www.carajput.com; Companies Amendment Bill, 2020
Companies (Amendment) Bill, 2020
Highlights of Companies (Amendment) Bill, 2020
On Saturday, Lok Sabha introduced the company law amendment bill, which introduced 72 amendments to the Companies Act, 2013 to decriminalize and modify or abolish fines for different offenses, directed at enhancing the ease of doing business.
New chapter for Producer Company
Introduction of a new Chapter XXIA in the act related to Manufacturer Companies, which was originally part of the Companies Act of 1956;
Reduced penalty for Small companies, OPC, and Start-Up companies
For extended the applicability of section 446B, referring to lesser penalties for small businesses and one-person companies, to all provisions of the Act which attract financial penalties and also extend the same reward to Producer Companies and start-ups
Direct Listing in foreign Jurisdiction
Allowing provisions for the direct listing of Indian public entities’ shares in allowable foreign jurisdictions
Update in the definition of Listed Company
Empowering the government to exclude private companies issuing specified classes of shares on exchanges from the concept of a listed company, in conjunction with the Securities and Exchange Board of India.
Remuneration for Qualified Director and NED
Furthermore, it is recommended that the exception given to main administrative roles from government-mandated pay limits in case a corporation faces liquidation be applied to cover independent directors as well.
Decriminalization of Companies Act
- To comply with an in-house arbitration tribunal process, 23 compoundable offenses must be recategorized out of 66 compoundable offenses under the Act. Moreover, there will be seven compoundable offenses omitted.
- 35 complex offenses, referred to as non-compoundable, include fraud, public interest damage, or deception.
- 48 sections have been modified to render decriminalization and 17 sections have been modified to improve living comfort;
- These 66 violations, according to the law, were minor, technological, or administrative violations and did not include fraud, harm to the public interest, or other non-compoundable offenses. That will also reduce the pressure on the Law Tribunal for the National Corporation.
Fresh Bench in NCLAT
It also allows for the creation of additional National Corporate Law Appeal Tribunal benches at locations designated by the Centre.
Corporate social responsibility ( CSR)
Bill provisions allowed undertakings to carry over excess corporate social responsibility ( CSR) spending on successive years and exempted undertakings with a CSR requirement below Rs 50 lakh from the need to constitute a CSR committee.
Highlights of Redevelopment Assistance Capital
Program (RACP) Bill, 2020
1) New requirements for reregistration of charitable trusts etc. Approval under section 10(23)(C).
It is suggested that Re-registration u / s 12A/12AA and 80 G come into force from 1st April 2021 from the earlier extended date of 1st Oct 2020.
2) Extension of the time period to 31st march 2021 from 30th Nov for ITR Filing for the Assessment Year 2020-21.
3) Extension for furnishing a Certificate u / s 192 from 15 August to 31-3-2021.
4) As per section 54 to 54 GB
- The Extension of the time period to 31st Dec 2021 from 29th Sept for compliance or completion.
- The Extension of the time period to 31st march 2021 from 30th Sept for completion or compliance.
5) Chapter-VI A pursuant to heading B-
- The Extension of the time period to 31st Dec 2020 from 30th July for the compliance or completion.
- The Extension of the time period to 31st March 2021 from 31st July for the compliance or completion.
6) As per Vivad ke vishvas Act-20
- Extension of Time Period to 31st Dec 2020.
- Extension of Time Period to 31st march 2021 from 31st Dec 2020 for completion or compliance.
7) Extension of the time period to 31st march 2021 from 30th Sept. For ITR filing for the Assessment Year 2019-20
8) No expansion of the tax payments.
9) Interest rate 3/4 percent pm or part thereof for late payment of taxes. (Only if the tax payable is over Rs.1 lac)
10) Extension of the time period to 31st march 2021 from 31st Oct for Filing of Audit Report under the Provision for Assessment Year 2020-21.
11) Return for TDS / TCS is to be extended to 31st March 2021 for Feb & March-20 and Q 4 for March 20 (as applicable) for all the Sub-sections.
12) No liability shall be imposed & No evaluation be disciplined for the delay in paying taxes.
Explanation-The delay period refers to the interval between the due date and the payment time.
Further improvements are also suggested in the Income Tax Act.
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