Compliance would effectively help a business succeed in the long run by building a positive public image and consumer trust, a senior Income Tax official said on Thursday. Compliance need not be considered only for tax laws but also in regular life, Commissioner of Income Tax (TDS) V S Kumar said. He was speaking while inaugurating the 2nd edition of Compliance Conclave organised by CII. Such programmes would not only enhance the awareness for compliances of various laws but also ensure business continuity is not affected by way of non-compliance, Kumar said. Besides, compliance benefits enhancing customer and investor confidence, achieving improved operations, higher employee retention and managing competition, he said. Convenor of economic affairs & taxation panel, CII Coimbatore, G Karthikeyan threw light on several Indian and international MNCs which have tried to be non-compliant to the rules of their land and global trade policies and how they paid more in fine than they evaded by fraudulent or evasive practice. He emphasised on why complying with laws is important to fair trade and also highlighted the challenges in compliance.
For instance, in the past, it was mandatory for companies with a capital of Rs 10 crore or more to appoint a full-time company secretary, he said. However, lately it has been made compulsory for all business companies to appoint a full-time company secretary if the capital value of the company is Rs 5 crore or more, he said. This has led to the shortage of qualified company secretaries and many are in demand, he added.