Newsletter – August, 2020 II Week

GST

An EXCEL based offline tool is available on GST portal for composition taxpayers to prepare their GSTR-4 Annual Return.

Online functionality to file application for revocation of cancellation of registration has been enabled for the purpose of the Removal of difficulty order dated 25.06.2020. Taxpayers whose registration was cancelled before 12.06.2020 for non-filing of returns may avail this opportunity. Taxpayers who have appeal pending against rejection of the Revocation Application may also file such application.

INCOME TAX

Guidance on Mutual Agreement Procedure (MAP) under Rule 44G of the Income Tax Rules has been issued by the CBDT.
MAP is an alternate tax dispute resolution mechanism for resolving disputes under tax treaties/ Double Taxation Avoidance Agreements.

CUSTOMS

Goods required for setting up of Kudankulam Nuclear Power Project (KKNPP) Units- 5 and 6 attract Nil Rate.

DGFT

Free exports – All Ventilators including any artificial respiratory apparatus or oxygen therapy apparatus or any other breathing appliance/device.

FEMA 

The last date for filing of annual return on FLA -2020 has been extended to 14.08.2020.

COMPANIES ACT

Due to Covid-19, dispatch of offer notice by listed companies through registered post or speed post or courier is made non-mandatory for rights issues opening upto 31.12.2020. Such relaxation is granted with respect to notice under Section 62(1)(a)(i) to equity shareholders.

CONSUMER PROTECTION LAWS

Consumer Protection (E-Commerce) Rules, 2020 implemented from 23.07.2020; Some of the key features – (i) grievance redressal mechanism to be set up by e-commerce entity; (ii) No cancellation charges on consumers cancelling after confirming purchase; (iii) country of origin to be mentioned for products.

INSOLVENCY LAWS

The Board makes amendments in various regulations to provide for the following:

  1. Replacement of liquidator with another.
  2. The fee payable where realisation of amount and distribution of such amount is handled by different liquidators. This is when fee is not fixed by committee of creditors.
  3. The manner of appointment of Authorized Representative (AR) for creditors. The aforesaid AR is to be from the State/Union Territory with the highest number of such creditors.

RBI

Monetary Policy Statement, 2020-21 announced. Repo rate under the liquidity adjustment facility (LAF) unchanged at 4%.
The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth and mitigate the impact of COVID-19 on the economy.
Statement of Developmental and Regulatory Policies announced. Key policies are as follows:
  • Facility created to restructure corporate loans, MSME debt and personal loans which are stressed due to the Covid-19 pandemic.
  • Loans for non-agricultural purposes can be sanctioned up to 90% of the value of pledged gold ornaments and jewellery. This is for the period upto 31.03.2021.
  • Current accounts cannot be opened if credit facilities in the form of cash credit (CC)/ overdraft (OD) have been availed by the customer. All transactions to be routed through the CC/OD account.
  • Payment related changes – Additional safety mechanism for cheques put in place. Offline payment through card and mobile devices to be developed. Online dispute resolution (ODR) for digital payments to be implemented by banks.

AADHAAR

AADHAAR authentication can be requested by entities for (a) usage of digital platforms to ensure good governance; (b) prevention of dissipation of social welfare benefits; and (c) enablement of innovation and the spread of knowledge.

DEFENCE

Ministry of Defence announces import embargo on 101 items. To be progressively implemented from 2020 to 2024.
open

In view of the full lockdown announced by the TN Govt from 10th may 2021 to 24th june 2021, we, at TITA, will be working from home. For any queries, clarification, filing of replies, applications, appeals and other compliances including GST Returns, please mail to us at tita@tita.net.in and we will do the necessary.