ROC has extended time limit to conduct Company AGM by 3 Months to 31 December 2020

Extension of time for holding Annual General Meeting  (AGM) the financial year ended on 31 March 2020

various representations have been received from the companies, bodies and Professional Institutes pointing out that several companies are finding it difficult to hold their AGM for the financial year ended on 31.03.2020 due to the difficulties faced in view of the COVID 19 pandem

And WHEREAS, the representations have been considered and the undersign is of the considered opinion that due to such unprecedented special reasons, the time within which the AGM for the financial year ended on 31.03.2020 is required to be held as per provisions to be extended

The approval for extension of AGM upto 3 months from the due date of AGM shall be deemed to have been granted by the undersigned without any further action on the part of Company ie 31.12.2020

    The CBDT has issued the Income-tax (20th Amendment) Rules, 2020 to further amend the Income-tax Rules, 1962 which shall come into force from the date of their publication in the Official Gazette i.e 17-08-2020. Amendment of Income-tax Rules, 1962 rules are carried out for providing conditions and guidelines for Pension Funds u/s 10(23FE) of the Income-tax Act, 1961. The Amendment is brought under rule 2DB which specifies the certain conditions to be satisfied by the pension fund. The pension fund shall be regulated under the law of a foreign country including the laws made by any of its political constituents being a province, state or local body, by whatever name called, under which it is created or established. It is responsible for administering or investing the assets for meeting the statutory obligations and defined contributions of one or more funds or plans established for providing retirement, social security, employment, disability, death benefits or any similar compensation to the participants or beneficiaries of such funds or plans. The pension fund shall not undertake any commercial activity whether within or outside India and it shall intimate the details in respect of each investment made by it in India during the quarter within one month from the end of the quarter in Form No. 10BBB. Further, it shall file a return of income on or before the due date and furnish along with such return a certificate in Form No. 10BBC in respect of compliance to the provisions of clause (23FE) of Section 10

    https://www.incometaxindia.gov.in/news/notification_67_2020.pdf

      MCA has issued Clarification on Extension of Annual General Meeting (AGM) for the financial year ended as at 31.03.2020 beyond the statutory period provided in Section 96 of the Companies Act, 2013. MCA has examined the matter and it is stated that the Ministry had already issued regarding holding of AGM through video conferencing (VC) or other audiovisual means (OAVM) for the calendar year 2020. In addition, the companies which are unable to hold their AGMs were advised to prefer applications for extension of AGM at a suitable point of time before the concerned Registrar of Companies under section 96 of the Act. MCA has once again reiterated that the companies which are unable to hold their AGM for the financial year ended on 31.03.2020, despite availing the relaxations, have to file their applications in form No. GNL-1 for seeking an extension of time in holding of AGM for the financial year ended on 31.03.2020 with the concerned Registrar of Companies on or before 29.09.2020. Further, the Registrars of Companies are hereby advised to consider all such applications (filed in Form No. GNL-1) liberally in view of the hardships faced by the stakeholders and to grant extension for the period as applied for (up to three months) in such applications.

       

        The Reserve Bank of India has issued the Foreign Exchange Management (Export and Import of Currency) (Amendment) Regulations, 2020 to further amend the Foreign Exchange Management (Export and Import of Currency) Regulations, 2015. A new Regulation 9 has been inserted through this amendment under the Foreign Exchange Management (Export and Import of Currency) Regulations, 2015. The Regulation 9 has been inserted which specifies the Reserve Bank’s power to permit import or export of foreign currency. Accordingly, notwithstanding anything contained in these regulations, the Reserve Bank may, on an application made to it and on being satisfied that it is necessary to do so, allow any person to take or send out of India to any country or bring into India from any country currency notes of Government of India and /or of Reserve Bank of India subject to such terms and conditions as the Reserve Bank may stipulate

        http://egazette.nic.in/WriteReadData/2020/221197.pdf

          SEBI has released a Consultation Paper on Recalibration of the threshold for Minimum Public Shareholding norms, enhanced disclosures in Corporate Insolvency Resolution Process (CIRP) cases. The objective of this discussion paper is to seek comments/views from the public and market intermediaries on Recalibration of the threshold for Minimum Public Shareholding norms (MPS) in companies which undergo Corporate Insolvency Resolution Process (CIRP) and seek relisting of its shares pursuant to the implementation of the approved resolution plan. Currently, relaxation has been provided from all provisions of Chapter V of the SEBI (Issuer of Capital and Disclosure) Requirements, 2018 (ICDR Regulations) pertaining to preferential issue such as conditions for eligibility, pricing, conditions for consideration and allotment etc. except lock-in provisions. Thus, the shares allotted to an incoming investor under a resolution plan through a preferential issue continues to remain under lock-in for a period of at least 1 year (for allotment in excess of 20 percent of the total capital of the company). Another aspect regarding post CIRP cases is the details of disclosures made pursuant to the approval of Resolution plan and aiding the price discovery mechanism in relisting post CIRP cases. The disclosure of the salient features not involving commercial secrets, of the resolution plan approved by the Tribunal, is mandatory in terms of LODR regulations, 2015.

          https://www.sebi.gov.in/reports-and-statistics/reports/aug-2020/recalibration-of-threshold-for-minimum-public-shareholding-norms-enhanced-disclosures-in-corporate-insolvency-resolution-process-cirp-cases_47360.html

            Clarification on existing Entrepreneurs Memorandum (EM) Part-III Udyog Aadhaar Memorandum (UAM)I New Udyam Registration-regarding
            This refers to Notification No. S.O. 2119(E) dated 26.06.2020 issued by Ministry of Micro, Small & Medium Enterprises(MSME) regarding criteria for classification of enterprises as Micro, Small & Medium Enterprises and their registration in Udyam Portal. Thereafter, Government has received some representations seeking clarifications on certain issues necessitating the issuing of this Office Memorandum (O.M.).
            2. Validity of EM Part II and UAMs as issued till 30”’ June, 2020:
            (i) There are representations whether the existing EM Part II and lor UAMs ofthe·MSMEs are
            valid or not.
            (ii) It is to be clarified that at present they are valid. Para (3) of Clause 7 of the above
            Notification No. S.O. 219 (E) dated 26.6.2020, reads as follows:
            “The existing enterprises registered prior to 30”’ June, 2020, shall continue to be valid
            onlyfor aperiod up tothe srday ofMarch, 2021″.
            (iii) Therefore, it is clarified and emphasized that all the existing EM Part II and UAMs obtained
            till 30.06.2020 shall remain valid till 3l.03.2021.
            3. Editing lupdating of the existing registration details:
            There are also doubts whether existing UAM holders may edit or amend their details on the UAM
            portal. It is clarified that the same can be done till 31.3.2021. Those enterprises that have not entered their Aadhaar or PAN number so far in the UAM portal are hereby advised to obtain” Udyam Registration Number” well before 3l.3.2021.

