Author: Business So Simple

Hi, I am business consultant working with a team of Chartered Accountants, Company Secretaries, Lawyers & MBAs.

Borrowers relief from unfair lending practices on interest charging by banks (RBI Cir. 29-04-2024)

Posted on by Business So Simple in Banking, Financial Prudence

Borrowers relief from unfair lending practices on interest charging by banks (RBI Cir. 29-04-2024)

Next time you take a loan, keep these things in mind.

(1) Interest is charged to you once the loan has hit your account & not from the date of the agreement or the date of the sanction or the date of the cheque

(2) If the disbursement / repayment is happening in the middle of the month, they don’t charge you interest for the whole month

(3) If you have paid some advance EMIs, that’s adjusted in the further calculations.

RBI has identified many banks not following fair practices.

CBDT signs record number of 125 Advance Pricing Agreements (APAs) in FY 2023-24

Posted on by Business So Simple in Income Tax

CBDT signs record number of 125 Advance Pricing Agreements (APAs) in FY 2023-24


Total 641 APAs done since inception of the APA programme

Press Release Posted Date:- Apr 16, 2024


The Central Board of Direct Taxes (CBDT) has entered into a record 125 Advance Pricing Agreements (APAs) in FY 2023-24 with Indian taxpayers. This includes 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs (BAPAs). This marks the highest ever APA signings in any financial year since the launch of the APA programme. The number of APAs signed in FY 2023-24 also represents a 31% increase compared to the 95 APAs signed during the preceding financial year. With this, the total number of APAs since inception of the APA programme has gone up to 641, comprising 506 UAPAs and 135 BAPAs.

During FY 2023-24 CBDT also signed the maximum number of BAPAs in any financial year till date. The BAPAs were signed as a consequence of entering into Mutual Agreements with India’s treaty partners namely Australia, Canada, Denmark, Japan, Singapore, the UK and the US.

The APA Scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the arm’s length price of international transactions in advance for a maximum of five future years. Further, the taxpayer has the option to rollback the APA for four preceding years, as a result of which, tax certainty is provided for nine years. The signing of bilateral APAs additionally provides the taxpayers with protection from any anticipated or actual double taxation.

The APA programme has contributed significantly to the Government of India’s mission of promoting ease of doing business, especially for Multi National Enterprises () which have a large number of cross-border transactions within their group entities.

****

NB/VM/KMN

Release Id :-2018085

25 Life Lessons from Ramayana (Happy Rama navami)

Posted on by Business So Simple in Thought of the day

🙏 *25 Life Lessons from Ramayana*🙏

  1. *Power of Bad Association* :  It was a known fact in Ayodhya that Kaikeyi loved Lord Rama more than his own son Bharata, then how could she become so evil. It is by her bad association with Mantara.

2.*Attachment to service & not to the position:*  Lord Rama was willing to become the king as a service to Maharaj Dasaratha and He was also willing to go to the forest as a service to His father.

3.*Mission of Life should be to vanquish the demoniac tendencies in our heart:*  Lord Rama’s purpose to kill the demons was fulfilled by His banishment to the forest.

4.*Even extreme reversals if taken in the proper spirit will help us fulfill our mission in life:*  For example, the law of gravity is only in effect in the Earth’s sphere and not beyond. So also, laws of material nature act only in material consciousness not in spiritual consciousness.

5.*Rama or Aaram, A test for every seeker:*  Citizens of Ayodhya wanted to go with Lord Ram to forest and leave behind all the comforts (Aaram) of the City Ayodhya.

6.*Alertness in Spiritual Life:*  Lord Rama leaves Ayodhyavasis when they were asleep. If one is inattentive or lazy, one will lose taste in Bhakti.

 7.*(Sometimes) Saintly persons might cause pain to others not to hurt them but benefit them:*  Bharata disowns Kaikeyi, a doctor may cause pain (operation) to the patient to cure him.

8.*Goal is to please the Lord:*  For Bharata, he wanted to stay in the forest which was easier than to return and rule the Kingdom, but he did it to please Lord Rama.

9.*Lord is the Proprietor:*  Bhoktaram Yajna tapasam (Bhagavad Gita 5.29). Bharata was ruling the kingdom on Lord Rama’s behalf by keeping the Paduka’s on the throne. We are only caretakers, He is the real proprietor, He can give and take away. The Caretaker acts according to the will of the owner.

10.*Anybody can make a show of greatness:*  The reversals test us who we are. When Lakshmana cuts Surpanaka’s nose, gone was the charming form, gone was the facade, and then the real ugly form manifested. One’s greatness is tested by one’s ability to tolerate provoking situations.

