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Assistance for Food Processing Industries (Ministry of Food Processing Industries Press Release dated 30 Nov 2021)

Posted on by Business So Simple in Business Consultancy, Entrepreneurship, MSME

In order to ensure overall development of Food Processing Industries in the country including to deal with challenges arising out of COVID-19, Ministry Food Processing Industries (MoFPI) has undertaken a number of initiatives as part of the Aatmanirbhar Bharat Initiative, which includes –

  1. Centrally Sponsored -PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) for providing financial, technical and business support for setting up/upgradation of 2 lakh micro food processing enterprises across the country during five years from 2020-21 to 2024-25 based on One District One Product (ODOP) approach with an outlay of Rs.10,000 crore.
  2. The expansion in scope of “Operation Greens scheme” under Pradhan Mantri Kisan SAMPADA Yojana from Tomato, Onion & Potato (TOP) from Tomato, Onion and Potato (TOP) to all notified fruits & vegetables (TOTAL).
  3. Production Linked Incentive scheme (PLIS) for Food Processing Sector with an outlay of Rs 10,900 Crore to support creation of global food manufacturing champions and support Indian brands of food products in international market.

Union Home Secretary, vide Order No 40-3 / 2020- DM –I (A) dated15thApril, 2020 dated, addressed to all Chief Secretaries/Administrators of States/ Union Territories, exempted Food Processing Industries in rural areas, apart from various agriculture and related activities from lockdown restrictions, subject to adherence of prescribed COVID norms. In order to facilitate food processing units resume their operations, MoFPI had established a dedicated Grievance Cell and a Task Force during initial phase of outbreak of COVID-19 Pandemic itself to liaison with state authorities. A total of 585 industry related issues were resolved during the COVID lockdown period in 2020 by the Cell.

This information was given by Minister of State for M/o Food Processing Industries, Shri Prahlad Singh Patel in a written reply in Lok Sabha today

Gross GST Collection in FY 2021-22 shows increasing trend (MoF Press Release dated 29th Nov 2021)

Posted on by Business So Simple in GST

The gross GST Collection in FY 2021-22 post COVID-19 pandemic outbreak are showing an increasing trend. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in written reply to a question in Lok Sabha today.

Giving more details, the Minister stated the gross GST collection for FY 2020-21 and 2021-22 (till Oct 2021) as under: –

Giving out the Gross Direct Tax collection figures for the FY 2021-22, the Minister stated that as on 23.11.2021 Gross Direct Tax collection figures for the FY 2021-22 are at Rs. 815262.7 crore showing a growth of 48.11% and 18.15% over the Gross collection figures for the corresponding period in FY 2021-22 and FY 2019-20, respectively. The Net Direct Tax Collection figures for the FY- 2021-22 as on 23.11.2021 are at Rs. 692833.6 crores showing a growth of 67.93% and 27.29% over the Net collection figures for the corresponding period FY 2020-21 and FY 2019-20, respectively as per Annexure-I, the Minister stated.

In relation to the compensation cess, the Minister stated that the GST compensation cess levied under Section 8 of the GST (Compensation to States) Act, 2017 is transferred into a non-lapsable Fund known as GST Compensation Fund which forms part of the Public Account of India as provided in Section 10(1) of the Act. The States are being compensated for any loss of revenue arising on account of implementation of GST for five years out of the Compensation Fund as per Section 10(2) of the said Act. GST compensation for financial years 2017-18, 2018-19 and 2019-20 has already been paid to the states, the Minister added.

The Minister stated that the economic impact of the pandemic has led to higher compensation requirement due to lower GST collection and at the same time lower collection of GST compensation cess. GST compensation of Rs. 1,30,464 crore has been released to all States/ UTs to partly meet the compensation payable for the period April’20 to March’21as the amount in GST Compensation Fund was not adequate to meet the full compensation requirement. This issue of shortfall in release in GST compensation was deliberated in 41st & 42nd GST Council meetings and accordingly, Centre had borrowed loan of Rs. 1.1 lakh crore from open market and passed on as back-to-back loan to States/UTs to meet their resource gap due to short release of GST Compensation for FY 2020-21. Similarly, as per deliberation in 43rd GST Council meeting, Centre has borrowed Rs. 1.59 lakh crore loan and passed on to the States/UTs as was done in last year. Taking into account GST compensation released to States as well as back-to-back loan, pending GST compensation to States/UTs is as per Annexure II, the Minister added.

