Volume 12 Issue No. 239/2020

Dear Friends

This splash of pink against the dark night sky is an expression of the meditative mind of Ratnamala Hegde, the pillar of our firm. Amidst the demanding clients that she handles, she finds time on the weekends to unwind with her easel and brush. She is into Yoga in her own way I would say. “Stilling the fluctuation of the mind” or “Yogas chitta vritti nirodhah”, as propounded by the Father of Yoga, Patanjali.

International Yoga Day was celebrated on 21^st June all over, albeit in confined spaces this time as against mass asanas over the last few years. Well, practising asanas or postures is for the body and only one aspect of yoga. There are 8 other aspects with Meditation (Dhyana) being an important element that enables us to escape from the ‘monkey mind-cycle’ temporarily. This brings in the other aspect of Focussing attention (Dharana) as part of Yoga.

Another yogi for me is my young nephew who has managed to co-publish a scientific paper on Artificial Intelligence even amidst this pandemic that has created pandemonium all over the world. I would say he is practising Dharana !

My cousin’s wife who is regularly posting yesteryear’s golden melodies sung by her on Smule is a sensation of sorts now. Despite a demanding day job and young children to take care, she is finding time to rediscover the singer in her. Almost everyday her beautiful voice transports us to a bygone era. Isnt this meditative yoga too ?

What do we call an initiative of a celebrity who is feeding millions of people everyday in India when he himself is living in New York ? Recently I watched a BBC interview of the famous Michelin Star Chef (only one from India) Vikas Khanna. To a question from the journalist, he answered with his typical smile “What motivated me to start mass feeding during this crisis time is not the hunger experienced in India during my struggling days (Amritsar where I grew up feeds hundreds of people from the community kitchens it has) but the hunger experienced on the streets of New York. I slept on the benches and went hungry for days as it was tough for a brown-kid who wanted to make a name for himself during the post 9/11 days”. He also recalled how the initial efforts to mass-feed people failed and he had almost given up, until his mother’s admonishment shook him up and he started with a different strategy of partnerships to achieve the goal of Anna Daana (Food Charity) during COVID-19. Without a still mind and focussed attention, an initiative of this scale and magnitude is not possible. Isn’t he an Yogi of sorts ? Someone said “The point of a goal is not what you achieve. The point of a goal is who you become.” Be it my colleague, my nephew, my relative or the celebrity chef, I am sure all of them have ‘become’ someone while pursuing their goals – whether professional or social.

From Yoga to more mundane things in a professional’s life…… ‘One must not allow the clock and the calendar to blind him/her to the fact that each moment of life is a miracle and a mystery’. How I wish we could live without an eye on the calendar. I dare say I can, what with the umpteen number of date extensions that we are carrying in this issue of Samhita ! Corona and WFH has kept us busier than before. Or is it the various Ministries with the constant flood of changes through notifications, circulars, guidelines, ordinances ? I have lost track of the extensions and relaxations.

While this is welcome, instead of being reactive why can’t they be proactive ? Do they need to wait for representations from trade bodies, public & professional institutes to make month on month changes ? It will help if some semblance of certainty is introduced during these uncertain times. In this 239th issue of Samhita, we are carrying several regulatory updates but do not miss reading a small note each on *Condonation of delay in filing charges, *Amendment to MSMED Act & *Amnesty for fee waiver & lower interest under GST. Let’s Excel in English has a different take on the phrase “the best I can do for you”. While we are doing our best to bring you good usages of English language, if you want more, follow Mr. Balaji on social media. He has some interesting programmes always. For any previous issues of Samhita and the readers’ feedback, please visit
https://sharadasc.com/resource-center/

Happy Reading

MCA Updates :

Relaxation of time for filing Charge forms (creation or modification)

Currently companies are required to file forms related to creation or modification of charge within 30 days of creation or modification, post which up to 120 days delay, additional / ad valorem fee shall be applicable.

As part of the pandemic related relaxation, a new scheme has been introduced to condone the delay in filing forms CHG-1(Creation / modification of charge) and CHG-9 (Creation / modification of charge for debenture) as the same was not covered under the Company Fresh Start Scheme.