            4. Action to be taken before 31st March 2021 by Entrepreneurs:
            (i) Since the existing registrations as EM Part II and lor UAMs will not remain valid
            after 31st March, 2021 it is strongly recommended that their holders file fresh
            registration in the new Udyam Registration Portal (https:lludyamregistration.gov.in).
            (ii) Attention is also drawn to Para (2) of Clause 7 of the above ~ otification No. S.O.
            2119 (E) dated 26.6.2020 which reads as under:
            “All enterprises registered till 3r1hJune, 2020, shall be re-classified in accordance with
            this notification”.
            (iii) To make the re-classification proper and realistic, it is necessary that the latest details
            are entered by the MSMEs.
            (iv) It is preferable that the entrepreneur files new registration in the Udyam Registration
            Portal. Therefore, all enterprises with EM Part II and/or UAMs are advised to register themselves on the Udyam Registration well before 31.03.2021 in the Udyam Registration portal (www.udyamr egistration.gov.in).
            5. Value of Plant and Machinery or Equipment;
            (i) There are clarifications sought by the entrepreneurs regarding valuation of plant and machinery or equipments on cost or purchase price while filing the Udyam Registration.
            (ii) Para 3 of clause 4 Notification No. S.O. 2119(E) dated 26.6.2020 reads as follows:
            “The expression plant and machinery or equipment of the enterprise, shall have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and shall include all tangible assets (other than land and building, furniture and fittings)”.
            (iii) It is clarified that online Form for Udyam Registration captures depreciated cost as on 31st March each year of the relevant previous year. Therefore, the value of Plant arid Machinery or Equipments for all purposes of the Notification No. S.O. 2119(E) dated 26.6.2020 and for all the enterprises shall mean the Written Down Value (WDV) as at the end of the Financial Year as defined in the Income Tax Act and not the cost of acquisition or original price, which was applicable in the context of the earlier classification criteria.
            6. RBI’s Circular:
            In the light of the above, RBI is being requested to revisit their Circular NO.RBI/2020- 2021110/FIDD.MSME & NFS.BC.No.3/06.02.3112020-21 dated 2.7.2020.
            7.

            Miscellaneous:
            Taking this opportunity, it is further reiterated that the entire registration process is free of cost. Also, it should be done only on and through the Government Portal as above.
            This issues with the approval of competent authority.

            https://udyamregistration.gov.in/docs/Clarification_on_existing_EM_06082020.pdf

             

             

              Prime Minister Narendra Modi launches platform for “Transparent Taxation – Honouring the Honest”

              Tax system aims to be Seamless, Painless, Faceless : PM

              Says the number of taxpayers is significantly low with only 1.5 Crore paying taxes in a country of 130 Crore people

              Prime Minister urges people to introspect and come forward to pay Income taxes due on them to build an AtmaNirbharBharat

              With the launch of the Tax Charter, taxpayer is assured of fair, courteous and rational behavior : PM

              Faceless appeal will be available across the country from 25th September i.e. Deen Dayal Upadhyay’s Birth Anniversary : PM

              “Banking the Unbanked, Securing the Unsecured, Funding the Unfunded and Honoring the Honest” – Focus of the Government : PM

              Emphasis is on making every law and policy People Centric and Public Friendly rather than Power Centric : PM

              Posted On: 13 AUG 2020 1:59PM by PIB Delhi
               

              Prime Minister Shri Narendra Modi launched a platform for “Transparent Taxation – Honouring the Honest” today through video conferencing.

              Speaking on the occasion he said that the process of Structural Reforms in the country has reached new heights today. The Prime Minister said the platform of  “Transparent Taxation – Honouring the Honest, has been launched to meet the requirements of the 21st century taxation system. He elaborated that the platform has major reforms like Faceless Assessment, Faceless Appeal and Taxpayers Charter.

              He said that Faceless Assessment and Taxpayers Charter have come into force from today while the facility of faceless appeal will be available for citizens across the country from 25th September i.e. Deen Dayal Upadhyay’s birth anniversary. The new platform apart from being faceless is also aimed at boosting the confidence of the taxpayer and making him/her fearless.

              The PM said that the focus of the Government in the last six years has been “Banking the Unbanked, Securing the Unsecured and Funding the Unfunded” and that the platform of “Honouring the Honest” is in the similar direction.

              The Prime Minister praised the role of honest taxpayers in nation building and said that making the lives of such taxpayers easy is the responsibility of the government. “When the life of an honest taxpayer of the country becomes easy, he  moves forward and develops, then the country also develops and leaps forward,” PM added.

              The Prime Minister said the new facilities launched today are a part of the Government’s resolve to provide maximum governance with minimum government. He said that every rule, law and policy are made with an emphasis of them being people centric, public friendly rather than power centric. He said that the use of the new governance model is yielding good results.

              The Prime Minister said that an atmosphere is being created where primacy is being given to duty to execute all works. This is the result not because of force and fear of punishment but because of an understanding of the holistic approach that is being adopted. He said the reforms being launched by the Government are not in piecemeal but those aimed at delivering results with holistic perspective.

              The Prime Minister said the country’s tax structure needed fundamental reforms as the earlier tax structure was developed from the one created during pre-independent times. Even the several changes made during the post-independent times did not alter its fundamental character, he said.

              The Prime Minister said that the complexity of the earlier system made it difficult to conform.

              He said that simplified laws and procedures make it easy to comply. One such example is the GST, he said, which replaced dozens of taxes.

              The Prime Minister said that the latest laws reduced the legal burden in the tax system where now the limit of filing cases in the High Court has been fixed at up to 1 crore rupees and up to 2 crores for filing in the Supreme Court. Initiatives like the ‘Vivaad Se Vishwas’ Scheme pave the way for most of the cases to be settled out of court.

              Prime Minister said that the tax slabs have also been rationalised as a part of the ongoing reforms where there is zero tax upto an income of 5 lakh rupees, while the tax rate has reduced in the remaining slabs too. He said India is one of the countries with lowest Corporate Tax in the World.

              The PM said the ongoing reforms aim at making the  tax system Seamless, Painless, Faceless. He said the Seamless system works to resolve the problems of a taxpayer instead of entangling him further. By being Painless he said, everything from technology to rules should be simple. Referring to the Faceless system he said there is no need for a direct contact between the Taxpayer and the Income Tax Officer in all matters of scrutiny, notice, survey or assessment.

              Referring to the launch of Taxpayers Charter, the Prime Minister said that it is a significant step where the taxpayer is now assured of fair, courteous and rational behavior. He said the charter takes care of maintaining the dignity and sensitivity of the taxpayer and that is based on a trust factor and that the assessee cannot be merely doubted without a basis.

              Referring to the reduction of the scrutiny of the cases by at least four times in the last six years from 0.94% in 2012-13 to 0.26% in 2018-19, Prime Minister said this itself is a reflection of the trust that the Government is laying on the returnees. He said in the last 6 years, India has seen a new model of governance evolving in tax administration. Amidst all these efforts, he said the number of people filing income tax returns has increased by about 2.5 crores in the last 6-7 years.

              The Prime Minister however said that it can also not be denied that only 1.5 Crore people pay the taxes in a country of 130 crores. Shri Modi urged people to introspect themselves and come forward to pay the taxes due.

              The Prime Minister said this would help in the making of a Self – Reliant India, AtmaNirbharBharat.

              https://www.pib.gov.in/PressReleasePage.aspx?PRID=1645472

               

                Taxing the digital economy: Indian Equalisation Levy 2.0

                While the OECD is working towards developing consensus on an inclusive framework to address tax challenges from digitalisation of the economy, several countries have introduced unilateral measures to tax the digital economy. In 2016, India introduced an Equalisation Levy on revenue earned by non-residents from online advertising and related services. In 2019, the Indian Income tax law was amended to introduce the concept of ‘significant economic presence’. However, while passing the Finance Act 2020, the Indian government deferred its implementation, citing the absence of effective measures in the tax treaties. What came as a surprise to everyone was the introduction of an Equalisation Levy on sales of goods and services in India by overseas e-commerce operators, which did not form part of the original Union Budget 2020-21 proposals. This levy is effective from 1 April 2020 and in its present form, has wide-ranging coverage.

