Corporate Compliance Calendar For The Month of January, 2021 contains Compliance Requirement Under Income Tax Act, 1961, Goods & Services Tax Act, 2017 (GST), Other Statutory Laws, Foreign Exchange Management Act, 1999 (FEMA), SEBI (Listing Obligations And Disclosure Requirements) (LODR) Regulations, 2015, SEBI (Depositories and Participants) Regulations 2018), SEBI Takeover Regulations 2011, SEBI (Prohibition of Insider Trading) Regulations, 2015, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, SEBI (Buyback of Securities) Regulations, 2018, Companies Act, 2013 (MCA/ROC and LLP Compliance), Due dates of LLP Return Filing, Due dates of ROC Return Filings, Mutual FUnd related updates, Insolvency and Bankruptcy Board of India (IBBI) Updates, NCLT & NCLAT Updates, MSME Key Updates and Investor Education and Protection Fund. 

1. Compliances under FEMA/RBI

Applicable Laws/Acts Due Dates Compliance Particulars Forms / (Filing mode)
FEMA ACT 1999 15 July every year Annual Return on Foreign liabilities and assets.

The FLA return is required to be submitted by the companies who have received Foreign direct investment (FDI) and/or made Foreign direct investment abroad in the previous year(s) including the current year

FLA Return through Flair Portal:
FEMA ACT 1999 Monthly Basis External Commercial Borrowings Borrowers are required to report all ECB transactions to the RBI on a monthly basis through an AD Category – I Bank in the form of ‘ECB 2 Return’. ECB 2 Return
FEMA ACT 1999 Not later than 30 days from the date of issue of Capital instrument FC-GPR is a form filed when the Indian company receives the Foreign Direct Investment and the company allots shares to a person resident outside India. Form FC-GPR
FEMA ACT 1999 With in 60 days of receipt/ remittance of funds or transfer of capital instruments whichever is earlier. Reporting of transfer of shares and other eligible securities between residents and non-residents and vice- versa is to be made in Form FC-TRS.

The onus of reporting shall be on the resident transferor/ transferee.

Form FC-TRS.
FEMA ACT 1999 within 30 days from the date of receipt of the amount of consideration. A Limited Liability Partnership receiving amount of consideration and acquisition of profit shares is required to submit a report in the Form FDI LLP-1 Form FDI LLP-I
FEMA ACT 1999 within 60 days from the date of receipt of funds in A Limited liability Partnership shall report disinvestment/ transfer of capital contribution or profit share between a resident and a non resident (or vice versa) Form FDI LLP-II
FEMA ACT 1999 within 30 days from the date of allotment of capital instruments The domestic custodian shall report the issue/ transfer/ of sponsored/ unsponsored depository receipts Downstream statement -Form DI & reporting at FIFP too

Important Updates, December-2020: 

1. Private banks taking away share from PSBs in rural credit: RBI

As has been observed for the last few years, including during FY20 also, branch expansion in rural areas remained subdued as the BC model made further inroads in villages with population more than 2,000. Rural credit growth gathered steam in FY20 and surpassed growth in other categories after a gap of four years. Private banks have begun to gain share in this segment even as public sector banks’ (PSB) footprint reduces, the Reserve Bank of India (RBI) said in its report on the trend and progress for the year.

Although the share of rural credit in aggregate credit has been hovering between 8-9%, it still did better than other categories in 2019-20. “While the share of PSBs in rural credit has gradually fallen, PVBs have been making inroads,”.

2. RBI Releases New Index To Measure Digital Payments Growth In India

The Reserve Bank of India released a Digital Payments Index to measure the growth in cashless transactions in India. The index comprises five broad parameters with varying weights to measure the penetration of digital payments, the central bank said in a statement on Friday. The five key parameters include:

  • Payment enablers (25%).
  • Payment infrastructure—demand-side factors (10%).
  • Payment infrastructure—supply-side factors (15%).
  • Payment performance (45%).
  • Consumer centricity (5%).

These factors include multiple sub-parameters that would help the regulator conduct its study into the digital payment ecosystem.

In December, UPI reported 223 crore transactions worth Rs 4.16 lakh crore compared with 221 crore transactions worth Rs 3.9 lakh crore in November. 

3. FDI ‘violations’: RBI, ED asked to take ‘necessary action’ on allegations against Amazon, Flipkart and Walmart

At present, while the DPIIT formulates and notifies FDI policies, any violation of such rules is dealt under the penal provisions of the Foreign Exchange Management Act (Fema). This Act is administered by RBI, and ED is its enforcement authority.

The commerce and industry ministry has asked the Reserve Bank of India (RBI) and the Enforcement Directorate (ED) to take “necessary action” on allegations made by a key traders’ body against Amazon, Flipkart and Walmart relating to the violations of foreign direct investment (FDI) and other relevant rules.

Nirupama Soundararajan, head of research at Pahle India Foundation, said the directive is “self-explanatory” in that the DPIIT has requested that the “authorities concerned examine the matter at hand to assess if indeed any violations have occurred”. “Any formal investigation can and should ensue only if there is evidence of such violations. If not, this matter should be laid to rest,” she added.

4. Maintaining 4 per cent inflation appropriate for India: RBI paper

Maintaining 4 per cent inflation is appropriate for India as targeting a lower rate could impart deflationary bias to the monetary policy, said a Reserve Bank paper. 

  • RBI Circulars/Notifications: December, 2020
Title Notification No. Date
RBI cancels Licence of Subhadra Local Area Bank, Kolhapur Press Release: 2020-2021/828 24/12/2020
RBI Cautions against unauthorised Digital Lending Platforms/Mobile Apps Press Release: 2020-2021/819 23/12/2020
RBI amends MD on KYC – Centralized KYC Registry RBI/2020-21/80 DOR.AML.BC.No.31/14.01.001/2020-21 18/12/2020
RBI announces opening of Second Cohort under Regulatory Sandbox Press Release: 2020-2021/787 16/12/2020
Asset Quality & Credit Channel of Monetary Policy Transmission in India Press Release: 2020-2021/781 15/12/2020
Price Discrimination in Over-the-Counter Currency Derivatives Press Release: 2020-2021/780 15/12/2020
Bank allowed to Open specific A/cs under statues without Restriction RBI/2020-21/79 DOR.No.BP.BC.30/21.04.048/2020-21 14/12/2020
Regional Rural Banks- Access to Call/Notice/Term Money Market Notification No. RBI/2020-21/78 FMRD.DIRD.01/14.01.001/2020-21 04/12/2020
On Tap Targeted Long-Term Repo Operations – Extension of Specific Sectors Press Release No. 2020-2021/763 11/12/2020
RBI releases Draft Circular on Declaration of Dividend by NBFCs Press Release: 2020-2021/750 09/12/2020
RBI announces launching of RTGS 24x7x365 wef 14.12.2020 Press Release: 2020-2021/748 09/12/2020
Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2020 Notification No. S.O. 4441 (E) 08/12/2020
24×7 Availability of Real Time Gross Settlement (RTGS) System RBI/2020-21/70 DPSS (CO) RTGS No.750/04.04.016/2020-21 04/12/2020
RBI keeps Repo rate unchanged- Read Monetary Policy & Statement Press Release: 2020-2021/719, Press Release: 2020-2021/720, Press Release : 2020-2021/721 04/12/2020
Draft Commercial Paper and Non-Convertible Debentures (Reserve Bank) Directions, 2020 Notification No. FMRD.DIRD. XX/XX.XX.XXX/2020-21 04/12/2020
Draft Certificate of Deposit (Reserve Bank) Directions, 2020 Notification No. FMRD.DIRD.XX /XX.XX.XXX/2020-21 04/12/2020
Draft Call, Notice and Term Money Markets (Reserve Bank) Directions, 2020 Notification No. FMRD.DIRD.XX /XX.XX.XXX/2020-21 04/12/2020
Draft Reserve Bank of India (Market-makers in OTC Derivatives) Directions, 2020 Press Release: 2020-2021/733 04/12/2020
RBI releases Draft Directions on Money Market Instruments Press Release: 2020-2021/734 04/12/2020
External Trade– Facilitation- Export of Goods & Services RBI/2020-21/77 A.P. (DIR Series) Circular No. 08 04/12/2020
RBI extends LAF and MSF for Regional Rural Banks RBI/2020-21/76 DOR.RRB.No.28/31.01.001/2020-21 04/12/2020
Banks not to declare dividends for FY ending on 31.03.2020 RBI/2020-21/75 DOR.BP.BC.No.29/21.02.067/2020-21 04/12/2020
Processing of e-mandates for recurring transactions RBI/2020-21/74 DPSS.CO.PD No.754/02.14.003/2020-21 04/12/2020
RBI to introduce concept of Cooling Period under PSS Act RBI/2020-21/73 DPSS.CO.OD.No.753/06.08.005/2020-21 04/12/2020
Perpetual Validity for CoA issued to Payment System Operators RBI/2020-21/72 DPSS.CO.AD.No.724/02.27.005/2020-21
Card transactions limit in Contactless mode without Authentication increased to Rs. 5000 RBI/2020-21/71 DPSS.CO.PD No.752/02.14.003/2020-21 04/12/2020
  1. Compliance requirement under Income Tax act, 1961
Sl. Compliance Particulars Due Dates
1 Deposits of TDS /TCS for the month of Dec 2020. 07-07-2021
2 TDS Payment for Oct 20 to Dec 20 in case where Assessing officer has permitted quarterly deposit of TDS under section 192, 194A, 194D or 194H. 07-07-2021
3 Deposit of Equalisation levy for the month of Dec 20. 07-07-2021
4 Income Tax Return for the assessment year 2020-21 for all assessee other than (a) Corporate assessee or (b) non corporate assessee (whose book of account required to be audited) or (c) Partner of a firm whose accounts required to be audited or (d) an assessee who is required to furnish a report under section 92E.

The due date for filing of return has been extended to January 10, 2020 vide Press Release, dated 30-12-2020.

10.01.2021
5 Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of November, 2020 14.01.2021
6 ​Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of November, 2020 14.01.2021
7 ​Due date for issue of TDS Certificate for tax deducted under section 194M in the month of November, 2020 14.01.2021
8 Due date for furnishing of various audit reports including tax audit report and report in respect of international/specified domestic transaction for the Assessment Year 2020-21.

Note: The due date for furnishing of various audit reports including tax audit report and report in respect of international/specified domestic transaction has been extended to January 15, 2021 vide Press Release, dated 30-12-2020.

