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Ministry of Corporate Affairs issues clarifications on passing of ordinary and special resolutions due to COVID 19 in view of difficulties cited by stakeholders in complying with the instructions as notified vide circular dated 8th April 2020

The Supreme Court of India, while modifying its orders dated 8th April 2020 has issued the following clarifications:

(i) Free testing for COVID-19 shall be available to persons eligible under Ayushman Bharat Pradhan Mantri Jan Aarogya Yojana as already implemented by the Government of India, and 6 any other category of economically weaker sections of the society as notified by the Government for free testing for COVID-19, hereinafter.

(ii) The Government of India, Ministry of Health and Family Welfare may consider as to whether any other categories of the weaker sections of the society e.g. workers belonging to low income groups in the informal sectors, beneficiaries of Direct Benefit Transfer, etc. apart from those covered under Ayushman Bharat Pradhan Mantri Jan Aarogya Yojana are also eligible for the benefit of free testing and issue appropriate guidelines in the above regard also within a period of one week.

(iii) The private Labs can continue to charge the payment for testing of COVID-19 from persons who are able to make payment of testing fee as fixed by ICMR.

(iv) The Government of India, Ministry of Health and Family Welfare may issue necessary guidelines for reimbursement of cost of free testing of COVID-19 undertaken by private Labs and necessary mechanism to defray expenses and reimbursement to the private Labs.

The International Organisation of Employers and the International Trade Union Confederation have issued a joint statement stating that all efforts need to be undertaken to help workers and companies to go through the crisis, to keep workers in their jobs, to protect from unemployment and loss of income, and to alleviate financial devastation. IOE and ITUC stated that they are committed and prepared to support policy makers in their efforts.

During the initial phase of the COVID-19 outbreak, a number of countries and their social partners have implemented decisive measures to combat the spread of the disease, while ameliorating its pernicious effect on the economy and labour market.

Search a country or territory to find out the measures implemented by governments, employers’ and workers’ organizations, and the ILO

Members can access the details on
https://www.ilo.org/global/topics/coronavirus/country-responses/lang–en/index.htm

Ministry of Corporate Affairs issues clarifications on eligibility of CSR expenditure for COVID 19

1. Payment of salary/wages to employees and workers, including contract labour, during the lockdown period cannot be adjusted against the CSR expenditure of the companies as it is a part of statutory/contractual obligation of an employer. It is also a moral obligation of the employers, as they have no alternative source of employment or livelihood during this period.

2. Payment of wages made to casual /daily wage workers during the lockdown period cannot be adjusted against the CSR expenditure of the companies. Payment of wages to temporary or casual or daily wage workers during the lockdown period is part of the moral/ humanitarian/ contractual obligations of the company and is applicable to all companies irrespective of whether they have any legal obligation for CSR contribution under section 135 of the Companies Act 2013.

3. If any ex-gratia payment is made to temporary / casual workers/ daily wage workers over and above the disbursement of wages, specifically for the purpose of fighting COVID 19, the same shall be admissible towards CSR expenditure as a one-time exception provided there is an explicit declaration to that effect by the Board of the company, which is duly certified by the statutory auditor.

Supreme Court orders free COVID 19 Testing in Government & Authorised Private Labs
The Supreme Court of India, vide interim orders dated 8th April 2020, issued the following directions:

(i) The tests relating to COVID-19 whether in approved Government Laboratories or approved private Laboratories shall be free of cost.

The respondents shall issue necessary direction in this regard immediately.
(ii) Tests relating to COVID-19 must be carried out in NABL accredited Labs or any agencies approved by WHO or ICMR.

The novel coronavirus outbreak has posed huge challenges for public health and economic security of millions of people worldwide. As your Hon’ble kind self had acknowledged, the pandemic’s impact on nations is even more severe than that caused by World Wars I and II. In view of the gravity of the situation, the government has reached out to all stakeholders to fight against this menace on a war-footing basis.

Sir, for a heavily populated country like India where the healthcare / other essential infrastructure is currently not commensurate to the potential requirement, dealing with this crisis can be a daunting task. Recognising this, all stakeholders including businesses, have come forward to contribute in whatever way possible to minimise the risks to life and livelihood. Collaborative efforts of the government and the private players are essential to deal with the situation.

The industry deeply appreciates the swift relief measures announced by the government for the vulnerable and impacted sectors. Deferment of the statutory and regulatory compliances has also been a welcome respite for the taxpayers.