                Equalisation Levy 2.0

                The Equalisation Levy introduced by the Finance Act 2016, was charged at 6% on certain online advertising and related services. The Finance Act 2020 amended the Finance Act 2016, introducing a new Equalisation Levy at 2% on the consideration received/receivable by an e-commerce operator from the following transactions (e-commerce supply or services):

                • Online sale of goods owned by the e-commerce operator; or
                • Online provision of services provided by the e-commerce; or
                • Online sale of goods or provision of services or both, facilitated by the e-commerce operator; or
                • Any combination of the above-mentioned activities

                The levy is applicable on consideration received by the e-commerce operator on the above transactions from a:

                • Person resident in India
                • Non-resident, where the:
                  1. Sale of advertising, which targets a customer who is resident in India, or a customer who accesses the advertising though an IP address located in India; and
                  2. Sale of data, collected from a person who is resident in India or from a person who uses an IP address located in India
                  3. Person who buys goods or services, or both, uses an IP address located in India.

                Thus, the levy captures online sales of any goods or provision of any services by or through a non-resident e-commerce operator.

                A question emerges whether in the case of online market-place operators or aggregators the consideration subject to the levy is the gross value of goods or services traded on the platform, or the facilitation fee or commission charged by the market-place operators or aggregators.

                Key features of Equalisation Levy 2.0

                1. Understanding the impact

                Consideration subject to the Equalisation Levy has been exempted from Indian Income tax and thus not subject to tax withholding. Further, no credit is available for the Equalisation Levy against the Income tax liability in India. While the Equalisation Levy is imposed at 2%/6%, as the case may be, the rate of tax withholding on certain transactions could be anywhere from 10% to 20%. To analyse the overall impact, one needs to consider the credit for withholding tax that may be available in the country of residence. Thus, a threadbare examination of certain services may be required to determine whether they are subject to the Equalisation Levy or Withholding taxes.

                2. Exclusions

                The levy does not apply in the following cases:

                1. E-commerce operator has a Permanent Establishment in India and the e-commerce supplies or services are effectively connected with such Permanent Establishment
                2. Transactions covered by the Equalisation Levy under Finance Act 2016;
                3. Where sales, turnover or gross receipts from e-commerce supplies or services is less than INR 20 million during the relevant tax year.

                The turnover/gross receipt threshold would take into account sales made to Indian customers through the e-commerce platform operated by a non-resident (not just by the non-resident e-commerce operator). Considering the threshold of INR 20 million (approx. USD 260,000), all large global e-commerce platforms catering to Indian customers are likely to be covered (unless transacting through a tax resident entity in India or a permanent establishment in India).

                Glaringly, there are no exclusion thresholds prescribed with respect to the number of transactions or number of users.

                3. Wide definition of ‘E-commerce operator’

                ‘E-commerce operator’ has been defined to mean a non-resident who owns, operates or manages a digital or electronic facility or platform for online sales of goods or online provision of services, or both. Both ‘e-commerce supply or services’ and ‘e-commerce operator’ have been defined widely to cover more than the normally understood connotation of marketplace intermediaries and aggregators. Business are increasingly looking to a digital medium not just to promote but also to sell their products/services (likely to further increase in the wake of the current pandemic). Some of these businesses may not have been taxable in India in the absence of a business connection or a permanent establishment in India, but would now be within the ambit of the Equalisation Levy.

                4. Onus of compliance cast on the non-resident e-commerce operator

                Unlike the earlier Equalisation Levy which required the levy to be deducted by the service recipient, the new levy is to be collected by the e-commerce operator. The e-commerce operator is required to deposit the levy to the credit of the Indian treasury on a quarterly basis:

                Quarter Ending On

                Due Date of Payment

                30 June

                7 July

                30 Sep

                7 October

                31 Dec

                7 January

                31 March

                31 March

                Any delay in payment would be subject to additional interest on the delayed amount. Any default in payment may result in a penalty for the e-commerce operator equal to the amount of the Equalisation Levy in default.

                The e-commerce operator is required to submit an annual statement by 30 June following the year ending on 31 March i.e. the statement for the tax year ending 31 March 2021 would need to be filed by 30 June 2021. If an e-commerce operator fails to file the annual statement within the specified date, an additional penalty of INR 1,000 per day of continuing default may be levied.

                5. Not a levy under the Indian Income tax law

                The new levy is to be calculated at 2% on the consideration received by the e-commerce operators. Thus, a question arises whether the levy, in substance, is a levy on income earned by a non-resident e-commerce operator? Furthermore, the levy is imposed under the Finance Act 2016 and not as a part of the Indian Income Tax Act, 1961.

                Most of the tax treaties entered into by India cover Income tax, applicable surcharges or other substantially similar taxes. As a result, a claim for credit of the Equalisation Levy against a tax liability in the country of residence may not be available, giving rise to double taxation and an increase in the overall tax cost for the e-commerce operators.

                6. Extra-territorial operation

                Transaction(s) between two non-residents where either the market place is in India or the IP address is Indian, are brought under the ambit of the new levy. Based on a plain reading of the law, the levy would cover transactions of a non-resident tourist purchasing goods or services on a non-resident-operated e-commerce platform, using an Indian IP address (irrespective of the place of consumption and the mode of payment). Thus, even where the transaction is between two non-residents, the payment is made from a foreign bank account, and the goods or services consumed overseas could be subject to the levy, merely due to use of an India IP address. Practical operation and implementation of the levy in such a situation may be a different challenge.

                Another challenge could be in attributing the income in the case of a consolidated consideration. For instance, a Multinational Enterprise might implement a global advertising campaign to target global audiences, for which purpose it approaches a digital platform operator and agrees a consolidated fee. In this case, there would be challenges in allocating the consideration in relation to the targeted Indian audience.

                Some legal questions

                The law, in its present form, prompts many questions, including:

                • When a supply of goods from a foreign country is not subject to tax in India, is it fair to subject it to the Equalisation Levy just because the transaction is concluded on a digital platform?
                • Can there be an Equalisation Levy in a transaction of supply (which is subject to Indian GST)?
                • Consideration in respect of certain transactions is subject to GST under a reverse charge – can the same amount be subject to the Equalisation Levy?
                • Is the Indian Equalisation Levy inconsistent with India’s treaty obligations?

                Global reaction

                Major tech giants across the globe have expressed their concerns over the new levy, remarking that the effective time window for them to comply with the new levy is too short. Many have also expressed concern that their systems would need to keep track of IP addresses, and their invoicing systems may require considerable overhaul. Considering the current situation and the limited window for compliance, several representations have been made to defer the implementation of the levy.

                However, India is not the only country to introduce tax on digital transactions; several countries have introduced a digital services tax or withholding taxes on digital transactions, and many are evaluating the same. On the other hand, businesses have raised concerns over unilateral measures adopted by these countries without waiting for a global consensus, resulting in increased tax costs. Recently, the Government of the United States of America has also initiated an investigation of digital taxes levied by some countries, including India. For further information, see our Taxation of the digital economy tool.

                While digitalisation of the economy has solved many business challenges, it has given rise to tax challenges, which appear to be far from being solved.

