Minister of Finance will review prison clause for non-compliance with CSR
NEW DELHI: Minister of Finance Nirmala Sitharaman on Friday he assured India Inc that he would review the criminal penal provision for not complying with corporate social responsibility (CSR) demands and also promised further simplification of the tax system to end the harassment.
Its guarantee for the industry is presented in the context of strong criticisms of the provision of a prison sentence of up to three years and strict fines ranging from Rs 50,000 to Rs 25 lakh for executives of companies that violate the provisions of CSR, which added in the amendment Business Law 2013 . This clause has shaken the industry and prompted calls for a reversal.
Harassment charges against company executives also arose after the suicide of coffee baron V G Siddhartha.
She said that CSR notices with retrospective effect were unacceptable and will put an end to these notices, said a statement from the Indian Industry Confederation (IIC), an industry body, which quoted her as saying to major industrialists in an interaction in The national capital
We are considering tax simplification, Sitharaman said, adding that the committee's report on the direct tax code is expected to be published on August 15. She told businessmen that the government will consider it immediately.
It is our intention to reduce corporate taxes, Sitharaman said, emphasizing that there was no doubt about this issue. The government would consider a uniform tax rate of 25% for all categories of companies after it felt comfortable that tax revenues were on an upward trend. Sitharaman also took the opportunity to save what company executives say is a confidence deficit between government and industry.
Recognizing that companies are of great importance from government departments and agencies, Sitharaman said he was in the process of addressing the problem. Delayed payments to MSMEs are estimated at around Rs 48,000 crore. As a first step, the government will release amounts that are not at issue.
FM said the ties between the government and RBI were cordial, which helped investments. The ties between the center and the RBI have improved after the appointment of the former secretary of finance Shaktikanta Das as governor of the central bank.