1. It may be noted that certain changes are being made on the GST portal, with regard to credit utilization criteria in Form GSTR-6, which is filed by you. These changes are likely to be implemented on portal with effect from 14.04.2020.

2. During the implementation of the above change, any data which is lying in your Form GSTR-6, in saved stage, will be lost. Thus, if there is some data, filled in your Form GSTR 6 and lying in saved stage (which is not Submitted so far), that data will not be available in your Form GSTR 6. You will be required to fill up this data (which was in Saved stage and now lost due to implementation of change) again in your Form GSTR 6.

3. You are therefore requested to take note of this and take suitable necessary action accordingly. This is for your information and necessary action please.

Regards,

B. Kaushik And Associates.

You are informed that under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), the Central Govt. has approved a Scheme to grant relief in form of credit of EPF & EPS contributions in UANs of active EPF members, earning monthly wage of less than Rs.15000/- (up to Rs.14,999/-), who are employed in EPF covered establishments/factories employing up to one hundred employees with 90% or more of such employees earning monthly wage of less than Rs.15000/- (up to Rs.14999/-). This relief is for wage months- March, 2020, April, 2020 and May 2020. The Scheme is available on EPFO website.

On basis of data furnished by you in the Electronic Challan cum Returns (ECR) filed under this EPF Code number, it appears that your establishment may be eligible for availing the relief under the PMGKY subject to further validation as noted below.

The eligibility of your establishment is liable to be validated once you disburse the wages to the employees and upload ONLY One valid ECR for each of the wage months – March 2020, April 2020 and May 2020 with the required certification and undertaking from you. The information furnished in Form 5A shall also form a basis for validation of eligibility. If you are availing benefits of payment of employer’s share by Central Govt. under PMRPY/PMPRPY 2016, no such relief in r/o such employee shall be available under PMGKY.

Since you have to furnish a Certificate/undertaking, as specified in Point 6 (vii) of the Scheme at time of submission of ECR, you need to be sure that your establishment meets the eligibility criteria for availing the Central Govt. relief under this Scheme.

The issue of this communication to you does not guarantee any benefits under the PMGKY package. The details of the Scheme and FAQs containing clarifications on various aspects of the package are available on homepage of EPFO website under the TAB “COVID-19”.

https://www.epfindia.gov.in/…/FAQonSchemefor3months.pdf

https://www.epfindia.gov.in/…/EPFO_PRESS…/PR_PMGKY.pdf

https://www.epfindia.gov.in/…/EPFO…/Press_releaseDOB.pdf

Regards,

B. Kaushik And Assocates.

The Ministry has been receiving several references/ representations from various stakeholders seeking clarifications on eligibility of CSR expenditure related to COVID-19 activities. In this regard, a set of FAQs along with clarifications are provided below for better understanding of the stakeholders:

Frequently Asked Questions (FAQ)

1.Whether contribution made to ‘PM CARES Fund’ shall qualify as CSR expenditure?

Contribution made to ‘PM CARES Fund’ shall qualify as CSR expenditure under item no (viii) of Schedule VII of the Companies Act, 2013 and it has been further clarified vide Office memorandum F. No. CSR-05/1/2020-CSR-MCA dated 28th March, 2020.

2. Whether contribution made to ‘Chief Minister’s Relief Funds’ or ‘State Relief Fund for COVID-19’ shall qualify as CSR expenditure?

‘Chief Minister’s Relief Fund’ or ‘State Relief Fund for COVID-19’ is not included in Schedule VII of the Companies Act, 2013 and therefore any contribution to such funds shall not qualify as admissible CSR expenditure.

3. Whether contribution made to State Disaster Management Authority shall qualify as CSR expenditure.

Contribution made to State Disaster Management Authority to combat COVID-19 shall qualify as CSR expenditure under item no (xii) of Schedule VII of the 2013 and clarified vide general circular No. 10/2020 dated 23rd March, 2020.

4. Whether spending of CSR funds for COVID-19 related activities shall qualify as CSR expenditure?

Ministry vide general circular No. 10/2020 dated 23rd March, 2020 has clarified that spending CSR funds for COVID-19 related activities shall qualify as CSR expenditure. It is further clarified that funds may be spent for various activities related to COVID-19 under items nos. (i) and (xii) of Schedule VII relating to promotion of health care including preventive health care and sanitation, and disaster management. Further, as per general circular No. 21/2014 dated 18.06.2014, items in Schedule VII are broad based and may be interpreted liberally for this purpose.

5. Whether payment of salary/wages to employees and workers, including contract labour, during the lockdown period can be adjusted against the CSR expenditure of the companies?

