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Volume

13

Issue

261 / 2021

May

2021

Quote of the day

"Your world is what your eyes, ears and mind perceive. What makes you sad or happy is part of your own self. As you rise higher and higher, the world broadens, And small-mindedness goes away. - Mankuthimma"

— D. V. Gundappa

Dear Friends,

It is summer time in India and we are experiencing varied levels of temperatures. But for covid, most of us would have planned some getaway to enjoy. What if we can’t do it in the real world ? we can always travel back in our memory and rediscover the joy of childhood summer-time. Get on to the time-machine. Sit back. Rewind. Recall. Relax. Just as some of our team members have done….

Krithika says “The first few images of Summer that flash before my eyes are mangoes, sugar cane juice and orange candy!! Though a Bangalorean (in letter and spirit!) I spent most vacations in Chennai. Unconventional but true…. on the beaches sipping sugar cane juice and eating raw mango. Watching back to back movies - 3 shows back to back is my personal record ! 😊 Oh wait, how could I forget the orange candy! The most exciting ‘cooking’ (if it can even be called that) of my early childhood was filling up ice cream moulds with soft drinks and freezing them till they turned into ice candy and eating them with the greatest sense of achievement for having taken them out without breaking !"

Another Chennai girl, Pushkalaa says “Every Summer I would be packed off to my aunt’s place in Chennai from Delhi. While it was a relief from the scorching Delhi summer, it wasn’t from the treacherous holiday homework. My father would insist I write endless multiplication tables upto 50, 50 times both front and back. I would find ways to evade but my watchful aunt under instructions from the ‘higher up’, my dad would ensure that I finish it.

My childhood memories of the bustling city of Chennai include the buzz of traffic, the famous shopping hubs, cafes that served hot idly and sambar, amusement parks, annual festivities at the ancient temples that drew thousands of people from far and near, the distribution of buttermilk and juice by every household to the passersby to beat the heat, customary weekend outings to Marina Beach for playing in the sand and building castles, getting wet in the water and gorging on the piping hot bajjis and pattani sundal. Life was at its simplest best!!”

Ashwini must have been the teacher’s delight as she recalls “The best part of the Summer was, I used to complete my vacation homework as early as possible and wait for the school to open to see the new books, uniforms and importantly my friends.

I always preferred to stay at home instead of going on a trip. There was no summer camp for us in our village. Nor any mobile phones or internet those days. At best only the simple joy of waiting for the ice cream / candy vendor, plucking fresh mangoes & jackfruits from the forests nearby, savouring authentic native dishes and helping ma in preparing raw mango pickles. Ah, the aroma of those pickles are still fresh in my memory. Oh what fun it would be to collect hailstones during the first summer shower! “

On the other hand, Ashwin recalls “My friends and I would get up at 6am in the morning, go for a jog and then play cricket, board games and outdoor games throughout the day only to get back home for dinner and sleep. I also remember my father getting us a carton of yummy mangoes which would be replenished after it was empty almost every time till the end of Summer !

Others have different memories. Trupthi says “Summer meant vacation and lot of holiday homework which was the worst😐. We didn’t touch homework throughout our two months break until the last 4 days when we would be compelled by our parents to complete it. Aren’t summer holidays meant for playing, watching TV, roaming around with friends, and not doing homework ?”

Another senior colleague Poornima talks of her unpleasant exam paper before the onset of holidays “Scorching heat is all that I can recollect when I think of Hyderabad, the place I was born and bred. Growing up in a lower middle class family, summer vacations were never exotic nor exciting but I cherish those simple days.

However, pre-vacation was full of anxiety thanks to the dreaded math paper. Once I wrote my examination and came back home. To avoid discussions about the paper I quietly hid it …. Guess where?? I dug a pit in my little garden and buried my paper. As usual my mother enquired about the paper and wanted to cross check the answers. I happily told her that I lost the question paper and quickly sneaked away from the house😊

As for me, when not getting away from Hyderabad to a cooler clime in Bangalore, we would practise for our classical music exam for hours together until my mom would say “It is enough. The walls have learnt your lessons as well”. As children, there was no shame in walking up and down the galli (street) to check if any movie was playing on the TV in anyone’s place – as in most middle-class households we didn’t own a TV for long and so we would happily join the crowd in the neighbour’s drawing room to watch the weekend movie. It was fun watching others sob or laugh at the scenes.”