We often tend to use the term ‘The best I could do for you is….’ when we talk to our clients or customers.

On hearing this a native speaker usually feels, “Is this the last thing you could do for me. Is there no point in calling you again or sending a message to you because this is the best you could for me.

Let’s start using the term ‘what I could do for you right now is…..’ –

This addresses the urgency and also conveys we have more to offer.

Balaji Ramaswamy N

Mobile: 9741393539

Facebook

The Scheme shall come into force on 17.06.2020. Details of the Scheme are as follows:

Applicability

Relaxation in time

Applicable fees

The date of creation/ modification of charge:

If the date is before 01.03.2020 and the 120 days timeline has not lapsed as on 01.03.2020

The period between 01.03.2020 and 30.09.2020 shall not be included for calculation of 120 days

The period for calculation of additional fee

The period beginning from 01.10.2020 + the period beginning from the date of creation/modification till 29.02.2020

If the date is between 01.03.2020 and 30.09.2020

The period between the creation/modification of charge and 30.09.2020 shall not be included for calculation of 120 days

If the form is filed prior to 30.09.2020 normal fee shall be payable. If the form was filed thereafter the number of days for the purpose of calculating additional fee shall be number of days from 01.10.2020 till the date of filing.

The scheme shall not cover filing of Form CHG-4 (Satisfaction of charge).

For better understanding read the illustration based analysis of the Scheme.

Open Circular No. 23/2020 dtd. 17.06.2020

EGMs through VC or OAVM – Extended

MCA vide Circular No.14/2020 dated 08.04.2020 had clarified that wherever holding of an Extra-ordinary General Meeting (EGMs) is unavoidable, the same can be held through Video conferencing (VC) or other audio visual means (OAVM) till 30.06.2020 to take approval of shareholders for important and urgent matters while adhering to certain requirements as mentioned in the Circular.

Companies can now hold EGMs through VC or OAVM till 30.09.2020 subject to fulfilment of requirements as mentioned in Circular No.14/2020 dated 08.04.2020.

Open Circular No.22/2020 dtd. 15.06.2020

VC Board meetings can now be held for all agendas upto 30.09.2020

The CA, 2013 lists few agendas which cannot be dealt with in VC meetings viz. approval of financial statements, approval of Board’s Report, approval of prospectus, Audit Committee meetings, approval of mergers, amalgamation, demerger, acquisition and takeover. MCA, vide Circular dated 19.03.2020 had notified that for April-June 2020 quarter all these agendas can be dealt with through VC board meetings. The period April-June 2020 now stands extended up to 30.09.2020, i.e. April-September.

Open Notification No. G.S.R. 395(E) dtd. 23.06.2020

Inclusion of name in data bank for Independent directors – extended

MCA vide Circular dated 23.06.2020 notified that every individual is now required to apply for inclusion of his name in the data bank of Independent Directors within 10 months of appointment as an Independent director as against the earlier requirement of 7 months as notified vide Circular dated 29.04.2020.

Open Notification No. G.S.R. 396(E).— dtd. 23.06.2020

Extension of due date- creation of DRR and to invest / deposit amount debentures

MCA vide Circular No. 11/2020 dated 24.03.2020 introduced a Companies Fresh Start Scheme (CFSS) aimed at reducing compliance burden on companies during the COVID-19 pandemic. Among others the Scheme also included extensions for creation of Debenture Redemption Reserve (DRR) and the requirement to deposit / invest 15% of the amount of debentures maturing.

The due dates for the same have been further extended as:

Particulars

Due date notified under CFSS

Extended due dates

Creation of DRR of 20% of deposits maturing during FY 2019-20

30.06.2020

30.09.2020

The requirement to invest / deposit at least 15% of the amount of debentures maturing

30.06.2020

30.09.2020

Open Circular No.24/2020 dtd. 19.06.2020

Extension of names reserved and resubmission of forms

Vide announcement dated 22.04.2020 MCA had allowed further time for forms filed by LLPs and Companies for name reservation and name change between 15.03.2020 to 03.05.2020 – i.e. 20 days for name reservation and 60 days for name change. Now further extension of 20 days for Forms filed between 30.06.2020 has been provided.

