MCA updates

Clarification on offsetting the excess CSR spent for FY 2019-20

Based on the representations received from companies regarding the setting off of excess amounts spent on CSR through contribution to the PM CARES Fund made by them pursuant to an appeal by the government on 30.03.2020, MCA has now issued a clarification dated 20.05.2021 stating that:

Where a company has contributed any amount over and above the minimum amount as prescribed under section 135(5) of the Companies Act, 2013 for FY 2019-20, to PM CARES Fund on 31.03.2020 the excess amount can be offset against the requirement to spend u/s 135(5) for FY 2020-21 subject to following conditions:

  • the amount offset as such shall have factored the unspent CSR amount for previous FYs, if any
  • the CFO and the statutory auditor of the company shall certify that the contribution to PM CARES Fund was indeed made on 31.03.2020 in pursuance of the appeal and
  • the details of such contribution shall be disclosed separately in the Annual Report on CSR as well as in the Board’s Report for FY 2020-21

It appears that only contributions made as on a particular date i.e. 31.03.2020 will be eligible for the set off and not any amount contributed prior to that. More so, since the CFO and Auditor are required to certify that it was indeed contributed on 31.03.2020 post the appeal made by GOI. Since corporates have responded generously and also voluntarily during the pandemic beyond the mandated CSR amount, it would have augured well for the government to allow the set off for any contribution made to the PM CARES Fund during FY 2019-20. This would have enhanced the trust quotient between the corporates and the government, leading to increased involvement with the society by the corporate citizens. Else this Circular merely serves as a clarification for a past transaction that took place before the major changes in CSR announced on 22.01.2021.

Open Circular No. CSR-01/4/2021-CSR-MCA dtd. 20.05.2021

MCA 3.0

Another initiative under the EODB Scheme, an all new MCA website was launched on 24.05.2021. The more dynamic and colourful web page also includes additional modules on e-Adjudication, e-Consultation, data & reports i.e. Annual Reports, Nidhi Company Reports, Research Papers etc. and Compliance Management.

Revised e-forms shall be available on the revamped MCA website from October 2021.
SEBI Updates

Increased limit for overseas investment by AIFs/VCFs

SEBI registered AIFs and VCFs are permitted to invest overseas, subject to an overall limit of USD 750 million. SEBI vide Circular dated 21.05.2021 has in consultation with RBI increased the said limit to USD 1,500 million. All other regulations governing such overseas investment by eligible AIFs/VCFs shall remain unchanged.

Open Circular No. SEBI/HO/IMD/DF6/CIR/P/2021/565 dtd. 21.05.2021
DGFT Updates
New e-EPCG Committee Module

Vide Trade Notice dated 19.05.2021, DGFT has introduced a new e-EPCG Committee Module as part of the IT Revamp. Going forward all applications by the exporters for seeking relaxation under para 2.58 of FTP 2015-20 to the EPCG Committee would be accepted through online mode only. Once the application is filed by the members of trade a file number will be generated which can be used for tracking purposes.The entire processing of the application and communication of the decision of the committee would be in online mode.

DGFT and Customs were one of the earliest adapters to digital mode of functioning starting in the early part of 2000s.

Open Trade Notice No. 05/2021-22 dtd. 19.05.2021
IT Updates
Extension of due dates

Vide Circular dated 20.05.2021, CBDT has extended various filing due dates which are as follows:

Compliances Existing Due Dates Extended Due Dates
The Statement of Financial Transactions (SFT) 31st May, 2021 30th June 2021
The Statement of Reportable Account 31st May, 2021 30th June 2021
The Statement of Deduction of Tax (Q4 – F.Y. 2020-21) 31st May, 2021 30th June 2021
The Certificate of Tax Deducted at Source (Form 16) 15th Jun, 2021 15th Jul, 2021
The TDSITCS Book Adjustment Statement (Form 24G) 15th Jun, 2021 30th June 2021
The Statement of Deduction of Tax by Trustees of an approved superannuation fund 31st May, 2021 30th June 2021
The Statement of Income paid or credited (Form 64D) 15th Jun, 2021 30th June 2021
The Statement of Income paid or credited (Form 64C) 15th Jun, 2021 30th June 2021
Income Tax Return (Non-Audit Case) for A.Y. 2021-22 31st Jul, 2021 30th Sep, 2021
Audit Report Filing for A.Y. 2021-22 30th Sep, 2021 31st Oct 2021
Transfer Pricing Report (Sec. 92E) 31st Oct, 2021 30th Nov, 2021
Income Tax Return (Audit Case) A.Y. 2021-22 31st Oct, 2021 30th Nov 2021
Income Tax Return (Transfer Pricing) A.Y. 2021-22 30th Nov, 2021 31st Dec, 2021
Income Tax Return belated / Revised filing A.Y. 2021-22 31st Dec, 2021 31st Jan, 2022
(Open Circular No. 09/2021 dtd. 20.05.2021
Income-tax (16th Amendment) Rules, 2021

CBDT vide Notification No. 68 /2021, dated May 24, 2021 issued ‘Income-tax (16th Amendment) Rules, 2021’ amending the Income-tax Rules, 1962 (“Income-tax Rules”) to insert Rule 11UAE in Income-tax Rules which prescribes the formula to compute fair market value of capital asset for the purposes of Section 50B of the Income-tax Act, 1961 (“Income-tax Act”) i.e., special provision for computation of capital gains in case of slump sale. Please refer to notification for details.

Open Notification No. G.S.R. 338 (E) dtd. 24.05.2021
GST Updates
CGST (Fourth Amendment) Rules, 2021

Following amendments have been notified vide CGST (Fourth Amendment) Rules, 2021 dated 18.05.2021:

  1. Upon filing an application for refund in GST RFD-01, proper officer is supposed to issue either Acknowledgement in GST RFD-02 or Deficiency Memo in GST RFD-03 within 15 days from the date of filing of application. In cases where Deficiency Memo is issued, the applicant is required to rectify the deficiencies highlighted in Deficiency Memo and file fresh refund application in GST RFD-01 again for the same period. Earlier, the Master Circular on Refund vide Circular No. 125/44/2019-GST dated 18th November, 2019 had clarified that such fresh refund application shall have to be submitted within 2 years of the relevant date. Therefore, fresh refund application that was filed after rectification of deficiencies beyond 2 years was time barred. Hence rule 90(3) has been amended wherein the time period, from the date of filing of the refund claim in GST RFD-01 till the date of communication of the deficiencies in GST RFD-03 by the proper officer, shall be excluded from the period of 2 years as specified under Section 54(1).
  2. Amendment of Rule 138E: By this amendment, waybill can now be generated for inward supply to a Registered Person who has not furnished GSTR 3B/1 etc., for 2 consecutive periods. However, waybills cannot be generated for outward supplies relating to these taxpayers. Previously both were blocked.
  3. Amendment to Rule 23(1): This rule is now aligned with Section 30(1) wherein the AC/JC/Commissioner may allow the Registered person 1-2 months beyond the 30 days to apply for revocation of cancellation of Registration.
  4. Now the taxpayers can at any time after filing of refund claim and until the time of issuance of acknowledgement/deficiency memo, but before the issuance of any order / show-cause notice withdraw the refund claim for specified reasons.
Open Notification No. 15 /2021dtd. 18.05.2021