EY Tax COVID-19 Response Tracker - 30 June 2020
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EY Tax COVID-19 Response Tracker 30 June 2020
Important notes
• This document provides a snapshot of the policy changes that have been announced in jurisdictions around the world in response to the
global COVID-19 pandemic. It is designed to support conversations about policies that have been proposed or implemented in key
jurisdictions.
• Policy changes across the globe are being proposed and implemented on a daily basis. This document is updated on an ongoing basis but
not all entries will be up-to-date as the process moves forward. In addition, not all jurisdictions are reflected in this document.
• Find the most current version of this tracker on ey.com.
• Please consult with your EY engagement team to check for new developments.
EY teams have developed additional trackers to help you follow changes:
► Force Majeure
► Global Mobility
► Global Trade Considerations
► Immigration Policy
► Labor and Employment Law
► Tax Controversy
► Transfer Pricing
► US State and Local Taxes
EY professionals are updating the trackers regularly as the situation continues to develop.
Questions or comments: globaltaxpolicyandcontroversy@ey.com
Page 2 EY Tax COVID-19 Response TrackerIndia
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Overview Personal tax* VAT, GST and trade*
► On 19 March 2020, India announced the formation of the COVID-19 Economic ► All due dates for filing tax returns, notices, appeals and ► For small tax payers having aggregate turnover of up to
Response Task Force which has announced various measures, including approval making investments for claiming various tax deductions US$666,000, payment of tax for the months of February,
of schemes worth US$1.5 billion and US$560 million respectively to ensure falling during the period 20 March 2020 to 29 June March and April 2020 can be made till notified dates without
production of critical drugs and medical equipment in India and permitting food 2020 has been extended to 30 June 2020. interest and thereafter at reduced rate of 9% per annum from
grain to be lifted by States/Union Territories on credit from Food Corporation of the notified date till September 2020. Further, GSTR-3B for the
India for three months. ► Delay in payment of income-tax up to 30 June 2020 will
period of May, June and July 2020 can be filed without interest
Measures introduced by the Central Bank include US$4 billion in forex swaps to be subject to reduced interest rates. Further, for such
► and late fees till September 2020. However, if the annual
provide dollar liquidity at a time when dollar availability is drying up; US$5.7 delayed payment until 30 June 2020, there will be no
turnover is more than US$666,000, interest shall be levied
billion in government bond purchases in March; US$14 billion in overnight levy of penalty or late fee or initiation of prosecution.
liquidity made available to banks via the repo window; US$14 billion in long term after 15 days of the due date of filing return, at a reduced rate
► Due date for payment of provident fund and employee of 9% per annum.
repo operations where banks can raise funds for one to three years at the repo
rate. state insurance contributions for the month of March
► No late fee shall be payable for delayed filing of statement
2020 has been extended.
► An Emergency Fund for South Asian Association for Regional Cooperation (Form GSTR-1) and return (Form GSTR-3B).
(SAARC) countries proposed which can be used by any of the partner countries ► Provident fund / National Pension System members are
► Due date for issue of notice, notification, sanction order, filing
to meet the cost of immediate actions. The Fund will be based on voluntary allowed to claim non-refundable advance/partial
of appeal, furnishing of return, statements, applications and
contributions from all the countries, with India making an initial offer of US$10 withdrawal for up to a specific limit.
million for the fund. time limit for any compliance under GST, Central Excise, Service
► The Central Government will pay provident fund (social tax and Customs, where it is expiring between 20 March 2020
► Corporate law relaxations include: companies’ expenditure to deal with the security) contributions for three months for eligible
COVID-19 outbreak will be considered as Corporate Social Responsibility (CSR) to 29 June 2020, has been extended till 30 June 2020.
employees who are employed in eligible establishments.
activity; mandatory requirement of holding board meetings by Indian Companies ► Restriction on availability of unmatched ITC shall not apply for
within prescribed interval of 120 days to be extended by a period of 60 days for ► Relaxation in determining residential status of the months February to August 2020. However, return for
next two quarters; no fee charged for delayed corporate law filings in respect of individuals under the Income-tax Act. September 2020 shall be furnished with cumulative adjustment
any document, return, statements from 1 April 2020 to 30 September 2020; Due date for filing of individual tax returns for tax year
applicability of Companies (Auditor’s Report) Order, 2020 from 2020-21 instead
► of ITC for February to August 2020.
of 2019-20; requirement to file Declaration for Commencement of Business by 2019-20 has been extended up to 30 November 2020. ► Basic customs duty and health cess exemption has been granted
New Companies increased to 12 months from six months. ► The period of limitation for income tax assessments on import of ventilators, masks, PPE, COVID-19 testing kits etc.