15.01.2021
9 ​Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of December, 2020 has been paid without the production of a challan 15.01.2021
10 ​Quarterly statement of TCS for the quarter ending December 31, 2020 15.01.2021
11 ​Quarterly statement in respect of foreign remittances (to be furnished by authorized dealers) in Form No. 15CC for quarter ending December, 2020 15.01.2021
12 ​Due date for furnishing of Form 15G/15H declarations received during the quarter ending December, 2020 15.01.2021
13 ​Quarterly TCS certificate in respect of quarter ending December 31, 2020 30.01.2021
14 ​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA in the month of December, 2020 30.01.2021
15 ​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IB in the month of December, 2020 30.01.2021
16 ​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194M in the month of December, 2020 30.01.2021
17 ​​Quarterly statement of TDS for the quarter ending December 31, 2020 31.01.2021
18 ​Quarterly return of non-deduction at source by a banking company from interest on time deposit in respect of the quarter ending December 31, 2020 31.01.2021
19 ​Intimation under section 286(1) in Form No. 3CEAC, by a resident constituent entity of an international group whose parent is non-resident 31.01.2021
20 ​​Furnishing of declaration to opt for Vivad se Vishwas Scheme. 31.01.2021

Notes:

1. The Ministry of Finance has issued a Notification No 85/2020 dated 27 October, 2020, under the Vivad se Vishwas Act, 2020, that in order to mitigate undue hardship and remove difficulty that may be caused by the requirement of payment within 15 days from date the date of receipt of certificate from designated authority, allows the declarant to make the payment without any additional amount till on or before 31stMarch, 2021. Further, the declaration can be filed by 31 December, 2020.

2. The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 has extended due dates for compliance falling during the period from 20-03-2020 to 31-12-2020.

Importatnt updates:

1. I-T Dept allows revision of declarations filed under ‘Vivad Se Vishwas’ scheme

Entities filing declaration under the direct tax dispute resolution scheme ‘Vivad Se Vishwas’ can revise them till the time tax authorities issue certificate mentioning details of tax arrears and the amount payable, the Income Tax Department has said.

Issuing a set of FAQs on ‘Vivad Se Vishwas’ scheme, the Central Board of Direct Taxes (CBDT) also said the scheme cannot be availed in a case where proceedings are pending before Income Tax Settlement Commission (ITSC) or where writ has been filed against the order of ITSC. The CBDT also clarified that in a case where Mutual Agreement Procedure (MAP) resolution is pending or the assessee has not accepted MAP decision, the related appeal shall be eligible under ‘Vivad se Vishwas’.

2. Income Tax Return: Problems in ITR excel utilities mar date extension relief

The initial version of the excel utilities of some Income Tax Return (ITR) Forms had some issues due to which the utilities of ITR-2, ITR-3 etc were not opening normally and were showing some error messages.

For example, at the time of opening the excel utility of ITR-2, it was showing the message – “Excel found unreadable content in ‘ITR2_2020_PR2.1.xlsm’. Do you want to recover the contents of this workbook? If you trust the source of this workbook, click Yes.”

While the file was getting closed on clicking ‘No’, it was opening on clicking ‘Yes’, but after removing some parts. On reporting the matter to the Central Board of Direct Taxes (CBDT), the Department acknowledged the problem and said that the assessees using 2007 and prior versions of MS Office would face the issue as the utility was compatible for the last three versions MS Office.

3. Income Tax Return filing: Revised instructions for filing ITR Forms 2, 3, 5, 6 & 7

During the last 3-4 months the government has made significant changes in the taxation structure, introduced a few new forms and a few new steps. Fundamentally, these changes are brought to make the taxation system automate, independent and to interlink other fiscal systems with which the other related financial information can be accumulated for better financial analysis.

To help taxpayers and make the ITR filing experience smooth, the Income Tax Department has issued revised instructions for filing ITR forms for A.Y. 2020-21.

4. “In view of the continued challenges faced by taxpayers in meeting statutory compliances due to outbreak of COVID-19, the government further extends the dates for various compliances,” the Income Tax Department said on Twitter.

  • Due date for Filing Income Tax Return (ITR) for Individual for FY 2019-20 under section 139 (1) of Income Tax Act, 1961 has been extended till 10.01.2021.
  • Deadline for filing Income Tax Returns for 2019-20 by companies has been extended by 15 days to 15 February, 2021.
  • Due date for furnishing of Income Tax Returns for the assessment year 2020-21 for taxpayers (including their partners) who are required to get their accounts audited has been extended to 15 February, 2021.
  • Last date for declaration under Vivad Se Vishwas Scheme has been extended to 31 January, 2021 from 31 December, 2020.

5. I-T Dept launches ‘Jhatpat Processing’ for filing income tax returns; check details

The Income Tax Department has introduced a ‘Jhatpat Processing’ initiative to ease the income tax return filing experience for taxpayers. The last date to file income tax returns (ITR) for the financial year 2019-20 (the assessment year 2020-21) is December 31, 2020.

The Income Tax (I-T) Department took to Twitter to announce that it has launched the ‘Jhatpat Processing’ feature. The I-T Department said that the feature has already been started for ITR-1 and 4 forms and taxpayers can file their I-T returns for AY 2020-21 by visiting the e-filing website — incometaxindiaefiling.gov.in.

The ‘Jhatpat processing’ feature will only be applicable to taxpayers whose ITRs are verified and bank accounts are pre-validated. Besides, there are no arrears or income discrepancy, or tax deducted at source (TDS) or challan mismatch.

  • Important Notifications – For the month of December – 2020:
Title Notification No. Date
Govt extend due dates of Tax Audit/ITR/VSV Scheme/GSTR 9/9A/9C NA 30/12/2020
Extension of date of Filing of Accounts to Charity Commissioner in Maharashtra Order No. 582 28/10/2020
Income Tax Dept searches a group from Erode in Tamil Nadu Release ID: 1681436 17/12/2020
Vivad se Vishwas: Opt for the scheme till December 31st Release ID: 1681500 17/12/2020
Income Tax Department conducts searches in Chandigarh Release ID: 1681129 16/12/2020
Appointment of 201 Officers in ACIT grade on regular basis Office Order No. 259 of 2020 16/12/2020
CBDT Order for sharing of information with CRID Haryana F.No. 225/161/2020/ITAJI 15/12/2020
Eligibility for opening of Senior Citizen Savings Scheme Accounts File No. FS-10/17/2020-FS 07/12/2020
Transfer/postings in the grade of CCIT wef 04.12.2020 Office Order No. 240 of 2020 04/12/2020
Transfer/postings in the grade of Pr. CIT/Pr. DGIT, wef 04.12.2020 Office Order No. 239 of 2020 04/12/2020
CBDT releases Answer to 34 FAQs on Vivad se Vishwas Circular No. 21/2020-Income Tax 04/12/2020
TDS and Tax on Salary | Section 192 | FY 2020-21 | AY 2021-22 Circular No. 20/2020 03/12/2020

3. Compliance Requirement under GST, 2017

Filing of GSTR –3B

GSTR 3B Due Dates for May 2020

A. Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY

Tax period Due Date No interest payable till Interest payable @ 9% from & till Interest payable @ 18% from
December, 2020 20th January,

2021

B. Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group A)

Tax period Due Date No interest payable till Interest payable @ 9% from & till Interest payable @ 18% from
December, 2020 22nd January,

2021

Group A States: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman & Diu and Dadra & Nagar Haveli, Puducherry, Andaman and Nicobar Islands, Lakshadweep

C. Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group B)

Tax period Due Date No interest payable till Interest payable @ 9% from & till Interest payable @ 18% from
December,

2020

24th January,

2021

Group B States:  Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi

D. Filing Form GSTR-1:

Tax period Due Date Remarks
October to December, 2020 Quarterly return 13.01.2021 Taxpayers having an aggregate turnover of Up to Rs. 1.50 Crores (< Rs 1.50 Cr) or opted to file Quarterly Return
Monthly return (December, 2020) 11.01.2020 Taxpayers having an aggregate turnover of More than Rs. 1.50 Crores (> Rs 1.50 Cr) or opted to file Monthly Return

E. Compliances for Composition taxpayers

Form No. Compliance Particulars Due Date (New)
GST CMP-08 3rd Quarter – October to December,  2020 18.01.2021

F. Non Resident Tax Payers, ISD, TDS & TCS Taxpayers

Form No. Compliance Particulars Timeline  Due Date
GSTR-5 & 5A Non-resident ODIAR services provider file Monthly GST Return 20th of succeeding month 20.01.2020
GSTR -6 Every Input Service Distributor (ISD) 13th of succeeding month 13.01.2020
GSTR -7 Return for Tax Deducted at source to be filed by Tax Deductor 10th of succeeding month 10.01.2020
GSTR -8 E-Commerce operator registered under GST liable to TCS 10th of succeeding month 10.01.2020

G. GST Annual Returns:

Form No. Compliance Particulars Due Date (New)
GSTR-9  (FY 2019-20) Taxpayers having an aggregate turnover of more than Rs. 2 Crores or opted to file Annual Return. 28.02.2021
GSTR-9C (FY 2019-20) Reconciliation Statement/ Audit Report for Taxpayers having a Turnover of more than Rs. 5 crores. 28.02.2021

H. GST Refund:

Form No. Compliance Particulars Due Date (New)
RFD -10 Refund of Tax to Certain Persons 18 Months after the end of quarter for which refund is to be claimed

 Key UPDATE(s): 

1. Supreme Court upholds levy of GST on lottery, gambling

The Supreme Court on Thursday upheld the levy of Goods and Service Tax (GST) on sale of lotteries and gambling across the country. A bench comprising justices Ashok Bhushan, R Subhash Reddy and MR Shah ruled that the Central Goods and Services Tax Act, 2017 and the notifications issued there under bringing lottery and gambling under the GST net are valid. The top court said that “while determining the taxable value of supply the prize money is not to be excluded for the purpose of levy of GST”

“The inclusion of actionable claim in definition “goods” as given in Section 2(52) of CGST Act, 2017 is not contrary to the legal meaning of goods and is neither illegal nor unconstitutional,” it held. According to judges, it is well settled that the courts have very limited role to play with regard to taxing policy of the legislature.

2. QRMP scheme launched for GST payers with turnover up to Rs 5 crore

The government has launched the Quarterly Return filing & Monthly Payment of Taxes (QRMP) scheme for small taxpayers under GST system. Taxpayers with aggregate annual turnover of up to Rs 5 crore in the preceding financial year and have filed their October GSTR-3B (sales) return by November 30, 2020, are eligible for this scheme.

The GST Council in its meeting held on October 5, had said that registered person having aggregate turnover up to Rs 5 crore may be allowed to furnish return on quarterly basis along with monthly payment of tax, with effect from January 1, 2021.

With the launch of the QRMP scheme on December 5, taxpayers up to Rs 5 crore turnover have the option to file their GSTR-1 and GSTR-3B returns quarterly beginning January-March period. Taxpayers can make GST payments through challan every month either by self-assessment of monthly liability or 35 per cent of net cash liability of previous filed GSTR-3B of the quarter.

