Summary of Compliance Relaxations in India | COVID-19

1. Topic – Clarification on spending of CSR funds for ‘creating health infrastructure for COVID care’ 
Date of Notification – 5 May 2021
Legal Framework:
– Section 135 of Companies Act, 2013
– Companies (CSR Policy) Rules, 2014 

Government Authority – Ministry of Corporate Affairs (MCA)
Web-linkMCA Circular
– Legal Update: Eligible CSR activities are to include spending on the following:   
– Creating health infrastructure for COVID care, establishment of medical oxygen generation and storage plants, manufacturing and supply of oxygen concentrators ventilators, cylinders and other medical equipment for countering COVID-19 or similar such activities. 
– Contribution to specified research and development projects as well as contribution to public funded universities and certain organisations engaged in conducting research in science, technology, engineering, and medicine.

2. Topic – Relaxation of holding of the Annual General Meeting (AGM) through VC or OVAM  
Date of Notification – 13 January 2021
Legal Framework:
– Section 135 of Companies Act, 2013
– Companies (Management and Administration) Rules, 2014
Government Authority – Ministry of Corporate Affairs (MCA)
Web-linkMCA Circular
Legal Update: 
– Applicable on AGM due to be held in the year 2021.  
– AGM can now be held through video conferencing (VC) or other audio visual means (OVAM) till 31 December 2021.
– Relaxation is available till 31 December 2021.

3. Topic – Relaxation in holding Extra Ordinary General Meetings (EGMs) through VC or OVAM or transact items through Postal Ballot   
Date of Notification – 31 December 2020
Legal Framework:
– Section 100 of Companies Act, 2013
– Section 110 of Companies Act, 2013
Government Authority – Ministry of Corporate Affairs (MCA)
Web-linkMCA Circular
Legal Update: 
– Applicable on holding EGMs or transact items through Postal till 30 June 2021.  
– EGMs through video conferencing (VC) or other audio visual means (OVAM) or items can be transacted through postal ballot till 30 June 2021.  
– Relaxation is available till 30 June 2021. 

4. Topic – Relaxation in conducting Board Meetings through VC or OVAM   
Date of Notification – 30 December 2020
Legal Framework:
– Section 173, 177, 178, 186, 469 of the Companies Act, 2013
– Rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014
Government Authority – Ministry of Corporate Affairs (MCA)
Web-linkMCA Circular
Legal Update: 
– Applicable on Board Meetings to be held till 30 June 2021.  
– Extension of relaxation on conducting Board Meetings through video conferencing (VC) or other audio visual means (OVAM) for approving  financial  statements  and  other  restricted  agenda  items under Rule 4 of Companies (Meetings of Board and its Powers) Rules, 2014 till 30 June 2021.  
– Relaxation is available till 30 June 2021. 

5. Topic – Relaxation on duration between two board meetings
Date of Notification – 3 May 2021
Legal Framework – The Companies Act 2013 and relevant rules thereunder.
Government Authority – Ministry of Corporate Affairs (MCA)
Web-linkMCA Circular
Legal Update:
– Applicable on board meetings of Quarter I and Quarter II of FY 2021-22.
– The duration between board meeting in Quarter I and Quarter II should not be more than 120 days. This requirement has been extended by 60 more days. 
– Hence, a board meeting to be held in Quarter II can be scheduled within 180 days from the date of last board meeting held in Quarter I. 
– Relaxation is available till 30 September 2021.

6. Topic – Relaxation on levy of additional fees in filing of certain Forms
Date of Notification – 3 May 2021
Legal Framework – The Companies Act 2013 and relevant rules thereunder.
Government Authority – Ministry of Corporate Affairs (MCA)
Web-linkMCA Circular
Legal Update:
– Applicable on reporting time-lines falling due between April’21-May’21
– Delayed reporting can now be made till 31 July’21 with Normal fee.
– Additional fee on such delayed reporting is waived.
– Relaxation is available till 31 July 2021.
– Exceptions – Charge related reporting viz. Form CHG-1, CHG-4 and CHG-9

7. Topic – Relaxation on levy of additional fees in filing of Forms CHG-1 and CHG-9
Date of Notification – 3 May 2021
Legal Framework – The Companies Act 2013 and relevant rules thereunder.
Government Authority – Ministry of Corporate Affairs (MCA)
Web-linkMCA Circular
Legal Update:
– Applicable on reporting time-lines falling due between 1 April 2021 – 31 May 2021
– Date of creation or modification of charge falls before 1 April 2021 and time-line of reporting not expired: 
the period beginning from 1 April and ending on 31 May shall not be reckoned for the purpose of counting the number of days under the Act and on the other hand, if the Form is not filed within such period, the first day after 31 March 2021 shall be reckoned as 01 June 2021.
– Date of creation or modification of charge falls between 1 April 2021 and 31 May 2021: 
the period beginning from the date of creation/modification of charge to 31 May 2021 shall not be reckoned for the purpose of counting of number of days under the Act and on the other hand, if the Form is not filed within such period, the first day after the date of creation/modification of charge shall be reckoned as 01 June 2021.
– Additional fee on delayed reporting is waived.
– Relaxation is available for the period between 1 April – 31 May 2021.

8. Topic – Extension of time-lines related to certain Corporate Income Tax compliances
Date of Notification – 30 April 2021
Legal Framework – The Income Tax Act, 1961
Government Authority – Central Board of Direct Taxes (CBDT)
Web-linkCBDT Circular
Legal Update: In the case of following matters, the original time-line of 30 April 2021/ 31 March 2021 has been extended to 31 May 2021: 
– Appeal to Commissioner (Appeals) under Chapter XX
– Objections to DRP under Section 144C
– Income-tax return in response to notice under Section 148
– Filing of belated return under Section 139(4) for FY 2019-20
– Filing of revised return under Section 139(5) for FY 2019-20
– Payment of tax deducted under Section 194-IA, Section 194-IB and Section 194M and filing of challan-cum-statement for such tax deducted, under Rule 30
– Statement in Form No. 61

9. Topic – Extension of time-lines related to certain GST compliances 
Date of Notification – 01 May 2021
Legal Framework – The Goods and Services Tax Act, 2017
Government Authority – Central Board of Indirect Taxes and Customs (CBIC)
Legal Update | Web-link: 
Extension of specified compliances falling between 15 April – 30 May 2021 till 31 May 2021
Return in Form GSTR – 3B 
Extension in due date of furnishing Form GSTR-1 for April, 2021
Extension in due date for furnishing of Form ITC-04 for the period Jan-March 2021 till 31 May 2021
Extension in due date for filing Form GSTR-4 for FY 2020-21 to 31 May 2021
Waiver of late fee

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