Time extension is also available for Resubmission of Forms and IEPF-5.

Particulars	Extended due dates
New company incorporation – SPICe+ Part B needs to be filed within 20 days of name reservation.	Names expiring any day between 15.03.2020 and 30.06.2020 would be extended by 20 days beyond 30.06.2020
INC-24 (for change of name of Company) needs to be filed within 60 days of name reservation.	Names expiring any day between 15.03.2020 and 30.06.2020 would be extended by 60 days beyond 30.06.2020.
New LLP registration and change of name – FiLLiP / Form 5 needs to be filed within 90 days of name reservation.	Names expiring any day between 15.03.2020 and 30.06.2020 would be extended by 20 days beyond 30.06.2020.
Extension of RSUB validity for companies and LLPs.	SRNs where last date of Resubmission (RSUB) falls between 15.03.2020 and 30.06.2020, additional 15 days beyond 30.06.2020 would be allowed. However, for SRNs already marked under NTBR, extension would be provided on case to case basis.
Extension w.r.t Form IEPF-5 (Refund from IEPF authority)	SRNs having last date of filing of eVerification Report (for both Normal as well as Re-submission filing) between 15.03.2020 and 30.06.2020, stands extended till 30.09.2020.For SRNs already marked under ‘Pending for Rejection’ extension would be provided on case to case basis.

Open details

Ministry of MSME updates :

Amendments to MSMED Act

The Ho’ble Finance Minister of India, Ms. Nirmala Sitharaman had announced certain measures to help the country cope during the COVID-19 pandemic. The announcements included various matters w.r.t. MSMEs like change in the criteria for classification of MSMEs, introduction of a composite investment and turnover criteria in the definition of MSMEs etc. The same has been notified in the official Gazette on 26.06.2020 vide Notification No. S.O. 2119(E).

Following aspects are dealt with:

Calculation of investment in plant and machinery or equipment and turnover criteria based on latest ITR filed, self-declaration basis in case of new enterprise
The requirement to have PAN and GSTIN or not
Single Udhyam Registration number for enterprise with multiple locations
Consolidated investment and turnover to be considered against all GSTIN numbers linked to a single PAN
The existing enterprises registered prior to 30.06.2020, will be valid only up to 31.03.2021
Existing MSMEs to register again on the Udhyam Registration Portal on or after 01.07.2020
All enterprises registered till 30.06.2020, will be re-classified in accordance with this notification

For a detailed analysis please read the note below.

Open Notification No. S.O. 2119(E) dtd. 26.06.2020

Open Article

SEBI updates :

120 days gap between 2 Board/Audit Committee meetings – Relaxed

SEBI, vide Circular dated 19.03.2020 relaxed the requirement of maximum 120 days gap between 2 meetings (Audit Committee & Board) for the meetings held during the period 01.12.2019 to 30.06.2020. The relaxation continues for meetings held up to 31.07.2020. However the listed entities are required to hold at least 4 Board meetings in the year.

Open Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/110 dtd. 26.06.2020

Extension of due date – filing of quarterly and half year financials

Due to the continuing impact of the COVID-19 pandemic and the lockdown conditions, SEBI has further extended the timeline for submission of quarterly and half yearly financials for the year ended 31.03.2020 by another month i.e. 31.07.2020. The same relaxation has been granted for entities having listed NCDs, NCRPS’, CPs and MDS.

Open Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/106 dtd. 24.06.2020

Extension of due date – submission of Annual Secretarial Compliance Report

SEBI, vide Circular dated 19.03.2020, had extended by 1 month (from May 31, 2020 to June 30, 2020), the timeline for submission of the Annual Secretarial Compliance Report for the year 2019-2020, for listed entities. The same has been further extended up to 31.07.2020.