11.*Bhakti (Sita) cannot be achieved by Deception:*  Ravana wanted Sitadevi, but he gets Maya-Sita at the end. Greed and lust are never satiated, they lead to arrogance and envy.

12.*Maya’s attractions creates traps and makes us suffer:*  Marichi takes up a golden dear form and traps Sitadevi. We should see the substance through the eyes of the scripture. Marichi was all about false promises. For example, spider web is most attractive to the fly but actually it’s a trap.

13.*Maya knows our weaknesses:*  She can make our strength into weaknesses and take us away from the circle of instructions of great souls. Ravana uses Sitadevi’s attitude to serve great souls to disobey Lakshmana.

14.*Always stand by the Right:*  Jatayu’s integrity. Real success is to please the Lord. Jatayu lost his life fighting for Lord Rama but achieved the purpose of Life to please the Lord. It is better to lose & win than to win & lose.

15.*Patience, Determination & Enthusiasm:*  Example of Shabari. A long time ago, Guru had asked her to wait for Lord Ram while all other disciples and Guru himself went back to Godhead. She showed her enthusiasm by working hard every day to clean the place, plucking flowers & fruits for the Lord. She had complete faith in the words of Guru and patiently waited with determination. The Lord reveals only when He wants.

16.*Honesty, we can’t put a facade before the Lord:*  Hanumanji disguises when he went to meet Lord Rama. Lord knows within who we are, we have to be honest to receive the mercy of the Lord.

17.*Obstacles on the path of Bhakti:*  The demons who came to stop Hanuman during his jumping across the ocean. Mainaka (Gold Mountain) – temptation to seek comfort before achieving our real purpose. Surasa (Shadow catching demoness) – While striving for Bhakti, people will chastise, criticize and misunderstand us, we should have the willingness to tolerate. Simhika (Serpent): Being envious of people in higher position and try to stop their progress. This is jealousy of the mind. By devotional service, we have to devour Simhika who represents Envy.

18.*Arrogance cannot understand wellwishers:*  The world is a mirror of our own consciousness. Ravana was thinking Mandodari was envious of Sita, but actually he was envious of Lord Rama. Ravana was thinking Vibhisana was disloyal and taking the side of Lord Rama, but he was disloyal to Kubera, his step-brother. When we think we know, we are not willing to listen to good counsel. Spiritual progress means simplicity and humility. If they are lacking, we won’t listen thinking that we know better, that was Ravana.

19.*Big or Small, we can swim the ocean of Samsara by chanting Lord Rama’s holy name:*  Big or Small, all the stones floated by writing Lord Ram’s name.

20.*Pride or Attachment leads to loss of intelligence:*  dhyayato visayan pumsah (Bhagavad Gita 2.62). Every stage of this sloka was exhibited by Ravana. Loss of intelligence – Even when all his stalwart warriors including Kumbakarna, Indrajit died but he still didn’t give up.

21.*Hearing about the Lord – Revival of dormant love:*  Lord Rama being Paramatma in the heart of everyone including Ravana could have killed him just by turning off Ravana’s heart. But the Lord and His pleasure potency Sitadevi went through this whole ordeal so that we can hear about the Lord and revive our dormant love.

22.*Sacrifice even of Family to Surrender to Lord Rama:*  Vibhishana comes to take shelter, all the monkeys were against, except Hanumanji. Vibhishana was willing to be misunderstood or even chastised to surrender to the Lord. He told Lord Rama about celestial nectar in Ravana’s heart.

23.*Counsel and Advise in battle against Illusion:*  In battle against Illusion, at every stage association of devotees to put us straight without which we will fall. Lord Rama doesn’t need but takes the counsel of Vibhishana.

24.*Grace of Devotee needed to kill demons within:*  Agastya muni’s arrow was used by Lord Rama to kill Ravan by piercing his heart.

25.*Welcoming the Lord in hearts with lamps:*  That is the Dipavali festival. Lord Rama is welcomed back into Ayodhya with lamps. Dipavali is not just physical fire but lighting the hearts with light of Lord’s grace and process of devotional service. When the heart is fully illuminated, then we can experience Lord Rama within ourselves. When our love awakens, in that love, compassion for all living beings awakens. Then Ramrajya is awakened within the heart and then without (i.e., out in the world).

 🙏🙏🙏

Self Enablement For e-Invoicing (GST Advisory 03 April 2024)

Posted on by Business So Simple in GST

03/04/2024

Dear Taxpayers,

1.  If your turnover exceeds INR 5 crores in the financial year 2023-2024, you will be required to start e-Invoicing from the next financial year, i.e., from 1st April 2024 onwards. It may also be noted that same is applicable if the threshold is crossed in any of the proceeding financial years too.