17,130 Implementing Agencies are registered with MCA21 registry (MCA Press Release dated 29th Nov 2021)

Posted on by Business So Simple in Company Law, Legal awareness

The Government provides the broad framework for Corporate Social Responsibility (CSR) through Section 135 of the Companies Act, 2013 (‘Act’), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. This was stated by the Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh in reply to a question in Lok Sabha today.

The Minister stated that in the CSR Legal framework, the word ‘Non-governmental Organisations (NGO)’ has nowhere been defined, however, Section 135 of the Act read with Rule 4 of the Companies (CSR Policy) Rules, 2014 prescribes that the Board of the company is empowered to undertake its CSR activities either by itself or through Implementing Agencies as mentioned in the said rule. The Companies (CSR Policy) Rules, 2014 was amended on 22nd January, 2021 and registration of Implementing Agencies with the Central Government is mandatory with effect from 1st April, 2021, the Minister added.

Giving more details, the Minister stated that till 31.10.2021, total 17,130 Implementing Agencies are registered with MCA21 registry.

The Minister further stated that the CSR architecture is disclosure based and only CSR mandated companies are required to file details of CSR spent annually in the MCA21 registry. On the basis of filings made by the companies in the MCA21 registry, companies have spent a cumulative amount of Rs 20,150.27 Crore in FY 2018-19, Rs 24,688.66 Crore in FY 2019-20 and Rs 8828.11 Crore in FY 2020-21 respectively. An analysis of CSR filings made by the companies reveals that of the total annual CSR spent, approximately 60% of the CSR expenditure has been done through implementing agencies, the Minister added.

The Minister stated that as per the Act, companies are required to hold Annual General Meeting (AGM) within six months from the end of financial year. Thereafter, financial statements and board report containing disclosure about CSR, are to be filed in MCA21 within 30 days of the AGM. Ministry vide General Circular No. 17/2021 dated 29.10.2021 relaxed the levying of additional fees till 31.12.2021 for the filing of financial statement in respect of the financial year 2020-21. Further, filings for financial year 2021-22 are required to be made only after the end of current financial year.

Measures taken by MCA to ameliorate difficulties faced due to COVID-19 pandemic (MCA Press Release dated 29 Nov 2021)

Posted on by Business So Simple in Company Law, Legal awareness

The Ministry of Corporate Affairs (MCA) administers the provisions of the Companies Act, 2013 (the Act), The Limited Liability Partnership Act, 2008 and The Insolvency and Bankruptcy Code, 2016. MCA does not maintain data on event base. This was stated by the Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh in reply to a question in Lok Sabha today.

However, the Minister stated, the total number of new companies registered from 1.04.2016 to 31.3.2021 and till date is as per Annexure A.

Giving more details, the Minister stated that the term “closed company” is also not defined under the Act. However, pursuant to the provisions of section 248 (1)  of the Act where the Registrar has reasonable cause to believe that companies that are not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under section 455, shall after following the due process of law, struck off those companies from the Register of Companies.

The Minister further stated that companies are also dissolved through amalgamation or otherwise with the approval of the Hon’ble courts.  Accordingly, the details of number of such companiesfrom 1.04.2016 to 31.3.2021 and till date are as per Annexure B.

The Minister further stated the measures taken by MCA to address the ameliorate difficulties faced due to COVID-19 pandemic:

