Emphasizing on the need to mitigate any scope of economic stagnation, Prime Minister’s Office (PMO), along with the finance, and the corporate affairs have come together to amend the companies act, and decriminalize non-serious offenses. The government aims to cater to them through an in-house mechanism, including levying any penalties in cases of default.
The amend comes as a response to cater to the clogged up trials which are more severe and require to be prioritized. Last week, after having detailed meetings with industrialists, auto sector players and industry bodies, Finance Minister Nirmala Sitharaman apprised Prime Minister Narendra Modi about the economic situation.
To precisely define and categorize offenses as severe and non-serious, the government aims to create a list to cover the entire list. According to a recent meeting between the industry conglomerates and senior government officials, The MCA has been officially thinking to decriminalize as many as 65 sections under the category of compoundable offenses.
The PMO is carefully evaluating and monitoring the economic situation, and are in discussions about future industrial operations. These changes have been introduced through the Companies (Amendment) Act, 2019, which received President Ram Nath Kovind’s nod on July 31.
The government has already started working towards giving special packages to the auto industry, which is succumbing to the pressure from the fast few months. According to the reports, reducing GST on automobile components is also in the works.
The recent debate on tax terrorism
With the recent concerns about tax terrorism, there have been government efforts directed towards the generation of a unique ID number to make the process more transparent. The tax notices and summons without a computer generated unique ID number would not be valid. This measure would help in curbing the unauthorized tax summons. The government’s priority now is to give stimulus packages industries to bring consumption and economy back on track.