Companies Can Get Relief On This Front During The Corona Period
Companies can get relief on this front during the Corona period, Finance Minister Nirmala Sitharaman gave information.
Finance Minister Nirmala Sitharaman has said that the government plans to suspend any new action under the Insolvency Bankruptcy Act (IBC) for another three months.
This move of the government will provide relief to the borrowing companies whose operations have been affected due to coronavirus.
The Finance Minister, while addressing the Bangalore Chamber of Industry and Commerce (BCIC) on Monday, said that the government has taken various steps to help companies and people.
Under this, the tax submission deadline has also been extended. It is noteworthy that Sitharaman also has the responsibility of the Ministry of Corporate Affairs.
Addressing the program, the Finance Minister said, “Along with compliance, relief has also been given by extending the period of payment of tax.
The goal of all this is to ensure that no one has any problem. ”
He said that under the Self-Reliant India Package, the government had increased the minimum limit of stranded loans from Rs 1 lakh to Rs 1 crore in case of initiating action under IBC.
This will mainly relieve micro, small and medium enterprises (MSMEs) from any action under the Insolvency Act for default in repayment of loans.
Sitharaman said, “The period of suspension of action to bring a new case under the Insolvency and Bankruptcy Code (IBC) can also be suspended from December 25 and up to three months till March 31, 2021.”
The Finance Minister will thus suspend the IBC throughout the year.
Every industry has gone through a crisis due to the epidemic. In such a situation, it is not right to drag anyone towards the IBC process during the epidemic.
The ordinance was brought in June by the government to suspend new action related to IBC. It came into effect from March 25, 2020.
Lockdown was imposed on the same day across the country. The Parliament approved a bill in the IBC amendment in September this year that replaced the ordinance.
Rs 6,000 crore released under GST compensation item, amount of Rs 48,000 crore has been released to states so far.
The Finance Ministry on Monday released the eighth weekly installment of Rs 6,000 crore to states under GST compensation.
With this, so far the total amount given by the central government to the states has reached Rs 48,000 crore.
In a statement, the Finance Ministry said that out of this, Rs 5,516.60 crore has been released for 23 states and Rs 483.40 crore has been released to three Union Territories.
The union territories include Delhi, Jammu and Kashmir and Puducherry.