► On 12 May 2020, the stimulus package of US$266 billion (INR20 trillion) i.e. getting time barred on certain specified dates shall be (subject to condition prescribed).
approximately 10% of Indian GDP was announced by the Prime Minister of India. extended. ► Foreign trade policy and export promotion schemes have been
The stimulus package focuses on reforms relating to land, labour, liquidity and ► Rate of Provident Fund (social security) contribution for extended till 31 March 2021. Further, due dates for various
laws. both employer and employee has been reduced from compliances have been extended.
► On 22 May 2020, the Reserve Bank of India announced fresh measures focussed 12% to 10%.
on easing liquidity pressures and supporting market functioning. ► 24X7 clearances at all customs stations till 30 June 2020 to
address any congestion, delay or surge on account of prevailing
condition.
*These measures have been enacted by way of Notifications issued by the relevant Departments and/or an Ordinance signed by the President of India
Page 3 EY Tax COVID-19 Response TrackerIndia (continued)
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Business tax* Other measures*
► All due dates for filing tax returns, notices, appeals and making investments for claiming various tax deductions falling during the ► On 26 March 2020, India announced US$24 billion relief fund for
period 20 March 2020 to 29 June 2020 has been extended to 30 June 2020. several important relief measures addressing the immediate
► Delay in payment of income-tax up to 30 June 2020 will be subject to reduced interest rates. Further, for such delayed payment until concerns of the weakest sections of the society including
30 June 2020, there will be no levy of penalty or late fee or initiation of prosecution. farmers, construction workers and poor women, etc.
► Requirement of beginning activity of manufacture or production of article or things for newly established units in Special Economic ► The Reserve Bank of India has announced several measures such
Zone has been extended to 30 June 2020. as Reduction in the policy repo rate under the Liquidity
► The deadline for Aadhar-Permanent Account Number (PAN) linking requirement shall also be extended from 31 March 2020 to 30 June Adjustment Facility (LAF). Measures introduced to expand
2020. Thus, PAN shall not be treated as inoperative till after 30 June 2020, even if not linked with Aadhar. liquidity to ensure smooth functioning of financial institutions,
including Targeted Long Term Repo Operations (TLTROs);
► Deferment of date of applicability of reporting of GAAR and GST particulars in Tax Audit Report in Form 3CD from 31 March 2020 to
reduction in Cash Reserve Ratio (CRR); Marginal Standing Facility
31 March 2021 in view of COVID-19 pandemic.
raised from 2% to 3% with immediate effect and is applicable up
► Any donation made to PM Cares Fund shall be eligible for 100% deduction. to 30 June 2020; Policy Rate Corridor has been widened from 50
► Validity of nil/lower withholding tax orders obtained for tax year 2019-20 extended until 30 June 2020 or disposal of application for basis points to 65 basis points. Measures undertaken to mitigate
2020-21 certificate (in cases where application for tax year 2020-21 has been made), whichever is earlier. New applications made by the burden of debt servicing brought about by disruptions on
non-residents having a PE in India (and not having a nil/ lower withholding tax certificate for tax year 2019-20) shall be subject to 10% account of COVID-19 pandemic Lending institutions permitted to
withholding until 30 June 2020 or disposal of application, whichever is earlier. allow moratorium of three months on repayment of instalments
► The Tamil Nadu government has resolved to implement a special incentives package to the manufacture of ventilators, PPE kits, N-95 for term loans outstanding as on 1 March 2020. Deferment of
masks, Multi Para Monitors and anti malarial and anti viral drugs used in the management of COVID-19. three months on payment of interest w.r.t all working capital
► CBDT has deferred the implementation of revamped registration procedure for approval/registration/notification of specified facilities outstanding as of 1 March 2020.
charitable and research institutions. CBDT has highlighted that tax authority will not have any communication with the taxpayer which ► To make India self-reliant, several structural reforms have been
may have adverse effect on the taxpayer until further orders are issued. proposed covering eight sectors i.e., i) Coal (ii) Mineral (iii)
► Due dates of incentives claims under Telangana state IIPP 2010-15, T-IDEA and T-PRIDE schemes falling between lockdown period Defence (iv) Civil Aviation (v) Power (vi) Social Infrastructure (vii)
from 22 March 2020 to 15 April 2020 have been extended up to 31 May 2020. Space (viii) Atomic energy related reforms.
► Due date for furnishing tax returns for taxpayers (corporate and non-corporate) shall be extended till 30 November 2020.
► Additional announcements were made on ease of doing business,
► Due date of furnishing tax audit report for tax year 2019-20 shall be extended from 30 September 2020 to 31 October 2020. such as announcement of strategic sectors for public sector
► Benefit of settlement under Vivad se Vishwas Act 2020 without payment of additional amount shall be extended till 31 December 2020 enterprises, decriminalization of Companies Act violations,
► Period of limitation for income tax assessments getting time barred on certain specified dates shall be extended. revisions in insolvency proceeding criteria etc.
