company and, at times, what you need to do!

5.    Interim Chief Financial Officer is agile

Versatility is the biggest benefit that you obtain from recruiting an experienced Temporary CFO. Their versatility is the ability to do the job anytime you need to. And they know how to cope with ever-changing financial circumstances. Have your job finished at the time and pay just for what you need.

6.    No big payments for the CFO

Stuck on the idea of hiring an Interim CFO, but worried about what price tag they might come up with?

7.      They’re professional, and they know what to do.

Temporary CFOs come with the skills and expertise you need to overcome all the difficulties. Hiring an Acting CFO in the midst of the financial chaos won’t worry you. They are well-experienced to adapt rapidly, evaluate the circumstances and function instantly.

8.    Their role is equal to a full-time CFO.

Are you facing a financial turmoil, so you don’t have a CFO on board? Hiring a new one sounds like a tiring job. Instead, consider recruiting the Temporary CFO to restart the job underway and also provide full-time CFO services!

Competition in the market is strong today, and businesses still seek financial advice from time to time. Having a team of experts on board would save you from falling behind in the chase.

What is the time to outsource CFO services to your business?

The company is going at a fantastic speed, and then you’re trapped because of the abrupt departure of your CFO. There is no cleverness in making the company fail because of the difference. Hiring a new CFO in a short amount of time may be a difficult job. It’s hard to find someone with the same skills as your old CFO, who was well-versed with your financial state.

Often recruiting a CFO can be a challenging job. And recruiting the wrong one, too, can be catastrophic and expensive. We should handle it! For these situations, sourcing your CFO services will make your job simpler and give you more time to recruit the right one. Not getting a CFO for a short period can be detrimental to your company. Interim CFO occupies the void between the point of the retirement of your CFO and the launch date of the current one.

Below are a few signs when you’re trying to recruit CFO services.

  • In your market, you need more capital
  • You are working on a major project
  • The cash balance is under-managed
  • The business is going through a merger and takeover process
  • You like better productivity
  • If your CFO has quit your company
  • You are rebuilding your company and you need financial assistance
  • I need an authority on an important future initiative and to address some financial problems.
  • Start-ups and fast-growing companies will benefit from the Interim CFO.

Our Interim CFO Services will cover the void of the empty CFO Chair from the time of his departure until a new one is appointed. With our highly trained and seasoned experts on board, you don’t need to think about your finances. They’ll take over the steering and boost the financial role in the top gear.

Why do you choose Rajput Jain & Associates?

Overall the years, CFO Services has offered its outsourced CFO services to clients across a broad variety of industries across India. CFO Services is headquartered in Delhi and offers facilities throughout India. We ‘re supplying well-experienced Interim CFOs who work to give you everything you ask for. Our team of experts has the perfect mix of expertise and information that will yield tremendous benefits for you. Our team of financial professionals is available to support you at every time of the day. Our scalable and adjustable services prove to be an asset for you because you only pay for what you need!

Aside from striving to push the business to greater heights, our experts come with the right experience and skills to provide what you need.

Your hunt for the Interim CFO will stop right here! We at CFO Services would offer you a package of services at your convenience and at a reasonable price. Finally, our outsourced CFO Services gives you more time to focus on your company by diligently focusing on your finances.

Your hunt for outsourcing your CFO Services ends here, and we also give a free report to let you know your current condition. Please fill out the form below and email us for a free audit!

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)

NEW CORPORATE AND PROFESSIONAL UPDATE

NEW CORPORATE AND PROFESSIONAL UPDATE

CORPORATE AND PROFESSIONAL UPDATE DEC 26, 2016 |

DIRECT TAX: INCOME TAX:

# The due dates of ITR for FY 2019-20 have been extended to 30.11.2020 for all assesses. In addition, 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 can say that regardless of whether or not the assessee is subject to a tax audit OR TP audit, the above due dates are applicable.

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

  • Recognize the effect of the “Leap Year” (i.e. 29.02.2020) on the measurement of 180 days. This year taking 100 percent depreciation for assets under use before “04.10.2019” instead of 03.10 earlier and 50 percent depreciation for assets under use after “04.10.2019.”
  • In the case of a company, if you take the “22% tax rate” or 115BAA, do not take the “additional depreciation” allowance.

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

  • The rate decrease shall not apply to TDS for non-residents u / s 195.
  • The rate cut does not extend to non-PAN cases (20% FLAT Limit) u / s 206AA.
  • The change in the TDS rate would refer on invoices due or purchases received on or after 14.05.2020, even though the invoice date is before 14.05.2020. What you’ve got to see is “Due or Payment.” If all dates occur on or after 14.05.2020, the reduced rate will apply.