  1. The Companies Fresh Start Scheme, 2020 was launched to make a fresh start for companies to be a fully compliant company by allowing them to file belated documents in MCA 21 registry without any additional fees from 1st April to 31st December 2020. The said scheme has also given immunity from prosecutions and proceedings for imposition of penalty which might arise on account of such delayed filing of documents. As per records, 473131 number of Indian Companies and 1065 number of Foreign Companies have been benefited by availing the CFSS, 2020 scheme for filing their pending documents.
  2. The MCA introduced an LLP Settlement Scheme, 2020 to provide one-time relaxation in additional fees to the defaulting Limited Liability Partnerships (‘LLPs’) to make good their defaults by filing pending documents with the Registrar of Companies (‘ROC’ or ‘Registrar’) to ease the hassle of business enterprises.  The said scheme was initially rolled out from 16.03.2020 to 31.03.2020 for certain filings by LLPs. However, due to the COVID 19 pandemic the modified scheme to cover all e forms was rolled out from 01.04.2020 to 31.12.2020. Under the said scheme, the defaulting LLPs were permitted to file belated documents and the LLPs shall not be subjected to prosecution for such defaults.  As per records 105643 LLPs have been benefited by availing the LLP settlement scheme 2020 for filing their pending documents.
  3. Keeping in view the second COVID wave and considering the difficulties arisen due to resurgence of COVID-19 pandemic, the Ministry has granted relaxation on levy of additional fees for companies / LLPs in filing certain forms (other than a CHG-1 Form, CHG-4 Form, and CHG-9 Form). Accordingly, no additional fees shall be levied up to 31st July 2021 for the delayed filing of forms (other than charge related forms referred above) which were / would be due for filing during 1st April, 2021 to 31st May, 2021. For such delayed filings up to 31st July 2021 only normal fees shall be payable. The said time limit has been further extended to 31st August 2021 vide General Circular No.11/2021 dated 30.06.2021.
  4. In the wake of COVID 19 and to provide relief to law abiding companies a scheme was launched for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013 during the period from 01st March to 31st December, 2020. 
  5. Considering the difficulties arisen due to resurgence of COVID-19 pandemic, the Ministry vide General Circular no. 7/2021 dated 03.05.2021 has granted relaxation of timelines and condoned the delay in filing forms that are related to creation / modification of charges (CHG-1 Form and CHG-9 Form) by a company or charge holder and where the date of creation / modification of charge is (i) before 1.4.2021, but the time line for filing such form had not expired under section 77 of the Act as on 1.4.2021; or (ii) falls on any date between 1.4.2021 to 31.5.2021 (both dates inclusive). In the said circular, the detail of relaxation of time and applicable fees for filing the aforesaid forms was prescribed.  The Ministry further extended the aforesaid relaxation in the time for filing forms related to creation or modification of charges under the Companies Act, 2013 by substituting the figures “31.05.2021” and “01.06.2021” wherever they appear in the General Circular No. 07/2021 dated 03.05.2021 with the figures “31.07.2021” and “01.08.2021” respectively.
  6. MCA has announced a Condonation of Delay Scheme for Companies restored by NCLT between 1st December, 2020 to 31st December, 2020 under section 252 of the Companies Act, 2013. The Scheme provides to condone delay in filing forms with the Registrar, and spares payment of additional fees. This Scheme was in operation from 01st February 2021 and was available for filing of any overdue e-forms by such companies till 31st March 2021.
  7. In order to provide relief to the companies in view of COVID-19 pandemic, the companies have been allowed to conduct Board Meetings through Video Conference (VC) or other audio-visual means for passing resolutions in respect of matters which were earlier required to be passed in meetings which required physical presence of directors by amending the Companies (Meetings of Board and its Powers) Rules 2014 from time to time during COVID-19 pandemic.  Such facility to the companies was allowed till 30th June, 2021. (Initially it was till 30.06.2020, then extended to 30.09.2020 and 31.12.2020).  Thereafter, considering the second COVID wave, Rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 has been omitted vide notification dated 15.06.2021 to provide that all the matters can be deliberated & resolutions passed by Board of Directors through video conferencing or other audio visual means. The measure will provide increased flexibility to Boards of companies for conducting Business and further the Ease of Doing Business objective of the Government.
  8. The companies have been allowed to hold Extraordinary General Meetings (EGMs) through Video Conferencing (VC) or other audio-visual means (OAVM) complemented with e-Voting facility/simplified voting through registered emails till 30th June, 2021.  Considering the second wave of COVID-19, the Ministry has extended the aforesaid time limit to 31st Dec 2021.
  9. The companies have been allowed to conduct their Annual General Meetings (AGMs) by Video Conferencing (VC) or other audio-visual means (OAVM) whose AGMs were due to be held in the year 2020 or become due in the year 2021 to conduct their AGMs on or before 31.12.2021.  Owing to the difficulties in sending physical copies of the financial statements, the companies are also allowed to send the financial statements, along with Board’s reports, Auditor’s reports and other documents required to be attached therewith, only through email.