2.  For those who meet the notification criteria but have not yet been enabled on the portal, you can self-enable for e-Invoicing by visiting https://einvoice.gst.gov.in and start reporting through any of the 4 new Invoice Registration Portals (IRPs) – from e-Invoice IRP 3 to e-Invoice IRP 6

         https://einvoice3.gst.gov.in     https://einvoice4.gst.gov.in

         https://einvoice5.gst.gov.in     https://einvoice6.gst.gov.in

3.  To report e-Invoices through NIC IRP 1 & 2, taxpayers can self-enable at

        https://einvoice1.gst.gov.in      https://einvoice2.gst.gov.in

  •For any assistance, please feel free to contact us at the GST Helpdesk number 1800-103-4786 or visit the Grievance Redressal Portal at https://selfservice.gstsystem.in/ to log a ticket.

Thanking you,
Team GSTN

Financial Intelligence Unit-India (FIU-IND) imposes penalty of Rs. 5,49,00,000 on Paytm Payments Bank Ltd with reference to violations of its obligations under PMLA

Posted on by Business So Simple in Miscellaneous

The Financial Intelligence Unit-India (FIU-IND), in furtherance of the powers conferred upon the Director FIU-IND under Section 13(2)(d) of the Prevention of Money Laundering Act (PMLA), 2002, has imposed a monetary penalty of Rs. 5,49,00,000 (rupees five crore forty nine lakh) on Paytm Payments Bank Ltd with reference to the violations of its obligations under the PMLA read with the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 (PML Rules) issued thereunder and applicable guidelines and advisories issued by the Director FIU-IND.

FIU-IND initiated a review of the Paytm Payments Bank Ltd on receipt of specific information from law enforcement agencies in respect of few entities and their network of businesses engaged in a number of illegal acts, including organising and facilitating online gambling. Further, the money generated from these illegal operations, i.e. proceeds of crime were routed and channelled through bank accounts maintained by these entities with the Paytm Payments Bank Ltd.

In furtherance of the above and upon scrutiny of the documents on record, FIU IND issued a compliance Show Cause Notice to the bank for its violations of (i)          Rules 7(3) and 2(1)(g), PML Rules; (ii) violation of Rule 8(2) read with Rule 3(1)(D) and Rule 2(1)(g); (iii) violation of Rule 9(12), PML Rules; and (iv) violation of Rule 9(14) in terms of AML / CFT / KYC safeguards in respect of Payout services; and AML / CFT / KYC in respect of beneficiary accounts.

After considering the written and oral submissions of the Paytm Payments Bank Ltd, Director, FIU-IND, based on the voluminous material available on record, found that the charges against Paytm were substantiated. Consequently, vide order dated March 1st, 2024 in exercise of his powers under Section 13, PMLA, it was found to be appropriate to impose a penalty of Rs. 5,49,00,000.

Press Release 01 March 2024

Precautions for GST taxpayer against Frudsters & fake summons

Posted on by Business So Simple in GST

https://youtu.be/iS_eLdFMIEA

*जीएसटी उल्लंघन के लिए फर्जी और फर्जी समन भेजने वालों के खिलाफ चेतावनी*

*Precautions for GST taxpayer*

👉 Verify your notices & summons: VERIFY CBIC-DIN from CBIC’s website

👉Verify your notices & summons: DIN Utility Search on online portal of (DDM), CBIC

👉In case of Bogus summons-  report  immediately to DGGI/CBIC jurisdictions

Income Tax Department conducts search operations on Politically Exposed Person in Chhattisgarh (Press release 09 Feb 2024)

Posted on by Business So Simple in Income Tax

Income Tax Department initiated search and seizure operations in the case of a Politically Exposed Person (PEP), his close associates and few Government officials on 31/01/2024. One of the close associates of the PEP is engaged in the business of real estate. The search operation covered more than 25 premises spread across Raipur, Surguja, Sitapur and Raigarh districts of Chhattisgarh.

During the course of the search operation, numerous incriminating documents, loose sheets and digital evidences have been found and seized. These evidences reveal the modus-operandi of tax evasion and other dubious practices adopted by these persons.  Preliminary analysis suggests that these persons have received ill-gotten money in lieu of grant of undue favours to different persons in Government related works.

Incriminating documents recovered during the search, contain details of ill-gotten money of approximately Rs.13 crore, received in cash by the said PEP, through his close associates. Further, evidences seized suggest that this ill-gotten money has been invested in real estate through the associates of the PEP.  Similarly, evidence of payment of on-money in purchase of real estate to the tune of approximately Rs. 3 crore and evidence of unaccounted cash expenditure of more than Rs. 8 crore, made by the associates of the PEP, in the real estate business have also been found. The veracity of such evidences has also been buttressed by the statements of close associates of the PEP and their employees, wherein they have admitted the above malpractices.