                The Amendments have been made to the IndAS 1 related to Presentation of Financial Statements; IndAS 103 related to Business Combinations; IndAS 107 related to Financial Instruments i.e. Disclosures; IndAS 109 related to Financial Instruments; INdAS 116 related to Leases; INdAS 8 related to Operating Segments; IndAS 10 related to Events after the Reporting Period; IndAS 34 related to Interim Financial Reporting and IndAS 37 related to Provisions, Contingent Liabilities, and Contingent Assets, which are notified so far.

                MINISTRY OF CORPORATE AFFAIRS
                NOTIFICATION
                New Delhi, the 24th July, 2020
                G.S.R. 463(E).— In exercise of the powers conferred by section 133 read with section 469 of the Companies
                Act, 2013 (18 of 2013), the Central Government, in consultation with the National Financial Reporting Authority,
                hereby makes the following rules further to amend the Companies (Indian Accounting Standards) Rules, 2015,
                namely:—
                1. Short title and commencement.-(1) These rules may be called the Companies (Indian Accounting Standards)
                Amendment Rules, 2020.
                (2) They shall come into force on the date of their publication in the Official Gazette.
                2. In the Companies (Indian Accounting Standards) Rules, 2015, in the ―Annexure‖, under the heading ―B.
                Indian Accounting Standards (Ind AS)‖,-
                (A) in ―Indian Accounting Standard (Ind AS) 103‖, –
                (i) for paragraph 3, the following shall be substituted, namely:-
                ―3 An entity shall determine whether a transaction or other event is a business combination by
                applying the definition in this Ind AS, which requires that the assets acquired and liabilities
                assumed constitute a business. If the assets acquired are not a business, the reporting entity shall
                account for the transaction or other event as an asset acquisition. Paragraphs B5–B12D provide
                guidance on identifying a business combination and the definition of a business.‖;
                (ii) after paragraph 64O, the following shall be inserted, namely:-
                ―64P Definition of a Business (Amendments to Ind AS 103), added paragraphs B7A–B7C, B8A and B12A–
                B12D, amended the definition of the term ‗business‘ in Appendix A, amended paragraphs 3, B7–B9,
                B11 and B12 and deleted paragraph B10. An entity shall apply these amendments to business
                combinations for which the acquisition date is on or after the beginning of the first annual reporting
                period beginning on or after the 1st April, 2020 and to asset acquisitions that occur on or after the
                beginning of that period.‖;
                (iii) in Appendix A, for definition of the term ―business‖, the following definition shall be substituted, namely:-
                ―business An integrated set of activities and assets that is capable of being conducted and managed
                for the purpose of providing goods or services to customers, generating investment income
                (such as dividends or interest) or generating other income from ordinary activities.‖;
                (iv) in Appendix B,-
                (I) for paragraph B7, the following shall be substituted, namely:-
                ―B7 A business consists of inputs and processes applied to those inputs that have the ability to
                contribute to the creation of outputs. The three elements of a business are defined as follows (see
                paragraphs B8-B12D for guidance on the elements of a business):
                (a) Input: Any economic resource that creates outputs, or has the ability to contribute to the creations
                of outputs, when one or more processes are applied to it. Examples include non-current assets
                16 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
                (including intangible assets or rights to use non-current assets), intellectual property, the ability to
                obtain access to necessary materials or rights and employees.
                (b) Process: Any system, standard, protocol, convention or rule that, when applied to an input or
                inputs, creates outputs or has the ability to contribute to the creations of outputs. Examples include
                strategic management processes, operational processes and resource management processes. These
                processes typically are documented, but the intellectual capacity of an organised workforce having
                the necessary skills and experience following rules and conventions may provide the necessary
                processes that are capable of being applied to inputs to create outputs. (Accounting, billing,
                payroll and other administrative systems typically are not processes used to create outputs.)
                (c) Output: The result of inputs and processes applied to those inputs that provide goods or services
                to customers, generate investment income (such as dividends or interest) or generate other income
                from ordinary activities.‖;
                (II) after paragraph B7, the following shall be inserted, namely:-
                ―Optional test to identify concentration of fair value
                B7A Paragraph B7B sets out an optional test (the concentration test) to permit a simplified assessment of
                whether an acquired set of activities and assets is not a business. An entity may elect to apply, or not
                apply, the test. An entity may make such an election separately for each transaction or other event.
                The concentration test has the following consequences:-
                (a) if the concentration test is met, the set of activities and assets is determined not to be a business
                and no further assessment is needed;
                (b) if the concentration test is not met, or if the entity elects not to apply the test, the entity shall then
                perform the assessment set out in paragraphs B8–B12D.
                B7B The concentration test is met if substantially all of the fair value of the gross assets acquired is
                concentrated in a single identifiable asset or group of similar identifiable assets. For the concentration
                test:
                (a) gross assets acquired shall exclude cash and cash equivalents, deferred tax assets, and goodwill
                resulting from the effects of deferred tax liabilities;
                (b) the fair value of the gross assets acquired shall include any consideration transferred (plus the
                fair value of any non-controlling interest and the fair value of any previously held interest) in
                excess of the fair value of net identifiable assets acquired. The fair value of the gross assets
                acquired may normally be determined as the total obtained by adding the fair value of the
                consideration transferred (plus the fair value of any non-controlling interest and the fair value of
                any previously held interest) to the fair value of the liabilities assumed (other than deferred tax
                liabilities), and then excluding the items identified in sub-paragraph (a). However, if the fair
                value of the gross assets acquired is more than that total, a more precise calculation may
                sometimes be needed;
                (c) a single identifiable asset shall include any asset or group of assets that would be recognised and
                measured as a single identifiable asset in a business combination;
                (d) if a tangible asset is attached to, and cannot be physically removed and used separately from,
                another tangible asset (or from an underlying asset subject to a lease, as defined in Ind AS 116,
                Leases), without incurring significant cost, or significant diminution in utility or fair value to
                either asset (for example, land and buildings), those assets shall be considered a single
                identifiable asset;
                (e) when assessing whether assets are similar, an entity shall consider the nature of each single
                identifiable asset and the risks associated with managing and creating outputs from the assets
                (that is, the risk characteristics);
                (f) the following shall not be considered similar assets:
                (i) a tangible asset and an intangible asset;
                (ii) tangible assets in different classes (for example, inventory, manufacturing equipment and
                automobiles) unless they are considered a single identifiable asset in accordance with the
                criterion in subparagraph (d);
                (iii) identifiable intangible assets in different classes (for example, brand names, licences and
                intangible assets under development);
                (iv) a financial asset and a non-financial asset;
                (v) financial assets in different classes (for example, accounts receivable and investments in
                equity instruments); and
                [भाग II—खण् ड 3(i)] भारत का राजपत्र : ऄसाधारण 17
                (vi) identifiable assets that are within the same class of asset but have significantly different risk
                characteristics.
                B7C The requirements in paragraph B7B do not modify the guidance on similar assets in Ind AS 38,
                Intangible Assets; nor do they modify the meaning of the term ‗class‘ in Ind AS 16, Property, Plant
                and Equipment, Ind AS 38 and Ind AS 107, Financial Instruments: Disclosures.‖;
                (III) for paragraph B8, the following shall be substituted, namely:-
                ―Elements of a Business
                B8 Although businesses usually have outputs, outputs are not required for an integrated set of activities and
                assets to qualify as a business. To be capable of being conducted and managed for the purpose
                identified in the definition of a business, an integrated set of activities and assets requires two essential
                elements—inputs and processes applied to those inputs. A business need not include all of the inputs or
                processes that the seller used in operating that business. However, to be considered a business, an
                integrated set of activities and assets must include, at a minimum, an input and a substantive process
                that together significantly contribute to the ability to create output. Paragraphs B12-B12D specify how
                to assess whether a process is substantive.‖;
                (IV) after paragraph B8, the following shall be inserted, namely:-
                ―B8A If an acquired set of activities and assets has outputs, continuation of revenue does not on its own
                indicate that both an input and a substantive process have been acquired.‖;
                (V) for paragraph B9, the following shall be substituted, namely:-
                ―B9 The nature of the elements of a business varies by industry and by the structure of an entity‘s operations
                (activities), including the entity‘s stage of development. Established businesses often have many
                different types of inputs, processes and outputs, whereas new businesses often have few inputs and
                processes and sometimes only a single output (product). Nearly all businesses also have liabilities, but a
                business need not have liabilities. Furthermore, an acquired set of activities and assets that is not a
                business might have liabilities.‖;
                (VI) for paragraph B10, the following shall be substituted, namely:-
                ―B10 [Refer Appendix 1]‖;
                (VII) for paragraph B11, the following shall be substituted, namely:-