Quarterly GSTR-1 and GSTR-3B can also be filed through an SMS.

4. Quarterly GST returns to ease compliance from January 1

The goods and services tax (GST) taxpayers with a turnover of up to Rs 5 crore will have the option to ease their compliance burden from January 1, as the facility to file GSTR-3B only on a quarterly basis kicks in. Currently, GSTR-3B is filed on a monthly basis along with payment of taxes.

The Quarterly filing of Return with Monthly Payment (QRMP) scheme, which was approved by the GST Council in October, means that instead of a mandatory 16 returns that need to be filed a year (12 GSTR-3B and 4 GSTR-1), the new system would provide for 8 returns (4 GSTR-3B and 4 GSTR-1)

The scheme will cover 92% or 94 lakh GST-registered taxpayers. Currently, there are about 1.2 crore registered taxpayers, including 17 lakh composition dealers.

However, an assessee opting for the scheme will need to pay tax on a monthly basis but will have the option to either discharge the actual liability via the cash ledger or through a pre-filled challan amounting to 35% of the cash paid as taxes in the previous quarter.

5. Auto population of details in Form GSTR-3B from Form GSTR 1 & GSTR 2B

Auto Populated details in Form GSTR 3B: Now, auto-population of system computed details in Form GSTR-3B, has been enabled for taxpayers (filing their Form GSTR-1 on monthly basis), from November 2020 Tax Period onwards. The same will be done based on the following:

Liabilities in tables-3.1 & 3.2 of Form GSTR-3B (except Table-3.1 (d) pertaining to inward supplies liable to reverse charge), are computed by the system on the basis of details of outward supplies as filed in Form GSTR-1 for the tax period

Input Tax Credit (ITC) details and details of inward supplies liable to reverse charge, to be reported in Tables-4 and 3.1 (d) respectively, are computed as per system generated Form GSTR-2B for the tax period

PDF Format of FORM GSTR-3B: The table-wise computation of the values, auto-populated in Form GSTR-3B, is made available in PDF format also on the Form GSTR-3B dashboard. The same can be downloaded by clicking on the “System Generated GSTR-3B” tab.

To read more https://taxguru.in/goods-and-service-tax/auto-population-details-form-gstr-3b-form-gstr-1-gstr-2b.html

6. CBIC extends Due date of GST compliance till 31 March, 2021

The Central Board of Indirect Taxes and Customs (CBIC) extended the Due Date of GST compliance till 31 March, 2021 during the period from the 20 March, 2020 to the 29 November, 2020. The notification seeks to amend the notification No. 65/2020 Central Tax, dated the 1st September, 2020, which states, “Provided that where, any time limit for completion or compliance of any action, by any authority, has been specified in, or prescribed or notified under section 171 of the said Act, which falls during the period from the 20th day of March, 2020 to the 29th day of November, 2020, and where completion or compliance of such action has not been made within such time, then, the time-limit for completion or compliance of such action, shall be extended up to the 30th day of November, 2020.” Section 171 of CGST Act, 2017, provides that any reduction in the rate of tax on any supply of goods or services or the benefit of the input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. Businesses with monthly turnover of over Rs 50 lakh to pay at least 1% GST liability in cash

Businesses with monthly turnover of over Rs 50 lakh will have to mandatorily pay at least 1 per cent of their GST liability in cash, the Finance Ministry said as it moved to curb evasion by fake invoicing. The Central Board of Indirect Taxes and Customs (CBIC) has introduced Rule 86B in Goods and Services Tax (GST) rules which restricts use of input tax credit (ITC) for discharging GST liability to 99 per cent.

The registered person shall not use the amount available in electronic credit ledger to discharge his liability towards output tax in excess of 99 per cent of tax liability, in cases where the value of taxable supply … in a month exceeds Rs 50 lakh, the CBIC said. While calculating the turnover threshold, sales from GST exempt goods and zero rates supply would not be included.

To read more https://taxguru.in/goods-and-service-tax/auto-population-details-form-gstr-3b-form-gstr-1-gstr-2b.html

GST UPDATES from 01.12.2020 to 31.12.2020:

itle Notification No. Date
GST annual returns due date for FY 2019-20 extended till 28.02.2021 Notification No. 95/2020-Central Tax 30/12/2020
9th Instalment of Rs.6,000 crore released to States Release ID: 1684149 28/12/2020
Corrigendum to Notification No. 94/2020-Central Tax, dated 22.12.2020 Corrigendum No. G.S.R. 801(E) 28/12/2020
Weekly newsletter from Chairman, CBIC dated 28.12.2020 D.O. No. 47/CH(IC)/2020 24/12/2020
Myths vs. Facts on CGST Notification to curb Fake invoice frauds NA 23/12/2020
Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020 Notification No. 94/2020-Central Tax [G.S.R. 786(E)] 22/12/2020
Late fees for delay in furnishing of FORM GSTR-4 waived for Ladakh dealers Notification No. 93/2020-Central Tax [G.S.R. 785(E)] 22/12/2020
GST- Govt notifies 9 Sections of Finance Act, 2020 wef 01.01.2021 Notification No. 92/2020-Central Tax 22/12/2020
Measures recommended by GST Council to curb fake dealers/invoice rackets NA 23/12/2020
General procedure for GST Audit | Section 65 | MGST Act 2017 Trade Circular no. 13T of 2020 21/12/2020
Salient features of KGST Act, 2017- electronic Scrutiny of High risk cases Circular No: GST-14/2020-21 19/12/2020
Use of unblocking functionality for generation of e-way bill Circular No: GST-13/2020-21 16/12/2020
Waiver from UIN recording on invoices of April 2020 to March 2021 Circular No. 144/14/2020-GST 15/12/2020
Due date of GST compliance by Authority extended to 31.03.2021 Notification No. 91/2020-Central Tax [G.S.R. 759(E).] 14/12/2020
DGGI unearthed 4689 fake GSTINs & arrested 141 persons No. D.O.No.45/CH(IC)/2020 14/12/2020
7th Instalment of Rs. 6000 crore released to States to meet GST compensation shortfall Release ID: 1680565 14/12/2020
GST Officials Arrest CA for availing Fraudulent ITC using Fake GST Invoice Release ID: 1680234 12/12/2020
GST compensation shortfall – 6th Instalment of Rs.6000 crore released Release ID: 1679433 09/12/2020
Detection of fake ITC to the tune of Rs. 154 Crores F. No. IV/16-02/CIU/2020 09/12/2020
Fictitious transactions racket of Rs. 290.70 Crore busted by DGGI, Nagpur Release ID: 1678844 07/12/2020
All States choose Option-1 to meet GST implementation shortfall Release ID: 1678484 05/12/2020
Visakhapatnam GST Intelligence arrests CA for major GST fraud F.No. DGGI/INV/GST/2045/2020 05/12/2020
Form GSTR-3B Due dates – October 2020 to March 2021 NA 04/12/2020
All States except Jharkhand choose Option-1 to meet GST implementation shortfall Release ID: 1677891 03/12/2020
Rs 1,04,963 crore of gross GST Revenue collected in November 2020 Release ID: 1677332 01/12/2020
Tax Invoice to have 8 digit HSN code on specified products Notification No. 90/2020 – Central Tax [G.S.R. 747(E).] 01/12/2020

4. Compliance under Other Statutory Laws

Applicable Laws/Acts Due Dates Compliance Particulars Forms / (Filing mode)
EPF (The Employees’ Provident Funds And Miscellaneous Provisions Act, 1952) 15.01.2020 PF Payment ECR
ESIC (Employees’ State Insurance Act, 1948) 15.01.2020 ESIC Payment ESI Challan
Contract Labour (Regulation & Abolition) Act, 1970 Within 15 Days of commencement/ completion of contract work Return/Notice within 15 days of commencement/ completion of each contract by the Principal employer Form VI-B
Payment of Gratuity Rule Within 30 Days of applicability of the Act & any change Notice of applicability of the Act & any change Form A or B
Professional Tax 31.01.2021 PT for the month of December where the tax liability is more than Rs 1,00,000/- PT Return
Factories Act, 1948 15.01.2021 Yearly Return Ending 31St Dec, 2019
Factories Act, 1948 15.01.2021 Half Yearly Return Ending 31St Dec, 2019
Contract Labour (R & A) Act 30.01.2021 Half Yearly Return By The Contractor Ending 31St December
  • Key Update:

1. From 15th Feb.,2020, new Companies registered through MCA Portal, www.mca.gov.in need not comply with provisions of ESI Act till they reach threshold limit of ESI coverage or initial 6 months whichever is earlier. For further details login to ‘ www.esic.in . Submission of Mobile Number and Bank Account details (Bank Name, Branch Name & IFSC) shall be mandatory for registration of New employee. For more updates: Click here

2. Labour Ministry to clear the air on work hours

The labour ministry has proposed an eight-hour workday in the draft rules under the code on Occupational Safety, Health and Working Conditions (OSH&WC code). However, the draft rules under the code, also provide that the working hours in a day can be modified subject to weekly cap of 48 hours.

The government will soon specify the cut-off for daily work hours, likely limiting this to eight, after which overtime starts, said people with knowledge of the matter. This is aimed at ending the misconception that the new labour laws allow a 12-hour workday, they said. The overtime wage rate is twice that of regular daily pay.

3. Labour codes to herald new wave of reforms in 2021; job creation likely to be major challenge

This year has also been a challenging year for the workforce as well as for employers due to the outbreak of the COVID-19 pandemic. The government imposed a nationwide lockdown from March 25, which had an adverse impact on economic activities and resulted in the exodus of migrant workers from large cities to their homes in the hinterland.

The implementation of four labour codes in one go from April 1 next year will usher in a new wave of reforms in industrial relations and also help in attracting more investments but employment generation will remain a key challenge in 2021. The Code on Wages was approved by Parliament last year and its rules have been firmed up. But the implementation of the rules for Code on Wages was held back because the government wanted to implement all four labour codes in one go. 

4. States may be nudged to modify laws in line with labour codes

The government is of the view that state laws such as the Mathadi law of Maharashtra, which provides benefits for a person who carries a load of material on his head or back, may not remain valid or would require fresh Presidential assent with the labour codes coming into force. 

5. SEBI – Securities Exchange Board of INDIA

Compliance Requirement under SEBI (Listing Obligations and Disclosure Requirements) (LODR) Regulations, 2015 

FILING MODE(s) :

  • For BSE                    : BSE LISTING CENTRE
  • For NSE                    : NEAPS Portal
  • Quarterly Compliances
 Sl. No. Regulation No. Compliance Particular Compliance Period (Due Date) 
 1  Regulation 13 (3) Statement of Investor complaints Within 21 days from the quarter end.
 2  Regulation 27 (2) Corporate Governance Report Within 15 days from quarter end.
3  Regulation 31 Shareholding Pattern Within 21 days from quarter end
4 Regulation 32(1)  Statement of deviation(s) or variation(s).

