Practical Business Ramifications of COVID-19 – Corporate, Employment and Tax Perspectives

Episode Duration:
75 minutes.

Episode Background:

As the country is bracing itself for a period of extended total lockdown in the light of the COVID-19 pandemic spread, business leaders are coping with freshly worrying realizations. The lockdown may be lifted within a few weeks but there’s no denying that we have now entered an unchartered new paradigm, where ‘surviving against odds’ becomes the new norm.

In the "corporate law"  space, the conversation has moved from the theoretical underpinnings of doctrine of frustration and impossibility to what steps should a company take if it cannot supply its customers, when should a "force majeure" notice be issued and what steps should be taken in response to a force majeure notice, what steps should a company take if threatened with litigation over a supply chain disruption, etc.

On "employment" related matters, questions arise around on treatment of paid and unpaid leave, restructuring of salary, increments, social security contributions, health measures for employers,  etc.

Separately, in spite of several governmental measures to alleviate cash flows for taxpayers, businesses continue to face challenges such as having to deposit TDS on accrual basis (which gets the interest clock ticking), PE and POEM exposure on account of mobile employees, ground level challenges on closure of deals, tax issues arising on account falling valuations, transfer pricing challenges, tax consequences of modifications or cancellation of contractual obligations, tax consequences of providing loans to employees, shareholders, suppliers or others who are cash-strapped, etc.

In this backdrop, Taxsutra and Shardul Amarchand Mangaldas & Co [SAM] present a special episode on “Practical Business Ramifications of COVID-19 – Corporate, Employment and Tax Perspectives”. In this special episode, SAM Partners Arvind Sharma (General Corporate), Amit Singhania (Taxation) and Pooja Ramchandani (Employment), have discussed live experiences and possible solutions within the extant legal framework.