New Delhi: Lauding the extension of regulatory deadline to June 30 from March 31,2020 for most of the compliances relating to taxation and statutory corporate filings, the ASSOCHAM today said, assurance for halting the IBC procedure for six months is a major takeaway from the relief measures announced by Finance Minister Mrs Nirmala Sitharaman in the aftermath of Coronavirus crisis.
” As the financial year is coming to close in a few days, anxiety had only increased amongst the corporates and the individual taxpayers about the statutory compliances relating to income tax, Goods and Services Tax, MCA-21 and other Company law issues. Widespread disruptions caused by the countrywide lockdown had made it impossible for the businesses and individuals to fulfill their compliances. The extension of deadlines for most of these compliances is laudable, with the hope that the unprecedented health and economic crisis blows over fast,” said ASSOCHAM Secretary General Mr Deepak Sood.
He said while the trigger clause for taking a company to the insolvency procedure , under the IBC has been rightly raised to Rs1crore, the Finance Minister has given an assurance about considering the moratorium on the initiation of the procedure itself for the next six months, after keeping a watch till April 30. ” As submitted by the ASSOCHAM leaders before the Prime Minister ShriNarendraModi yesterday, the IBC should be kept in abeyance at least for six months , as part of the package from immediate effect. This is because in the wake of production halts, suspension of trade, hospitality, tourism, airlines, road transport, the debt servicing in time may not be possible and the threat of companies going the IBC way should be removed now itself,”.
As stated before the Prime Minister, the ASSOCHAM is awaiting the big package that is expected to give forebearance on all bank loans, so that businesses which are solvent but facing liquidity crisis, do not become non-performing assets, adding to the problems of the banks as well. Also, the industry is also expecting a big unscheduled cut in the interest rates by the RBI and direct transfer of cash support to the economically weaker sections. The regulatory compliance deadlines, have rightly been addressed, Mr Sood said.