Open Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/109 dtd. 25.06.2020

AGM through VC or OAVM for InvITs and REITs

As per InvIT and REIT Regulations, InvIT unit holders and REIT unit holders are required to hold an annual meeting at least once a year. These annual meetings to be held in the calendar year 2020 can now be conducted through VC or OAVM subject to fulfilment of certain requirements detailed in Circular which are similar to those prescribed by MCA. For other meetings, VC or OAVM facility can be used for meetings upto 30.09.2020.

Open Circular No. SEBI/HO/DDHS/DDHS/CIR/P/2020/102 dtd. 22.06.2020

IT updates :

Extension of due dates

CBDT vide Notification dated 24.06.2020 has notified extension of due dates:

Particulars	Extended due date
Time for filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20)	31.07.2020
Investment / payment for claiming deduction u/s 80C, 80D, 80G for FY 2019-20	31.07.2020
Date for furnishing of TDS / TCS statement and issuance of TDS / TCS certificate pertaining to the FY 2019-20	31.07.2020 & 15.08.2020 respectively
The date for making investment/ construction/ purchase for claiming roll over benefit/ deduction in respect of capital gains under sections 54 to 54GB	30.09.2020
Date for commencement of operation for the SEZ units for claiming deduction under section 10AA for the units which received necessary approval by 31.03.2020	30.09.2020
Date for furnishing tax audit report	31.10.2020
Date for payment of self-assessment tax, in case of a taxpayer whose self-assessment tax liability is up to Rs 1 Lakh	30.11.2020
Date for linking Aadhaar with PAN	31.03.2021

Open Notification No. S.O. 2033(E) dated 24.06.2020

GST updates :

Forms GSTR-3B & GSTR-1 can be filed through Electronic Verification Code

CBIC, vide Notification dated 19.06.2020 has notified that GST registered companies are allowed to file

Form GSTR-3B- for the period from 21.04.2020-30.09.2020
Form GSTR-1 – For the period 27.05.2020-30.09.2020

using Electronic Verification Code.

Open Notification No. 48 /2020 dtd 19.06.2020

Lowered interest rate for tax period February-July, 2020 for delayed filing of Form GSTR 3B

CBIC, vide Notification dated 24.06.2020 has notified lowered interest rates for various classes of Registered Persons for the period February-July, 2020 for delayed filing of Form GSTR 3B. Please refer the table for details of the percentage applicable for each category of Registered person.

Open Notification No: 51/2020 dated 24.06.2020

Open table

One time amnesty and conditional fee waiver- FORM GSTR-3B

CBIC, vide dated 24.06.2020 has notified a onetime amnesty by lowering/waiving of late fees for non-furnishing of FORM GSTR-3B from July, 2017 to January, 2020 and also seeks to provide relief by conditional waiver of late fee for delay in furnishing returns in FORM GSTR-3B for tax periods of February-July, 2020 for various classes of Registered Persons. Please refer the table for details regarding the same.

Open Notification No: 52/2020 dated 24.06.2020

Open table

Late fees waived – delayed filing of Form GSTR-1

Vide Notification dated 24.06.2020, CBIC has notified waiver of late fee for delay in furnishing outward statement in FORM GSTR-1 for tax periods for months from March to June, 2020 for monthly filers and for quarters from January to June, 2020 for quarterly filers if they are filed before the due dates indicated below:

Sl. No.	Month/ Quarter	Dates
1.	March, 2020	10th day of July, 2020
2.	April, 2020	24th day of July, 2020
3.	May, 2020	28th day of July, 2020
4.	June, 2020	05th day of August, 2020
5.	January to March, 2020	17th day of July, 2020
6.	April to June, 2020	03rd day of August, 2020

Open Notification No: 53/2020 dated 24.06.2020

Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. S. C. Sharada & Associates disclaims all liability on action taken without professional advice.

S. C. Sharada & Associates,
Company Secretaries. #405, 7th Cross, IV Block, Koramangala, Bangalore – 560 034.
sharadasc.com Phone : +91 80 25534374 , +91 80 25536618 Email:[email protected]

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