( *for public issue, rights issue, preferential issue etc.)

Quarterly Basis
5  Regulation 69  Indian Depository Receipt holding pattern & Shareholding details. within 15 days of end of the quarter
  • Annual Compliances
 Sl. No.  Regulation No.  Compliance Particular Compliance Period (Due Date) 
 1  Regulation 34(1) & 36(2)  Annual Report Not later than the day of commencement of dispatch to its shareholders and not less than 21 days before the annual general meeting
2 Annual report in XBRL mode 16 may 2019 Filings in respect of Annual Report has to be done by all listed entities in XBRL mode in addition to the currently used PDF mode mandatorily, for periods ending March 31, 2019. Same time limit of Regulation 34
3. Regulation 34(1)(b) in the event of any changes to the annual report, the revised copy along with the details of and explanation for the changes shall be sent not later than 48 hours after the annual general meeting. Within 48 hours after AGM
  • Regular/Annual Compliance
REG NO REGULATION NO PARTICULARS TIMELINE
47 Advertisements in Newspapers. 47 (3) Advertisements in Newspapers Financial results at 47 clause (b) of sub-regulation (1), shall be published within 48 hours of conclusion of the meeting of board of directors at which the financial results were approved. 48 HOURS
23 Related party transactions. Reg 23(9) Related party transactions The listed entity shall submit within 30 days from the date of publication of its standalone and consolidated financial results for the half year, disclosures of related party transactions on a consolidated basis, in the format specified in the relevant accounting standards for annual results to the stock exchanges and publish the same on its website 30 days
24A Secretarial Audit. Red 24A Every listed entity and its material unlisted subsidiaries incorporated in India shall undertake secretarial audit and shall annex with its annual report, a secretarial audit report, given by a company secretary in practice, in such form as may be specified with effect from the year ended March 31, 2019. (within 60 days from the Closure of FY) 60 days from the Closure of FY
36 Documents & Information to shareholders. 36(1) The listed entity shall send annual report referred to in sub-regulation 36(1), to the holders of securities, not less than twenty-one days before the annual general meeting 21 days before AGM
46 Website 46(2)(s) The listed entity shall disseminate the following information under a separate section on its website separate audited financial statements of each subsidiary of the listed entity in respect of a relevant financial year, uploaded at least 21 days prior to the date of the annual general meeting which has been called to inter alia consider accounts of that financial year.] 21 days prior 1 days prior to the date of AGM
  • COMPLIANCE ON IMPACT OF COVID 19:Reg 4(2)(e),30,33,51

Advisory on disclosure of material impact of COVID-19 pandemic on listed entities under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015: https://taxguru.in/sebi/advisory-disclosure-material-impact-covid-19-pandemic.html

  • Quarterly compliance which included half year compliance except FR
REG NO REGULATION NO PARTICULARS TIMELINE
Intimation Reg 29 read with Reg 33 intimation regarding item specified in clause 29(1) (a) to be discussed at the meeting of board of directors shall be given at least five days in advance (excluding the date of the intimation and date of the meeting), and such intimation shall include the date of such meeting of board of directors  at least 5 working days in advance, excluding the date of the intimation and date of the meeting
Intimations and Disclosure of events or information to Stock Exchanges. 87B: Intimations and Disclosure of events or information to Stock Exchanges. READ WITH PART E OF Schedule III The listed entity shall first disclose to stock exchange(s) of all events or information, as specified in Part E of Schedule III, as soon as reasonably possible but not later than twenty four hours from occurrence of the event or information: 24 HOURS
Valuation, Rating and NAV disclosure. 87C(1) (iii) An issuer whose security receipts are listed on a stock exchange shall ensure that: the net asset value is calculated on the basis of such independent valuation and the same is declared by the asset reconstruction company within fifteen days of the end of the quarter. 15 Days
  • Event based Compliances
30 Disclosure of events or information. 30(6) AND Part A of Schedule III The listed entity shall first disclose to stock exchange(s) of all events, as specified in Part A of Schedule III, or information as soon as reasonably possible and not later than twenty four hours from the occurrence of event or information 24 HOURS
30 Disclosure of events or information. 30(6) AND sub-para 4 of Para A of Part A of Schedule III The listed entity shall disclose to the Exchange(s), within 30 minutes of the closure of the meeting held to consider the following:
a) dividends and/or cash bonuses recommended or declared or the decision to pass any dividend and the date on which dividend shall be paid/dispatched;
b) any cancellation of dividend with reasons thereof;
c) the decision on buyback of securities;
d) the decision with respect to fund raising proposed to be undertaken
e) increase in capital by issue of bonus shares through capitalization including the date on which such bonus shares shall be credited/ dispatched;
f) reissue of forfeited shares or securities, or the issue of shares or securities held in reserve for future issue or the creation in any form or manner of new shares or securities or any other rights, privileges or benefits to subscribe to;
g) short particulars of any other alterations of capital, including calls;h) financial results;i) decision on voluntary delisting by the listed entity from stock exchange(s).
30 MINUTES
31A: Conditions for re-classification of any person as promoter / public 31A(8) The following events shall deemed to be material events and shall be disclosed by the listed entity to the stock exchanges as soon as reasonably possible and not later than twenty four hours from the occurrence of the event:
(a) receipt of request for re-classification by the listed entity from the promoter(s) seeking re-classification;
(b) minutes of the board meeting considering such request which would include the views of the board on the request;
(c) submission of application for re-classification of status as promoter/public by the listed entity to the stock exchanges;
(d) decision of the stock exchanges on such application as communicated to the listed entity;
24 HOURS
34 Annual Report. 34(1)(b) in the event of any changes to the annual report, the revised copy along with the details of and explanation for the changes shall be sent not later than 48 hours after the annual general meeting.] 48 HOURS
44 Meetings of shareholders and voting 44(3) The listed entity shall submit to the stock exchange, within forty eight hours of conclusion of its General Meeting, details regarding the voting results in the format specified by the Board. 48 HOURS
47 Advertisements in Newspapers. 47 (3) Advertisements in Newspapers The listed entity shall publish the information specified in 47(1) in the newspaper simultaneously with the submission of the same to the stock exchange(s). The same is reproduced below
47(1)(a) notice of meeting of the board of directors where financial results shall be discussed (c) statements of deviation(s) or variation(s) as specified in sub-regulation (1) of regulation 32 on quarterly basis, after review by audit committee and its explanation in directors report in annual report;
(d) notices given to shareholders by advertisement
Simultaneously
SCHEDULE III PART PART A 7(A) resignation of the auditor of the listed entity, detailed reasons for resignation of auditor, as given by the said auditor, shall be disclosed by the listed entities to the stock exchanges as soon as possible but not later than twenty four hours of receipt of such reasons from the auditor 24 HOURS
SCHEDULE III PART PART A 7(B) In case of resignation of an independent director of the listed entity, within seven days from the date of resignation, the following disclosures shall be made to the stock exchanges by the listed entities:

i. Detailed reasons for the resignation of independent directors as given by the said director shall be disclosed by the listed entities to the stock exchanges.

ii. The independent director shall, along with the detailed reasons, also provide a confirmation that there is no other material reasons other than those provided.

iii. The confirmation as provided by the independent director above shall also be disclosed by the listed entities to the stock exchanges along with the detailed reasons as specified in sub-clause (i) above.]

