Compliance Calendar : September 2021 under various Statutory Laws.

Compliance Calendar :

This article contains various Compliance requirements for the Month of September 2021 under various Statutory Laws as given below:

• Income Tax Act, 1961
• Goods & Services Tax Act, 2017 (GST) and Important Updates / Circulars
• Companies Act, 2013 & LLP Compliance (MCA/ROC Compliance) and Notifications
• Foreign Exchange Management Act, 1999 (FEMA) and Important Notifications
• Other Statutory Laws and Updates
• SEBI (Listing Obligations & Disclosure Requirements) (LODR) Regulations, 2015
• SEBI Takeover Regulations 2011
• SEBI (Prohibition of Insider Trading) Regulations, 2015
• SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
• SEBI (Buyback of Securities) Regulations, 2018
• Insolvency and Bankruptcy Board of India (IBBI) Updates
• Competition Commission of India

Compliance requirement under Income Tax act, 1961

• Income Tax Due Date – Extensions

• Importatnt updates – August, 2021:

1. Govt releases draft of declaration to be given by companies to enable withdrawal of retro tax demands

In a move that will aid closure of retro tax demands against companies such as Cairn Energy and Vodafone PLC, the Income Tax Department on Saturday released draft of rules to drop such demands provided companies concerned give an “irrevocable” undertaking to withdraw all legal cases against the government as well as undertake not to pursue any in future.

Also Like: How to calculate the threshold turnover limit for GST Registration?

Cairn was levied tax for a 2006 internal reorganisation of India business before listing while Vodafone was charged for not withholding tax from consideration it paid for acquiring Hutchison stake in India telecom unit.

• Important Notifications – For the month of August – 2021:

Compliance Requirement under GST, 2017

Filing of GSTR –3B

A. Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY

B. Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group A)

C. Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group B)

D. Filing Form GSTR-1:

E. Non Resident Tax Payers, ISD, TDS & TCS Taxpayers

F. Non Resident Tax Payers, ISD, TDS & TCS Taxpayers

G. GST Refund:

• Other Returns:

Major Update:

• Due date for filing of revocation application for cancelled registrations has been extended up to 30th Sept. 2021, for the cases where application due dates were falling between 1st Mar, 2020 & 31st Aug, 2021. More details in “News & Updates”
• Key UPDATE(s):

1. GST; new rules to be effective from Sep 1 in India; check details here

From September 1, non-filers of GST return will be banned from filing GSTR-1. After the CGST Rule-59(6) comes into effect, the system will check whether GSTR-3B for the previous two monthly tax periods has been filed by monthly filers or not. Quarterly filers will have to file GSTR-3B for the previous quarterly tax period.

The Goods and Services Tax Network (GSTN) recently announced in its advisory that Rule-59(6) of Central GST Rules which provides for restriction on the filing of GSTR-1 will come into effect from September 1, 2021. According to the new rule, “a registered person will not be allowed to furnish the details of outward supplies of goods or services or both in Form GSTR-1 if he or she has not furnished the return in Form GSTR-3B for the preceding two months.”

These new rules will bring changes in the economy, banking, financial and other sectors of the Country.

2. GST Council to meet on September 17, may review rate on COVID-19 essentials

The Goods and Service Tax (GST) Council will meet on September 17 in Lucknow. Among all the other things, the committee is expected to review concessional rates on Covid essentials.

“Finance Minister Smt @nsitharaman will chair the 45th meeting of the GST COUNCIL on 17th September at Lucknow,” the Finance Ministry tweeted.

Notably, the previous GST council meeting was held virtually with the help of videoconferencing on June 12 2021. During the last GST meeting, tax rates on several Covid-19 essentials were reduced till September 30, as the nation was fighting with the second wave of COVID-19. The meeting on September 17 could discuss compensation to states for loss of revenue, review of rates on Covid essentials, and inverted duty on certain goods.

• GST UPDATES from 01.08.2021 to 31.08.2021:

Compliance Requirement UNDER Companies Act, 2013 and Rules made thereunder;

• LLP Compliance:

• KEY UPDATES – August, 2021:

1. CSR credit has to be used in 3 years: MCA

The credit that businesses earn for spending on corporate social responsibility (CSR) beyond their annual obligation will lapse unless adjusted against the spending requirements in the subsequent three years, the ministry of corporate affairs (MCA) said.

The flexibility of adjusting excess CSR spending in a given year against the spending obligation in the subsequent three years introduced in January this year is applicable prospectively, the ministry said in a set of clarifications issued on Thursday.