Payment of salary/ wages in normal circumstances is a contractual and statutory obligation of the company. Similarly, payment of salary/ wages to employees and workers even during the lockdown period is a moral obligation of the employers, as they have no alternative source of employment or livelihood during this period. Thus, payment of salary/ wages to employees and workers during the lockdown period (including imposition of other social distancing requirements) shall not qualify as admissible CSR expenditure.

http://www.mca.gov.in/Ministry/pdf/Notification_10042020.pdf

Important MCA Compliance Update: Relief for DIN Holders and Companies to Rectify Non-Compliance

DIN holders of DINs marked as ‘Deactivated’ due to non-filing of DIR-3KYC/ DIR-3 KYC-Web and those Companies whose compliance status has been marked as “ACTIVE non-compliant” due to non-filing of Active Company Tagging Identities and Verification (ACTIVE) eform are encouraged to become compliant once again in pursuance of the General Circular No. 11 dated 24th March, 2020 & General Circular No.12 dated 30th March 2020 and file DIR-3KYC/DIR-3KYC-Web/ ACTIVE as the case may be between 1st April, 2020 to 30th September, 2020 without any filing fee of INR 5000/INR 10000 respectively.

Revised MCA Guidelines for LLPs Amidst COVID-19: Key Modifications and Compliance Updates

http://mca.gov.in/Ministry/pdf/Circular13_30032020.pdf

In continuation to Ministry’s General Circular dated 04.03.2020 and in order to support and enable LLPs registered in India to focus on taking necessary measures to address the COVID-19 threat and to reduce their compliance burden, certain modifications to the said circular have been decided to be implemented by the MCA, with effect from 01.04.2020.

The Modifications are as follows:

1. The title of the Para No. 8 shall be read as:

“The details of the Original Scheme are as under:’’

2. The Scheme shall come into force on the 16th March, 2020 and shall remain in force upto 13th June, 2020.

3. Insertion of para 8A, the details of the scheme as modified, are as under:

“This scheme shall come into effect from 01.04.2020 and shall remain in force upto 30.09.2020.”

4. Applicability: Any “defaulting LLP” is permitted to file belated documents, which were due for filing till 31.08.2020 in accordance with the provisions of the scheme.

5. Manner of Payment of fee on filing of belated documents for seeking immunity under the scheme:

“ The defaulting LLPs may themselves avail this scheme for filing the documents which have not been filed or registered in time on the payment of fee as payable for filing of such document or return:

Provided that no additional fees shall be payable for filing any belated documents under this scheme.

6. Immunity from prosecution in respect of document(s) filed under the scheme:

“The defaulting LLPs, which have filed their belated documents till 30th September, 2020 and made good the default, shall not be subjected to prosecution by the Registrar for such defaults.”

7. The Scheme not to apply:

“ This scheme shall not apply to LLPs which have made applications in FORM 24 to the Registrar, for striking off their name, from the register as per provisions of Rule 37(1) of the LLP Rules, 2009”

8. Modification in Para 9 with effect from 01.04.2020:

“On the conclusion of the scheme, after 30.09.2020, Registrar shall take necessary action under the LLP Act, 2008 against the LLPs which have not availed this scheme and are in default in filing of documents as required under the provisions of LLP Act, 2008 in a timely manner.”

B. Kaushik And Associates.

www.bkacs.com

Companies Fresh Start Scheme 2020: A Comprehensive Guide to MCA’s One-Time Filing Opportunity

http://mca.gov.in/Ministry/pdf/Circular12_30032020.pdf

The Ministry of Corporate Affairs issued Companies Fresh Start Scheme 2020 vide Circular 12/2020 dt 30.3.2020 which applies both public and private companies incorporated under Co Act 1956/2013.

The salient features are as follows:-

(1) Permits filing all pending Returns, Statements, Documents for any number of years.

(2) It shall come into operation on 1.4.2020 and remain effective up to 30th Sep 2020.

(3) It applies to all companies both public or private who failed to file all returns statements or Documents including Annual Return remain for any number of years as on date of filing.

(4) Only normal fees as prevailing on the date of filing shall be payable.

(5)No late fee no penalty no prosecution only normal fees payable.

(6) Prosecution if any pending shall be disposed off after payment

(7) Scheme not apply to following companies:-

i. Companies against whom final notice under Section 248 has been given by ROC for striking off;

ii. Where any application has been filed by the companies for action of striking off name of the company from the Registrar of Companies.

iii. to companies which have already filed for obtaining dormant status under Section 455 before this scheme;

iv. to companies which have amalgamated under a scheme of arrangement or compromise under the act;

v. to vanishing companies;

vi. Where any increase in authorized capital is involved and also charge related documents.

( Companies whose name struck off cannot avail this scheme and have to get their name restored;

(9) Defaulting Inactive Companies by filing due documents under CFSS-2020, can avail this scheme for the purpose of-

(i) getting themselves dormant under Section 455; and

(ii) getting their name struck off

(10) After payment of normal fees and documents return statement is taken on record, an application shall be filed electronically (without any fees) for obtaining Immunity Certificate but it shall not be filed beyond six month from the date of expiry of scheme.

(11)Scheme grants immunity against filing of forms returns and documents but not against any punitive action being done by the company for which suitable can be taken by ROC.

This is golden opportunity to file all pending Returns Annual Accounts, Statements including all pending Annual Returns pending for any number of years.

This Scheme is a one-time waiver of additional filing fees for delayed filings by the Companies with the Registrar of Companies during the currency of the scheme i.e. 1.04.2020 to 30.09.2020.