Such simple, inexpensive joys of life seem very distinct and improbable now. Well, memories are inexpensive friends. The time-machine is yours. Stop where you want. Recollect and relive.

When you get off the machine, remember you are reading the 261st issue of Samhita that has some English lessons but very unschool like. Read the language tips in “Let’s Excel in English’. Regulatory changes from various ministries are at the heart of this issue. Then there is the statutory calendar which seems to have grown longer this month with the government pushing certain tax payment and return filing dates. You can sync this google calendar with your calendar so that you never miss the compliance dates. I have heard entrepreneurs share their tragic stories of paying huge penalty for just missing some dates despite having a professional service provider. Watch out. Comply. Relax. Get inspired reading our Thought for the Day – all curated to give you a well-rounded reading experience.

Have something to say ? Use the Disqus option at the bottom of this newsletter to share your feedback. Sign in as guest and start expressing. For any previous issues of Samhita and the readers’ feedback, please visit http://www.sharadasc.com/resource-center/


Happy Reading,

S.C. Sharada

Tip 1:

Peter: I believe John's family emigrated from their country. Hence, there are no chances of going back.
Jack: I initially thought they had immigrated and they might want to go back.

Emigrate - To leave a country permanently and go to live in another country.
Immigrate - to come to live in a different country.


Tip 2:

Peter: I believe pandemic did not affect E-Commerce badly.
John: Pandemic had a positive effect on it in fact. There were also many new players in the field and were reasonably successful.

Effect: the result of a particular influence. Can be positive or negative.
Affect: to have an influence on someone or something, or to cause a change in someone or something. - This word usually has a negative connotation. It is used as a verb (affect - affected-affected are the present, past and past participle forms)

Tip 3:

John: I was struck in traffic
Peter: Oh! Really! Who struck you. With what did they strike you?
John: My bad. I wanted to say, "I was struck in traffic"

Balaji Ramaswamy N
Mobile: 9741393539

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Reminders for Payments & Returns

Regulatory Updates

MCA Updates

Clarification on offsetting the excess CSR spent for FY 2019-20

Based on the representations received from companies regarding the setting off of excess amounts spent on CSR through contribution to the PM CARES Fund made by them pursuant to an appeal by the government on 30.03.2020, MCA has now issued a clarification dated 20.05.2021 stating that:

Where a company has contributed any amount over and above the minimum amount as prescribed under section 135(5) of the Companies Act, 2013 for FY 2019-20, to PM CARES Fund on 31.03.2020 the excess amount can be offset against the requirement to spend u/s 135(5) for FY 2020-21 subject to following conditions:

  1. the amount offset as such shall have factored the unspent CSR amount for previous FYs, if any

  2. the CFO and the statutory auditor of the company shall certify that the contribution to PM CARES Fund was indeed made on 31.03.2020 in pursuance of the appeal and

  3. the details of such contribution shall be disclosed separately in the Annual Report on CSR as well as in the Board’s Report for FY 2020-21

It appears that only contributions made as on a particular date i.e. 31.03.2020 will be eligible for the set off and not any amount contributed prior to that. More so, since the CFO and Auditor are required to certify that it was indeed contributed on 31.03.2020 post the appeal made by GOI. Since corporates have responded generously and also voluntarily during the pandemic beyond the mandated CSR amount, it would have augured well for the government to allow the set off for any contribution made to the PM CARES Fund during FY 2019-20. This would have enhanced the trust quotient between the corporates and the government, leading to increased involvement with the society by the corporate citizens. Else this Circular merely serves as a clarification for a past transaction that took place before the major changes in CSR announced on 22.01.2021.

(Open Circular No. CSR-01/4/2021-CSR-MCA dtd. 20.05.2021)

MCA 3.0

Another initiative under the EODB Scheme, an all new MCA website was launched on 24.05.2021. The more dynamic and colourful web page also includes additional modules on e-Adjudication, e-Consultation, data & reports i.e. Annual Reports, Nidhi Company Reports, Research Papers etc. and Compliance Management.

