Key Highlights of RACP Bill, 2020 and Companies (Amendment) Bill,2020

Direct Tax

Highlights of Redevelopment Assistance Capital Program (RACP)  Bill, 2020  

www.carajput.com; RACP Bill, 2020

www.carajput.com; RACP Bill, 2020

1) New requirements for reregistration of charitable trusts etc. Approval under section 10(23)(C).

It is suggested that Re-registration u / s 12A/12AA and 80 G come into force from 1st April 2021 from the earlier extended date of 1st Oct 2020.

2) Extension of the time period to 31st march 2021 from 30th Nov for ITR Filing for the Assessment Year 2020-21.

3) Extension for furnishing a Certificate u / s 192 from 15 August to 31-3-2021.

4) As per section 54 to 54 GB

  1. The Extension of the time period to 31st Dec 2021 from 29th Sept for compliance or completion.
  2. The Extension of the time period to 31st march 2021 from 30th Sept for completion or compliance.

5) Chapter-VI A pursuant to heading B-

  1. The Extension of the time period to 31st Dec 2020 from 30th July for the compliance or completion.
  2. The Extension of the time period to 31st March 2021 from 31st July for the compliance or completion.

 6) As per Vivad ke vishvas Act-20

  1. Extension of Time Period to 31st Dec 2020.
  2. Extension of Time Period to 31st march 2021 from 31st Dec 2020 for completion or compliance.

7) Extension of the time period to 31st march 2021 from 30th Sept. For ITR filing for the Assessment Year 2019-20

8) No expansion of the tax payments.

9) Interest rate 3/4 percent pm or part thereof for late payment of taxes. (Only if tax payable is over Rs.1 lac)

10) Extension of the time period to 31st march 2021 from 31st Oct for Filing of Audit Report under the Provision for Assessment Year 2020-21.

11) Return for TDS / TCS is to be extended to 31st March 2021 for Feb & March-20 and Q 4 for March 20 (as applicable) for all the Sub-sections.

12) No liability shall be imposed & No evaluation be disciplined for the delay in paying taxes.

Explanation-The delay period refers to the interval between the due date and the payment time.

In Addition,

Further improvements are also suggested in the Income Tax Act.

Companies (Amendment) Bill, 2020

Highlights of Companies (Amendment) Bill, 2020

www.carajput.com; Comapnies Amendment Bill, 2020

www.carajput.com; Companies Amendment Bill, 2020

On Saturday, Lok Sabha introduced the company law amendment bill, which introduced 72 amendments to the Companies Act, 2013 to decriminalize and modify or abolish fines for different offenses, directed at enhancing the ease of doing business.

New chapter for Producer Company

Introduction of a new Chapter XXIA in the act related to Manufacturer Companies, which was originally part of the Companies Act of 1956;

Reduced penalty for Small companies, OPC and Start-Up companies

For extended the applicability of section 446B, referring to lesser penalties for small businesses and one-person companies, to all provisions of the Act which attract financial penalties and also extend the same reward to Producer Companies and start-ups

Direct Listing in foreign Jurisdiction

Allowing provisions for the direct listing of Indian public entities’ shares in allowable foreign jurisdictions

Update in the definition of Listed Company

Empowering the government to exclude private companies issuing specified classes of shares on exchanges from the concept of a listed company, in conjunction with the Securities and Exchange Board of India.

Remuneration for Qualified Director and NED

Furthermore, it is recommended that the exception given to main administrative roles from government-mandated pay limits in case a corporation faces liquidation be applied to cover independent directors as well.

Decriminalization of Companies Act

  • To comply with an in-house arbitration tribunal process, 23 compoundable offenses must be recategorized out of 66 compoundable offenses under the Act. Moreover, there will be seven compoundable offenses omitted.
  • 35 complex offenses, referred to as non-compoundable, include fraud, public interest damage or deception.
  • 48 sections have been modified to render decriminalization and 17 sections have been modified to improve living comfort;
  • These 66 violations, according to the law, were minor, technological or administrative violations and did not include fraud, harm to the public interest or other non-compoundable offence. That will also reduce the pressure on the Law Tribunal for the National Corporation.

Fresh Bench in NCLAT

It also allows for the creation of additional National Corporate Law Appeal Tribunal benches at locations designated by the Centre.

 Corporate social responsibility ( CSR)

Bill provisions allowed undertakings to carry over excess corporate social responsibility ( CSR) spending on successive years and exempted undertakings with a CSR requirement below Rs 50 lakh from the need to constitute a CSR committee.

Regards

Rajput Jain & Associates

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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)

GUIDELINES FOR FOREIGN INVESTMENT IN THE E-COMMERCE SECTOR

GUIDELINES FOR FOREIGN INVESTMENT IN THE E-COMMERCE SECTOR:

www.carajput.com; E-commerce

www.carajput.com; E-commerce

E-commerce in recent times has been growing rapidly in India. By 2020, the e-commerce market size is expected to reach USD80 billion1, showing year on year growth in the range of 30 to 35 percent. This growth is likely to sustain for the next few years as e-commerce continues to reach new geographies, encompass new markets and provide greater benefits to e-retailers, consumers in terms of providinga large number of traders an additional source of sales, providing consumer greater convenience and access to a large number of products, etc.  The key features of the press note issued by Department of Industrial Policy and Promotion in this regard are enumerated below:

  • Foreign investment will not be allowed in the inventory based model of e-commerce.
  • 100 per cent foreign investment will be allowed under the automatic route in an entity undertaking sale of service through e-commerce.
  • 100 per cent foreign investment will be allowed under the automatic route in market place-based model subject to the following conditions :
  • Permission to marketplace e-commerce entity to enter into B2B transactions with sellers registered on its platform.
  • The marketplace may provide support services to a seller in respect of warehousing, logistics, order fulfillment, call centre, payment collection and other services.
  • Sales from one vendor or its group companies should not exceed 25 per cent of the sales affected through the marketplace.
  • Website should clearly provide name, address and other contact details of the seller.
  • Post sale, delivery of goods to the customer, customer satisfaction, warranty/guarantee of goods and services sold will be the responsibility of the seller.
  • The marketplace will not exercise ownership over the inventory for sale may be facilitated in conformity with the guidelines of the Reserve Bank of India.
  • E-commerce entities will not directly/indirectly influence the sale price of goods or services and shall maintain a level playing field.

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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)