As per Insolvency and Bankruptcy Code, 2016(“IBC”), once an entity defaults certain threshold amount, Corporate Insolvency Resolution Process (“CIRP”) gets triggered and the management of such entity (Corporate Debtor) and its assets vest with an interim resolution professional (“IRP”) or resolution professional (“RP”). It continues to run the business and operations of the said entity as a going concern till the insolvency proceeding is over and an order is passed by the National Company Law Tribunal.
The Government of Delhi had previously notified a special procedure to be followed by registered persons undergoing corporate insolvency resolution process. These corporate debtors are those registered persons who are having their affairs managed by Interim Resolution Professionals (IRPs) or Resolution Professionals (RPs) and they are to be regarded as a special class of persons. The said previous notification was dated 20th August 2020.
The Lt. Governor of National Capital Territory of Delhi, on the recommendations of the Council, has now vide Notification dated 26th August,2020 made amendment in the notification of the Government of NCT of Delhi, in the Department of Finance (Revenue-I) No. 11/2020– State Tax, dated August 20, 2020.
The amendment made by the Notification dated 26th August 2020 in the earlier Notification dated 20th August,2020 are as follows:
- The notification states that these class of persons shall not include corporate debtors who have furnished statements and returns under the Delhi Goods and Service Act, 2017 for the tax period before the appointment of the IRPs/ RPs.
- The time period for registration of such person is now stipulated as with 30 days of the appointment of IPRs/ RPs or by 30th June 2020, whichever is later. Prior to this, the specification of date of 30th June was not provided.
The above amendment shall come into force with effect from the 5th May, 2020.
READ NOTIFICATION:
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
