India: Covid19 management for ITA companies | Octagona Srl
Octagona Ltd./Internationalization News/INDIA: COVID-19 EMERGENCY MANAGEMENT FOR ITALIAN COMPANIES
INDIA: COVID-19 EMERGENCY MANAGEMENT FOR ITALIAN COMPANIES

INDIA: COVID-19 EMERGENCY MANAGEMENT FOR ITALIAN COMPANIES

Update: India Lockdown complete for 21 days as of midnight today, March 24, 2020

  CURRENT SITUATION As of today, March 24, 2020, 8:30 a.m. Indian time, a total of 499 confirmed COVID-19 cases have been reported from 27 states/Union Territories across India with 10 deaths. Kerala state topped the list with 95 cases followed by Maharashtra state (87 cases). New Delhi reported 31 cases and Mumbai confirmed 24 cases. According to the Indian Council of Medical Research (ICMR), the country is in the second phase of transmission, which is local transmission. Given positive, there is currently no sign of transmission to the community, which is the third stage of the epidemic. On social media, reports are accumulating about state-run quarantine health facilities in India with multiple people forced to share rooms and dormitories. This has raised concerns that these kinds of sanitary conditions could actually accelerate the spread of the virus. The poor conditions in the facilities are also prompting people to avoid quarantine. This is worrisome because it could endanger more lives and lead to widespread panic. For example, it was reported that more than 10 travelers returning from Dubai with symptoms of COVID-19 fled a Mumbai hospital while they were waiting for test results. In one high-profile case, a Bollywood singer, detected positive for COVID-19, reportedly ignored authorities' advice to place himself under self-quarantine and went to public events attended by political figures. There have been reports of patients breaking into quarantine facilities, prompting a frantic manhunt by health and law enforcement officials subsequently forced into efforts to track down people they may have come in contact with. The Octagona Task Force is available to support, free of charge, all Italian companies wishing to receive tips and information to manage this complex phase on Indian soil.   THE INDIAN GOVERNMENT'S RESPONSE 30 states and union territories, including New Delhi, have been put on lockdown until March 31, 2020. The focus is on shutting down all activities except essential services such as hospitals, telecommunications, pharmacies, and supply stores. Since March 22, PM Modi has called for a voluntary self-quarantine by the entire population, from 07:00 to 21:00, urging people to stay at home except those employed in essential services, applying guided social removal interventions. All schools, universities, public places such as clubs, shopping malls, cinemas, restaurants, gyms, and health clubs were closed. Banks and delivery service companies are operating but with very short timelines and very limited staff. In consultation with medical professionals, a detailed advisory has been issued for all health facilities to avoid non-emergency hospitalization and minimize surgery. Complete blockade on international commercial passenger flights from any airport in India, effective March 22, 2020 until further notice. From March 25 until March 31, all domestic flights are also suspended , as are all rail services, including suburban trains, metropolitan rail services and interstate passenger transport. Freight trains may continue to operate to facilitate the availability of essential goods. These restrictions are temporary, but considered essential to break the transmission chain. States have been asked to ensure that while such measures are taken, the necessary steps must be taken to minimize hardship to poor and vulnerable sectors of society. In addition, the government, both at the federal and state levels, urged private companies and establishments not to deduct wages or stop work at any level to avoid a possible recession caused by the epidemic.   OCTAGONA INDIA'S OPERATIONAL RESPONSE Octagona India, Indian subsidiary of Octagona srl (knowledge partner of the Indian Embassy in Italy), with its offices in New Delhi, Pune, Bangalore and staff in Mumbai and Chennai, has decided to implement the new ministerial regulations effective Friday, March 20, 2020 until further notice. The health and safety of Octagona India's employees and our clients is of paramount importance to us and we do not want to take any risks by aiming to ensure the safety of everyone involved. Even before government regulations, we had decided in Octagona India to avoid outside contact in our offices; therefore, avoiding any meetings with outside guests and banning all travel by our employees. In order to ensure continuity of operations, Octagona India made sure that every employee had the necessary tools to be able to continue working safely from their homes by providing laptops, Internet and mobile connectivity. Using cloud technology, we stored all of our official documents within a certified cloud so that they are accessible to all employees for sharing, editing and archiving. Even in smart working mode, we observe our standard working hours with discipline to ensure we are there for our clients when needed.   LATEST NEWS. Some points were announced on the afternoon of 24/03 by the Indian finance minister. No direct support for companies from the point of view of employee management is evident at the moment. Income Tax Payments: Extended the deadline for filing business income payments to June 30, 2020. No extension, but in case of late filing of TDS, only a reduced interest of 9% will be charged until June 30 (the current rate is 18%). GST payments (the Indian VAT): The last date for March-April-May GST payments has been extended until June 30. Companies with a turnover of less than INR 50 million (EUR 625,000), will not have to pay interest, late fees or penalties, however, for larger companies, late fees and penalties will not be charged, but interest will be collected at a reduced rate of 9%.   Other ads: - The deadline for many acts and schemes, including Vivad Se Vishwas, Sabka Vishwas Scheme, has been extended to June 30, 2020. - Customs will be on duty 24/7 until June 30, 2020 - Deadlines for auditing companies is moved to the year 2020-21. - Limits related to the Bankruptcy Act (IBC Section 7,9,10) the threshold for default is moved to 10 million Rupees ( just over €120,000 ) . - Bank fees are reduced on all digital transactions for all commercial and financial players.   OCTAGONA'S SUGGESTIONS Below is a list of key points that we suggest all of our clients and Italian companies with a presence in India implement with immediate effect: - For those companies that have not yet declared smart working, it is critical to proceed immediately by implementing the specific policy. - Ensure that all employees are equipped with all the necessary tools to carry out their daily activities from their homes, using mobile, Skype or cloud-based conference calls. - Inform all customers, suppliers and other stakeholders, about the work done in smart working mode and its impact on daily activities. - Ensure delegation of authority for business continuity on key issues (such as banking, interfacing with authorities, and communications with key customers/suppliers). - Establish a task force that can dialogue in a timely manner on all important issues external and internal to the company and is authorized to make decisions on them. - Build an operational crisis management plan, evaluating possible support measures that, in the coming days, may be presented by the Indian government or, alternatively, provide a practical approach to reducing local operations. The Octagona Task Force is available to support free of charge all Italian companies that wish to receive suggestions and information to manage this complex phase on the Indian territory.  
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