GST, Income Tax, Company Law, RBI, SEBI, ESI, EPF – Compliance Calendar for July 2021

This article contains various Compliance requirements for the Month of July 2021 under various Statutory Laws.

Compliance Requirement Under

• Income Tax Act, 1961
• Goods & Services Tax Act, 2017 (GST) and Important Updates / Circulars
• Other Statutory Laws and Updates
• Foreign Exchange Management Act, 1999 (FEMA) and Important Notifications
• 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 (Depositories and Participants) Regulations 2018) and Circulars / Notifications
• Companies Act, 2013 (MCA/ROC Compliance) and Notifications
• Insolvency and Bankruptcy Board of India (IBBI) Updates
• NCLT & NCLAT Updates
• MSME Key Updates
• Import – Export Code Timeline

Compliance requirement under Income Tax act, 1961

• Importatnt updates – June, 2021:

1. Key Highlights – Due Returns

• The deadline for receiving Form 16 has been extended to July 31, 2021.
• The deadline for linking PAN with Aadhaar has been extended to September 30, 2021.
• The ITR filing deadline for FY 2020-21 has been extended to September 30, 2021 from usual deadline of July 31, 2021.

2. National Faceless Assessment Centre, Delhi, directed to designate the web portal www.incometax.gov.in as the “designated portal” for the purpose of Faceless Assessment in terms of Explanation (i) to section144B(I) of the Income-tax Act.

• To read more: Click Here

3. “Compliance Check for Section 206AB &; 206CCA”.

The Central Board of Direct Taxes (‘CBDT’), in exercise of powers conferred under section 138 (1) (a) (i) of Income-tax Act, 1961, hereby directs that Director General of Income-tax (Systems), New Delhi shall be the specified income-tax authority for furnishing information to the ‘Tax Deductor / Tax Collector’, having registered in the reporting portal of the Project Insight through valid TAN, to identify the ‘Specified Persons’ for the purposes of section 206AB and 206CCA of the Act through the functionality “Compliance Check for Section 206AB &; 206CCA”.

• To read more: Click Here
• Important Notifications – For the month of June – 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:

• Key UPDATE(s):

1. GSTN enables functionality to lodge complaint of PAN misuse for GST registration

“To check the misuses of PAN in GST Registration, a functionality has been provided at GST Portal to register the complaint. GSTN, which handles the technology backbone of the Goods and Services Tax, has enabled an utility to lodge complaints relating to misuse of PAN for obtaining GST registration, a move aimed at curbing creation of bogus entities for the purpose of tax evasion. Any person whose PAN has been misused can lodge such a complaint. Following that, it would be sent to the concerned tax officer under whose jurisdiction the registration has taken place fraudulently for further action.

• To read more: Click Here

2. Petrol, diesel under GST: HC asks Centre to decide

The Kerala high court has asked the central government to decide on a representation seeking to bring petroleum products under goods and services tax (GST) regime.

A division bench comprising chief justice S Manikumar and justice Shaji P Chaly asked the government to take a decision on the representation raising the demand within six weeks after considering a petition (WP-C No. 12481/2021) filed by Kerala Pradesh Gandhi Darshanvedi through advocate Arun B Varghese. It was alleged by the petitioner that petrol and diesel rates differ in various states as the tax levied by each state is different.

• KEy GST UPDATES from 01.06.2021 to 30.06.2021:

Compliance under Other Statutory Laws

• Key Updates – June, 2021:

1. “Interest for the year 2019-20 has been credited at 8.5%. Kindly seed UAN accounts with KYC, if not already done, to view credit of interest and updated PF accounts.”

2. Mumbai barge disaster may be outside labour law purview

“The employers disbursing the wages for March 2020 not only get relief of extension of due date for payment of EPF dues for March, 2020 but also avoid liability of interest and penalty, if they remit on or before May 15, 2020,”.

Labour ministry is of the view that the above decision will support and provide relief to employers of establishments which have disbursed wages for March, 2020 to its employees and an incentive to employers for wage payment during the COVID-19 pandemic.

3. Govt to provide pension to families who lost earning member due to Covid

The Centre announced welfare measures, including a pension to those families who have lost their earning members due to the Covid-19.

In addition to the measures announced under PM CARES for Children- Empowerment of Covid affected children, the government has announced further measures to help families who have lost the earning member due to Covid. To help families live a life of dignity and maintain a good standard of living, the government has extended the benefit of Employees State Insurance Corporation (ESIC) pension scheme for employment related death cases is being extended to even those who have died due to Covid.

The insurance benefits under the Employees Provident Fund Organization- Employees’ Deposit Linked Insurance (EDLI) scheme have been enhanced and liberalized.

