Rajya Sabha Bill provides compliance relief, decriminalizes company law violations

The Rajya Sabha on Tuesday returned two original bills – a coronavirus epidemic and in various cases giving extra time for various statutory compliance due to technical violations of agency law becoming civil crimes.

The Tax and Other Acts (Relaxation and Amendment of Some Provisions) Bill, 2020 delays the deadline for consent for both direct and indirect taxes, as well as the dispute for two dispute resolution projects and replaces the ordinance issued on March 31 this year. Formerly, Finance Minister Nirmala Sitharaman explained the goals of the bill in the high meeting.

The minister said the extra time to meet compliance requirements during the lockdown period would ensure that people do not have to put up with any problems, the minister said.

In addition to the provisions of the ordinance, the bill also includes tariffs to facilitate the expansion of the income-tax-free assessment scheme announced by the Prime Minister in August.

The Rajya Sabha has also returned the Companies (Amendment) Bill 2020 which decommissioned the organization’s legal offenses and allowed the agency’s foreign direct list. Of the 611 amendments proposed in the bill, 46 are aimed at turning procedural and technical errors in company law into civil offenses, and the rest are aimed at making life easier for manufacturers.

Producer companies are a class of entities that have relevance to the agricultural economy and are involved in activities such as procurement, production and procurement.

Sitharaman explained that he had earlier announced plans to set up 10,000 farmer production companies that would have a rural impact. The provisions of the bill make life easier for them.

The minister said 35 specific offenses of a deadly nature would continue as sub-compound offenses under the Companies Act. “Thirty-five of them since 2013 (the current company law was enacted) are still 35 today because we are not allowing fraud, deception or public interest to go away with a lesser punishment,” the minister said.

The direct listing of securities by Indian companies in selected foreign markets can help top startups to raise capital in foreign markets if they realize that there may not be sufficient risk appetite among domestic investors. Ease of doing business is the main purpose of the bill. Both the bills were passed in the Lok Sabha earlier.

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