COVID19 Regulatory and Compliance Relief
It’s a hard reality that the Corona Outbreak has changed the face of humanity forever. Things are becoming so unpredictable that we might end up calling the year 2020 as AC/BC meaning After Corona or Before Corona. Even after the pandemic is controlled or even wiped out of the planet our everyday lives are going to be changed forever. This has and will leave a deep scar for a very long time, more things will go online, more things will go digital, hygiene at the workplace and public place will be taken more seriously and laws shall be made to avoid and battle any kind of such future outbreaks. We have tried to put in together all the reliefs and updates in compliance relief and regulatory requirements during this corona outbreak.
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- Banking Reliefs
- Employment Protection Guidelines
- Contractual Protection
- Vehicle Permits & insurance Renewals
- GST Compliance Relief
- Customs Compliance Relief
- Income Tax Compliance Relief
- Companies Act Compliance Relief
- Insolvency & Bankruptcy Compliance Relief
- Employment Laws Relief
- Foreign Trade Policy Reliefs
- Moratorium on Loans: Banks shall allow a deferment of EMI & Interest for a period of three months for loans and other credit facilities. The moratorium shall be provided on all facilities including Overdraft, Cash Credit, Credit Cards, Retail, and Agri-based Loans. We request you to contact your bank to enquire in detail about the moratorium and deferment facilities offered.
- Deferment of Interest: Banks providing Cash credit or Overdraft facilities shall provide deferment of interest collection on such loans.
- Credit Score: Moratorium or deferment shall not impact your credit score as per the RBI guidelines. Any default or delay in payment during this period shall not impact your credit score theoretically, but we suggest you contact your bank regarding this matter for confirmation.
- Waiver of ATM Charges: Central Government has waived off ATM Withdrawal charges for all public sector banks till June 30th While this announcement only forced Public Sector Banks, many Private sector banks have waived off their withdrawal charges to some extent. Contact your banks to check about your waiver of charges.
- Waiver of Minimum Balance Requirement: The center has also issued a waiver of the requirement of maintaining a minimum balance and the charges for non-maintenance of the same, although all PSUs have implemented this, only a few private banks have not decided on it yet.
Employment Protection Guidelines:
- Maintenance of a hygienic workplace environment, ensuring regular sanitization and availability of sanitizers, soaps, and water.
- Spreading information and knowledge about the COVID situation and maintenance of personal hygiene.
- Facilitation of work from home facilities wherever possible.
- Running the institutions with reduced and essential staff only.
- To avoid close gatherings rescheduling or minimizing meetings or conducting meetings through video conferencing facilities.
- Leaves to be considered as deemed to be on duty.
- Maintaining extra precautions for high-risk employees such as elder employees, pregnant employees, and employees with premedical conditions.
- Ministry of Labour and Employment has also advised all the employers of public and private establishments to join hands in fighting the pandemic and not lay off employees or reduce their salaries and wages.
Fulfilling contractual obligations during this pandemic and the situation of uncertainty has become a major challenge. During these unprecedented times, the “Force Majeure” clause gains its importance. Force Majeure in simple words frees both parties from liabilities and obligations in the contract in the case of extraordinary event or circumstances beyond the control of parties*. We request you to look for the “Force Majeure” clause in your contract agreements. Even if your agreement does not provide for “Force Majeure” you might seek relief from your contractual liabilities if it becomes impossible to fulfil your contractual obligation also known doctrine of frustration.
Vehicle Permits & Insurance Renewals
- Extension of period of validity of vehicle permits, licenses and registrations which stood expired since 1st February 2020 to 30th June 2020.
- Extension of Due dates for renewal of Health and Motor (Third Party) Insurance policies to 15th May 2020, which were due for renewal during 25th March to 3rd May 2020.
Goods and Services Tax Compliance Relief:
The Central Board of Indirect Tax and Customs has provided various relief for GST Compliances such as:
- Waiver of late fees for GSTR 3B (Detailed Chart Below)
- Waiver of Late Fees for GSTR 1 (Detailed Chart Below)
- Reduced Interest for delayed Payment of tax (Detailed Chart Below)
- Extension of Return CMP-08 for Composition Scheme Holders to 7th July 2020.
- Extension of Annual Return GSTR-4 for Composition Scheme Holders to 15th July 2020 for FY 2019-20.
- Extension of due date for opting for Composition Scheme for FY 2020-21 via CMP-02 to 30th June 2020.
- Extension of due date for filing of reversal of ITC via ITC-03 for FY 2019-20 to 31st July 2020.
- Extension of validity of E-Way bills to 30th April 2020 which had an expiry date ranging from 20th March to 15th April 2020.
- Extension of due date for filing of GSTR-5, GSTR-6, GSTR-7, GSTR-8 to 30th June 2020 for the period March to May 2020.
- Availability of Form GST PMT 09 to transfer money available in electronic cash ledger between all major and minor heads.
- Extension of due date for payment under Sabka Vishwas Scheme to 30th June 2020 and waiver of interest for this period for all payments made by 30th June 2020.
Customs Compliance Relief:
- 24×7 Custom Clearance till 30th June 2020
- Extension of due date to 30th June 2020 for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing applications, reports, any other documents etc., time limit for any compliance under the Customs Act and other allied Laws where the time limit is expiring between 20th March 2020 to 29th June 2020.
Income Tax Compliance Relief:
- Extension of Due date of belated returns for AY 2020-21 to 30th June 2020 from 31st March 2020.
- Extension for date payment for claiming Chapter VIA Deductions covered under Heading B to 30th June 2020.
- Immediate release of Pending refunds of Income Tax up to INR 5 Lakhs
- Extension of Due date of linking of Aadhar with PAN to 30th June 2020 from 31st March 2020
- Reduced Interest @ 9% p.a. for delayed payment for TDS, TCS, Equalisation Levy, Advance Tax, Self-assessment tax, Securities Transactions tax, Commodities Transaction Tax instead of 12% & 18% p.a.
- Non taxability* of withdrawal of Provided Fund in Service
- Waiver of additional amount payable under Vivad se Vishwas scheme if payment made by June 30th
- Extension of due date to 30th June 2020 for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing applications, reports, any other documents etc., time limit for any compliance under the Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas scheme where the time limit is expiring between 20th March 2020 to 29th June 2020.
Companies Act Compliances Relief:
- Waiver of late fees for pending ROC Returns from 1st April 2020 to