The industry and businesses, despite the challenges that they themselves are facing, have been actively complementing government’s endeavours in fighting the pandemic, by providing essential and life survival equipment such as ventilators, testing kits, masks, sanitisers and other essential facilities in the hospitals, for timely support to the needy. However, these companies are going through immense financial pressures in the current scenario of complete lockdown and slow economic growth. In view of this, the Government’s all-out support to the efforts being undertaken by the private sector towards this cause will be necessary.

In view of the above, we suggest that government may provide tax relief for expenditure incurred by taxpayers as measures for fighting COVID 19. In particular, we suggest the following:

Direct Tax measures :
a) Section 37 and Section 57 of the Income tax Act, 1961 may be amended or notification/s may be issued, allowing taxpayers full deduction, while computing taxable income for the year in which such expenditure is incurred, in respect of any direct expenditure incurred towards combating COVID 19 crisis.
b) 100% depreciation may be granted for machinery used to manufacture such items or any equipment used for combating Covid 19.
c) Weighted deduction of 200% may be given to taxpayers who have actually paid salaries during the months of March, April, May and June 2020 to their employees by honouring the Government’s advisories of not laying off the employees and treating absence from work due to lock down as paid leave.
d) The weighted deduction u/s. 35(2AB) @ 150% which expired on 31 March 2020 may be appropriately extended. In any case, as a short term relief comparable to benefits extended to Chapter VI-A deductions and capital gains roll over relief, the time limit for incurring R&D expenditure for weighted deduction benefit @ 150% u/s. 35(2AB) for F.Y. 2019-20 may be extended till 30 June 2020.
e) An extra deduction u/s. 80D may be granted for expenditure incurred towards testing for Covid-19 infection and/or medical treatment and/or self-quarantine or home isolation.
f) Following the precedent of amendments made to s.80-G for Gujarat Earthquake relief in 2001, similar amendment may be made to extend benefit of 100% deduction (without being subject to cap of 10% of Gross Total Income) for donations made to approved charities during the period from 1 April 2020 to 30 September 2020 subject to such charities maintaining separate accounts for such donations, applying it exclusively for Covid-19 relief work by 31 March 2022 and transferring any unspent amounts to PM CARES Fund by 31 March 2022. This deduction may be granted to corporates and non-corporates even if they have availed lower tax regime u/s. 115BAA or 115BAB or 115BAC or 115BAD.

Indirect tax measures :
g) Complete waiver on import duty or tax on supply of goods or services or both may be granted for contributions made towards COVID 19. Waiver on payment of cess or royalty payable to Government on any Licence paid for any software/ hardware that are imported for enabling the employees to work from home.
Further, to ease the liquidity problems for the industry, especially for MSME sector, it is requested that undisputed amounts of income tax and GST refunds may be released expeditiously to facilitate the industry to pay the salaries and wages of the employees during the current environment of liquidity stress.

A detailed note containing our suggestions is attached for your kind consideration. We would be grateful if the suggestions are accepted and necessary amendments or notifications, applicable for FY 2019–20 and 2020–21, are issued at the earliest.

Representation alongwith Annexure Note
https://bombaychamber.com/wp-content/uploads/2022/09/1.pdf

Press Note
https://bombaychamber.com/wp-content/uploads/2022/09/Press-note-MoF.jpg

EPFO Issues Revised Instructions to Facilitate PF Members to Rectify their Birth Records using the date of birth recorded in Aadhar to facilitate non refundable withdrawals for PF members in financial distress. This subject to the difference in the two dates being less than three years.

Press Release
https://pib.gov.in/newsite/PrintRelease.aspx?relid=201019

Ministry of Shipping has no issued specific guidelines to Major Ports on Exemptions/Remissions on penalties, demurrages charges, fee, rentals levied on any Port user for any delay in Berthing/Loading/Unloading operations or evacuation/arrival of cargo caused due to lockdown measures from 22nd March, 2020 to 14th April, 2020. Major Ports have also been allowed to extend the completion of any project under implementation in PPP mode or otherwise. Moreover, Major Ports can permit waiver of all penal consequences with deferment of performance obligations as per concession agreement on case to case basis, for existing and operational PPP Projects

Notification
https://pib.gov.in/newsite/PrintRelease.aspx?relid=200867

SEBI relaxations from compliance with certain provisions of the circulars issued under SEBI (Credit Rating Agencies) Regulations, 1999 due to the COVID-19 pandemic and moratorium permitted by RBI.