India

Value Added Tax

  • N/A

Corporate Income Tax

  • Extension of the due date for filing tax return for FY 2018/19 from 31 March 2020 to 30 June 2020.
  • For delayed tax payments made between March 20 and June 30, no penalty will be applied and the late payment interest rate is reduced to 0.75% per month. 

Social Security Contributions/Payroll Tax

  • N/A

Other relief measures

  • The due date for completion of any proceeding or passing of any order or issuance of any notice / intimation / notification / approval order / sanction order, filing of appeal / reply / application, furnishing of report / return statements /  and any such documents necessary for compliance or completion of any proceedings under inter alia Income Tax Act 1961, Wealth Tax Act 1957, Prohibition of Benami Property Transactions Act 1988, Black Money (Undisclosed Foreign Income and Assets), Imposition of Tax Act 2015 and the GST laws and the Customs and Allied Laws, where the due date is between 20 March 2020 to 29 June 2020, is extended to 30 June 2020. 
  • Corporate social responsibility (mechanism requiring large compagnies to spend at least two percent of their average net profits of the three immediately preceding financial years towards CSR) : any expenditure towards various activities related to COVID-19 shall be considered an eligible CRS expenditure.
  • Goods and services tax (GST) filing deadlines - Form GSTR-3B:
    • With regards to the form for February, March and April 2020:
      • For taxpayers with an aggregate annual turnover up to INR 15 million: last date for filing extended to 30 June for February, 3 July for March and 6 July for April, without penalty and late payment interest.
      • For taxpayers with an aggregate annual turnover between INR 15 million and INR 50 million: last date for filing extended to 29 June 2020 for February and March and to 30 June for April, without penalty and late payment interest.
      • For taxpayers with an aggregate annual turnover of INR 50 million or more: last date for filing extended to 24 June 2020 without penalty; late payment interest will be charged after 15 days of nonpayment at a reduced rate of 0.75% per month (from 1.5%).
    • With regards to the form for May 2020:
      • For taxpayers with an aggregate annual turnover up to INR 15 million: last date for filing extended to 14 July, provided that the principal place of business is located in certain States. 
      • For taxpayers with an aggregate annual turnover between INR 15 million and INR 50 million: last date for filing extended to 12 July, provided that the principal place of business is located in certain States. 
      • For taxpayers with an aggregate annual turnover of INR 50 million or more: last date for filing extended to 27 June 2020. 
  • GST filing deadlines - Form GSTR-1:
    • For taxpayers with an aggregate annual turnover of INR 50 million or more: last date for filing for March, April and May 2020 extended to 30 June 2020, without late payment fee. 
    • For taxpayers with an aggregate annual turnover of less than INR 50 million: last date for filing their quarterly return (for January to March 2020) extended to 30 June 2020, without late payment fee. 
  • GST annual returns for FY 2018/19: due date for filing extended from 31 March 2020 to the last week of June 2020.
  • Date for electing for composition scheme (i.e. simplified GST scheme for small businesses), for filing composition returns for FY 2019/20 and for making payments for the quarter ending 31 March 2020 extended until 30 June 2020.
  • Payment date under Sabka Vishwas Scheme (i.e. monetary mechanism for resolving disputes related to the GST and other indirect taxes) extended to 30 June 2020 with no interest.
  • Insolvency proceedings: increase of the threshold of default under section 4 of the IBC 2016 to Rs 1 crore (from the existing threshold of Rs 1 lakh). 
  • Moratorium of three months of lending institutions on payment of all term loan instalments (including principal, interest payments, bullet repayments, EMIs and credit card) failing due between 1 March 2020 and 31 May 2020.

Additional comments

  • Insolvency proceedings: If the current situation continues beyond 30 April 2020, suspension for a period of 6 months (i.e. until 31 October 2020), which could also be extended up to twelve months.
  • Modification of FDI legislation: Prior approval of the Indian government is now required for: 
    • foreign direct investments into India (direct or indirect) by an entity of a country which shares a land border with India (i.e. China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar and Afghanistan);
    • wholly owned subsidiaries, set up (directly or indirectly) by Chinese companies or established through Kong-Kong intermediary companies by American or European companies, to issue further equity capital to their parents; 
    • global or multi-jurisdictional transactions resulting in an indirect investment in or transfer of an Indian company’s equity instruments or if the beneficial ownership of the Indian company goes to a Chinese investor; and
    • rights issuances, share buybacks, exits of existing investors from an Indian company which result in an increment in a Chinese investor’s stake. 
  • Commercial Banks and Cooperative banks have been restricted by Reserve Bank of India from making dividend payments out of profits made in fiscal year ended 31 March 2020.
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