7 days from the date of resignation
7 Share Transfer Agent. Reg 7(4) & (5) Share Transfer Agent. The listed entity shall intimate any change or appointment of a new share transfer agent, to the stock exchange(s) within seven days of entering into the agreement. 7 DAYS
29 Reg 29(1) The intimation required under 29 (1), shall be given at least two working days in advance, excluding the date of the intimation and date of the meeting Reg 29(1) is reproduced below: (b) proposal for buyback of securities ; (c) proposal for voluntary delisting by the listed entity from the stock exchange(s); (d) fund raising by way of further public offer, rights issue, American Depository Receipts/Global Depository Receipts/ Foreign Currency Convertible Bonds, qualified institutions placement, debt issue, preferential issue or any other method and for determination of issue price:
Provided that intimation shall also be given in case of any annual general meeting or extraordinary general meeting or postal ballot that is proposed to be held for obtaining shareholder approval for further fund raising indicating type of issuance. (e) declaration/ recommendation of dividend, issue of convertible securities including convertible debentures or of debentures carrying a right to subscribe to equity shares or the passing over of dividend. (f) the proposal for declaration of bonus securities where such proposal is communicated to the board of directors of the listed entity as part of the agenda papers:
 at least 2 working days in advance, excluding the date of the intimation and date of the meeting
31 Holding of specified securities and shareholding pattern. Reg 31 (1)(a) The listed entity shall submit to the stock exchange(s) a statement showing holding of securities and shareholding pattern separately for each class of securities, in the format specified by the Board from time to time –
one day prior to listing of its securities on the stock exchange(s);
1 day prior to listing of its securities on the stock exchange(s
31 Reg 31 (1 (c) within ten days of any capital restructuring of the listed entity resulting in a change exceeding two per cent of the total paid-up share capital: within 10 days of any capital restructuring
31A Conditions for re-classification of any person as promoter / public Reg 31A an application for re-classification of a promoter/ person belonging to promoter group to public to the stock exchanges has to be made by the listed entity consequent to the following procedures and not later than thirty days from the date of approval by shareholders in general meeting 30 days from the date of approval by shareholders in general meeting
37 Draft Scheme of Arrangement & Scheme of Arrangement. 37(1) Draft Scheme of Arrangement & Scheme of Arrangement before for obtaining Observation Letter or No-objection letter, before filing such scheme with any Court or Tribunal, in terms of requirements specified by the Board or stock exchange(s) from time to time. Before filling the same with any court or tribunal
39 Issuance of Certificates or Receipts/Letters/ Advices for securities and dealing with unclaimed securities. 39(2) The listed entity shall issue certificates or receipts or advices, as applicable, of subdivision, split, consolidation, renewal, exchanges, endorsements, issuance of duplicates thereof or issuance of new certificates or receipts or advices, as applicable, in cases of loss or old decrepit or worn out certificates or receipts or advices, as applicable within a period of thirty days from the date of such lodgement. 30 Days
39 Issuance of Certificates or Receipts/Letters/ Advices for securities and dealing with unclaimed securities 39(3) The listed entity shall submit information regarding loss of share certificates and issue of the duplicate certificates, to the stock exchange within two days of its getting information. 2 days of its getting information.
40 Transfer or transmission or transposition of securities. 40 (3) On receipt of proper documentation, the listed entity shall register transfers of its securities in the name of the transferee(s) and issue certificates or receipts or advices, as applicable, of transfers; or issue any valid objection or intimation to the transferee or transferor, as the case may be, within a period of fifteen days from the date of such receipt of request for transfer 15 days
40 Transfer or transmission or transposition of securities. 40 (3) the listed entity shall ensure that transmission requests are processed for securities held in dematerialized mode within seven days after receipt of the specified documents: 7 Days
40 Transfer or transmission or transposition of securities. 40 (3) the listed entity shall ensure that transmission requests are processed for securities held in physical mode within twenty one days after receipt of the specified documents: 21 Days
SCHEDULE VII: TRANSFER OF SECURITIES (PART B (1)) In case of minor differences in the signature of the transferor(s), the listed entity shall follow the following procedure for registering transfer of securities:
(a) the listed entity shall promptly send to the first transferor(s), via speed post an intimation of the aforesaid defect in the documents and inform the transferor(s) that objection, supported by valid proof, is not lodged by the transferor(s) with the listed entity within fifteen days of receipt of the listed entity’s letter, then the securities shall be transferred
15 Days
42 Record Date or Date of closure of transfer books. 42(2) The listed entity shall give notice in advance of atleast seven working days (excluding the date of intimation and the record date) to stock exchange(s) of record date specifying the purpose of the record date:  7 working days advance intimation excluding the date of the intimation and date of the meeting
42 Record Date or Date of closure of transfer books. 42(2) in the case of rights issues, the listed entity shall give notice in advance of atleast three working days (excluding the date of intimation and the record date).]  3 working days advance intimation excluding the date of the intimation and date of the meeting
42 Record Date or Date of closure of transfer books. 42(3) The listed entity shall recommend or declare all dividend and/or cash bonuses at least five working days (excluding the date of intimation and the record date) before the record date fixed for the purpose.  5 working days advance intimation excluding the date of the intimation and date of the meeting
46 Website 46 (3)(b) The listed entity shall update any change in the content of its website within two working days from the date of such change in content.  2 working days
50 Intimation to stock exchange(s). 50(1) The listed entity shall give prior intimation to the stock exchange(s) at least eleven working days before the date on and from which the interest on debentures and bonds, and redemption amount of redeemable shares or of debentures and bonds shall be payable. 11 working days
50 Intimation to stock exchange(s). 50(3) The listed entity shall intimate to the stock exchange(s), at least two working days in advance, excluding the date of the intimation and date of the meeting, regarding the meeting of its board of directors, at which the recommendation or declaration of issue of non convertible debt securities or any other matter affecting the rights or interests of holders of non convertible debt securities or non convertible redeemable preference shares is proposed to be considered.  2 working days advance intimation excluding the date of the intimation and date of the meeting
52 Financial Results. 52 (4) & (5) The listed entity shall, within seven working days from the date of submission of the information required under sub- regulation (4), submit to stock exchange(s), a certificate signed by debenture trustee that it has taken note of the contents  7 working days
52 Financial Results. 52 (4) & (8) The listed entity shall, within two calendar days of the conclusion of the meeting of the board of directors, publish the financial results and statement referred to in reg 52 (4), in at least one English national daily newspaper circulating in the whole or substantially the whole of India. two calendar days of the conclusion of the meeting
57 Other submissions to stock exchange(s). 57(1) The listed entity shall submit a certificate to the stock exchange within two days of the interest or principal or both becoming due that it has made timely payment of interests or principal obligations or both in respect of the non convertible debt securities within 2 days
60 Record Date 60(2) The listed entity shall give notice in advance of at least seven working days (excluding the date of intimation and the record date) to the recognised stock exchange(s) of the record date or of as many days as the stock exchange(s) may agree to or require specifying the purpose of the record date.  7 working days advance intimation excluding the date of the intimation and date of the meeting
78 Record Date. 78(2) The listed entity shall give notice in advance of at least four working days to the recognised stock exchange(s) of record date specifying the purpose of the record date notice in advance of at least 4 working days
82 Intimation and filings with stock exchange(s). 82(2) The listed entity shall intimate to the stock exchange(s), at least two working days in advance, excluding the date of the intimation and date of the meeting, regarding the meeting of its board of trustees, at which the recommendation or declaration of issue of securitized debt instruments or any other matter affecting the rights or interests of holders of securitized debt instruments is proposed to be considered.  2 working days in advance, excluding the date of the intimation and date of the meeting,
82 Intimation and filings with stock exchange(s). 82(3) The listed entity shall submit such statements, reports or information including financial information pertaining to Schemes to stock exchange within seven days from the end of the month/ actual payment date, either by itself or through the servicer, on a monthly basis in the format as specified by the Board from time to time:

Provided that where periodicity of the receivables is not monthly, reporting shall be made for the relevant periods.

within 7 days
87 Record Date. 87(2) The listed entity shall give notice in advance of atleast seven working days (excluding the date of intimation and the record date) to the recognised stock exchange(s) of the record date or of as many days as the Stock Exchange may agree to or require specifying the purpose of the record date  7 working days advance intimation excluding the date of the intimation and date of the meeting
87E Record Date. 87E(2) The listed entity shall give notice in advance of at least seven working days (excluding the date of intimation and the record date) to the stock exchange(s) of the record date or of as many days as the stock exchange may agree to or require specifying the purpose of the record date.  7 working days advance intimation excluding the date of the intimation and date of the meeting

SYSTEM DRIVEN DISCLOSURE

FOR SAST AND PIT REG: Listed entities shall follow System Driven Disclosure by designating 1 Depository as Designated Depository and uploading the Formation of promoter. Promoter Group, Designated Person, Directors, Employees not below 2 level (till 30/09/2020)

The Key Summary of System Driven Disclosure of Sep 9, 2020 (https://taxguru.in/sebi/sebi-automates-disclosures-pit-regulations-members-promoter-group.html) is reproduced below:

“→. Listed company shall provide the information including PAN number of Promoter(s) including member(s) of the promoter group, designated person(s) and director(s) (hereinafter collectively referred to as entities) as per PIT Regulations to the designated depository (selected in terms of SEBI circular ref. no. SEBI/HO/CFD/DCR1/CIR/P/2018/85 dated May 28, 2018) in the format and manner prescribed by the Depositories. For PAN exempt entities, the Investor’s Demat account number(s) shall be specified by the listed company. The information shall be provided within 10 days from the date of this circular.

→. The designated depository shall share the information received from the listed company with other depository.

→. In case of any subsequent update in the details of the entities, the listed company shall update the information with the designated depository on the same day. The designated depository shall share the incremental changes with the other depository on the day of receipt from the listed company.”

6. SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

Securities and Exchange Board of India (SEBI) vide notification/Circular No. SEBI/HO/CFD/DCR1/CIR/P/2020/49 issued and publish dated 27th March 2020, has published Relaxation from compliance with certain provisions of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 due to the COVID-19 pandemic.”.

Sl. No. Regulation No. Compliance Particular Compliance Period (Due Date)
 1  Regulation 30(1) Every person, who together with persons acting in concert with him, holds shares or voting rights entitling him to exercise 25% or more of the voting rights in a target company, shall disclose their aggregate shareholding and voting rights as of the 31st day of March, in such target company in such form as may be specified.  

 

The disclosures required under sub-regulation (1) and sub-regulation (2) shall be made within seven working days from the end of each financial year to;

  • every stock exchange where the shares of the target company are listed; and
  • the target company at its registered office
 

 

 

2

 

 

 

Regulation 30(2)

The promoter of every target company shall together with persons acting in concert with him, disclose their aggregate shareholding and voting rights as of the thirty-first day of March, in such target company in such form as may
 

 

 

 

3.

Regulation 31(1) read with Regulation 28(3) of Takeover Regulations

AUGUST 7, 2019 CIRCULAR

https://taxguru.in/sebi/disclosure-reasons-encumbrance-promoter-listed-companies.html

The promoter of every listed company shall specifically disclose detailed reasons for encumbrance if the combined encumbrance by the promoter along with PACs with him equals or exceeds: a) 50% of their shareholding in the company; or b) 20% of the total share capital of the company, within 2 (two) working days
 

 

 

4.

 

 

 

Regulation 31(4)

 

 

 

Disclosure of encumbered shares

Promoter of every target company shall together with persons acting in concert with him, disclose their aggregate shareholding and voting rights as of the 31st March, in such target company in such form as may be specified

7. SEBI (Prohibition of Insider Trading) Regulations, 2015

Sl. No.  Regulation No.  Compliance Particular Compliance Period (Due Date)
1 Regulation 7(2)

“Continual Disclosures”

Every promoter, employee and director of every company shall disclose to the company the number of such securities acquired or disposed of within two trading days of such transaction if the value of the securities traded, whether in one transaction or a series of transactions over any calendar quarter, aggregates to a traded value in excess of ten lakh rupees (10,00,000/-) or such other value as may be specified; Every company shall notify; within two trading days of receipt of the disclosure or from becoming aware of such information

8. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

Sl. No. Regulation No. Compliance Particular Compliance Period (Due Date)
1 Schedule XIX – Para (2) of ICDR Read with Reg 108 of SEBI LODR “The issuer shall make an application for listing from the date of allotment, within such period as may be specified by the Board from time to time, to one or more recognized stock exchange(s)”.

In regard to above, it is specified that Issuer shall make an application to the exchange/s for listing in case of further issue of equity shares from the date of allotment within 20 days (unless otherwise specified).