  10. The Registrar of Companies on the advice of Ministry had given extension of time in holding of Annual General Meeting for the financial year ended on 31 March, 2020 till 31st December, 2020 (The maximum period which can be extended by the Registrar of Companies under section 96 of the Act).
  11. Quality of disclosures strengthened through amendments made in the formats of financial statements, Companies (Accounts) Rules, Companies (Audit and Auditor’s) Rules and the Companies (Auditor’s Report) Order, 2020. The Companies (Auditor’s Report) Order, 2020 has now been made applicable from the audit of financial statements for the financial year 2021-22 to ease the compliance requirement by auditors and the companies.
  12. The Companies (Indian Accounting Standards) Rules, 2015 have been amended vide notification dated 18.06.2021 inter-alia to extend the benefits of COVID-19 related rent concession, that were introduced last year, from 30th June, 2021 to 30th June, 2022.
  13. The mandatory requirement of holding meetings of the Board of the companies within the intervals provided in section 173 of the Companies Act, 2013 (CA-13) (120 days) were extended by a period of 60 days till next two quarters i.e., till 30th September, 2020.  Considering the second COVID wave, the Ministry further extended the aforesaid relaxation for the year 2021-22 and accordingly the time gap between two consecutive meetings of the Board may extend to 180 days during the Quarter – April to June 2021 and Quarter – July to September, 2021, instead of 120 days as required in the Companies Act, 2013.
  14. Independent Directors (IDs) of a company have been given relaxation from holding atleast one mandatory meeting and accordingly for the financial year 2019-20, if the lDs of a company have not been able to hold such a meeting, the same has not been viewed as a violation.
  15. The Ministry enhanced the period to thirteen months from 1st December, 2019 within which existing Independent directors may apply online for inclusion of their names in the databank for Independent Directors vide amendments in the Companies (Appointment & Qualification of Directors) Rules, 2014 from time to time.  Further, the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019 have been amended vide notification dated 18.06.2021 to provide that in case an individual has delayed in applying to the Institute for inclusion of his name in the data bank of Independent Directors or in case of delay in renewal thereof, the Institute shall allow such inclusion or renewal, as the case may be, after charging a further fees of one thousand rupees on account of such delay. Through this amendment requests made by a large number of stakeholders to grant additional time for delayed applications in view of Covid-19 pandemic have been addressed. 
  16. Timeline for creation of deposit repayment reserve of 20% under section 73(2)(c) of CA-13 and to invest or deposit 15% of amount of debentures under rule 18 of Companies (Share Capital and Debentures) Rules, 2014 was extended till 31st December, 2020.
  17. An additional period of 180 more days has been allowed to comply with the requirement of filing a declaration for Commencement of Business by newly incorporated companies.
  18. Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the CA-13 shall not be treated as a non-compliance for the financial year 2019-20 and 2020-21.
  19. Till 31st December, 2020, the inability to dispatch the notice for Rights Issues by listed companies to their shareholders through registered post or speed post or courier would not be viewed as violation of section 62(2) of the Act provided these companies comply with the SEBI Circulars dated 6th May, 2020 and 24th July, 2020 which inter-alia provide the mode/manner of issuance of notice by electronic transmission by listed companies.
  20. Requirement for investing 15% of amount of debentures maturing in a particular year in specified instruments has been done away with for Listed companies & NBFCs when such debentures are issued on a private placement basis.
  21. Time allowed to Auditors and Audit Firms for filing NFRA-2 form with the NFRA has been extended till a total period of 270 days in view of the difficulties faced during COVID-19 related disruption.
  22. The expenditure incurred by companies on activities relating to Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) Veterans, and their dependents including widows has been considered as CSR expenditure.
  23. Last date of submission of Cost Audit Report by the Cost Auditor to the management of the company has been extended till 31st December 2020 and additional fee has been relaxed for filing of CRA-4 (form for filing of cost audit report) for financial year 2019-2020. MCA vide circular no. 15/2021 dated 27.09.2021 has extended last date of filing of submission of Cost Audit Report for the financial year 2020-21 by 31st October, 2021 and further extended upto 30th November, 2021 vide circular no. 18/2021 dated 29.10.2021.
  24. MCA vide General Circular No.17/2021 dated 29.10.2021 has provided relaxation on levy of additional fees in filing of e-forms AOC-4, AOC-4 (CFS), AOC-4, AOC-4 XBRL AOC-4 Non-XBRL and MGT-7/MGT-7A for the financial year ended on 31.03.2021 under the Companies Act, 2013.

