Legal Update

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Circulars/Notifications
Given below are summarised important Circulars and Notifications issued by the CBDT, CBIC-
GST, MCA, SEBI and FEMA since the publication of the last issue of the journal, for information
and use of members. Readers are requested to use the citation/website or weblink to access the full
text of desired circular/notification. Suggestions on this column can be submitted at [email protected]

DIRECT I. NOTIFICATIONS faceless-assessment/Order-119-PrCCsIT-Cadre-Controlling-

TAXES Authority.pdf
​1. Amendment of Income-tax Rules, 1962
for providing conditions and guidelines for 2. Order u/s 138 for sharing of information with
Pension Funds u/s 10(23FE) of the Income- “Scheduled Commercial Banks - Order, dated 31-08-
tax Act, 1961 – Notification No. 67/2020, dated 2020
17/08/2020 The CBDT, in exercise of powers conferred u/s 138(1)
Vide the Income-tax (20 Amendment) th (a)(i), has directed that PDGIT (Systems), New
Rules 2020, Rule 2DB (other conditions to Delhi shall be the specified income-tax authority
be satisfied by the pension fund), Rule 2DC for furnishing information to the ‘Scheduled
(Guidelines for notification under section Commercial Banks’, as notified vide Notification
10(23FE) and Form No. 10BBA, 10BBB, 10BBC No. 71/2020 dated 31.08.2020 u/s 138(1)(a)(ii).
R e f e r : h t t p s : / / w w w. i n c o m e t a x i n d i a . g o v. i n / L i s t s /
are inserted in the Income-tax Rules, 1962. Latest%20News/Attachments/413/order_225_136_2020_
Refer:https://www.incometaxindia.gov.in/communications/ MiscComm_1-9-20.pdf & https://www.incometaxindia.gov.
notification/notification_67_2020.pdf n/communications/notification/notification_71_2020.pdf
II. CIRCULARS 3. CBDT provides ITR Filing Compliance Check
Functionality for Scheduled Commercial Banks –
1. Imposition of charge on the prescribed electronic Press Release, dated 02-09-2020
modes u/s 269SU - Circular No. 16/2020, dated 30-
08-2020 The Department has now released a new
functionality “ITR Filing Compliance Check” which
Vide this Circular, CBDT has advised Banks to
will be available to Scheduled Commercial Banks
immediately refund the charges collected, if any, on
(SCBs) to check the IT Return filing status of PANs
or after 01.01.2020 on transactions carried out using
in bulk mode. The PDGIT (Systems) has notified
the electronic modes prescribed under section
the procedure and format for providing notified
269SU and not to impose charges on any future
information to the Scheduled Commercial Banks.
transactions carried through the prescribed modes. Refer: https://www.incometaxindia.gov.in/Lists/Press%20
Refer: https://www.incometaxindia.gov.in/communications/ Releases/Attachments/851/Press-Release-CBDT-provides-
circular/circular-16-2020.pdf ITR-Filing-Compliance-Check-Functionality-for-Scheduled-
III. PRESS RELEASES/INSTRUCTIONS/OFFICE Commercial-Banks-dated-02-09-2020.pdf
MEMORANDUM/ORDER
INDIRECT GST
1. Order designating Pr.CCsIT as cadre controlling TAXES Aadhaar Based Registration under
authority overall the field formations including ReAC GST
– Order u/s 119, dated 20-08-2020
The Central Government vide
The CBDT, in exercise of powers u/s 119, has Notification No. 62/2020- Central Tax dated
directed that the Pr. CCsIT will be the cadre 20th August, 2020 has amended the CGST Rules,
controlling authority in their area of jurisdiction 2017 so as to provide an option for authentication
in respect of all field formations including through Aadhaar number for registration under
ReACs, Central Charges, International Taxation GST.
and Transfer Pricing charges, Investigation
Directorates, Exemptions charges and RTI etc. Interest on Delayed Payment of GST
Refer:https://www.incometaxindia.gov.in/Documents/ The Central Government vide Notification No.
(Matter on Direct and Indirect Taxes, is contributed by Direct Taxes Committee and GST & Indirect Taxes Committee of ICAI respectively. FEMA updates by CA. Manoj Shah, CA
Hinesh Doshi and CA. Sudha G. Bhushan)