Further, incriminating documents related to illegal grabbing of land by the close associates of the PEP have also been found. The farmers and the affected persons whose lands have been transferred in such manner, have also admitted in their statement(s) that the said land transactions were completed under the undue influence of the PEP. Similarly, undue influence of PEP was also utilized by his associates in getting the permission for purchase of ‘Punarwas Patta’.

Issues related to mismatch in turnover vis-à-vis bank credits have also been detected from the factory premises owned by the spouse of the PEP, who is running a manufacturing concern of Hume Pipes.

The search operation has resulted in seizure of unaccounted cash and jewellery exceeding Rs. 2.50 crore.

Further investigations are in progress.

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NB/VM/KMN

Release Id :-2004271

Direct Listing Scheme -Eligibility, Applicable laws, regulators, benefits for investor

Posted on by Business So Simple in Company Law, FEMA, SEBI, Startups

*Direct Listing Scheme -Eligibility, Applicable laws, regulators, benefits for investor*

https://youtu.be/A8eiW3noH_A?si=qgdC7Sljo7OlfWaw

*Specific incentives offered to permissible holders* 👉

For foreign investors, the scheme will allow them to participate in *value creation in Indian companies* and *earn high returns* on their investment facilitated by the world class and business friendly regulatory regime being offered by GIFT-IFSC.

The transactions on the stock exchanges in IFSC are in foreign currency, *eliminating the currency risk* for the investors. The stock exchanges in IFSC have *extended trading hours (more than 20 hours in a day)* catering to investors of all significant jurisdictions in the world thereby providing convenience and ease of doing business. Additionally, there are *various tax incentives* provided under the Income Tax Act, 1961, making GIFT IFSC an attractive destination for global investors. *Capital gains arising out of transfer of equity shares of Indian companies in GIFT-IFSC is exempted from tax.*

DGGI detected 6,323 cases involving evasion of duty of Rs. 1,98,324 crore; Special Drive against ITC fraudsters resulted in detection of 2,335 cases with Rs. 21,078 crore ITC frauds : Performance of DGGI in the year 2023

Posted on by Business So Simple in GST

Performance of DGGI in the year 2023


In 2023, DGGI detected 6,323 cases involving evasion of duty of Rs. 1,98,324 crore; 119% increase in detecting cases Year-on-Year

To check Input Tax Credit (ITC) frauds in 2023, DGGI’s Special Drive against ITC fraudsters resulted in detection of 2,335 cases with Rs. 21,078 crore ITC frauds; showing increase 46% in detection Year-on-Year

During the year 2023, Directorate General of GST Intelligence (DGGI) which is the premier investigating agency for GST matters, continued its relentless pursuit to check evasion of GST across the country. It has unveiled significant GST evasion in diverse sectors like Online Gaming, Casinos, Insurance sector, Secondment (import of Manpower Services), Fake ITC among others. Non-compliance in these sectors not only pose a threat to the fiscal stability but also involve potential social, financial as well as economic security implications.

The dedication and tireless efforts of DGGI have yielded notable results, with a significant increase in performance.

Overall Performance in Detection of Duty Evasion and Voluntary Payments: DGGI has achieved an increase in detection of cases of evasion and voluntary payments. In 2023, DGGI detected 6,323 cases involving evasion of duty of Rs. 1,98,324 crore with a voluntary payment of Rs. 28,362 crore. 140 masterminds involved in GST evasion were arrested.

This is a significant improvement as compared to the previous year i.e. 2022 wherein 4,273 cases were detected, amounting to duty of Rs. 90,499 crore, and voluntary payment of Rs. 22,459 crore and 97 arrests were made. There is 119% increase in the Year-on-Year amount of duty evasion detected by DGGI and 26% increase in the voluntarily payments made.

Performance in fake Input Tax Credit (ITC) cases: DGGI initiated a Special Drive against ITC fraudsters to plug the leakage in Government revenue and as a result, 2,335 cases with ITC fraud of Rs. 21,078 crore were detected, with a voluntary payment of Rs. 2,642 crore. 116 masterminds were arrested to check the menace of fake invoicing. This is a significant improvement in comparison to the previous year i.e. 2022 wherein 1,646 cases were detected, totaling Rs. 14,471 crore and a voluntary payment of Rs. 1,604 crore was made and 82 masterminds were arrested.

This shows 46% increase Year-on-Year in amounts of duty evasion detected and 65% increase of voluntarily payments made in fake invoicing cases.

DGGI’s performance underscores its dedication to upholding the principles of fairness, transparency, and compliance. DGGI remains committed to maintain the integrity of the GST system, as well as to ensure that business operations are conducted within the framework of GST Laws and Rules, and to provide a level playing field to the compliant businesses.