As promised by the Honourable PM government has started relief measures under the “Atma Nirbhar Bharat” scheme.A slew of measures were announced starting from 13/05/2020 .We have tried to summarise the announcements made as follows and will update as and when new are announced.
Wage Related measures for workers:
24% of monthly wages to be credited into their PF accounts for next three months for wage-earners below Rs 15,000 p.m. in businesses having less than 100 workers
Five crore workers registered under Employee Provident Fund EPF to get non-refundable advance of 75% of the amount or three months of the wages, whichever is lower, from their accounts
Under Pradhan Mantri Garib Kalyan Package (PMGKP), payment of 12% of employer and 12% employee contributions was made into EPF accounts of eligible establishments which were defined as those establishments who had 90% employees earning salary less than Rs.15000.00 counting to less than 100. This was provided earlier for salary months of March, April and May 2020 .This support will be extended by another 3 months to salary months of June, July and August 2020
statutory PF contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3 months except CPSEs and state PSUs applicable for workers who are not eligible for 24% EPF support under PM Garib Kalyan Package and its extension.
Business /SME related measures:
Existing definition of MSME has been revised as follows:
Global tenders will be disallowed in Government procurement tenders upto Rs 200 crores
MSME receivables from Gov and CPSEs to be released in 45 days
GoI will facilitate provision of Rs. 20,000 cr as subordinate debt.
Functioning MSMEs which are NPA or are stressed will be eligible CGTMSE will provide partial Credit Guarantee support to Banks Promoters of the MSME will be given debt by banks, which will then be infused by promoter as equity in the Unit.
Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up to 20% of entire outstanding credit as on 29.2.2020.Borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover eligible.Loans to have 4 year tenor with moratorium of 12 months on Principal repayment.Interest to be capped.100% credit guarantee cover to Banks and NBFCs on principal and interest.Scheme can be availed till 31st Oct 2020.No guarantee fee, no fresh collateral
Construction /Works and Goods and service contracts:
Extension of up to 6 months (without costs to contractor) to be provided by all Central Agencies (like Railways, Ministry of Road Transport & Highways, Central Public Works Dept, etc)
• Covers obligations like completion of work, intermediate milestones etc. and extension of Concession period in PPP contracts
• Government agencies to partially release bank guarantees, to the extent contracts are partially completed, to ease cash flows
Treat COVID-19 as an event of ‘Force Majeure’ under RERA.
Extend the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020 without individual applications.
Regulatory Authorities may extend this for another period of upto 3 months, if needed
Tax Related Measures:
the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates.
Payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS wef 13/05/2020 to 31/03/2021
Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October,2020.
Date of assessments getting barred on 30th September,2020 extended to 31st December,2020 and those getting barred on 31st March,2021 will be extended to 30th September,2021.
Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December,2020