Within 20 days from the date of allotment
2 Regulation 162 The tenure of the convertible securities of the issuer shall not exceed eighteen months from the date of their allotment. Within 18 months from date of allotment
3 SEBI CIRCULAR Aug 19, 2019

https://taxguru.in/sebi/non-compliance-provisions-sebi-issue-capital-disclosure-requirementsregulations2018-icdr-regulations.html

Application for trading approval to the stock exchange Listed entities shall make an application for trading approval to the stock exchange/s within 7 working days from the date of grant of listing approval by the stock exchange/s. Within 7 working days from grant of date of listing approval
4 Regulation 76

Application for rights issue

The issuer along with lead managers and other parties related to the issue shall constitute an optional mechanism (non-cash mode only) to accept the applications of the shareholders to apply to rights issue subject to ensuring that no third-party payments shall be allowed in respect of any application
5. Regulation 77

Service of Documents

In case if the company fails to adhere to modes of dispatch through registered post or speed post or courier services due to Covid-19 conditions it will not be treated as non-compliance during the said period. The issuers shall publish required & necessary documents on the websites of the company, registrar, stock exchanges and the lead managers to the rights issue
6. Regulation 84  

Advertisement

Issuer has the flexibility to publish the advertisement in additional newspapers above those required in Regulation 84. The advertisement should also be made available on:

A. Website of the Issuer, Registrar, Lead Managers, and Stock Exchanges.

B. Television channels, radio, the internet, etc. to spread information related to the process.

 

CIRCULAR DATED :  APRIL 21,2020: the relaxation on change in fresh issue size shall be applicable for issues (IPO/ Rights Issues/ FPO) opening before December 31, 2020 (https://taxguru.in/sebi/one-time-relaxation-respect-validity-sebi-observations.html)

Read with

Circular Dated 29/09/2020 Relaxation with respect to Validity of SEBI Observations and Revision in issue size (https://taxguru.in/sebi/relaxation-respect-validity-sebi-observations-revision-issue-size.html) w.e.f 01/10/2020

In view of the impact of the COVID-19 pandemic, based on representations from various  industry  bodies, SEBI  has  decided  to  grant  the  following  onetime relaxations:

(i) In  terms  of  Regulation  44(1),  85  and  140 of the Securities  and  Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations), a public issue/rights issue may be opened within twelve months from the date of issuance of observations by SEBI. The  validity  of  the  SEBI Observations where the  same have expired/will expire between March 1, 2020 and September 30, 2020 has been extended by  6  months,  from  the  date  of  expiry  of  such  observation, subject  to an undertaking  from  lead  manager  of  the  issue on firming compliance  with Schedule XVI of the ICDR Regulations while submitting the updated offer document to the Board.

(ii)In  terms  of  Schedule  XVI  (1)(f)(i)  of  the  ICDR  Regulations, 2018  any increase  or  decrease  in  estimated fresh issue  size  by  more  than  twenty percent of the estimated fresh issue size shall require fresh filing of the draft offer document along with fees.

An issuer shall be permitted to increase or decrease the fresh issue size by up to 50% of the estimated issue size without requiring to file fresh draft offer document with the Board subject to following conditions: (a)there has been no change in the objects of the issue(b)the  lead  manager  undertakes  that  the  draft  offer  document  is  in compliance with provisions of Regulation 7(1)(e)(c)the  lead  manager  shall  ensure  that  all  appropriate  changes  are made  to  the  relevant  section  of  DRHP  and  an  addendum,  in  this regard, shall be made public

This shall continue till 31/03/2021 (Added in circular 29/09/2020)

the  validity  of  the  SEBI observations expiring between  October  1,  2020  and March 31,2021 shall be extended upto March 31, 2021, subject to an undertaking from lead manager tothe  issue  confirming  compliance  with  Schedule  XVI  of  the  ICDR Regulations, 2018 while submitting the updated offer document to the Board

(Added in circular 29/09/2020)

9. SEBI (Buyback of Securities) Regulations, 2018 (Buyback Regulations) 

Sl. No. Regulation No. Compliance Particular Compliance Period (Due Date)
1 Regulation 11 and 24(iv) Extinguishment of equity shares in connection with Buyback The particulars of the security certificates extinguished and destroyed shall be furnished by the company to the stock exchanges where the shares or other specified securities of the company are listed within seven days of extinguishment and destruction of the certificates 7 days of extinguishment and destruction of the certificates
2 Regulation 24(i) (f) Minimum time between buy back and raising of funds Temporary relaxation in the period of restriction provided in Regulation 24(i)(f) from “one year” to “six months”

Applicable up to December 31, 2020 only

10. SEBI (Depositories and Participants) Regulations 2018)

Sl. No. Compliance Particulars Due Date
1. Regulation 76  (Quarter, Oct – Dec 2020) Reconciliation of Shares and Capital Audit 30.01.2021
2. Regulation 74 (5): Processing of demat requests form by Issuer/RTAs – Certificate Received from Registrar Within 15 days of receipt of the certificate of security

11. regulatory requirements by the Trading Members/Clearing Members/Depository Participants, mentioned in the SEBI circulars, as under:

Compliance requirements for which timelines were extended vide SEBI circular SEBI/HO/MIRSD/DOP/CIR/P/2020/61 dated April 16, 2020. S. Nos. for which timeline is extended Extended timeline / Period of exclusion
Maintaining call recordings of orders/ instructions received from clients. XI Till 31.12.2020
Compliance requirements for which timelines were extended vide SEBI circular SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated April 16, 2020. S. Nos. for which timeline is extended Extended timeline/ Period of exclusion
KYC application form and supporting documents of the clients to be uploaded on system of KRA within 10 working days. III Period of exclusion shall be from March 23, 2020 till December 31, 2020.
New relaxation (not included in above SEBI circulars)
Cyber Security & Cyber Resilience Audit for the year ended March 31, 2020. Till 31.12.2020

OCTOBER 01, 2020 CIRCULAR : (https://taxguru.in/sebi/sebi-relaxes-timelines-compliance-regulatory-requirements.html) 

Standard Operating Procedurein the cases of Trading Member/Clearing Member leading to default-Extension of timeline for submission of the Undertaking cum Indemnity bondby the Trading members (TMs)/Clearing Members (CMs) for all the bank accounts: It has been decided to extend the timeline for submission of the undertaking cum indemnity bond by the TM/CM for all the bank accounts by A period of one month i.e. till October 31, 2020 https://taxguru.in/sebi/sebi-extends-time-submit-undertaking-tm-cm-bank-accounts.html ) 

12. SEBI RELAXATIONS FOR PREFERENTIAL ISSUES MATTERS

Securities Exchange Board of India (SEBI) vide Press Release no. PR No.35/2020 dated 23rd June, 2020 has come out with Relaxations for Listed Companies having stressed assets aimed at helping stressed companies raise capital through timely financial intervention, at the same time protecting the interest of shareholders.

Relaxations are divided into two main parts:

  • Relaxations in the pricing methodology for preferential issues
  • exempt allottees of preferential issues from open offer obligations

What are the relaxations:

Pricing of their preferential allotments Exempted from making an open offer
not less than the average of the weekly high and low of the volume weighted average prices of the related equity shares during the two weeks preceding the relevant date. if the acquisition is beyond the prescribed threshold or if the open offer is warranted due to change in control, in terms of Takeover Regulations.

Read full at : https://taxguru.in/sebi/relaxations-listed-companies-stressed-assets.html

13. MUTUAL FUND

Review of provision regarding segregation of portfolio due to the COVID -19 pandemic: if the CRA is of the view that the restructuring by the lenders/ investors is solely due to COVID-19 related stress or under the aforementioned RBI framework, CRAs may not consider the same as a default event and/or recognize default . Considering the above and in partial modification to aforementioned circular dated December 28, 2018,the date of proposal for restructuring of debt received by AMCs shall be treated as the trigger date for the purpose of creation of segregated portfolio. Further, all other relevantprovisions of Circular No. SEBI/HO/IMD/DF2/CIR/P/2018/160 dated December 28, 2018 and Circular No. SEBI/HO/IMD/DF2/CIR/P/2019/127 dated November 07, 2019 issued with respect to Segregation of Portfolioand the letter No. SEBI/HO/IMD/DF2/OW/2019/22447/1 dated August 29, 2019 issued with respect to Prudential Framework for Resolutionof Stressed Assetsshall remain applicable.7.The modifications permitted to SEBI circular dated December 28, 2018 shall be in force till December 31, 2020 (https://taxguru.in/sebi/segregation-portfolio-due-covid-19-pandemic-provision-reviewed.html)

Review  of  provisions  regarding  valuation  of  debt  and  money  market instruments due to the COVID -19 pandemic.: In line with the same, discretion needs to be provided to valuation agencies engaged by AMCs/AMFI for  recognition of default  in  case proposal  of restructuring of debt is solely  due  to  COVID-19  related  stress.   For  the  said  purpose,  any  proposal  of restructuring  received  by  Debenture  Trustees  shall  be  communicated  to  investors immediately.     Further,     any     proposal     received     by     Mutual     Funds     from lenders/issuer/Debenture  Trustees  shall  be  reported  immediately  to  the valuation agencies  (along  with  the  other material  information required  for  the  purpose  of valuation), Credit Rating Agencies and AMFI.  AMFI, on receipt of such information, shall immediately disseminate it to its members . The modifications permitted to SEBI Circular dated September 24, 2019 shall be in force till December 31, 2020. (https://taxguru.in/sebi/review-provisions-valuation-debt-money-market-instruments.html) 

14. STAMP DUTY RATES W.E.F. 1ST JULY 2020 & AIF UPDATE

The amended provisions of the Indian Stamp Act, 1899 brought through Finance Act, 2019 and Rules made thereunder shall come into force w.e.f 1st July, 2020. The stamp duty rates being implemented through the Amended Indian Stamp Act w.e.f 01/07/2020 are:

Instruments Rate
Issue of Debenture 0.005%
Transfer and Re-issue of debenture 0.0001%
Issue of security other than debenture 0.005%
Transfer of security other than debenture on delivery basis; 0.015%
Transfer of security other than debenture on non-delivery basis 0.003%
Derivatives–
(i) Futures (Equity and Commodity) 0.002%
(ii) Options (Equity and Commodity) 0.003%
(iii) Currency and Interest Rate Derivatives 0.0001%
(iv) Other Derivatives 0.002%
Government Securities 0%
Repo on Corporate Bonds 0.00001%

 REFER FAQ ON STAMP DUTY: https://taxguru.in/corporate-law/faqs-indian-stamp-act-1899-amendments-rules.html

AIFs,  where  RTA have  not  been  appointed so  far,  shall  appoint  RTA,  at  the earliest, but not later than July 15, 2020 to enable collection of applicable stamp duty on issue,  transfer  and sale of  units  of  AIFs in  compliance  with  the applicable  provisions  of the  Indian  Stamp  Act,  1899 and  the  Rules  made thereunder: CIRCULAR : https://taxguru.in/sebi/collection-stamp-duty-issue-transfer-sale-units-aifs.html