                ―B11 Determining whether a particular set of activities and assets is a business shall be based on whether
                the integrated set is capable of being conducted and managed as a business by a market participant.
                Thus, in evaluating whether a particular set is a business, it is not relevant whether a seller operated
                the set as a business or whether the acquirer intends to operate the set as a business.‖;
                (VIII) for paragraph B12, the following shall be substituted, namely:-
                ―Assessing whether an acquired process is substantive
                B12 Paragraphs B12A–B12D explain how to assess whether an acquired process is substantive if the
                acquired set of activities and assets does not have outputs (paragraph B12B) and if it does have
                outputs (paragraph B12C).‖;
                (IX) after paragraph B12, the following shall be inserted, namely:-
                ―B12A An example of an acquired set of activities and assets that does not have outputs at the acquisition
                date is an early-stage entity that has not started generating revenue. Moreover, if an acquired set of
                activities and assets was generating revenue at the acquisition date, it is considered to have outputs
                at that date, even if subsequently it will no longer generate revenue from external customers, for
                example because it will be integrated by the acquirer.
                B12B If a set of activities and assets does not have outputs at the acquisition date, an acquired process (or
                group of processes) shall be considered substantive only if-
                (a) it is critical to the ability to develop or convert an acquired input or inputs into outputs; and
                (b) the inputs acquired include both an organised workforce that has the necessary skills,
                knowledge, or experience to perform that process (or group of processes) and other inputs that
                the organised workforce could develop or convert into outputs. Those other inputs could
                include-
                (i) intellectual property that could be used to develop a good or service;
                (ii) other economic resources that could be developed to create outputs; or
                (iii) rights to obtain access to necessary materials or rights that enable the creation of future
                outputs.
                18 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
                Examples of the inputs mentioned in subparagraphs (b)(i)–(iii) include technology, in-process
                research and development projects, real estate and mineral interests.
                B12C If a set of activities and assets has outputs at the acquisition date, an acquired process (or group of
                processes) shall be considered substantive if, when applied to an acquired input or inputs, it-
                (a) is critical to the ability to continue producing outputs, and the inputs acquired include an
                organised workforce with the necessary skills, knowledge, or experience to perform that
                process (or group of processes); or
                (b) significantly contributes to the ability to continue producing outputs and-
                (i) is considered unique or scarce; or
                (ii) cannot be replaced without significant cost, effort, or delay in the ability to continue
                producing outputs.
                B12D The following additional discussion supports both paragraphs B12B and B12C:
                (a) an acquired contract is an input and not a substantive process. Nevertheless, an acquired
                contract, for example, a contract for outsourced property management or outsourced asset
                management, may give access to an organised workforce. An entity shall assess whether an
                organised workforce accessed through such a contract performs a substantive process that the
                entity controls, and thus has acquired. Factors to be considered in making that assessment
                include the duration of the contract and its renewal terms;
                (b) difficulties in replacing an acquired organised workforce may indicate that the acquired
                organised workforce performs a process that is critical to the ability to create outputs;
                (c) a process (or group of processes) is not critical if, for example, it is ancillary or minor within
                the context of all the processes required to create outputs.‖;
                (v) in Appendix 1, for paragraph 6, the following shall be substituted, namely:-
                ―6. The following paragraph numbers appear as ‗Deleted‘ in IFRS 3. In order to maintain consistency with
                paragraph numbers of IFRS 3, the paragraph numbers is retained in Ind AS 103:
                (a) Paragraph B10
                (b) Paragraphs B28-B30
                (c) Paragraph B32(a)‖;
                (B) in ―Indian Accounting Standard (Ind AS) 107‖, –
                (i) after paragraph 24G, the following shall be inserted, namely:-
                “Uncertainty arising from interest rate benchmark reform
                24H For hedging relationships to which an entity applies the exceptions set out in paragraphs 6.8.4-6.8.12
                of Ind AS 109, an entity shall disclose-
                (a) the significant interest rate benchmarks to which the entity‘s hedging relationships are exposed;
                (b) the extent of the risk exposure the entity manages that is directly affected by the interest rate
                benchmark reform;
                (c) how the entity is managing the process to transition to alternative benchmark rates;
                (d) a description of significant assumptions or judgements the entity made in applying these
                paragraphs (for example, assumptions or judgements about when the uncertainty arising from
                interest rate benchmark reform is no longer present with respect to the timing and the amount of
                the interest rate benchmark-based cash flows); and
                (e) the nominal amount of the hedging instruments in those hedging relationships.‖;
                (ii) after paragraph 44CC, the following shall be inserted, namely:-
                44DD [Refer Appendix 1];
                44DE Interest Rate Benchmark Reform (amendments to Ind AS 109 and Ind AS 107) added paragraphs 24H
                and 44DF. An entity shall apply these amendments when it applies the amendments to Ind AS 109.
                44DF In the reporting period in which an entity first applies Interest Rate Benchmark Reform, an entity is not
                required to present the quantitative information required by paragraph 28(f) of Ind AS 8, Accounting
                Policies, Changes in Accounting Estimates and Errors.”
                (iii) in Appendix 1, for paragraph 5, the following shall be substituted, namely:-
                [भाग II—खण् ड 3(i)] भारत का राजपत्र : ऄसाधारण 19
                ―5 Paragraphs 42I-42S of IFRS 7 have not been included in Ind AS 107 as these paragraphs relate to initial
                application of IFRS 9 which are not relevant in Indian context. Paragraphs 43-44BB related to effective
                date and transition given in IFRS 7 have not been given in Ind AS 107 since it is not relevant in Indian
                context. However, in order to maintain consistency with paragraph numbers of IFRS 7, these paragraph
                numbers are retained in Ind AS 107. Paragraph 44DD relates to IFRS 17, Insurance Contracts, for
                which corresponding Ind AS is under formulation.‖;
                (C)in ―Indian Accounting Standard (Ind AS) 109‖, –
                (i) after paragraph 6.7.4, the following shall be inserted, namely:-
                ―6.8 Temporary exceptions from applying specific hedge accounting requirements
                6.8.1 An entity shall apply paragraphs 6.8.4–6.8.12 and paragraphs 7.1.8 and 7.2.26(d) to all hedging
                relationships directly affected by interest rate benchmark reform. These paragraphs apply only to
                such hedging relationships. A hedging relationship is directly affected by interest rate
                benchmark reform only if the reform gives rise to uncertainties about-
                (a) the interest rate benchmark (contractually or non-contractually specified) designated as a
                hedged risk; and/or
                (b) the timing or the amount of interest rate benchmark-based cash flows of the hedged item or
                of the hedging instrument.
                6.8.2 For the purpose of applying paragraphs 6.8.4–6.8.12, the term ‗interest rate benchmark reform‘
                refers to the market-wide reform of an interest rate benchmark, including the replacement of an
                interest rate benchmark with an alternative benchmark rate such as that resulting from the
                recommendations set out in the Financial Stability Board‘s July 2014 report ‗Reforming Major
                Interest Rate Benchmarks‘.2
                6.8.3 Paragraphs 6.8.4–6.8.12 provide exceptions only to the requirements specified in these
                paragraphs. An entity shall continue to apply all other hedge accounting requirements to hedging
                relationships directly affected by interest rate benchmark reform.
                Highly probable requirement for cash flow hedges
                6.8.4 For the purpose of determining whether a forecast transaction (or a component thereof) is highly
                probable as required by paragraph 6.3.3, an entity shall assume that the interest rate benchmark
                on which the hedged cash flows (contractually or non-contractually specified) are based is not
                altered as a result of interest rate benchmark reform.
                Reclassifying the amount accumulated in the cash flow hedge reserve
                6.8.5 For the purpose of applying the requirement in paragraph 6.5.12 in order to determine whether
                the hedged future cash flows are expected to occur, an entity shall assume that the interest rate
                benchmark on which the hedged cash flows (contractually or non-contractually specified) are
                based is not altered as a result of interest rate benchmark reform.
                Assessing the economic relationship between the hedged item and the hedging instrument
                6.8.6 For the purpose of applying the requirements in paragraphs 6.4.1(c)(i) and B6.4.4– B6.4.6, an
                entity shall assume that the interest rate benchmark on which the hedged cash flows and/or the
                hedged risk (contractually or non-contractually specified) are based, or the interest rate
                benchmark on which the cash flows of the hedging instrument are based, is not altered as a result
                of interest rate benchmark reform.
                Designating a component of an item as a hedged item
                6.8.7 Unless paragraph 6.8.8 applies, for a hedge of a non-contractually specified benchmark
                component of interest rate risk, an entity shall apply the requirement in paragraphs 6.3.7(a) and
                B6.3.8—that the risk component shall be separately identifiable—only at the inception of the
                hedging relationship.
                6.8.8 When an entity, consistent with its hedge documentation, frequently resets (i.e, discontinues and
                restarts) a hedging relationship because both the hedging instrument and the hedged item
                frequently change (i.e, the entity uses a dynamic process in which both the hedged items and the
                hedging instruments used to manage that exposure do not remain the same for long), the entity
                shall apply the requirement in paragraphs 6.3.7(a) and B6.3.8—that the risk component is
                separately identifiable—only when it initially designates a hedged item in that hedging