MCA.GOV.IN

mca.gov.in

Clarification from Ministry of Finance: No Extension to Financial Year, Only Postponement of Indian Stamp Act Amendments

Ministry of Finance(MoF) stated “There is a fake new circulating in some section of media that the Financial Year has been extended. A notification issued by the Government of India on 30th March 2020 with respect to some other amendments done in the Indian Stamp Act is being misquoted. There is no extension of the Financial Year.

The Finance ministry said that a notification has been issued by the Department of Revenue, Ministry of Finance on 30th March, 2020 which relates to certain amendments to the Indian Stamp Act. It pertains to putting in place an efficient mechanism for collection of Stamp Duty on Security Market Instruments transactions through Stock Exchanges or Clearing Corporation authorized by Stock Exchanges Depositories. This change was earlier notified to be implemented from 1st April, 2020. However, due to the prevailing situation, it has been decided that the date of implementation will now be postponed to 1st July 2020.”

https://pib.gov.in/PressReleseDetail.aspx?PRID=1609424

Regards,

B. Kaushik And Associates.

PIB.GOV.IN

Press Information Bureau

Ministry of Corporate Affairs Announces Companies Fresh Start Scheme and Revised LLP Settlement Scheme for COVID-19 Relief

Ministry of Corporate Affairs introduces the “Companies Fresh Start Scheme, 2020” and revised the “LLP Settlement Scheme, 2020” to provide relief to law abiding companies and Limited Liability Partnerships (LLPs) in the wake of COVID 19

Link:https://pib.gov.in/PressReleseDetail.aspx?PRID=1609393

Key MCA Updates: Ministry of Corporate Affairs Announces Relaxations Amid COVID-19 for Companies and LLPs

http://mca.gov.in/Ministry/pdf/Circular_25032020.pdf

In order to support and enable Companies and Limited Liability Partnerships (LLPs) in India to focus on taking necessary measures to address the COVID-19 threat, including the economic disruptions caused by it, the following measures have been implemented by the Ministry of Corporate Affairs to reduce their compliance burden and other risks: –

1. No additional fees shall be charged for late filing during a moratorium period from 01sr April to 30th September 2020, in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date, which will not only reduce the compliance burden, including financial burden of companies/ LLPs at large, but also enable long-standing noncompliant companies/ LLPs to make a ‘fresh start’. The Circulars specifying detailed requirements in this regard are being issued separately.

2. The mandatory requirement of holding meetings of the Board of the companies within the intervals provided in section 173 of the Companies Act, 2013 (CA13) (120 days) stands extended by a period of 60 days till next two quarters i.e., till 30th September. Accordingly, as a one-time relaxation the gap between two consecutive meetings of the Board may extend to 180 days till the next two quarters, instead of 120 days as required in the CA-13.

3. The Companies (Auditor’s Report) Order, 2020 shall be made applicable from the financial year 2O2O-2O21 instead of being applicable from the financial year 2019-2020 notified earlier. This will significantly ease the burden on companies & their auditors for the financial year 2019-20. A separate notification has been issued for this purpose.

4. As per Para Vll (1) of Schedule lV to the CA-13, lndependent Directors (lDs) are required to hold at least one meeting without the attendance of Non independent directors and members of management. For the financial year 2019-20, if the lDs of a company have not been able to hold such a meeting, the same shall not be viewed as a violation. The lDs, however, may share their views amongst themselves through telephone or e-mail or any other mode of communication, if they deem it to be necessary.

5. Requirement under section 73(2)(c) of CA-13 to create the deposit repayment reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 shall be allowed to be complied with till 30th June 2020.

6. Requirement under rule 18 of the Companies (Share Capital & Debentures) Rules, 2014 to invest or deposit at least 15% of amount of debentures maturing in specified methods of investments or deposits before 30th April 2020, may be complied with till 30th June 2020.

7. Newly incorporated companies are required to file a declaration for Commencement of Business within ‘180 days of incorporation under Section 10A of the CA-13. An additional period of 180 more days is allowed for this compliance.

8. Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the CA-1 3 shall not be treated as a non-compliance for the financial vear 2019-20.

RBI Governor Announces Key Monetary Measures Amidst Economic Uncertainty: Highlights and Implications

RBI Governor Presser Highlights :

1. Repo rate reduced by 75 basis points to 4.4%

2. Rev repo reduced by 90 basis points to 4%

3. GDP growth for Q4 19-20 and FY 20-21 to be affected

4. Aggregate demand may weaken

5. Future outlook uncertain and negative

6. CRR reduced by 100 basis points to 3% for 1 year to release 1.37 lakh crores

7. Min daily CRR balance reduced from 90% – 80% till 30/06/2020

8. 3.74 lakh crore liquidity injected

9. 3 month moratorium on payment of instalments of Term Loan outstanding

10. Interest on WC facilities to be deferred by 3 months

11. Such deferment not to be considered for NPA

12. Revised DP calculations by reassessing WC cycle

13. All measures not to effect credit history

14. Total liquidity injection 3.4% of GDP