Judiciary updates-28th Nov 2021

Posted on by Business So Simple in Legal awareness

Sale deed of immovable property Without Payment of Price Is Void: SC

Kewal Krishan Vs Rajesh Kumar And Ors. Etc. (Supreme Court) dated 22/11/2021

HC dismisses PIL against Organising Ranchi T-20 Match With Full Audience Capacity

Dheeraj Kumar Vs State of Jharkhand (Jharkhand High Court) dated 18/11/2021

Credit of story & screenplay, doesn’t acknowledge copyright of film to author

S.J.Suryah (a.k.a. S.Justin Selvaraj) Vs S. S. Chakravarthy (Madras High Court) dated 12/11/2021

No power under Employees’ State Insurance Act to waive statutory interest: SC

Transport Corpn. of India Ltd. Vs Employees State Insurance Corpn. (Supreme Court of India) dated 29/10/2021

Auction purchase- Stamp Duty/Registration not payable when filing copy of sale certificate

Tripower Enterprises (Private) Limited Vs Sub Registrar (Madras High Court)  dated 08/11/2021

Opportunity to file application for discharge granted to petitioner (A CA) in a criminal case

Thomas Cherian Vs CBI Thiruvananthapuram Unit (Kerala High Court) dated 03/11/2021

Regards

Bipul Kumar

National Single Window System, Portal now hosts approvals across 18 Central Departments and another 14 Central Dept. & 5 States will be added by December’21 (Ministry of Commerce & Industry Press Release dated 27 Nov 2021)

Posted on by Business So Simple in Business Consultancy, Entrepreneurship, MSME

National Single Window System, Portal now hosts approvals across 18 Central Departments and another 14 Central Dept. & 5 States will be added by December’21.” -Shri Piyush Goyal


Industrial Land Bank now Integrated with GIS systems of 17 states, the ILB has a database of more than 4,000 industrial parks mapped across an area of 5.5 lakh hectare of Land– Shri Goyal

New India will be powered by Aatmanirbhar Bharat & Ease of Doing Business, says Shri Piyush Goyal

“Government’s 5 ‘Is’ approach to make India self-reliant: Intent, Inclusion, Innovation, Infrastructure & Investment”

“Ideate in India, Innovate in India & Make in India – For the World”, Minister’s message to Industry

Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal has said we have to find new ways of financing infrastructure. Addressing the CII National Conference on ‘Ease of Doing Business for Aatmanirbhar Bharat’, Shri Goyal said a New India will be powered by Aatmanirbhar Bharat & Ease of Doing Business (EoDB).

“The very fact that the Prime Minister spoke of going into the Top 50 just changed the way all of us looked at, – government and industry,” adding, “The Prime Minister is already edging us, – 50 was an initial target I set in the first term, now you have to be more ambitious, – you should be in the Top 25!” said Shri Goyal.

Noting that the Top 40 countries are “very highly Developed countries, Shri Goyal pointed out “piercing that curtain and then doing better than them is a Big Challenge!” “So! That’s what we are here for!” said Shri Goyal, quoting the Prime Minister.

Shri Goyal listed out the Government’s 5 ‘Is’ (Intent, Inclusion, Innovation, Infrastructure & Investment) approach to make India self-reliant. “Believe me! The most Developed countries and some of the countries who are currently on a fast trajectory of growth, if you study their growth story, you will find it one of their biggest pillars of growth story is Innovation! There are new ideas, new ways of doing things,” he said.

Quoting the Prime Minister Shri Narendra Modi, Shri Goyal said the ultimate aim of EoDB reforms is to achieve Ease of Living for citizens. “I think, today India means Business and the world recognizes that. With political stability, policy continuity, pro-growth & pro-business thinking in the Government and in our young entrepreneurs and the Startups, in our traditional businesses, this is the time to really go for it.”

