Vide Circular dated 23.11.2020 RBI has directed AD Banks not to grant any approval to foreign law firms to set up any branch office, project office, liaison office or any other place of business in India under FEMA for the purpose of practicing legal profession in India. The Supreme Court has held that only advocates enrolled under the Advocates Act, 1961 are permitted to practice the profession of law in India. In view of this and also considering other factors, RBI has directed AD Banks not to grant the approval pending policy review.

IBBI, notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fifth Amendment) Regulations, 2020 on 13.11.2020. Highlights of the amendments are:

• The financial creditor, along with the application to initiate CIRP is required to furnish “record of the default along with the information utility or such other record or evidence of default as may be specified”. IBBI amended the Regulations to specify such other record or evidence to mean certified copy of entries in the relevant account in the bankers’ book and order of a court or tribunal that has adjudicated upon the non-payment of a debt.
• The Resolution Professional shall intimate each claimant within 15 days of the NCLT order approving a resolution plan, for payment of debts under such resolution plan.

SEBI, has in the past vide various circulars standardised the fines applicable on listed entities for non-compliance of provisions w.r.t. continuous disclosure for various securities including specified securities (i.e. equity shares and convertible securities). On similar lines a uniform structure for imposing fines for non-compliance with continuous disclosure requirements for Non-Convertible Debentures, Non-Convertible Redeemable Preference Shares and Commercial Papers has been notified vide Circular dated 13.11.2020.

After consultation with stakeholders SEBI has notified that, UPI shall be introduced as a specified mode to block funds under ASBA to apply for issue of debt securities through the app / web interface of the Stock Exchanges, up to Rs. 2 Lakhs, by individuals and intermediaries w.e.f. 01.01.2021. The new entities permitted are National Payments Corporation of India (NPCI), Unified Payments Interface (UPI) and Sponsor banks.

Presently, if the difference between the sale consideration and sub-registrar or Circle value is more than 10% the entire difference is taxable in the hands of the seller as capital gains and in the hands of the buyer as other income. This is now proposed to be enhanced to 20% but only in the case of primary sale of property by builders. Secondary sale of property will continue to be subject to tax in the hands of buyers and sellers if the difference is 10% or more. Official notification is awaited.

Central Goods and Services Tax (Thirteenth Amendment) Rules, 2020, have been notified. A small note summarizing the changes brought in by the Notification dtd.10.11.2020 is enclosed.

W.e.f 01.01.2021, the due date for monthly GSTR-1 shall be 11th of the succeeding month, whereas, the due date for quarterly filers shall be the 13th of the month succeeding such quarter.

Registered persons having an aggregate turnover of up to Rs. 5 crores in the preceding financial year and who have opted for quarterly return filing under Rule 61A can furnish quarterly GSTR-3B provided:

1. The return for the preceding month, as due on the date of exercising such option, has been furnished;
2. Once exercised, such option shall continue unless revised by the registered person.

Default migration has been prescribed for registered persons who have furnished the return for the tax period October, 2020 on or before 30.11.2020. Such default option can be changed from 05.12.2020 to 31.01.2021.

Two options are prescribed for monthly payment of taxes in case of quarterly return filers.

Fixed Sum Method: A facility is being made available on the portal for generating a pre-filled challan in FORM GST PMT-06 for an amount equal to 35% of the tax paid in cash in the preceding quarter where the return was furnished quarterly; or equal to the tax paid in cash in the last month of the immediately preceding quarter where the return was furnished monthly.

Self-Assessment Method: The said persons, in any case, can pay the tax due by considering the tax liability on inward and outward supplies and the input tax credit available, in FORM GST PMT-06.

In case the balance in the electronic cash ledger and/or electronic credit ledger is adequate for the tax due for the first month of the quarter or where there is nil tax liability, the registered person may not deposit any amount for the said month. Similarly, for the second month of the quarter, in case the balance in the electronic cash ledger and/or electronic credit ledger is adequate for the cumulative tax due for the first and the second month of the quarter or where there is nil tax liability, the registered person may not deposit any amount.

E-Invoicing in terms of rule 48(4) of the CGST Rules, 2017 in respect of supply of goods or services or both to a registered person (B2B) made mandatory for registered persons with aggregate turnover exceeding Rs.100 crore w.e.f. 01.01.2021.