The provision of minimum insurance benefit of Rs 2.5 lakh has been restored and will apply retrospectively from February 15, 2020 for the next three years.

• Updates TRACKER under Labour LAws – June, 2021:

Compliances under FEMA / RBI

All applicants before raising any queries to RBI, may contact the respective AD bank as per the contact details provided under Contact Us. It may be noted that all Business user registrations as well as forms in SMF are processed at AD level. AD shall always be the first point of contact. All AD banks shall ensure that the queries from the applicants are answered correctly and in the timely manner.

• Important Updates, June-2021:

1. 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.

2. Mahesh Jain Re-appointed as RBI Deputy Governor

The Central Government has re-appointed Shri Mahesh Kumar Jain as Deputy Governor, Reserve Bank of India for a period of two years with effect from June 22, 2021, or until further orders, whichever is earlier, upon completion of his existing term on June 21, 2021,” the central bank said in a statement.

3. RBI rings warning bell on rising bad loans, stress among MSMEs

Within the bank groups, NPAs of public sector banks are expected to rise to 9.54 per cent in March 2021 and edge up to 12.52 per cent by March 2022 under the baseline scenario. However, this is an improvement over earlier expectations and indicative of pandemic proofing by regulatory support, it said.

The Reserve Bank of India (RBI) has cautioned that bad loans of the banking system are expected to hit 11.22 per cent of the advances under a severe stress scenario. The central bank also warned about the incipient signs of stress among medium and small units.

According to the RBI, only 0.9 per cent of the total loans were restructured. The micro, medium and small enterprises (MSME) sector saw the maximum debt recast at 1.7 per cent followed by the corporate loans, which saw 0.9 per cent of the sector loan being restructured. Retail segment saw only 0.7 per cent loans restructured.

• RBI Circulars / Notifications: June, 2021

SEBI – Securities Exchange Board of INDIA

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

1. Quarterly Compliances:

2. Half Yearly Compliances:

3. Annual Compliances:

4. Event Based Compliance:

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

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

SEBI (Depositories and Participants) Regulations 2018)

• SEBI Circulars Tracker: 01.06.2021 to 30.06.2021

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

• For all forms except, Charge related: If due date of any form given below falling between 1st April, 2021 to 31^st July, 2021 then those forms can be file without additional fees till 31st August, 2021.
• For Charges related forms – In line with the extension provided in General Circular 12/2021 issued by the Ministry of Corporate Affairs, Additional Fee/Ad valorem fee in respect of Charge documents viz. CHG-1 and CHG-9 shall be calculated after excluding No. of days between 01st April 2021 to 31st July 2021 based on the event date entered in the form.

LLP Compliance:

• KEY UPDATES – May, 2021:

1. Relaxation in Maximum Gap between Two Board Meetings:

MCA extended gap between two board meetings by 60 days for first two quarters of financial year 2021-22. According to this, the gap between two consecutive Board Meetings may extend to 180 days during the quarters, April to June and July to August.

2. MCA expands small firm definition, raises turnover and borrowing limits

The ministry of corporate affairs has expanded the definition of small and medium companies (SMC), raising their turnover and borrowing limits. This would enable a wider set of companies to avail of greater flexibility in the accounting standards.

The 388-page notification has defined small and medium companies as unlisted entities which are not banks, financial institutions or insurance firms and have a turnover of up to Rs 250 crore and borrowings up to Rs 50 crore in the immediately preceding accounting year. The threshold has been Rs 50 crore and Rs 10 crore for turnover and borrowings under the general accounting standards.

“SMC which is a holding company or subsidiary company of a non-SMC will not qualify as a small and medium company.” The notification also says that an existing company which was not a small and medium company previously but became so subsequently would not be able to avail of any exemptions in accounting standards. It can avail of these exemptions if it continues as a small and medium company for two consecutive accounting periods.

• Important Updates
• MCA Monthly UPdate Calendar: JUNE, 2021

IBBI Updates {Insolvency and Bankruptcy Board of India}

• IBBI plans a best practice Code for Committee of creditors

The Insolvency and Bankruptcy Board of India (IBBI) is tightening the process for resolution of defaulting companies to avoid charges of bias and prejudice after a few cases ended up in disputes. Indian Institute of Insolvency Professionals of ICAI (IIIPI) has submitted a report to IBBI, which is said to be in discussion with various stakeholders including the Reserve Bank of India, Indian Banking Association (IBA) and the government, three people with direct knowledge of the matter.

Many times resolution professionals are replaced as CoC mandates citing reasons based on doubts or perceptions.

