The weekly messenger | Edition 20.21

August 2021

This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.

REGULATORY NEWS

Clarification on spending of CSR funds for COVID-19 vaccination – 30 July 2021
 
The Ministry of Corporate Affairs vide its Circular dated 23 March 2020 had clarified that spending of Corporate Social Responsibility (CSR) funds for COVID-19 would be treated as an eligible CSR activity.
Now, it has been further clarified that CSR funds spent on COVID-19 vaccination for persons other than the employees and their families would also be considered as eligible CSR activity as per Schedule VII of the Companies Act, 2013.
 
For more information, click here.
 
Withdrawal of Guidelines on Indian owned and controlled – 30 July 2021
In 2015, the Insurance Regulatory and Development Authority of India (IRDAI) had issued the ‘Guidelines on Indian owned and controlled’.
 
Post issuance of the aforesaid Guidelines:

  • Following amendments were made in the Insurance Act, 1938 vide the Insurance (Amendment) Act, 2021:
  1. Foreign investment ceiling was increased from existing 49% to 74%;
  2. Explanation to Section 2(7A)(b), which mandated the requirement of ‘Indian owned and controlled’ was omitted.
  • The definitions of ‘Control’, ‘Indian Control of an Indian Insurance Company’ and ‘Indian Ownership’ provided under the Indian Insurance Companies (Foreign Investment) Rules, 2015 also got omitted vide the Indian Insurance Companies (Foreign Investment) (Amendment) Rules, 2021.

Pursuant to the issuance of the aforesaid amendments, the IRDAI has withdrawn the ‘Guidelines on Indian owned and controlled’ dated 19 October 2015 with immediate effect.
 
For more information, click here.
 
Commencement of section 1 of the Employees’ State Insurance Act, 1948 – 28 July 2021
 
The provisions of the following sections of Employees’ State Insurance Act, 1948:

  • sections 38, 39, 40, 41, 42, 43 and sections 45A to 45H of Chapter IV;
  • sections 46 to 73 of Chapter V; and
  • sections 74, 75, sub-sections (2) to (4) of sections 76, 80, 82 and 83 of Chapter VI;

shall come into force w.e.f 1 August 2021 in all the areas of Madurai district in the State of Tamil Nadu.
For more information, click here.
 
Extension of the provisions of the Employees’ State Insurance Act, 1948 (34 of 1948) to certain classes of establishments – 28 July 2021
 
The Central Government, in consultation with the Employees’ State Insurance Corporation has extended the provisions of the Employees’ State Insurance Act, 1948 to the following classes of establishments w.e.f. 1 August 2021:
 

Description of establishments

Areas in which the establishments are situated

Category of employees to whom the Act applies

The following establishments wherein ten or more persons are employed or were employed on any day of the preceding twelve months, namely:
 
Municipal Corporations/ Council, established under Central/ State legislation.

All the areas in the National Capital Territory of Delhi where Employees’ State Insurance Act, 1948 has already been brought into force under Sub-Section (3) of Section 1 of the Act.

All casual and contractual employees.

 
For more information, click here.