Revamped corporate law compliance site by March
NEW DELHI : The Ministry of Corporate Affairs is preparing to introduce a revamped version of its MCA21 compliance portal by March, facilitating a multitude of statutory filings and offering features such as automatic filling of fields.
The idea is to use technology to manage returns and disclosures filed by businesses and limited liability companies (LLPs), making it easier for officials to monitor compliance and improve the ease of making claims. business, said a person with direct knowledge of the matter.
Ministry expects improved systems to help analyze data faster and spot compliance trends of more than 1.4 million active businesses and more than 220,000 limited liability partnerships . Early detection of trends in the industry, such as auditors leaving their assignments, should give the ministry an advantage in regulatory oversight and policy development. The ministry is also establishing a team of researchers to examine trends in compliance.
Extensive use of technology by the government in the administration of the goods and services tax (GST) is already paying off, helping field agents to accurately target tax evasion, false invoices and transactions. involving shell companies. On the income tax side, technology has helped deploy faceless assessments and decisions. The new e-filing portal also allowed the tax department to remind taxpayers of transactions made in the previous year to help file returns accurately without omitting taxable income.
The new version of MCA21 will connect to the systems of other financial sector and corporate regulators, exchange data and raise red flags for review in the event of corporate errors. In addition, if necessary, it will allow the ministry to organize compliance enforcement campaigns and automate electronic notifications to violators.
âThe MCA 21 version 3 will offer a new user experience. It will offer automatic filling and checking functions. Some rule changes may be necessary. It would be deployed by February-March, âthe person quoted above said on condition of anonymity. L&T Infotech, the company running the project, is conducting field trials, the person added.
Experts said features like pre-filling and web forms would provide greater convenience for stakeholders to comply with day-to-day compliance, but they should also help remind businesses of their primary obligations to stay on the safe side of the business. the law. âThe revamped MCA 21 portal should have a mechanism to send advance alerts for periodic and event-based conformities to all businesses, especially small businesses where a corporate secretary is not. not appointed so that the appropriate officers or directors of the company can comply with the provisions of the law in its true letter and its true spirit, âsaid Rachit Sharma, deputy managing director of Taxmann, a publisher of law books.
Another key feature is the fully electronic defect and dispute resolution window. The government decriminalized several technical and procedural breaches of company law and authorized internal decisions of company registrars and regional directors without having to go to the national company law court. The LLP Act was also amended to decriminalize 12 provisions, which will be notified shortly. Electronic arbitration through the MCA21 portal should help reduce the workload in the NCLT benches.
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