• Important Notifications and Circulars Tracker (June, 2021)

NCLT & NCLAT UPDATES (Updates- June, 2021)

1. McLeod Russel faces NCLT ruling

Tea grower McLeod Russel is facing a National Company Law Tribunal (NCLT) judgement on its bankruptcy proceedings after a financial creditor moved an application against the company claiming it has defaulted on dues owed to it. The application filed by Techno Electric and Engineering Co has been heard by NCLT, which has reserved its orders after taking into account arguments made by McLeod Russel’s lawyers

The creditor has also proposed the name of an interim resolution professional to manage the company’s affairs if NCLT were to decide in favour of its application. McLeod Russel has been contesting the application ever since it was filed a year ago.

2. Panyam Cements’ resolution plan gets NCLT nod

The National Company Law Tribunal (NCLT) has approved a Rs 100-crore resolution plan to revive Panyam Cements and Mineral Industries. The plan, submitted by a consortium of cement consultancy firm RV Consulting Services (RVCS) and Sagar Power Ltd (SPL), was approved by the Amaravati bench of the NCLT.

The Tribunal’s acting president Bhaskara Pantula Mohan said Panyam needs the support of the Andhra Pradesh government in the form of renewal of its mining leases and recommended that the state consider grants and concessions for its revival.

3. NCLT directs Reliance Home Finance to repay dues to its NCD holders

The Mumbai bench of the National Company Law Tribunal directed Reliance Home Finance Ltd (RHFL) to repay its debt obligations to nearly 19,000 debenture holders in the next five months.

The IDBI Trusteeship Services, a trustee to RHFL bondholders, had approached the NCLT to recover Rs 3,500 crore of investment after the company missed repayment obligations. The bondholders had also made RHFL’s holding company,

 MSME (Ministry of Micro, Small and Medium Enterprises)

MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy.

• Key Updates – For the month of June, 2021

1. Govt brings retail, wholesale trade under MSME

Ease of Doing business for MSMEs: Wholesale and retail trading activities were earlier classified as MSMEs but a gazette notification dated June 2017 ousted them from the sector.

In a longstanding demand from retail and trade industry associations, Minister of MSME Nitin Gadkari today announced revised definition for MSMEs. Through a tweet, he announced that the MSME Ministry has issued an order to include retailers and wholesale traders under the MSMEs to extend the benefits of priority sector lending to them.

2. MSME, retail NPAs may rise as relief measures get wound down

The Reserve Bank of India on Thursday cautioned that banks face the prospect of a rise in non-performing loans, particularly in their small and medium enterprises (SME) and retail portfolios, especially as regulatory relief is wound down.

The RBI’s latest Financial Stability Report (FSR) noted that banks remained relatively unscathed by pandemic-induced disruptions, cushioned by regulatory, monetary and fiscal policies.

As banks and other financial institutions have resilient capital and liquidity buffers, balance-sheet stress remains moderate in spite of the pandemic, the report said. But it emphasised a close monitoring of MSME and retail credit portfolios. This calls for banks to shore up their capital position when favourable market conditions prevail.

3. SIDBI rolls out various development measures for MSMEs

SIDBI has rolled out various developmental measures for MSMEs on World MSME Day, including “Swavalamban Chair for MSME Solutions,” at Government Engineering College, Thrissur.

Under its project SAHAS, SIDBI has soft-launched “Swavalamban Chair for MSME Solutions,” at Government Engineering College, Thrissur, supported by Swavalamaban Resource Facility, set up in partnership with Foreign, Commonwealth, and Development Office, UK.

SIDBI has also provided support to the Chamber of Indian Micro, Small and Medium Enterprises (CIMSME) for setting up ‘Swavalamban Suvidha Kendra,’ which will address information asymmetry challenges and render responsive solutions to inquisitive youth, serve anxious enterprises facing COVID-19 challenges, assist in Udyam registration, and enable MSEs to go for digital solutions like Udyamimitra portal, Standupmitra portal, PSB Loans in 59 minutes, etc.

• Key Updates – for the month of June – 2021.

Import – Export Code:

IEC details need to be confirmed every year to keep it remain active. DGFT, vide Notification No. 28/2015-2020 dated 12th February 2021, make it mandatory for all IEC holders to ensure that the details in its IEC is updated electronically every year, during April – June Period. In case where there are no changes in IEC details same are also needs to be confirmed online. (Click here)

Further Ministry has provided an extension

IEC Updation Due Date Extended: In continuation to the DGFT notification No. 58, dated 12.02.2021, it is to inform that last date for modification/ updation of IEC has been extended up to 31.07.2021. For Notification: Click Here

—————————————————————————————————————-

This article is updated till 30^th June, 2021 with all Laws / Regulations and their respective amendments.

———————————————-THE END—————————————————-

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.