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63/2020- Central Tax dated 25th August, 2020 has the Faceless Assessment at an All India level in all
notified 1st day of September, 2020, as the date on ports of import and for all imported goods by 31st
which the provisions of section 100 of the Finance October 2020. It has provided the detailed roll-out
(No. 2) shall come into force. That is amendment in plan in phases covering different Customs Zones
section 50 of the CGST Act, 2017 regarding Levy and Chapters of the Customs Tariff Act, 1975,
of interest on Net Tax Liability (i.e. interest on tax including the existing Phases I and II.
paid through Electronic Cash Ledger only) has It has further provided detailed procedure for
been made effective from 1st Sept, 2020. Constitution of National Assessment Centres
It has also been clarified in a press release dated (NACs), its responsibilities, responsibilities of Co-
26th August, 2020 that provisions related to interest conveners of NAC, Co-ordination among NAC
on delayed payment of GST shall be effective Commissioners, Co-ordination of NACs with
prospectively due to certain technical limitations. Other Directorates and Pre-launch preparation for
However, it has assured that no recoveries shall be Faceless Assessment,etc.
made for the past period as well by the Central and Auto Let Export Order under Express Cargo
State tax administration. Clearance System (ECCS)
Extension of Due Date for Filing FORM GSTR-4 The CBIC vide Circular No. 41/2020-Customs
for financial year 2019-2020 dated 7th September, 2020 has allowed the Let
The Central Government vide Notification No. Export Order (LEO) under Express Cargo
64/2020- Central Tax dated 31st August, 2020 has Clearance System (ECCS) for goods covered
further extended the due date of filing of GSTR- under the Courier Shipping Bills (CSBs) and Risk
4 for the year ending 31st March, 2020 till 31st Management System (RMS) and cleared by x-ray
October, 2020. scanning.
Extension of Due Date of Compliances by Anti- The objective of the Board to allow Export Order
Profiteering Authority under Express Cargo Clearance System (ECCS)
The Government through Notification No. was to facilitate exports by courier and to enhance
65/2020- Central Tax dated 1st September 2020 has the global competitiveness of India’s exporters with
provided that where any time limit for completion an aim to ensure Ease of Doing Business.
or compliance of any action, by any authority CORPORATE Amendment of item no.(ix) of Schedule
LAWS
under section 171 of CGST Act, 2017, which falls VII of the Companies Act,2013
during the period from the 20th day of March, The Ministry of Corporate Affairs has
2020 to the 29th day of November, 2020, and where issued a notification dated 24th August
completion or compliance of such action has not 2020 where it has substituted (ix) of Schedule VII
been made within such time, then, the time limit which states
for completion or compliance of such action, shall
be extended upto the 30th day of November, 2020.” a) Contribution to incubators or research and
development projects in the field of science,
CUSTOMS
technology, engineering and medicine,
Manufacturing or other Operations in Special funded by the Central Government or State
Warehouses Government or Public Sector Undertaking or
any agency of the Central Government or State
The CBIC vide Circular No. 36/2020-Customs Government and
dated 17th August, 2020 has prescribed the detailed
procedure to be followed in cases of manufacturing b) Contributions to public funded Universities;
or other operations undertaken in special Indian Institute of Technology (IITs); National
warehouses under section 65 of the Customs. Laboratories and autonomous bodies
established under Department of Atomic
All India roll-out of Faceless Assessment – Energy (DAE); Department of Biotechnology
Registeration
(DBT); Department of Science and Technology
The CBIC vide Circular No. 40/2020-Customs (DST); Department of Pharmaceuticals;
dated 4th September, 2020 has decided to roll-out Ministry of Ayurveda, Yoga and Naturopathy,

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Unani, Siddha and Homoeopathy (AYUSH); In section 92 of the principal Act (ii) for sub-section
Ministry of Electronics and Information (3), the following sub-section shall be substituted,
Technology and other bodies, namely Defense namely:— “(3) Every company shall place a
Research and Development Organisation copy of the annual return on the website of the
(DRDO); Indian Council of Agricultural company, if any, and the web-link of such annual
Research (ICAR); Indian Council of Medical return shall be disclosed in the Board’s report.”.
Research (ICMR) and Council of Scientific Refer:http://www.mca.gov.in/Ministry/pdf/Notification
and Industrial Research (CSIR), engaged in CompAct_29082020.pdf
conducting research in science, technology, Companies (Management and Administration)
engineering and medicine aimed at promoting
Amendment Rules, 2020
Sustainable Development Goals(SDGs)
Refer: http://www.mca.gov.in/Ministry/pdf/Notification The Ministry of Corporate Affairs vide its
CompAct_26082020.pdf notification dated 28th August, 2020 has notified
Companies (Management and Administration)
Companies (Corporate Social Responsibility
Policy) Amendment Rules, 2020 Rules, 2020 wherein it has amended the sub-rule
1 of rule 12 of Companies (Management and
The Central Government vide notification dated Administration) Rules, 2014, by inserting the
24th August 2020 further amended the Companies following proviso, namely:
(Corporate Social Responsibility Policy) Rules,
2014. “Provided that a company shall not be required
to attach the extract of the annual return with the
1) Post this notification, any company engaged
Board’s report in Form No. MGT.9, in case the web
in R&D activity of new vaccine, drugs and
link of such annual return has been disclosed in
medical devices in their normal course of
the Board’s report in accordance with sub-section
business may undertake R&D activity of new
(3) of section 92 of the Companies Act, 2013.
vaccine, drugs and medical devices related
Refer: http://www.mca.gov.in/Ministry/pdf/Rule_29082020.pdf
to COVID-19 for financial years 2020-21 to
2022-23, subject to the conditions that- (i) Companies (Acceptance of Deposits) Amendment
such research and development activities shall Rules, 2020
be carried out in collaboration with any of the
institutes or organisations mentioned in item The Ministry of Corporate Affairs has notified
(ix) of Schedule VII to the Act. (ii) details of Companies (Acceptance of Deposits) Amendment
such activity shall be disclosed separately in Rules, 2020 on 7th September, 2020 to further
the Annual Report on CSR included in the amend the Companies (Acceptance of Deposits)
Board’s Report” Rules, 2014. The following amendments have been
made:
2) In Rule 4, in sub-rule 1, the words “excluding
activities undertaken in pursuance of its Rule 2 (1)(c)(xvii), which specifies the definition of
normal course of business” shall be omitted. deposits has been substituted, namely: 
3) In Rule 6, in sub-rule (1), — (i) first proviso “An amount of twenty five lakh rupees or more
shall be omitted; (ii) In the second proviso, received by a start-up company, by way of a
the word “further” shall be omitted. convertible note (convertible into equity shares or
Refer :http://w w w.mca .gov.in/Ministr y/pdf/csr_ repayable within a period not exceeding ten years
26082020.pdf (from the date of issue) in a single tranche, from a
person.”
Commencement notification for Section 23(ii) of
the Companies(Amendment) Act, 2017 The period of repayment was fixed at 5 years
The Ministry of Corporate Affairs has appointed from the date of issue, prior to this amendment.
28th August, 2020 as the date on which the provision This has now been extended to 10 years
of section 23 clause (ii) shall come into force. Refer: http://www.mca.gov.in/Ministry/pdf/Rule_08092020.pdf