INDIRECT TAX: GOODS & SERVICES TAX:

# Filing of GST Return is compulsory along with payment in case of opting for 15 days stress relief of GSTR-3B filing for taxpayers with a turnover 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 per cent before 24.06.2020.

Transitional Forms-Review of Form GST TRAN-01:

  1. The facility to revise Form GST TRAN-01 has been enabled for taxpayers who have already filed it.
  2. If the revision results in downward credit, the taxpayer should only be able to file it if he has a sufficient balance in his credit note.
  3. Taxpayers who register it for the first time will not be able to update it instantly.
  4. The TRAN-01 revision functionality for those who do not meet the above criteria will soon be enabled.

# GST Portal has enabled the Input Service Distributor (ISD) facility to adjust negative ITC to its Units in case no ITC is to be distributed for a month and ISD has to distribute ITC reversal through CN.

CGST: establishes the date for the coming into force of the provisions of Section 128 of the Finance Act 2020 relating to the amendment of Section 140 of the CGST Act, which stipulates the manner and time limit for the taking of transitional loans. In our opinion, they are pushing for this amendment following the judgment of the Delhi High Court of Reliance Electric Works in which it was held that the restriction term (3 years) is to be extended as no time limit has been laid down in the CGST Act.

CORPORATE & ALLIED LAWS:

# In the case of a company where up to 100 employees are working and out of which ninety percent are paying less than INR 15,000, no employer and employee contribution (24 percent) will be payable and the whole payment will be charged by the Government. Until August 2020.

# In the case of other PF organisations (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 since the ADT-1 file is governed by Section 139(1) and the first auditor is appointed pursuant to Section 139(6) and not pursuant to Section 139(1) of the Companies Act 2013.

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

Key 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 file for the financial year 2018-19. Note-The ITR for FY 2017-18 cannot now be filed as the due date for the file lapsed.

# 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 cores in the previous year.

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

# 31.05.2020 is the due date for filing Form 61A (SFT Compliance) in the event that you have such significant financial transactions as the issuance of shares of more than INR 10 lakhs. Note-In the event of no such SFT transaction, the tax audit assesses are required to file the “Preliminary SFT Response” on the e-filing portal by the said due date.

# MCA has revealed a “Moratorium Period” from 01.04.2020 to 30.09.2020 for the filing of ROC Forms and no additional fees will be charged for that period due to the late filing of any form due within that period.

 

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)

Delay in the deposit of Employer Provident Fund during Lock-down will not levy any penalty

Delay in the deposit of Employer Provident Fund during Lockdown will not levy any penalty

No penalty on employers for delay in Provident Fund contributions ...

Relief to enterprises and industries protected by the EPF and MP Laws, 1952 from the award of punitive fines for failure in the payment of payments after Lockout in order to avoid COVID-19.

On Friday, the Employees’ Provident Fund Organization (EPFO) voted not to penalize employers for default in the deposit of the Provident Fund (PF) payments during the lockdown. It also clarified that companies would benefit from a lower contribution regime for EPF, as announced by FM.

In view of the protracted lockdown announced by the Government to control the spread of the COVID-19 pandemic and other disruptions caused by the Pandemic situation, the establishments covered by the EPF & MP Act, 1952, are in distress and are not in a position to operate normally. If an agency has filed its returns, known as the ECR, the EPF contributions to workers must always be sent in one go. Not doing so is drawing a punishment

The Hon’ble Apex Court of India in McLeod Russel India Limited Vs. RPFC (2014)15 SCC 263 has underscored the specific outlines and basic elements of section 14B of the Act and held the mens rea or guilty state of mind of the employer. Is a sine quannon for inducing claims under section 14B. In other words, the provisions of section 14B would only be drawn if there is positive signs of men’s rea on the part of the employer when defaulting on timely remittances. This legal status was later reaffirmed by the Assistant Provident Fund Commissioner vs. the Management of RSL Textiles. CA 96-97 of 2017)

In view of the difficulties faced by establishments in depositing contributions in good time during the lock-up period due to operational and economic reasons, it is clear that such delays are without men’s reassertion of the employer. Thus, the delay in the deposit of contributions during the lock-down period announced under the Disaster Management Act of 2005 can not be attributed to any guilty state of mind of the employer and will therefore not be subject to the provisions of section 14B of the EPF Act.

Therefore, for any omission in the payment of any contributions or administrative charges due during one of those times of the lock-up. Of these cases, no proceeding for the recovery of compensatory damages will be initiated.

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)