► Rates of withholding/collection of tax shall be reduced by 25% (for non-salary payments).
*These measures have been enacted by way of Notifications issued by the relevant Departments and/or an Ordinance signed by the President of India
Page 4 EY Tax COVID-19 Response TrackerIndia (continued)
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Other measures Links and resources
Fresh measures have been announced to ease liquidity Government materials act/notifications/notfns-2020/cs-tarr2020/cs20-2020.pdf
pressures by way of: ► https://dgft.gov.in/sites/default/files/Notification%2057%20eng%20
Reduction in policy repo rate of 40 basis points ► http://egazette.nic.in/WriteReadData/2020/218979.pdf signed%20and%20scanned%201.pdf
making the policy repo rate and reverse repo rate ► https://www.epfindia.gov.in/site_docs/PDFs/Circulars/Y2020- ► https://dgft.gov.in/sites/default/files/PN%2067%20%28english%29%
4% and 3.35% respectively 2021/GraceperiodMarch2020.pdf 20signed%20and%20scanned-1.pdf
Extension of moratorium on term loan instalments ► http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-31- ► https://www.incometaxindia.gov.in/communications/circular/circular
and deferment of interest on working capital central-tax-english-2020.pdf _no_10_2020.pdf
facilities by another three months until 31 August, ► http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-33- ► https://pib.gov.in/PressReleseDetailm.aspx?PRID=1608585
2020 central-tax-english-2020.pdf ► https://pib.gov.in/PressReleseDetailm.aspx?PRID=1615349
Steps to improve market functioning and support ► http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-33- ► https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1618658
exports and imports central-tax-english-2020.pdf ► https://pib.gov.in/PressReleasePage.aspx?PRID=1623601
The Government has amended the ‘Micro, Small and http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-35-
► ► https://pib.gov.in/newsite/PrintRelease.aspx?relid=203988
Medium Enterprises (MSME) Development Act, 2006' to central-tax-english-2020.pdf
give effect to the new definition for 'MSMEs'. The new ► https://www.financialexpress.com/industry/sme/tamil-nadu-offers-
► https://incometaxindia.gov.in/Lists/Latest%20News/Attachments/39 incentives-to-promote-production-of-covid-19-combat-
definition specifies investment and turnover-based
4/order-us119-f.no.-275-25-2020-it(b)-15g-15h-forms-0304.pdf gears/1917443/
criteria for enterprises to qualify as MSMEs.
► https://www.incometaxindia.gov.in/Documents/THE-TAXATION-AND- ► http://www.industries.telangana.gov.in/Library/Covid-
In Andhra Pradesh, the ReSTART package was launched
OTHER-LAWS-RELAXATION-OFCERTAIN-PROVISIONS-ORDINANCE- 19%20Extension%20of%20Incentives%20Apply.pdf
to aid manufacturers in recovering from the impact of
2020.pdf https://pib.gov.in/PressReleasePage.aspx?PRID=1623601
COVID-19 by way of waiver of electricity fixed demand ►
charges for large, mega and MSME units. Additional ► https://pib.nic.in/newsite/PrintRelease.aspx?relid=200868 ► https://pib.gov.in/PressReleasePage.aspx?PRID=1623601
benefits have also been announced for MSMEs. ► https://pib.gov.in/PressReleseDetailm.aspx?PRID=1608345 ► https://pib.gov.in/PressReleseDetail.aspx?PRID=1623585
Several incentives-related relief measures have been ► https://pib.gov.in/PressReleasePage.aspx?PRID=1623745
announced in Madhya Pradesh, such as a reduction in ► http://egazette.nic.in/WriteReadData/2020/218950.pdf ► https://www.apindustries.gov.in/ReSTART-
installed capacity requirement for incentives, extension https://www.pfrda.org.in/myauth/admin/showimg.cshtml?ID=1704
► Package/Downloads/GO_RT_104.pdf
in timelines for incentives applications and rent
► http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-30- ► https://invest.mp.gov.in/EoDB_doc/act-and-rules-
payments and deferment of other industrial charges.
central-tax-english-2020.pdf doc/Order_for_Relaxation_to_Industries_due_to_COVID19_crisis.pdf
► http://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-
Page 5 EY Tax COVID-19 Response TrackerEY | Assurance | Tax | Strategy and Transactions | Consulting About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation is available via ey.com/privacy. For more information about our organization, please visit ey.com. © 2020 EYGM Limited. All Rights Reserved. EYG no. EYG no. 004587-20Gbl ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as legal, accounting, tax or other professional advice. Please refer to your advisors for specific advice. ey.com
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