                2
                The report, ‘Reforming Major Interest Rate Benchmarks’, is available at http://www.fsb.org/wpcontent/uploads/r_140722.pdf.
                20 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
                relationship. A hedged item that has been assessed at the time of its initial designation in the
                hedging relationship, whether it was at the time of the hedge inception or subsequently, is not
                reassessed at any subsequent redesignation in the same hedging relationship.
                End of application
                6.8.9 An entity shall prospectively cease applying paragraph 6.8.4 to a hedged item at the earlier of-
                (a) when the uncertainty arising from interest rate benchmark reform is no longer present with
                respect to the timing and the amount of the interest rate benchmark-based cash flows of the
                hedged item; and
                (b) when the hedging relationship that the hedged item is part of is discontinued.
                6.8.10 An entity shall prospectively cease applying paragraph 6.8.5 at the earlier of-
                (a) when the uncertainty arising from interest rate benchmark reform is no longer present with
                respect to the timing and the amount of the interest rate benchmark-based future cash flows
                of the hedged item; and
                (b) when the entire amount accumulated in the cash flow hedge reserve with respect to that
                discontinued hedging relationship has been reclassified to profit or loss.
                6.8.11 An entity shall prospectively cease applying paragraph 6.8.6-
                (a) to a hedged item, when the uncertainty arising from interest rate benchmark reform is no
                longer present with respect to the hedged risk or the timing and the amount of the interest
                rate benchmark-based cash flows of the hedged item; and
                (b) to a hedging instrument, when the uncertainty arising from interest rate benchmark reform
                is no longer present with respect to the timing and the amount of the interest rate
                benchmark-based cash flows of the hedging instrument.
                If the hedging relationship that the hedged item and the hedging instrument are part of is
                discontinued earlier than the date specified in paragraph 6.8.11(a) or the date specified in
                paragraph 6.8.11(b), the entity shall prospectively cease applying paragraph 6.8.6 to that
                hedging relationship at the date of discontinuation.
                6.8.12 When designating a group of items as the hedged item, or a combination of financial
                instruments as the hedging instrument, an entity shall prospectively cease applying paragraphs
                6.8.4–6.8.6 to an individual item or financial instrument in accordance with paragraphs 6.8.9,
                6.8.10, or 6.8.11, as relevant, when the uncertainty arising from interest rate benchmark reform
                is no longer present with respect to the hedged risk and/or the timing and the amount of the
                interest rate benchmark-based cash flows of that item or financial instrument.‖;
                (ii) after paragraph 7.1.7, the following shall be inserted, namely:-
                ―7.1.8 Interest Rate Benchmark Reform (amendments to Ind AS 109 and Ind AS 107), added Section 6.8 and
                amended paragraph 7.2.26. An entity shall apply these amendments for annual periods beginning on
                or after the 1st April, 2020.‖;
                (iii) after paragraph 7.2.20, the following heading shall be inserted, namely:-
                ―Transition for hedge accounting (Chapter 6)‖;
                (iv) for paragraph 7.2.26, the following shall be substituted, namely:-
                ―7.2.26 As an exception to prospective application of the hedge accounting requirements of this Standard, an
                entity-
                (a)-(c) [Refer Appendix 1]
                (d) shall apply the requirements in Section 6.8 retrospectively. This retrospective application
                applies only to those hedging relationships that existed at the beginning of the reporting period
                in which an entity first applies those requirements or were designated thereafter, and to the
                amount accumulated in the cash flow hedge reserve that existed at the beginning of the
                reporting period in which an entity first applies those requirements.‖;
                (v) in Appendix 1, for paragraph 4, the following shall be substituted, namely:-
                ―4. Following paragraphs related to transition have not been included as these paragraphs are not relevant in
                Indian context. However, in order to maintain consistency with paragraph numbers of IFRS 9, the
                paragraph numbers are retained in Ind AS 109:
                (i) Paragraph 7.2.2
                (ii) Paragraphs 7.2.6-7.2.7
                [भाग II—खण् ड 3(i)] भारत का राजपत्र : ऄसाधारण 21
                (iii) Paragraphs 7.2.12-7.2.13
                (iv) Paragraphs 7.2.14A-7.2.25
                (v) Paragraphs 7.2.26 (a)-(c)
                (vi) Paragraphs 7.2.27-7.2.28‖;
                (D)in ―Indian Accounting Standard (Ind AS) 116‖, –
                (i) after paragraph 46, the following shall be inserted, namely:-
                ―46A As a practical expedient, a lessee may elect not to assess whether a rent concession that meets the
                conditions in paragraph 46B is a lease modification. A lessee that makes this election shall account for any change
                in lease payments resulting from the rent concession the same way it would account for the change applying this
                Standard if the change were not a lease modification.
                46B The practical expedient in paragraph 46A applies only to rent concessions occurring as a direct
                consequence of the covid-19 pandemic and only if all of the following conditions are met:-
                (a) the change in lease payments results in revised consideration for the lease that is substantially the
                same as, or less than, the consideration for the lease immediately preceding the change;
                (b) any reduction in lease payments affects only payments originally due on or before the 30th
                June,
                2021 (for example, a rent concession would meet this condition if it results in reduced lease
                payments on or before the 30th
                June, 2021 and increased lease payments that extend beyond the
                30th
                June, 2021); and
                (c) there is no substantive change to other terms and conditions of the lease.‖;
                (ii) after paragraph 60, the following shall be inserted, namely:-
                ―60A If a lessee applies the practical expedient in paragraph 46A, the lessee shall disclose-
                (a) that it has applied the practical expedient to all rent concessions that meet the conditions in paragraph
                46B or, if not applied to all such rent concessions, information about the nature of the contracts to
                which it has applied the practical expedient (see paragraph 2); and
                (b) the amount recognised in profit or loss for the reporting period to reflect changes in lease payments
                that arise from rent concessions to which the lessee has applied the practical expedient in paragraph
                46A.‖;
                (iii) in Appendix C,
                (a) after paragraph C1, the following paragraph shall be inserted, namely:-
                ―C1A Covid-19-Related Rent Concessions, added paragraphs 46A, 46B, 60A, C20A and C20B. A
                lessee shall apply that amendment for annual reporting periods beginning on or after the April 1st, 2020.
                In case a lessee has not yet approved the financial statements for issue before the issuance of this
                amendment, then the same may be applied for annual reporting periods beginning on or after the
                April 1st, 2019.‖;
                (b) after paragraph C20, the following shall be inserted, namely:-
                ―Covid-19-related rent concessions for lessees
                C20A A lessee shall apply Covid-19-Related Rent Concessions (see paragraph C1A) retrospectively,
                recognising the cumulative effect of initially applying that amendment as an adjustment to the opening
                balance of retained earnings (or other component of equity, as appropriate) at the beginning of the annual
                reporting period in which the lessee first applies the amendment.
                C20B In the reporting period in which a lessee first applies Covid-19-Related Rent Concessions, a
                lessee is not required to disclose the information required by paragraph 28(f) of Ind AS 8.‖;
                (E) in ―Indian Accounting Standard (Ind AS) 1‖, –
                (i) in paragraph 7, for the definition of the term ―Material‖, the following shall be substituted, namely:-
                “Material:
                Information is material if omitting, misstating or obscuring it could reasonably be expected to
                influence decisions that the primary users of general purpose financial statements make on the basis of
                those financial statements, which provide financial information about a specific reporting entity.
                Materiality depends on the nature or magnitude of information, or both. An entity assesses whether
                information, either individually or in combination with other information, is material in the context of its
                financial statements taken as a whole.
                Information is obscured if it is communicated in a way that would have a similar effect for primary users of
                financial statements to omitting or misstating that information. The following are examples of circumstances
                22 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
                that may result in material information being obscured:-
                (a) information regarding a material item, transaction or other event is disclosed in the financial statements
                but the language used is vague or unclear;
                (b) information regarding a material item, transaction or other event is scattered throughout the financial
                statements;
                (c) dissimilar items, transactions or other events are inappropriately aggregated;
                (d) similar items, transactions or other events are inappropriately disaggregated; and