Therefore, no carry forward will be allowed for any excess amount spent in financial years prior to FY21. The set of clarifications has been issued to guide businesses as many changes have recently been made to CSR rules. In January, the government notified sections of the Companies Act prescribing financial penalties for violation of CSR obligations and made sweeping changes to rules to make companies more accountable and to offer some flexibility in spending. The set of clarifications has been issued to guide businesses as many changes have recently been made to CSR rules.

• Important Updates – August, 2021
• MCA Monthly UPdate Calendar: August, 2021

Compliances under FEMA / RBI

Entities which are filing FLA return for the first time/ with revised UIN (Unique identification number) are required to register themselves first for generating login credentials and afterwards they can file FLA return. However, the entities which have already registered earlier may submit FLA-2021 using their earlier login credentials.

• Important Updates, August-2021:

1. RBI may launch e-currency by December, 2021

Reserve Bank of India governor Shaktikanta Das reiterated that the central bank may launch a pilot of its digital currency by December 2021. However, the RBI is yet to finalise whether to launch the currency using distributed ledger technology (DLT) or a centralised ledger.

DLT is the platform on which cryptocurrencies are based, enabling them to be held and traded without any central authority. The statement by Das indicates that the RBI is on track with its plans for a central bank digital currency (CBIC).

• RBI Circulars / Notifications: August, 2021

Compliance under Other Statutory Laws

• Key Updates – August, 2021:

1. New Labour Laws to increase working hours and pay structure of employees from October 1 – Details inside

As per the new draft, basic salary to increase by THIS per cent and perks to decrease

Prime Minister Narendra Modi-led government at the Centre is expected to implement some changes in the labour laws of the country from October 1.

According to reports, the new rule will increase the work time of employees from 9 to 12 hours and your in-hand salary will also see a change after the new rule is implemented.

As per the new draft of the Labour Law, the basic pay of an employee is to increase by 50 per cent of the total salary while the non-perks side of the salary will be less than 50 per cent of the total salary.

• Updates TRACKER under Labour LAws – August, 2021:

SEBI – Securities Exchange Board of INDIA

Compliance Requirement under SEBI (Listing Obligations and Disclosure Requirements) (LODR) Regulations, 2015

1. Half Yearly Compliances:

2. Annual Compliances:

4. Event Based Compliance:

• Relaxation in time period for certain activities carried out by Depository Participant:

SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

Securities and Exchange Board of India (SEBI) vide notification / Circular No. SEBI/HO/CFD/DCR1/CIR/P/2020/49 issued and publish dated 27th March 2020, has published Relaxation from compliance with certain provisions of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 due to the COVID-19 pandemic”.

SEBI (Prohibition of Insider Trading) Regulations, 2015

SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

SEBI (Buyback of Securities) Regulations, 2018 (Buyback Regulations)

• SEBI Circulars Tracker: 01.08.2021 to 31.08.2021

IBBI Updates {Insolvency and Bankruptcy Board of India}

• MCA is working to issue code of conduct for creditors under IBC: Verma

More than 17,800 cases involving an amount of Rs 5 trillion were disposed of even before admission under the IBC, according to MCA data. Till July this year, 4,570 cases were admitted for corporate insolvency resolution process, of which less than 10 per cent were resolved with a realisable amount of Rs 2.5 trillion. Over 1,371 cases went into liquidation and 466 cases were withdrawn till July.

The Ministry of Corporate Affairs (MCA) is working to issue a code of conduct for creditors under the Insolvency and Bankruptcy Code (IBC), said MCA Secretary Rajesh Verma on Friday.

This comes a month after a Parliamentary panel flagged the “disproportionately large and unsustainable ‘haircuts’ taken by the financial creditors over the years”. In some insolvency resolution processes, the haircuts taken by creditors were more than 90 per cent.

The Insolvency and Bankruptcy Board of India (IBBI) is collaborating with the Indian Banks’ Association, the Reserve bank of India and the Department of Financial Services for a code of conduct, Verma said while addressing a Confederation of Indian Industry Conference on 5 years of IBC. The MCA secretary also said that in order to address the delays, the government is filling up the vacancies at the national company law tribunal and ramping up infrastructure with e-courts.

• Important Notifications and Circulars Tracker (August, 2021)

Competition Commission of India (CCI)

Competition Commission of India is a statutory body of the Government of India, established on 14 October 2003, responsible for enforcing The Competition Act, 2002 and promoting competition throughout India and to prevent activities that have an appreciable adverse effect on competition in India.

This article is updated till 31^st August, 2021 with all Laws / Regulations and their respective amendments.