  • SEBI Circulars Tracker: 01.12.2020 to 31.12.2020
Title Notification No. Date
SEBI Relaxes timelines for compliance with regulatory requirements till 28.02.2021 SEBI/HO/MIRSD/DOP/CIR/P/2020/255 31/12/2020
Creation of Security in issuance of listed debt securities and ‘due diligence’ by debenture trustee(s) – Extension of timeline for implementation Circular No. SEBI/HO/MIRSD/CRADT/CIR/P/2020/254 31/12/2020
Frankline-voting – SEBI appoints technical assistance team Press Release No.63/2020 26/12/2020
Filing of reporting to Stock Exchanges for violations of Insider Trading Regulations, relating to Code of Conduct Ref. LIST/COMP/76/2020-21 23/12/2020
Master Circular on Scheme of Arrangement by Listed Entities & Relaxation under SCRR, 1957 Master Circular No. SEBI/HO/CFD/DIL1/CIR/P/2020/249 22/12/2020
Core Settlement Guarantee Fund, Default Waterfall & Stress Test for LPCC Circulars No. SEBI/HO/MRD2/DCAP/CIR/P/2020/245 21/12/2020
SEBI Reviews inclusion of Historical Scenarios in Stress Testing in Commodity Derivatives Segment Notification No. SEBI/HO/CDMRD/DRMP/CIR/P/2020/244 21/12/2020
Framework for issue of Depository Receipts – Clarifications Circular No. SEBI/HO/MRD2/DCAP/CIR/P/2020/243 18/12/2020
SEBI reviews framework of IGP under ICDR Regulations Press Release No. 62/2020 17/12/2020
PACL investors can check deficiency in claim applications & correct NA 16/12/2020
7 Key decision in SEBI Board Meeting on December 16, 2020 Press Releases No. 61/2020 16/12/2020
Consultation paper on Compliance Standards for Index Providers Press Releases No. 60/2020 11/12/2020
e-Voting Facility Provided by Listed Entities Circular No. SEBI/HO/CFD/CMD/CIR/P/2020/242 09/12/2020
Additional Payment Mechanism (i.e. ASBA, etc.) for Payment of Balance Money in Calls for partly paid specified securities issued by the listed entity SEBI/HO/CFD/DIL1/CIR/238/2020 08/12/2020
SEBI clarifies on NAV for the switch in transaction Notification No. SEBI/H0/1MD/DF2/0W/P/2020/20589/1 27/11/2020
NSE launches new URL for filing of Information and/or application on NEAPS Ref No: NSE/CML/2020/56 04/12/2020
Operational guidelines for Transfer & Dematerialization of re-lodged physical shares Notification No. SEBI/HO/MIRSD/RTAMB/CIR/P/2020/236 02/12/2020
SEBI extends regulatory compliance timelines for trading/clearing members Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/235 01/12/2020

15. Compliance Requirement UNDER Companies Act, 2013 and Rules made thereunder;

 Applicable Laws/ Acts  Due Dates  Compliance Particulars  Forms /Filing mode
 

Companies Act, 2013

 

Within 180 Days From The Date Of Incorporation Of The Company + An additional time of 6 more months shall be allowed by MCA

(6+6 months)

As per Section 10 A (Commencement of Business) of the Companies Act, 2013, inserted vide the Companies (Amendment) Ordinance, 2018 w.e.f. 2nd November, 2018, a Company Incorporated after the ordinance and having share capital shall not commence its business or exercise any borrowing powers unless a declaration is filed by the Director within 180 days from the date of Incorporation of the Company with the ROC.

https://taxguru.in/company-law/companies-incorporation-fourth-amendment-rules-2018.html

MCA E- Form INC 20A

(one time compliance)

Companies Act, 2013

 

First declaration within 90 days from the date of notification Dt. 08.02.2019

 

 

A person having Significant beneficial owner shall file a declaration to the reporting company

https://taxguru.in/company-law/companies-significant-beneficial-owners-amendment-rules-2019.html

i.e. within 90 days of the commencement of the Companies (Significant Beneficial Owners) Amendment Rules, 2019 i.e. 08.02.2019

In case Subsequent Acquisition of the title of Significant Beneficial Owner / Any Change therein a declaration in Form No. BEN-1 required to be filed to the reporting company, within 30 days of acquiring such significant beneficial ownership or any change therein.

Form BEN-1

Draft Format available at

LINK

Companies Act, 2013

 

31.12.2020

(now penalty applicable)

Filing of form BEN-2 under the Companies (Significant Beneficial Owners) Rules, 2018.

(Within 30 days from deployment of the E –form (earlier the date of receipt of declaration in BEN-1 )

https://taxguru.in/company-law/time-limit-filing-e-form-no-ben-2-extended-upto-31-12-2019.html

Form BEN – 2

(e-form deployed by Ministry (ROC)) on 01.07.2019

Companies Act, 2013 One time Compliance Filing of the particulars of the Company & its registered office.

(by every company incorporated on or before the 31.12.2017.)

Due date extended- Link :

https://taxguru.in/company-law/rs-10000-fees-filing-e-form-active-after-15-06-2019.html

 

Active Form INC -22A

Companies Act, 2013 Annual Compliance *DIN KYC through DIR 3 KYC Form is an Annual Exercise.

Last date for filing DIR-3 KYC for Financial year 2019-20 has been extended till 31st December, 2020

https://taxguru.in/company-law/fee-payable-dir-3-kyc-filed-14th-oct-2019.html

https://taxguru.in/company-law/date-filing-dir-3-kyc-extended-14th-oct-2019.html

Annual Exercise:

CLICK HERE

Penalty after due date is Rs. 5000/-(one time)

E-Form DIR – 3 KYC

(Web Based and E-form)

 

Companies Act, 2013 within 60 days from the date of deployment of this form on the website of the Ministry. Reconciliation of Share Capital Audit Report (Half-yearly)

Pursuant to sub-rule Rule 9A (8) of Companies (Prospectus and Allotment of Securities) Rules, 2014

To be filed all unlisted companies, deemed public companies

Till further clarification to be filled in GNL-2

https://taxguru.in/company-law/form-pas-6-reconciliation-share-capital-audit-report.html

https://taxguru.in/company-law/extension-date-filing-form-pas-6.html

E-Form PAS – 6

Available w.e.f. 15.07.2020)

Companies Act, 2013 Within 270 days from the date of deployment of this Form Annual Return To Be Filed By Auditor With The National Financial Reporting Authority

https://taxguru.in/company-law/mca-extend-last-date-filing-form-nfra-2-fy-2018-19.html

https://taxguru.in/company-law/date-filing-form-nfra-2-extended-210-days-deployment-date.html

https://taxguru.in/company-law/extension-last-date-filing-form-nfra-2-270-days.html

Note on NFRA -2 Click Here

NFRA-2

(NFRA-2 e-Form live since 9th December 2019.)

Companies Act, 2013 Due date was 30.06.2020 and was to be filed till 31.12.2020 under CFSS, now penal provisions applicable DPT 3 is a return of deposits that companies must file to furnish information about deposits and/or outstanding receipt of loan or money other than deposits.

Company can file Form DPT-3 upto 31.12.2020 without any additional fee

DPT-3
Companies Act, 2013 Due date is 30.11.2020 and was to be filed till 31.12.2020 under CFSS, now penal provisions applicable IEPF Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2019 Statement of unclaimed and unpaid amounts IEPF -2
Companies Act, 2013 On or before 31.12.2020 Statement of Amounts credited to Investor Education and Protection Fund Pursuant to Rule 5(4A) IEPF Form – 1A
  • Due dates of LLP Return Filing:
    • LLP Form 8 (Statement of Account & Solvency) on or before 31.12.2020 (due date is 31.10.2020 and extended as per Modified LLP Settlement scheme, 2020)
    • The charge details i.e. creation, modification or satisfaction of charge, can be filed through Appendix to e-Form 8 (Interim)
    • Form LLP -8 can be filed after due date with a penalty of Rs. 100/- per day till the filing is completed.
  • Due dates of ROC Annual Return Filings:
Sl. No. Particulars Due Date E- Form
1 Appointment of Auditor Within 15 days from the conclusion of AGM (ratification at every annual general meeting is not mandatory) ADT-1
2 Filing of financial statement and other documents with the ROC With in 30 days from the conclusion of the AGM, other than OPC

(In case of OPC within 180 days from the close of the financial year)

AOC-4
 

3

Filing of annual return by a company. With in 60 days from the conclusion of AGM MGT-7
4 Filing of Cost Audit Report with the Central Government With in 30 days from the receipt of Cost Audit Report Extension notification:

https://taxguru.in/company-law/mca-extends-last-date-filing-form-cra-4-extended-31-12-2020.html

CRA-4
5 Filing of Resolutions and agreements to the Registrar Within 30 days from the date of Board Meeting. MGT-14
  • KEY UPDATES:

1. Extension of LLP Settlement Scheme, 2020

In continuation to this Ministry’s General Circular No. 13/2020 dated 30.03.2020 and in the General Circular No. 31/2020 dated 28.09.2020 the scheme was extended till 31st December 2020, in view of large scale disruption caused by the COVID-19 pandemic and after due examination, it has been decided to extend the date on applicability to defaulting LLP and therefore, in serial number 3, para 8A, sub-para (iii) of the said circular dated 30.03.2020 belated documents due for filing till 30th November 2020 shall be substituted. All other requirements provided in the said circulars shall remain unchanged.

If a statement of account and solvency for the financial year 2019-2020 has been signed beyond the period of six months from the end of financial year but not later than 30th November, 2020, the same shall not be deemed as non-compliance. 

2. Stakeholders may please note that there is no change in the additional fee logic of eform MGT-7 and AoC-4/AOC-4 XBRL/AOC-4 CFS/AOC-4 NBFC for the FY 2019-20 w.e.f 01 January 2021 since extension was provided to all the companies for conducting AGM and not for filing the form. Hence, the due date of form filing shall be computed based on the actual date of AGM or due date/extended due date of AGM as the case may be.

Post 31st December 2020, additional fee shall be applicable from the actual date of AGM or due date/extended due date of AGM + 30/60 days as the case may be and Rs.100 per day shall be charged starting from such day even if such date falls prior to 31st December 2020.

3. Stakeholders may please note that the Field ‘SRN of the application filed for extension’ (GNL-1) in eform MGT-7 is made optional for FY 2019-20 w.e.f 01 January 2021 due to blanket extension provided for all companies to conduct AGM.

Consequently, eForm MGT-7 has been revised on MCA21 Company Forms Download page w.e.f 1st January, 2021. Stakeholders are advised to check the latest version before filing.

4. Please note that the last date for filing DIR-3 KYC for Financial year 2019-20 has expired on 31st December 2020. The process of deactivating the non-compliant DINs is in progress and will be completed shortly. Please note that web service DIR-3 KYC shall not be available for filing during the pendency of this activity. Filing of DIR-3 KYC can be made after completion of the scheduled activity, as above, when the service is made available on the portal after payment of applicable fees. Stakeholders may kindly note and plan accordingly.