                (e) the understandability of the financial statements is reduced as a result of material information being
                hidden by immaterial information to the extent that a primary user is unable to determine what
                information is material.
                Assessing whether information could reasonably be expected to influence decisions made by the primary
                users of a specific reporting entity‘s general purpose financial statements requires an entity to consider the
                characteristics of those users while also considering the entity‘s own circumstances.
                Many existing and potential investors, lenders and other creditors cannot require reporting entities to provide
                information directly to them and must rely on general purpose financial statements for much of the financial
                information they need. Consequently, they are the primary users to whom general purpose financial
                statements are directed. Financial statements are prepared for users who have a reasonable knowledge of
                business and economic activities and who review and analyse the information diligently. At times, even wellinformed and diligent users may need to seek the aid of an adviser to understand information about complex
                economic phenomena.‖;
                (ii) after paragraph 139Q, the following shall be inserted, namely:-
                ―139R-139S [Refer Appendix 1]
                139TDefinition of Material (Amendments to Ind AS 1 and Ind AS 8) amended paragraph 7 of Ind AS 1
                and paragraph 5 of Ind AS 8, and deleted paragraph 6 of Ind AS 8. An entity shall apply those
                amendments prospectively for annual periods beginning on or after the 1st April, 2020.‖;
                (iii) in Appendix 1, for paragraph 10, the following shall be substituted, namely:-
                ―10. Paragraphs 139 to 139M and 139O-139P related to Transition and Effective Date have not been
                included in Ind AS 1 as these are not relevant in Indian context. Paragraph 139R relates to IFRS 17,
                Insurance Contracts, for which corresponding Ind AS is under formulation. Paragraph 139S is not
                included since it relates to amendments due to Conceptual Framework for Financial Reporting under
                IFRS Standards for which corresponding Conceptual Framework for Financial Reporting under
                Indian Accounting Standards is under formulation. However, in order to maintain consistency with
                paragraph numbers of IAS 1, these paragraph numbers are retained in Ind AS 1.‖;
                (F) in ―Indian Accounting Standard (Ind AS) 8‖, –
                (i) in paragraph 5, for the definition of term ―Material‖, the following shall be substituted, namely:-
                ―the term ―Material”, used in this Standard shall have the same meaning as assigned to it in paragraph 7
                of Ind AS 1.‖;
                (ii) for paragraph 6, the following shall be substituted, namely:-
                ―6 [Refer Appendix 1]‖;
                (iii) after paragraph 53, the following shall be inserted, namely:-
                ―Effective date and transition
                54-54G [Refer Appendix 1]
                54H Definition of Material (Amendments to Ind AS 1 and Ind AS 8), amended paragraph 7 of Ind AS 1
                and paragraph 5 of Ind AS 8, and deleted paragraph 6 of Ind AS 8. An entity shall apply those
                amendments prospectively for annual periods beginning on or after the 1st April, 2020.‖;
                (iv) in Appendix 1, after paragraph 3, the following shall be inserted, namely:-
                ―4 Paragraph 6 appears as ‗deleted‘ in IAS 8. In order to maintain consistency with paragraph numbers of
                IAS 8, the paragraph number is retained in Ind AS 8.
                5 Paragraphs 54-54E of IAS 8 related to Effective Date and transition have not been included in Ind AS 8
                as these are not relevant in Indian context. Paragraphs 54F-54G are not included since these relate to
                amendments due to Conceptual Framework for Financial Reporting under IFRS Standards for which
                corresponding Conceptual Framework for Financial Reporting under Indian Accounting Standards is
                [भाग II—खण् ड 3(i)] भारत का राजपत्र : ऄसाधारण 23
                under formulation. However, in order to maintain consistency with paragraph numbers of IAS 8, these
                paragraph numbers are retained in Ind AS 8.‖;
                (G)in ―Indian Accounting Standard (Ind AS) 10‖, –
                (i) for paragraph 21, the following shall be substituted, namely:-
                ―21 If non-adjusting events after the reporting period are material, non-disclosure could reasonably
                be expected to influence decisions that the primary users of general purpose financial statements
                make on the basis of those financial statements, which provide financial information about a
                specific reporting entity. Accordingly, an entity shall disclose the following for each material
                category of non-adjusting event after the reporting period-
                (a)the nature of the event; and
                (b) an estimate of its financial effect, or a statement that such an estimate cannot be made.‖;
                (ii) after paragraph 22, the following shall be inserted, namely:-
                ―Effective date
                23-23B [Refer Appendix 1]
                23C Definition of Material (Amendments to Ind AS 1 and Ind AS 8), amended paragraph 21. An entity shall
                apply those amendments when it applies the amendments to the definition of material in paragraph 7 of
                Ind AS 1 and paragraphs 5 and 6 of Ind AS 8.‖
                (iii) in Appendix 1, after paragraph 2, the following shall be inserted, namely:-
                ―3 Paragraphs 23-23B of IAS 10 related to Effective Date have not been included in Ind AS 10 as these are
                not relevant in Indian context. However, in order to maintain consistency with paragraph numbers of
                IAS 10, these paragraph numbers are retained in Ind AS 10.‖;
                (H)in ―Indian Accounting Standard (Ind AS) 34‖, –
                (i) for paragraph 24, the following shall be substituted, namely:-
                ―24 Ind AS 1 defines material information and requires separate disclosure of material items, including (for
                example) discontinued operations, and Ind AS 8, Accounting Policies, Changes in Accounting
                Estimates and Errors requires disclosure of changes in accounting estimates, errors, and changes in
                accounting policies. The two Standards do not contain quantified guidance as to materiality.‖;
                (ii) after paragraph 55, the following shall be inserted, namely:-
                ―56-58 [Refer Appendix 1]
                59 Definition of Material (Amendments to Ind AS 1 and Ind AS 8) amended paragraph 24. An entity shall
                apply those amendments when it applies the amendments to the definition of material in paragraph 7 of
                Ind AS 1 and paragraphs 5 and 6 of Ind AS 8.‖;
                (iii) in Appendix 1, for paragraph 7, the following shall be substituted, namely:-
                ―7 Paragraphs 46-54 and 56-57 related to effective date have not been included in Ind AS 34 as these are
                not relevant in Indian context. Paragraph 58 is not included since it relates to amendments due to
                Conceptual Framework for Financial Reporting under IFRS Standards for which corresponding
                Conceptual Framework for Financial Reporting under Indian Accounting Standards is under
                formulation. However, in order to maintain consistency with paragraph numbers of IAS 34, these
                paragraph numbers are retained in Ind AS 34. ‖;
                (I) in ―Indian Accounting Standard (Ind AS) 37‖, –
                (i) for paragraph 75, the following shall be substituted, namely:-
                ―75 A management or board decision to restructure taken before the end of the reporting period does not
                give rise to a constructive obligation at the end of the reporting period unless the entity has, before the
                end of the reporting period-
                (a) started to implement the restructuring plan; or
                (b) announced the main features of the restructuring plan to those affected by it in a sufficiently
                specific manner to raise a valid expectation in them that the entity will carry out the
                restructuring.
                If an entity starts to implement a restructuring plan, or announces its main features to those affected,
                only after the reporting period, disclosure is required under Ind AS 10 Events after the Reporting
                Period, if the restructuring is material and non-disclosure could reasonably be expected to influence
                24 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
                decisions that the primary users of general purpose financial statements make on the basis of those
                financial statements, which provide financial information about a specific reporting entity.‖;
                (ii) after paragraph 102, the following shall be inserted, namely:-
                ―103 [Refer Appendix 1]
                104 Definition of Material (Amendments to Ind AS 1 and Ind AS 8), amended paragraph 75. An entity shall
                apply those amendments when it applies the amendments to the definition of material in paragraph 7 of
                Ind AS 1 and paragraphs 5 and 6 of Ind AS 8.‖;
                (iii) in Appendix 1, for paragraph 4, the following shall be substituted, namely:-
                ―4. Paragraphs 93-99 and 101 related to Transitional Provisions and Effective date given in IAS 37 have
                not been given in Ind AS 37, since all transitional provisions related to Ind ASs, wherever considered
                appropriate have been included in Ind AS 101, First-time Adoption of Indian Accounting Standards
                corresponding to IFRS 1, First-time Adoption of International Financial Reporting Standards and
                paragraphs related to Effective date are not relevant in Indian context. However, in order to maintain
                consistency with paragraph numbers of IAS 37, these paragraph numbers are retained in Ind AS 37.
                Paragraph 103 relates to IFRS 17, Insurance Contracts, for which corresponding Ind AS is under
                formulation.‖;
                [F.No.01/01/2009-CL-V

