Monthly Mailer

21^st May 2020

Dear Reader,

While the entire world is suffering through the pandemic of COVID 19, India had implemented one of the biggest nation-wide lock down. This resulted to extreme economic disruption and warranted a bailout. The Government of India (GOI) has announced a package of INR 20 Lakh Crore and series of measures in continuation to earlier initial measures by RBI and announcement of extension of time lines of various compliances by Finance Ministry.

GOI has made various announcements to provided relaxations and incentives under this ‘Atmanirbhar Bharat Abhiyan (Self Reliant India)’. We are hereby highlighting some of the relevant measures announced:

A] Measures for MSMEs:

Collateral free automatic Loans for Businesses, including MSMEs to support badly hit businesses which needs funding for operational liability and to support re-start business…read more
Subordinate Debt for Stressed MSMEs announced to support stressed MSMEs need for equity support…read more
Equity infusion in MSME through Fund of Funds to support MSMEs with growth potential and viability by way of equity infusion…read more
MSMEs redefined by raising the Investment limit and introducing additional criteria of turnover…read more
Other Measures for MSMEs such as e-market linkage… read more
Global tenders will not be permitted for Government procurements uptoRs 200 crores…read more

B] Direct Tax measures:

The GOI has announced several measures on compliance timelines and reduction in TDS/TCS rates to ease liquidity and immediate issuances of refunds…read more

C] Provident Fund related measures:

Employees Provident Fund Contribution Support for business and organized workers now further extended for 3 more months and EPF Contribution to be reduced for Employers and Employees for 3 months to support liquidity and relief to employers…read more

D] Measures for NBFCs, HFCs and MFIs:

Special Liquidity Scheme for NBFC/HFC/MFIs with 100% guaranteed by the Government of India and Partial Credit Guarantee Scheme 2.0 for Liabilities of NBFCs/MFIsto cover the borrowings of low credit rated NBFCs, HFCs and other Micro Finance Institutions (MFIs)…read more

E] Measures for DISCOMs, government Contractors and Real Estate Projects:

The GOI has announced measures to Inject Liquidity for DISCOMs, extend timeline for Contractors and for Real Estate Projects under RERA…read more

F] Corporate Law measures:

Government is working on a mission mode on next phase of ease of doing business and related reforms relating to easy registrations, fast disposal of commercial disputes and simpler tax regime to make India as one of easiest places to do business. The GOI has announced various measures under corporate law to simplify compliances burden, easy registration, etc.…read more

G] Insolvency and Bankruptcy Code related measures:

The GOI has taken several measures such as increasing the threshold limit to initiate insolvency proceedings, special framework for MSMEs under the Act, suspension of fresh proceedings upto 1 year, etc.…read more

H] Public Sector Enterprise Policy measures:

The government announced that new policy shall open all sectors for private sector while Public Sector Enterprise (PSEs) will play an important role in defined areas…read more

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We hereby draw your attention to these announcements for your necessary further action.

In case of you need any additional information, kindly write to us on info@kdpaccountants.com

Disclaimer:

This note does not form an opinion from our end and before taking any decision based on above, it is recommended to consult our experts on the subject.
Kamdar Desai & Patel will not be liable for any damages (including, without limitation, damages for loss of business projects, or loss of profits) arising in contract, tort or otherwise from the use of or inability to use this article, or any of its contents, or from any action taken (or refrained from being taken) as a result of using this article or any such contents.