All sections of Indian Society irrespective of its strength and resources have contributed positively during COVID-19.Even our Armed forces have saluted our Health workers including doctors and nurses .At this junction ,everyone asks to us about our role in this troubleshooting exercise. The institute of Chartered Accountants of India, The institute of Cost Accountants of India, The institute of Company secretaries of India, Finance Ministry of India, RBI,Competition Commission of India, NCLT, National Company Law Appellate Tribunal ,SEBI ,CBDT,many stock exchanges, IRDA,SBI ,MCA and many Universities across pan India have built an unbreakable Economic and viable Gross root foundation to the nation .That is evident from our society .Although ,all national economies across globe are in the verge of erosion.
We have still better hopes for an excellent future .I hereby tries to analyse the important developments in the field of Commerce and Management during the Extended Lock down from 15/4/2020 to 03/05/2020 and its implication in the society
I. Health and Motor Insurance Premium The ministry of Finance issued a notification on April 15 stating that health and motor insurance cover renewal dates that fall between March 25, 2020 and May 3, 2020 have been further extended till May 15, 2020 due to the lockdown Implication You may differ your premium payments in respect of health insurance and third party insurance related with Motor insurance
II. SBI declared free ATM service to customers. Now the customers of SBI can withdraw from any bank account without any charges. SBI has offered this facility until June 30, 2020. As per the existing rules, 8 ATM services has been offered by the bank without any charges.
In metros, the number of free services were 10. Besides, the customers have to pay certain charges and GST if they have involved more transactions than the aforesaid number of transactions Implication on customers. SBI is the largest bank in the India. Now the customers can withdraw from his/her nearest ATM and thereby he may stay safe in home
III.Reserve Bank of India has announced a relief Package on 17/4/2020.
Following are the important provisions which have included in the package
a. To maintain liquidity in the system, TLTRO option of 25,000 crore to be conducted on 17/4/2020
b. Rs 50,000 crore has been given to NABARD etc as refinancing facility
c. Reverse Repo Rate has been decreased from 4 % to 3.75%.
d. Ways and means advances limit of states has been increased to 60%
e. 90 days of moratorium will be excluded from NPA calculation
f. scheduled commercial banks and cooperative banks cannot declare any further dividend pay-outs from profits pertaining to FY 2019-20; the decision will be reconsidered based on the financial position of banks at the end of the second quarter of the financial year 2019-20.
g. Banks have to maintain 10% as provision for NPA in respect of moratorium period
h. NBFCs may provide relief from March to May to their clients i. Resolution period in respect of NPA will be increased for 90 days
a. Interest rate will decrease
b. Banks and customers will get more liquid funds
c. State Goverments will get more overdraft facility from RBI up to 30, Sep 2020.
d. NBFC s may provide moratorium to their clients
e. You will not get dividends from your co-operative banks
f. Your Credit Rating will not suffer due to the acceptance of moratorium period.
IV. Amendment to Foreign Direct Investment Rules. Foreign Direct Investment into Indian companies (Automatic Route) need not require the approval of the Government except FDI from Pakistan and Bangladesh. Now, Foreign Direct Investment into Indian companies (Automatic Route) from all the neighbouring countries needs the approval of the Government Implications Through this decision Government of India try to protect Indian industry and commerce from the hands of Chinnese aggression at the wake of HDFC Bank share purchasing by Chinnese Central Bank.
V. CSR Ministry of Corporate Affairs extended the last date of submitting comments in respect of Companies (Corporate Social Responsibility Policy) Amendment Rules, 2020 till April20,2020.The Said Rules includes amendments in respect of the following areas .
The earlier rules was Companies (Corporate Social Responsibility Policy) rules 2014.
1. CSR Activities 2. CSR implementation Procedure 3. Disclosure of CSR Activities 4. National unspent Corporate Social Responsibility Fund Implications Now, the GOI wants to make CSR activities into more transparent and socially desirable.
VI. Advisory issued by ICAI ICAI has issued directions to about 35,000 firms eligible for Bank Branch Audit to begin the process of Statutory Bank Branch audit and ensure the timely completion of the process. Implications ICAI has warned the industrial community and banks .They should not resort to unfair means and ways during this lockdown period.
