According to a writ petition filed by Association of Industries and Institutions, an apex physique for small and medium corporations, in Gujarat High Court, there’s an “emergency like situation” within the nation within the wake of “extreme spread of coronavirus.”
The affiliation has dragged the Indian authorities, direct tax division, oblique tax division, Employees State Insurance Corporation and Employees Provident Fund Organization to court over the extension of due dates.
The affiliation needs the federal government to prolong the due dates for submitting numerous tax and different filings by about three months. They argue that final yr, when Covid pandemic and the instances have been not as excessive, the federal government had prolonged numerous due dates, however the identical isn’t completed this yr, regardless of the quick rising infections.
The legal professionals representing the affiliation level out that corporations can have to face penalties, curiosity and in some instances prosecution main to jail time period, if companies are unable to adjust to the deadline.
Companies argue that there are sensible difficulties in abiding by the deadlines as a number of firm executives and even their chartered accountants are down with Covid.
“Most companies are struggling with the second wave of Covid pandemic and so are their CA firms, advocates and consultants, so abiding by the timelines whether for direct taxes, indirect taxes or other day to compliances of PF, labour laws would be next to impossible.” stated Dr. Avinash Poddar, a senior lawyer representing the petitioners.
The affiliation has additionally demanded that in case the federal government is unable to prolong the deadlines, at the very least the penalties ought to be waived off.
Last yr the federal government had prolonged the deadlines for submitting tax returns by three months. This yr nonetheless, companies have been hoping that they might get an extension however nothing has been declared as but.
The petition provides that the businesses are additionally going through difficulties due to numerous lockdowns introduced by state governments reminiscent of Delhi, Maharashtra and Karnataka.
Many companies are already affected by a second disruption and acute money stream points. Most of the big corporations are by some means managing the scenario, however the small and medium enterprises are majorly hit, say trade trackers.
Several establishments and associations have been requesting the federal government to prolong numerous deadlines. Earlier LocalCircles, a social media platform too had written to Nirmala Sitharaman, the finance minister to prolong deadlines for GST, ET reported on April 26.