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Relaxation of additional fees and extension of An announcement in this regard, has also been
last date of filling of CRA-4 (form for filing of hosted on the ICAI website. Link for the same has
cost audit report) for FY 2019-20 been given below
Refer: https://www.icai.org/post/registrar-companies-various
The Ministry of Corporate Affairs vide its circular -regions-ext-agm
dated 10th September, 2020 has clarified that if
cost audit report for the financial year 2019-20 by SEBI Re-lodgement of Transfer Share
the cost auditor to the BOD of the Companies is Requests in terms of Regulation 40(1) of
submitted by the 30th November, 2020 then the SEBI (Listing Obligations and
same would not be viewed as the violation of rule Disclosure Requirements) Regulations,
6(5) of Companies (cost records and audit) Rules, 2015
2014 and consequently the cost audit report shall The Securities and Exchange Board of India
be filed in e-form CRA-4 within 30 days from the (SEBI), vide Circular No. SEBI/HO/MIRSD/
date of receipt of the copy of the cost audit report RTAMB/CIR/P/2020/166 dated September 07,
by the company. 2020 has fixed March 31, 2021 as the cut-off
However, in case a company has availed extension date for re-lodgement of transfer deeds in terms
of time for holding AGM then e-form CRA-4 of Regulation 40 (1) of SEBI (Listing Obligations
may be filed within the timelines provided under and Disclosure Requirements) Regulations,
the proviso to rule 6(6) of the above said rules. 2015. Further, it has been clarified that the shares
Refer: http://www.mca.gov.in/Ministry/pdf/circular_ 10092020. which are re-lodged for transfer (including those
pdf request that are pending with the listed company /
RTA, as on date) shall henceforth be issued only in
Extension of Annual General Meeting (AGM) demat mode.
for the financial year ended as at 31.03.2020 Refer :http s ://w w w.sebi .gov.in/le g al/circul ar s/sep-
without filing of GNL-1 2020/re-lodgement-of -transfer-requests-shares_
Ministry of Corporate Affairs (Registrar of 47500.html
Companies of various States) have issued order
FEMA Foreign Exchange Management (Export
dated 8th September, 2020 across the country to
and Import of Currency) (Amendment)
extend the time for holding of AGM for the financial
Regulations, 2020 dated 11th August
year ended on 31.03.2020 by three months from the
2020. – Notification No. FEMA 6(R)/
due date by which AGM ought to have been held
(2)/2020-RB
in accordance with section 96(1) of the Companies
Act, 2013 without requiring the Companies to file New Regulation 9 is inserted and powers have
applications for seeking such extensions through been givenm to reserve Bank to permit import and
prescribed Form GNL-1. export of currency. Therefore, as per the said new
Accordingly the Companies are not required regulation, any person is allowed to take or send
to file Form GNL-1 for seeking extension. out of India to any country or bring into India
Further, it has been clarified by the respective from any country currency notes of Government
ROC’s that the extension shall cover the of India and /or of Reserve Bank of India subject
following: to such terms and conditions as the Reserve Bank
may stipulate upon application made to RBI to this
a) Pending application filed in Form GNL-1 for effect.
the extension of AGM for the financial year
ended on 31.03.20 which is yet to be approved RBI may give such approval subject to certain
terms and condition.
b) Application filed in Form GNL-1, for the
Refer: https://www.rbi.org.in/Scripts/NotificationUser.aspx?
extension of AGM for the financial year ended
Id=10255&Mode=0
on 31.03.20 which were rejected.

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