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
Author: Business So Simple
Hi, I am business consultant working with a team of Chartered Accountants, Company Secretaries, Lawyers & MBAs.
Income Tax Department conducts search operations on Politically Exposed Person in Chhattisgarh (Press release 09 Feb 2024)
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
*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
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.
RD Order reduces penalty considering no business income ground (Violation u/s 203, Penalty reduced from 15 Lakhs to 2.25 Lakhs -Order dated 05 Jan 2024)
Grounds considered for reducing the penalty :
👉 No business income during the period of default
👉 Other income was only notional income on OFCD
👉 Interest on OFCD not paid till repayment of entire term loan
👉 No fund available to pay remuneration to CS as per the market standards
👉 Appointment of whole time company secretary in July 2017 (Vacant since Dec 2014)
Direct Tax collections at 80.61% of total Budget Estimates of Direct Taxes for F.Y. 2023-24 upto 10.01.2024
The provisional figures of Direct Tax collections up to 10th January, 2024 continue to register steady growth. Direct Tax collections up to 10th January, 2024 show that gross collections are at Rs. 17.18 lakh crore which is 16.77% higher than the gross collections for the corresponding period of last year. Direct Tax collection, net of refunds, stands at Rs. 14.70 lakh crore which is 19.41% higher than the net collections for the corresponding period of last year. This collection is 80.61% of the total Budget Estimates of Direct Taxes for F.Y. 2023-24.
So far as the growth rate for Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections is concerned, the growth rate for CIT is 8.32% while that for PIT is 26.11% (PIT only)/ 26.11% (PIT including STT). After adjustment of refunds, the net growth in CIT collections is 12.37% and that in PIT collections is 27.26% (PIT only)/ 27.22% (PIT including STT).
Refunds amounting to Rs. 2.48 lakh crore have been issued during 1st April, 2023 to 10th January, 2024.
Press Release 11th Jan 2024
Search operations in Mumbai- unaccounted cash sales 1000 cr., cash payments 400 cr.,non genuine expenses 100 cr. Etc.
Income Tax Department initiated search and seizure operations in the case of a group, engaged in the manufacturing of wires and cables and other electrical items on 22.12.2023. Some of the authorised distributors of the group were also covered in the search. The search action was conducted at more than 50 premises located in Mumbai, Pune, Aurangabad, Nasik, Daman, Halol and Delhi.
During the course of the search operation, a large number of incriminating evidences in the form of documents and digital data have been found & seized. These evidences reveal modus-operandi of tax evasion adopted by the group in connivance with some of the authorised distributors. Preliminary analysis suggests that the flagship company indulged in unaccounted cash sales, cash payments for unaccounted purchases, non-genuine transport and sub-contracting expenses, etc for suppression of its taxable income.
Credible evidences recovered during the search have established that the flagship company has made unaccounted cash sales of around Rs. 1,000 crore which are not recorded in the books of accounts. Evidences of unaccounted cash payments of more than Rs. 400 crore made by a distributor, on behalf of the flagship company towards purchases of raw materials, have also been seized. Further, non-genuine expenses in the nature of sub-contracting expenses, purchases and transport expenses, etc. aggregating to about Rs. 100 crore have also been identified in the seized evidences from the premises of the flagship company.
The search action also resulted in determination of unexplained transactions undertaken by the distributor for issuing bills without genuine supply of goods whereas such goods have been sold in open market in cash. Thus, the authorised distributor facilitated certain parties to inflate their purchase accounts, which aggregate to about Rs. 500 crore. This distributor exclusively sells products of the flagship company.
During the course of search operation, unaccounted cash exceeding Rs. 4 crore, has been seized and more than 25 bank lockers have been put on restraint.
Further investigations are in progress.
Press Release dated 10 Jan 2024
Record number of ITRs filed till 31st December, 2023!
Few highlights:
👉 8.18 crore ITRs filed for AY 2023-24 upto 31.12.2023 which is 9% higher y-o-y.
👉1.60 crore audit reports and other forms filed.
👉AIS facility was used extensively, resulting in smoother and faster filing of ITRs.
👉TIN 2.0, a digital e-pay tax payment platform, has enabled real-time credit of taxes to taxpayers which made ITR filing easier & faster.
👉Over 103.5 crore outreaches were made through targeted e-mails, SMS and other creative campaigns to encourage taxpayers to file their ITRs and Forms early.
👉e-filing helpdesk team handled approximately 27.37 lakh queries from taxpayers upto 31.12.2023.