  • Important Updates
  • MCA Monthly UPdate Calendar: December, 2020
Title Notification No. Date
Clarification on passing of ordinary & special resolutions by companies General Circular No. 39/2020 31/12/2020
Companies (Meetings of Board and its Powers) Fourth Amendment Rules, 2020 G.S.R. 806(E) 30/12/2020
MCA notifies Rule 9A Extension of reservation of name G.S.R. 795(E) 24/12/2020
Order of NCLT on Automatic Case Number Generation File No. 25/02/2020-NCLT 24/12/2020
Form No. SH-7- Notice to Registrar of any alteration of share capital Notification No. G.S.R. 794(E). 24/12/2020
MCA notifies 17 Provisions of Companies (Amendment) Act, 2020 wef 21.12.2020 Notification No. S.O. 4646(E) 21/12/2020
MCA deffers Applicability of CARO 2020 to FY 2021-22 Notification No. S.O. 4588(E) 17/12/2020
Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2020 Notification No. G.S.R. 774(E). 18/12/2020
Rule 26A Purchase of minority shareholding held in demat form Notification No. G.S.R. 773(E) 17/12/2020
Companies (Compromises, Arrangements & Amalgamations) Second Amendment Rules, 2020 F. No. 2/ 31/CAA/ 2013 – CL.V 17/12/2020
MCA extends last date of filing Form CRA-4 extended to 31.12.2020 General Circular No. 38/2020 01/12/2020

16. IBBI Updates {Insolvency and Bankruptcy Board of India}

Due to the emerging financial distress faced by most companies it has been decided to raise the threshold of default under section 4 of the IBC 2016 to Rs 1 crore (from the existing threshold of Rs 1 lakh). This will by and large prevent triggering of insolvency proceedings against MSMEs. 

  • Important Notifications and Circulars Tracker (December, 2020)
Title Notification No. Date
CRIP initiation under IBC suspended till 24th March 2021 S.O. 4638(E) 22/12/2020
IBBI Imposes Penalty On IP for accepting assignment of RP after 31.12.2020 Notification No. IBBI/DC/59/2020 16/12/2020
Penalty for accepting assignment as Liquidator after 31.12.2019 without holding a valid AFA in CIRP Notification No. IBBI/DC/61/2020 17/12/2020
Mere re­arrangement of link on website not amounts to delay in publishing Order No. IBBI/DC/60/2020 17/12/2020
Penalty for accepting assignment as Resolution Professional after 31.12.2019 without holding a valid AFA Notification No. IBBI/DC/58/2020 15/12/2020
Professional Misconduct – Accepting assignment as IRP after 31.12.2019 without holding a valid AFA No. IBBI/DC/57/2020 15/12/2020
No misconduct on accepting assignment as IRP after 31.12.2019 without holding a valid AFA as consent given before 31.12.2019 Notification No. IBBI/DC/56/2020 14/12/2020
Accepting assignment as IRP prior to amendment to IP Regulations without holding a valid AFA Order No. IBBI/DC/55/2020 14/12/2020
IP shall not accept an assignment after 31.12.2019 without holding a valid AFA Notification No. IBBI/DC/54/2020 14/12/2020
Accepting assignment as IRP after 31.12.2019 without valid AFA- Reg. No. IBBI/DC/53/2020 09/12/2020
Acceptance of assignment as Liquidator after 31.12.2019 without holding a valid AFA violates IBC code Order No. IBBI/DC/52/2020 07/12/2020
IBBI will refund excess fees received related to CIRP Regulations No. IBBI/CIRP Forms/2020 04/12/2020
IBBI bars IP till he is exonerated of Criminal charges against him Order No. IBBI/DC/48/2020 01/12/2020
IBBI directs IP accused of accepting amount for granting illegal favour to not to seek/accept any assignment till exoneration of charges Order No. IBBI/DC/47/2020 01/12/2020
Handing over control & custody of assets by IP to ex-management is violation of code: IBBI Order No. IBBI/DC/46/2020 01/12/2020

 17. NBFC Compliance Overview

Non-Banking Financial Companies (NBFCs) is a Company registered under the Companies Act 2013 engaged in the businesses) of providing financial services including loans & advances, leasing, hire purchase etc. They provide loans and advances and other credit facilities to business people or budding entrepreneur where Bank/Financial Institution are not comfortable, or say it is an alternative source of finance to businessman.

NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Chapter IIIB of the Reserve Bank of India Act, 1934 and any rules made thereunder or any directions issued by it under the Act.

A. NBFC MONTHLY COMPLIANCES SUBMITTED BY ALL NON-DEPOSIT TAKING NBFCS

NAME PURPOSE OF THE FORM DEPARTMENT
Monthly Return Monthly Return on NBFC­-ND­SI with asset size of Rs.100 CR. & above RBI
NBS_ALM­1 Statement of Short term dynamic liquidity to be filed within 10 days of the closer month RBI
To be submitted by all deposit-taking NBFC’s having asset size above Rs. 100 crores or public deposits of Rs. 20 crores and above
NBS­6 Monthly Return stating Exposure to Capital Market RBI

B. NBFC QUARTERLY COMPLIANCES

NAME PURPOSE OF THE FORM DEPARTMENT
To be submitted by all deposit-taking NBFC’s except residuary NBFC
NBS-1 Quarterly Return on Material Financial Parameters of Deposit Taking NBFCs RBI
NBS-2 Quarterly Statement of Capital Funds, Risk Assets/Exposures and risk assets Ratio. RBI
NBS 2: CA & CEO Cert. Certifying NBS 2 RBI
NBS 3 Quarterly Return on Statutory Liquid Assets RBI
To be submitted by all residuary non-banking companies
NBS 3A Quarterly Return on Statutory Liquid Assets RBI
Quarterly Return I Return of investments RBI
SUBMITTED BY ALL NON-DEPOSIT TAKING NBFCS
NBS -7 Quarterly Statement of Capital Funds, Risk-Weighted Assets and risk assets Ratio etc. RBI
NBS-7: SA & CEO Cert. Certifying NBS -7 RBI
Submitted by NBFCS having an asset size between 50 to 100 cr.
Quarterly Return Quarterly Return by NBFC-ND with asset size of Rs.50 to 100 Cr. RBI
Submitted by all securitization and reconstruction company
SCRC Quarterly statement of assets acquired/ securitized/ reconstructed RBI

C. NBFC COMPLIANCE UNDER COMPANIES ACT, 2013

FORM NAME PURPOSE OF THE FORM DEPARTMENT
E-­Form MGT-­7 Annual Return (Within 60 days of conclusion AGM) ROC
E-­Form AOC­-4 Filing of annual financials i.e. Balance Sheet & Profit & Loss statement (Within 30 days of conclusion of AGM) ROC
E-Form DIR-12 If there is any change in Directors (Within 30 days of the date of that change) ROC
And any other Event based Compliance like DIR 3 KYC, ADT-1 etc.

18. NCLT & NCLAT UPDATES

1. Infibeam Avenues rises 10% as NCLT approve demerger proposal

In a filing to BSE, the company said that the composite scheme of arrangement will assist Infibeam Avenues to unlock value for its shareholders.

2. Ruchi Soya shareholders approve appointment of Baba Ram Dev, Acharya Balkrishna on board.

The board of directors, at its meeting held on August 19, appointed Ram Bharat as managing director of the company with effect from August 19, 2020 to December 17, 2022 and his designation was changed from whole-time director to managing director.

3. NCLT restrains MGF from creating third-party rights on Gurugram land

​​​​Emaar has received this NCLT order against the developer in response to a case related to the main petition that accused MGF Developments, its chairman Shravan Gupta and his wife Shilpa Gupta of siphoning off funds and fraudulent activities.

4. NCLT directs IBBI, lenders to investigate into the affairs of Lotus Auto Engineering

The development is likely to set a precedent as an order to investigate into the conduct of the Resolution Professional (RP) and the Committee of Creditors (CoC) of the company to ascertain whether they have done their duty well.

5. NCLT gives nod to Reliance Infratel resolution plan

Under the plan, lenders may recover about Rs 4000 crore through the resolution plan of Reliance Infratel, which is a unit of bankrupt Reliance Communications, and holds some 43,000 towers and ans 1,72,000 km of fibre, a person familiar with the matter said.

6. Insolvency case: NCLT allows plea for private sale of ABG Shipyard assets

The ruling by the dedicated bankruptcy court is expected to set a precedent in cases where the company is already admitted for liquidation and auctions have not brought in buyers.

19. IRDAI – Insurance Sector Updates

Title Notification No. Date
Guidelines on Standard Personal Accident product Ref No:- 09/12/2020
Maintenance of records under IRDAI (Minimum Information Required for Investigation and Inspection) Regulations 2020 Ref. IRDAI/INSP/CIR/293/12/2020 08/12/2020
Guidelines on Insurance claims of victims of Cyclone Nivar Ref. No:IRDA/NL/CIR/MISC/290/12/2020 02/12/2020
Guidelines for all General Insurance Companies for submission of Reports Ref. No: IRDA/SUR/GDL/MISC/289/12/2020 02/12/2020
Guidelines for Practical Training for Surveyors & Loss Assessors Ref. No: IRDA/SUR/GDL/MISC/288/12/2020 02/12/2020
Guidelines for grant of fresh licence / renewal of license to act as Insurance Surveyor and Loss Assessor Ref. No: IRDA/SUR/GDL/MISC/287/12/2020 02/12/2020
Filing of Half-Yearly PoSP Returns in IIB Portal Ref. No: IRDA/INT/CIR/PSP/307/2020 30/12/2020
Amendments to Guidelines on Information & Cyber Security for Insurers Ref. No: IRDA/IT/CIR/MISC/301/12/2020 30/12/2020
IRDAI revises Panel of Actuaries For Life Insurance Segment Ref. No: IRDA/ACT/CIR/MISC/300/12/2020 28/12/2020
Relaxations in Point of Sales- Life Insurance Master Circular Ref: IRDAI/Life/Cir/MISC/302/12/2020 29/12/2020
IRDAI Guidelines on Standard Travel Insurance Policy N/A
Disclosure of benefit/premium illustration for Health insurance policies issued on floater basis Ref. No: IRDAI/HLT/REG/CIR/298/12/2020 28/12/2020
Draft Insurance Ombudsman (Amendment) Rules, 2020 Notification No. G.S.R. 788(E). 22/12/2020

This article is updated till 31th December, 2020 with all Laws/Regulations and their respective amendments.

*******

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

This article is updated till 31st December, 2020 with all Laws/Regulations and their respective amendments.

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

“Books may be the most valuable treasure of knowledge, but it is the human mind, that turns that knowledge into wisdom.”Abhijit Naskar

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19 Comments

  1. Mani.born@gmail.com says:

    Does it correct?

    GST, Act, 2017 18.02.2020 Return filed by composition dealer statement-cum-challan to declare the details or summary of his/her self-assessed tax payable for a given quarter.
    (October 2019 to December 2019)

    CMP – 08

  2. manognt says:

    Mr Lalit due date for filing GSTR ANNUAL RETURNS (9,9A & 9C) for Financial Year 2017-18 is already extended from 31.08.2019 to 30.11.2019. Already GSTN portal is confusing now by updating as 30.10.2019 and you have added one more confusion by giving another due date as 30.09.2019 which is base less.

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