                Filing NIL Form GSTR-1 through SMS on GST Portal

                01/07/2020

                  1. A taxpayer may now file NIL Form GSTR-1, through an SMS, apart from filing it through online mode, on GST Portal.
                  2. To file NIL Form GSTR-1 through SMS, the taxpayer must fulfil following conditions:
                    • They must be registered as Normal taxpayer/ Casual taxpayer/ SEZ Unit / SEZ Developer.
                    • They have valid GSTIN.
                    • Phone number of Authorized signatory is registered on the GST Portal.
                    • No data should be in saved or submitted stage for Form GSTR-1 on the GST Portal, related to that respective month.
                    • NIL Form GSTR-1 can be filed anytime on or after the 1st of the subsequent month for which the return is to be filed.
                    • Taxpayer should have opted for the filing frequency as either monthly or quarterly.
                  3. NIL Form GSTR-1 for a tax period must be filed by the taxpayer if:
                    • There are no Outward Supplies (including supplies on which tax is to be charged on reverse charge basis, zero rated supplies and deemed exports) during the month or quarter for which the return is being filed.
                    • No Amendments is to be made to any of the supplies declared in an earlier return.
                    • No Credit or Debit Notes to be declared/amended.
                    • No details of advances received for services to be declared or adjusted.
                  4. Steps to File Nil Form GSTR 1 through SMS is as below:
                    • Send SMS to 14409 number to file Nil Form GSTR-1 – NIL space Return Type space GSTIN space Return Period
                      • For Monthly Filing for Tax Period April 2020: NIL R1 07AQDPP8277H8Z6 042020
                      • For Quarterly Filing for Tax Period Apr-Jun 2020: NIL R1 07AQDPP8277H8Z6 062020
                    • Send SMS again on the same number 14409 with Verification Code (For Example: Verification Code received here is 324961) to confirm filing of Nil Form GSTR-1.- CNF space Return Type space Code – CNF R1 324961
                    • After successful validation of “Verification Code”, GST Portal will send back ARN to same mobile number and on registered e-mail ID of the taxpayer to intimate successful Nil filing of Form GSTR-1 .
                  5. All the authorized representatives, for a particular GSTIN can file NIL Form GSTR-1 through SMS.
                  6. Click links below on filing Nil Form GSTR-1 on the GST Portal, for details

                  1. For FAQ:

                 https://tutorial.gst.gov.in/userguide/returns/index.htm#t=faq_nilreturngstr1.htm

                  1. For CBT:

                https://www.gst.gov.in/help/video/gstr1nilsms