Revised e-forms shall be available on the revamped MCA website from October 2021.

https://www.mca.gov.in/content/mca/global/en/home.html

SEBI Updates

Increased limit for overseas investment by AIFs/VCFs

SEBI registered AIFs and VCFs are permitted to invest overseas, subject to an overall limit of USD 750 million. SEBI vide Circular dated 21.05.2021 has in consultation with RBI increased the said limit to USD 1,500 million. All other regulations governing such overseas investment by eligible AIFs/VCFs shall remain unchanged.

(Open Circular No. SEBI/HO/IMD/DF6/CIR/P/2021/565 dtd. 21.05.2021)

DGFT Updates

New e-EPCG Committee Module

Vide Trade Notice dated 19.05.2021, DGFT has introduced a new e-EPCG Committee Module as part of the IT Revamp. Going forward all applications by the exporters for seeking relaxation under para 2.58 of FTP 2015-20 to the EPCG Committee would be accepted through online mode only. Once the application is filed by the members of trade a file number will be generated which can be used for tracking purposes.The entire processing of the application and communication of the decision of the committee would be in online mode.

DGFT and Customs were one of the earliest adapters to digital mode of functioning starting in the early part of 2000s

(Open Trade Notice No. 05/2021-22 dtd. 19.05.2021)

IT Updates

Extension of due dates

Vide Circular dated 20.05.2021, CBDT has extended various filing due dates which are as follows:

Income-tax (16th Amendment) Rules, 2021

CBDT vide Notification No. 68 /2021, dated May 24, 2021 issued ‘Income-tax (16th Amendment) Rules, 2021’ amending the Income-tax Rules, 1962 (“Income-tax Rules”) to insert Rule 11UAE in Income-tax Rules which prescribes the formula to compute fair market value of capital asset for the purposes of Section 50B of the Income-tax Act, 1961 (“Income-tax Act”) i.e., special provision for computation of capital gains in case of slump sale. Please refer to notification for details.

(Open Notification No. G.S.R. 338 (E) dtd. 24.05.2021)

GST Updates

CGST (Fourth Amendment) Rules, 2021

Following amendments have been notified vide CGST (Fourth Amendment) Rules, 2021 dated 18.05.2021:

  1. Upon filing an application for refund in GST RFD-01, proper officer is supposed to issue either Acknowledgement in GST RFD-02 or Deficiency Memo in GST RFD-03 within 15 days from the date of filing of application. In cases where Deficiency Memo is issued, the applicant is required to rectify the deficiencies highlighted in Deficiency Memo and file fresh refund application in GST RFD-01 again for the same period. Earlier, the Master Circular on Refund vide Circular No. 125/44/2019-GST dated 18th November, 2019 had clarified that such fresh refund application shall have to be submitted within 2 years of the relevant date. Therefore, fresh refund application that was filed after rectification of deficiencies beyond 2 years was time barred. Hence rule 90(3) has been amended wherein the time period, from the date of filing of the refund claim in GST RFD-01 till the date of communication of the deficiencies in GST RFD-03 by the proper officer, shall be excluded from the period of 2 years as specified under Section 54(1).

  2. Amendment of Rule 138E: By this amendment, waybill can now be generated for inward supply to a Registered Person who has not furnished GSTR 3B/1 etc., for 2 consecutive periods. However, waybills cannot be generated for outward supplies relating to these taxpayers. Previously both were blocked.

  3. Amendment to Rule 23(1): This rule is now aligned with Section 30(1) wherein the AC/JC/Commissioner may allow the Registered person 1-2 months beyond the 30 days to apply for revocation of cancellation of Registration.

  4. Now the taxpayers can at any time after filing of refund claim and until the time of issuance of acknowledgement/deficiency memo, but before the issuance of any order / show-cause notice withdraw the refund claim for specified reasons.

(Open Notification No. 15 /2021dtd. 18.05.2021)

Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. S. C. Sharada & Associates disclaims all liability on action taken without professional advice.