VII. ITR Forms. The ITR will be made available at the end of April ,2020.The forms for the financial year 2019-20 is revised by the CBDT after incorporating the timeline extension benefits available to different types of asessees . Implications The tax payer will get Chapter VIA benefits up to June 30, 2020 for the financial year 2019-20.
VIII. Condonation fees on the delayed filing of application forms for articled/practical training. Now, the students who aspire to become CAs may file online application for practical training without depositing additional fees as condonation fees. The concession will be available to June 30, 2020 if transaction date in such application forms falls between1st March 2020 to 30th May 2020.
IX. Health Insurance premium IRDA has allowed to pay Health Insurance premium in installments Implication It will encourage more people to buy health insurance policies and thereby they will be under the insurance cover from the time on which they take insurance policies.
X. Annual General Body Meeting of Companies Ministry of Corporate affairs has allowed the companies whose financial year ending Dec 31, 2019 to conduct their annual general body meeting before 30 September, 2020. Implication. Companies will get more time in their compliance procedure.
XI. Mail received from CBDT CBDT asks the assesses to respond immediately to the mails received from the department .Your response will help you to get the Tax refund immediately.
XII.DA/DR of Union Government employees Union Government of India has decided to salary and pension to its employees till 1/7/2021 on existing DA/DR due to extreme liquidity problem caused by COVID-19.
Therefore, the employees and pensioners will not get increased DA and DR from 1/1/2020, 1/7/2020 and 1/1/2021. Implication Now, normally all State government employees and pensioners may not get increased DA and DR from 1/1/2020 ,1/7/2020 and 1/1/2021 although the State Government might decide otherwise.
XIII. Amendments in Accounting Standards . IASB has decided to amend the following standards. a. IFRS 9 b. IAS 39 c. IFRS 7 d. IFRS 4 e. IFRS -16. Draft has been prepared. Implication. You may send your suggestions before May 20, 2020 in the website of Institute of Chartered Accountants of India.
XIV. Mutul Funds. Department of finance has asked SEBI to consider the stress in Asset Management companies of Mutual Funds. The direction has circulated after Franklin Templeton Mutual Fund decided to wind up its six debt fund schemes. Besides, Association of mutual fund companies also asked customers not to be panic in the recent developments. Implications. Finance Ministry, SEBI and Association of Mutual funds have tried to reduce the stress on the AMCs.
XV. Amendment to IBC 2016 Central Cabinet has decided to suspend the following sections of Insolvency and Bankruptcy code 2016 for six months. It may extend to one year. 1. Section 6 2. Section 7 3. Section 10 Implication You Cannot proceed against the real estate developers if they do not allot the flat as agreed to you in 2020. •
XVI. Direction to SEBI in respect of Mutual Funds. Department of finance has asked SEBI to consider the stress in Asset Management Companies of Mutual Funds. The direction comes in the wake of Franklin Templeton Mutual Fund issue. Besides, Association of Mutual Fund Companies also asked customers not to be panic in the recent developments.
XVII. Google tax From April 1,2020@2 percent On sale of advertisement, which targets a customer who is resident in India or a customer who accesses the online advertisement through IP address located in India Implication Face book and Google have to paid the tax Now, they want the tax to be deferred by at least nine months
XVIII.CS Exam Company Secretary June 2020 exam has been postponed to July 6, 2020.
The new Time table is available in the website Implication The institute acts as per high professional Standards
XIX. The IASB has published a discussion paper on the following topics
- a.Improving the accounting for goodwill
- b.Improving disclosures about acquisitions
- c. Reducing the cost of the impairment test In this context,
The Institute of Chartered accountants of India and ASB invites comments on the topics. Implication You can comment before June 30, 2020. Visit the website of ICAI.
XX.The Institute of Cost Accountants of India has decided to postpone the examinations for June 2020.Now the exam will commence from 20, July 2020
XXI. MCA has extended time limit in respect of filing NFRA-2.
XXII. The institute of Chartered Accountants of India has postponed its June 2020 exam.