prpri Amendment/Relaxation by Govt in view of outbreak of COVID-19 Amendment/Relaxation by Govt in view of outbreak of COVID-19

Article explains recent Amendment/Relaxation by RBI, SEBI, Ministry of Corporate Affairs, CBIC, Ministry Of Labour And Employment and ESIC in view of outbreak of COVID-19. it Contains Relaxation announced by the RBI governor on 27 March’2020, Relaxations from compliance with following provisions of SEBI LODR, Changes in Income Tax, GST and Custom duty Law with relaxed due dates under these Laws, Relaxations from compliance with following provisions of Companies Act and Changes in Labour Law including ESIC.

Article summarize the various relaxation given by these Authorities as below-

S.No. Relevant authority Summary Original notification
1 RBI Relaxation announced by the RBI governor on 27 March’2020

Bank Rates –

1. Repo rate reduced by 75 basis point new repo rate to be 4.4

2. Reverse repo rate reduced by 90 basis point to 40%Liquidity measures –

1. CRR – Cash reserved ratio – reduced to 100 basis point to 3% w.e.f 28 March’2020 for one year period

2. Min Daily balance reduced to 80% from 90% till 26 June’2020

3. Increase SLR from 2 to 3%Lending Measures –

1. Moratorium on term loans – 3 month moratorium on payment of instalment outstanding as on 1 March’20

2. Working capital – deferment of 3 months outstanding as on 1 March’20

3. Ease of working capital financing no downgrading of the asset and no effect on credit of the borrowers
2 SEBI Relaxations from compliance with following provisions of SEBI LODR- 23 Mar,20

1. Compliance Certificate under Reg 40(9) from PCS – Extended till May 31, 2020

2. AGM of top 100 listed companies – Extended to Sept 30, 2020

3. As per Reg 19, 20, 21 of SEBI LODR: Nomination and Remuneration Committee, Stakeholder Relationship Committee and Risk Management Committee respectively meet at least once in a year, due date was March 31, 2020 – Extended till June 30, 2020.

4. Reg 47 – Newspaper Advertisements are exempted for all events scheduled till May 15, 2020 as many newspaper agencies are not publishing print version.

5. Relaxation of the operation of SEBI circular on SOP dated Jan 22, 2020 which was effective from March 31 – now it will be effective from compliance periods ending on or after June 30, 2020.
3 Ministry of Corporate Affairs Relaxations from compliance with following provisions of Companies Act

1. Moratorium issued from April 1, 2020 to Sep 30, 2020 i.e.. No late fee at all.

2. Board Meeting required to be held mandatorily are relaxed for 60 days i.e.. For next 2 quarters.

3. CARO applicability shifted from FY 2019-20 to FY 2020-21

4. For FY 2019-20, if Independent Directors haven’t been able to hold their meeting then it will not be treated as violation.

5. Provisions which are relaxed:

a) Commencement of Business declaration can be filed with extended 6 months time i.e. 6 + 6 months = 12 months time.

b) Residency status of director for resident director will not be treated violation if 182 days not completed in year.

c) 20% deposit reserve to be created for redemption of deposit by April 30, 2020 is now shifted to June 2020.

d) 15% Debenture reserve also shifted from April 30, 2020 to June 30, 2020.

e) Spending of fund for COVID-19 is eligible CSR activity
4 Direct and Indirect Tax Department Direct tax

1. Last date of ITR for P/Y 2018-19 extended to 30.6.2020

2. Interest in Delay of Tax Payment decreased to 9% from 12% for such period.

3. Interest on delayed Deposit of TDS (till 30/06/20) decreased from 18% to 9%

5. Aadhar PAN Linking date extended to 30.06.2020

6. Vivad se Vishwas Scheme extended to 30.06.2020. No additional charge of 10%Indirect Tax:

1. GST and Composition Returns, date extended to 30.6.2020. Different staggering dates will be applicable in the same way, for different regions. Refer to the press release for the same.

2.. For Cos. Having turnover less than 5 cr. : No interest, penalty, fee for late filing.

3. Cos. Having turnover greater than 5 cr. No Penalty or Late fee.No Interest for 15 days but, shall pay interest of 9%, post that.

4. Last date for opting composition scheme extended to 30.6.2020

5. Sabka Vishwas Scheme for IDT: extended to 30.6.2020

6. During Lockdown as well, Customs Clearance to operate 24×7 as an essential service, till 30.6.2020
5 Ministry Of Labour And Employment Employers of public and private establishments to not terminate the employees/worker or reduce their wages. If any employee/worker takes leave he should be deemed to be on duty without any consequential deduction in wages for this period. Further if the employment is made non operational due to COVID-19, the employees/workers of such unit will be deemed to be on duty.
6 Ministry Of Labour And Employment last date of filing of Annual Returns for the year 2019 under 8 Acts and 10 Central Rules is extended up to 30th April 2020
7 ESIC ESI contribution for the month of February 2020 and March 2020 to 15th April 2020 and 15th May 2020 respectively
8 One time relaxation to employers who did not file ESI contribution for the period April,19 to September’19. Same can be deposited upto 15 May,2020

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Qualification: CS
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Location: New Delhi, New Delhi, IN
Member Since: 27 Mar 2020 | Total Posts: 1

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August 2021