Refer details
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1992182&RegID=3&LID=1
Introducing Electronic Credit Reversal and Re-claimed statement on GSTN
The Government has notified certain changes in Table 4 of Form GSTR-3B to enable taxpayers in reporting correct information regarding ITC availed, ITC reversal, ITC re-claimed and ineligible ITC vide Notification No. 14/2022 – Central Tax dated 05th July, 2022 (read with circular 170/02/2022-GST, Dated 6th July,2022). Accordingly, the reclaimable ITC earlier reversed in Table 4(B)2 may be subsequently claimed in Table 4(A)5 on fulfilment of necessary conditions. Such reclaimed ITC in Table 4(A)5 also needs to be explicitly reported in Table 4D(1).
1) In order to facilitate the taxpayers in correct and accurate reporting of ITC reversal and reclaim thereof and to avoid clerical mistakes, a new ledger namely Electronic Credit and Re-claimed Statement is being introduced on the GST portal. This statement will help the taxpayers in tracking of their ITC that has been reversed in Table 4B(2) and thereafter re-claimed in Table 4D(1) and 4A(5) for each return period, starting from August return period.
2) This statement shall facilitate that while re-claiming ITC in GSTR-3B, the amount aligns appropriately with the corresponding reversed ITC. This aims to improve the overall consistency and correctness of ITC reversal and re-claims related transactions. For Monthly taxpayers, the specified return period pertains to August 2023. For those filing quarterly returns, the specified return period corresponds to Q2 of the financial year 2023-24, encompassing the months of JulySeptember 2023.
3) Taxpayers are being provided a facility to report their cumulative ITC reversal (ITC that has been reversed earlier and has not yet been reclaimed) as opening balance for “Electronic Credit Reversal and Re-claimed Statement”, if any. The navigation to report ITC reversal balance:
Login >> Report ITC Reversal Opening Balance. or Services >> Ledger >> Electronic Credit Reversal and Re-claimed Statement >> Report ITC Reversal Opening Balance
a. Taxpayers having monthly filing frequency are required to report their opening balance considering the ITC reversal done till the return period of July 2023.
b. In contrast, quarterly taxpayers shall report their opening balance up to Q1 of the financial year 2023-24, considering the ITC reversal made till the April-June 2023 return period.
c. The taxpayers have the opportunity to declare their opening balance for ITC reversal Until 30th November 2023.
d. The taxpayers shall also be provided 3 (three) amendment opportunities to correct their opening balance in case of any mistakes or inaccuracies in reporting. Importantly, until 30th November 2023, both reporting and amendment facilities are accessible.
e. However, after 30th November till 31st December 2023, only amendments will be permitted and the option for fresh reporting will not be available. This amendment facility shall be discontinued after 31st December 2023.
4) With the provision for taxpayers to report their accumulated ITC reversal balance, the portal will subsequently maintain a record of reversal and re-claimed amounts on a return period basis in statement. Hence, a validation mechanism is incorporated into the GSTR-3B form. This validation will trigger a warning message if a taxpayer attempts to re-claim excess ITC in table 4D(1) than the available ITC reversal balance in the statement along with ITC reversal made in current return period in Table 4B(2). This warning message would facilitate accurate reporting but the taxpayers will still have the option to proceed with filing. However, the taxpayers are advised not to reclaim ITC exceeding the closing balance of “Electronic Credit Reversal and Re-claimed Statement” and may report their pending reversed ITC, if any, as ITC reversal opening balance.
5) For monthly taxpayers, the warning message will commence appearing from the GSTR-3B filing for the August 2023 return period. Similarly, for quarterly taxpayers this warning message would start from the filing period covering July to September 2023.
Gst portal updates 29 Dec 2023
Ministry of Corporate Affairs Year Ender 2023
In the framework of corporate governance, the Ministry of Corporate Affairs (MCA) continues to focus on bolstering ‘ease of compliance’ and ‘ease of doing business’ in the year 2023.
The establishment of Central Processing for Accelerated Corporate Exit (C-PACE) signifies a proactive approach to facilitate swift approvals for companies opting for voluntary closures. Notably, during the year 2023, 1,96,028 companies and LLPs were incorporated, showcasing a robust growth compared to the corresponding period in the previous fiscal year.
In an important development, the amendment to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 empowers Regional Directors (RDs) to expedite merger approvals. The groundbreaking Competition (Amendment) Bill, 2023, passed by both Houses of Parliament and received Presidential assent, introduces pivotal changes, including CCI’s approval for transactions over Rs 2,000 crore and a reduced timeline for final orders to 150 days.
The MCA also introduced amendments in key accounting standards with the Companies (Indian Accounting Standards) Amendment Rules, 2023, enhancing disclosure requirements. Additionally, strategic amendments in Companies (Incorporation) Rules, 2014, signify a commitment to minimising bureaucratic hurdles.
Promoting flexibility in corporate procedures through General Circular no. 09/2023, MCA extended timelines for conducting Annual and Extraordinary General Meetings through virtual means. The removal of processing costs in shifting registered offices and enabling such shifts after resolution plan approval under the Insolvency and Bankruptcy Code highlights a pragmatic regulatory environment.
The adoption of Straight Through Process (STP) for additional e-forms eliminates manual intervention, expediting electronic approvals and streamlining operations.
Lastly, the Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023, introduce mandatory dematerialisation of shares for larger private companies, aligning regulations with contemporary market trends. These achievements collectively underscore the MCA’s commitment to fostering a dynamic, efficient, and responsive corporate ecosystem in India.
Following are some of the major achievements of the Ministry of Corporate Affairs, in 2023:
The processing type of additional e-forms have been changed to STP (Straight through Process) from Non-STP i.e, these forms can be approved electronically without human intervention and hence would lead to ‘ease of compliance’ and ‘ease of doing business’.
Central Processing for Accelerated Corporate Exit (C-PACE) has been operationalised w.e.f. 01.05.23 pursuant to Union Budget announcement in 2022, as a measure to provide expeditious approval of applications filed by the companies with intention to close operations voluntarily.
During Calander Year 2023, 1,96,028 companies and LLPs got incorporated as on 30th November 2023 as against 1,88,364 companies and LLPs for the corresponding period during Calander Year 2022.
The Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 have been amended in May, 2023 pursuant to which, in case a Regional Director (RD) does not file an application before NCLT for considering the scheme of merger under section 232 or does not issue confirmation order for approval of merger u/s 233 within the time limit provided, it shall be deemed that RD has no objection and the confirmation order shall be issued accordingly.
The Competition (Amendment) Bill, 2023 had been passed by both the Houses of the Parliament (Lok Sabha on 29th March, 2023 and Rajya Sabha 3rd April, 2023) and received the Presidential assent (on 11th April, 2023).
Some highlights of the Amendment Act, 2023 are as under: –
Deals with transaction value of more than Rs 2,000 crore will require CCI’s approval. The timeline for the CCI to pass a final order on combination transactions has been reduced to 150 days from 210 days.
The Act expands the scope of entities that can be adjudged to be a part of anti-competitive agreements. Currently, enterprises or persons engaged in similar businesses can be held to be a part of anti-competitive agreements. The Act expands this to also include enterprises or persons who are not engaged in similar businesses.
The Act provides a framework for settlement and commitment for faster resolution of investigations of anti-competitive agreements (except cartels) and abuse of dominant position.
For the purpose of regulation of combinations, the Act modifies the definition of control as the ability to exercise material influence over the management, affairs, or strategic commercial decisions.
The MCA had notified the Companies (Indian Accounting Standards) Amendment Rules, 2023 vide G.S.R. No.242(E), dated 31.03.2023 effective from 01.04.2023. The said rule inter-alia brings amendments to IndAS 1, IndAS 8 and IndAS 12 relating to disclosures of material accounting policies, definition of Accounting estimates and deferred Tax related to Assets and Liabilities arising from a Single Transaction respectively along with other consequential amendment in IndAS 107, IndAS 34 and IndAS 101. Further, some editorial corrections have also been carried out in IndAS 101, IndAS 102, IndAS 103, IndAS 109 and IndAS 115.
The MCA vide General Circular no. 09/2023 dated 25.09.2023 has extended the time line to conduct Annual General Meeting (AGM) and Extra- ordinary General meeting (EGM) through Video Conference (VC) or other Audio visual (OVAM) or transact items through postal ballot for the year 2023 or 2024 on or before 30th September, 2024.
The MCA vide notification number G.S.R. 790 (E) dated 20.10.2023 has amended the Companies (Incorporation) Rules, 2014 through which imposition of cost at the time of processing of application filed for shifting of registered office has been removed.
When the management of the company has been taken over by new management under a resolution plan approved under section 31 of the Insolvency Bankruptcy Code, 2016 (31 of 2016) and no appeal against the resolution plan is pending in any Court or Tribunal and no inquiry, inspection, investigation is pending or initiated after the approval of the said resolution plan, the shifting of the registered office has been allowed.
A new rule has been inserted vide Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023 issued vide notification no. GSR 802(E) dated 27.10.2023 which provides for mandatory dematerialisation of shares of bigger private companies (i.e. private companies other than small companies). Adequate transitional period has been provided for such purpose.
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NB/VM/KMN
Release Id :-1991275
MCA Press Release 28 Dec 2023
Business So Simple 