Shri Goyal said the Government is undertaking five structural reforms for EoDB:

1. National Single Window System, – a one-stop-shop for approvals & clearances needed by investors & businesses. It includes Know Your Approval, Common Registration Form, Document repository, etc. Portal hosts approvals across 18 Central Departments & 9 States. Shri Urging all the industry stakeholders to use the NSWS and give feedback & suggestions, Goyal said, “Further, another 14 Central Dept. & 5 States will be added by December’21, but our ambition is much, much more.”

2. Industrial Land Bank, – a GIS-based portal, serving as a one-stop repository of all industrial infrastructure related information. Integrated with GIS systems of 17 states, the ILB has a database of more than 4,000 industrial parks mapped across an area of 5.5 lakh hectare of Land. “You will be amazed, Ladies & Gentlemen, there’s 1 lakh ha of land available for industry, for business across the country,” said Shri Goyal.

3. Regulatory Compliance Portal, – it’s a real-time dashboard under direct monitoring of the Cabinet Secretary to track progress. States & UTs have eliminated burdensome compliance by removal of unnecessary licenses, permissions, rationalization of renewals, self-regulation and self- certification should be the way forward.

4. State Reforms Action Plan (SRAP), – Centre working with the states trying to promote healthy competition in a spirit of cooperative federalism among states & led to digitization of procedures. Shri Goyal said, a 301-point State Reforms Action Plan, 2020 has been shared with the States/UTs covering 15 reform areas.

5. PM Gati Shakti, – launched to build next-Gen infrastructure, the Gati Shakti portal provides multimodal connectivity to ensure integrated & seamless connectivity. Underlining that Gati Shakti will break departmental silos & institutionalize holistic planning, Shri Goyal said all Departments will now have visibility of each other’s projects through a centralized portal.

Shri Goyal said our Industry will have to lead the way in India’s endeavour to become Aatmanirbhar. “I would like to emphasis on 4 points for enhanced industry contribution,” he said.

1. For Indian Inc to be the best, need to have a greater appetite for taking risks.

2. “Holistic solution” to commercial disputes problems.

3. Need to “Look beyond cost” for building a “Resilient Ecosystem”.

4. Greater focus on Innovation, Sustainability and “Brand India”.

Making a quote, “Opportunity does not knock, it presents itself when you are actively looking for it”, Shri Goyal said India today is the new land of opportunities, inviting the world to “Ideate in India, Innovate in India & Make in India – For the World.”

Income Tax Department conducts search operations on two major real estate developers of Ludhiana (Ministry of Finance Press Release 27th Nov 2021)

Posted on by Business So Simple in Income Tax

The Income Tax Department initiated search and seizure operations on two major real estate developers of Ludhiana on 16.11.2021. The search action covered around 40 premises in Ludhiana.

The major finding emanating from these search and seizure operations of both the groups is about the receipt of unaccounted cash by these groups by way of on-money on property transactions. During the course of search proceedings documentary evidences in the nature of ‘agreement to sale’, (popularly known as ‘Biyana’ in local parlance), for certain properties have been found and seized. These documents indicate that the ‘agreement to sale’ for plots has been executed at much higher amount/rate as compared to the consideration disclosed in registered sale deed of the plot. Further, incriminating documents such as loose sheets, excel sheets showing calculation of receipt of on-money of certain property transactions, soft data, chats from mobile phones of the persons concerned, etc. have also been recovered. A preliminary analysis of these evidences clearly indicates the receipt of unaccounted cash by way of on-money on property transactions. Besides, certain other corroborative evidences supporting the receipt of on-money have also been gathered.

Investigations have also revealed that unaccounted cash expenditure has been incurred on construction of residential house of one of the key persons. 

In one of the groups, defaults on compliances for the provisions of tax deduction at source have been detected with regard to payments made to the sellers of the land, etc.

The search action has resulted in seizure of unaccounted cash of about Rs. 2.00 crore besides foreign exchange, and unexplained jewellery of about Rs. 2.30 crore.

  Further investigations are under progress

DRI intercepts 2 passengers with illicit foreign currency worth Rs 3.7 crore at Mumbai International airport (MoF Press Release 26 Nov 2021)

Posted on by Business So Simple in Custom

Under Operation Cheque Shirts, using data analytics, Directorate of Revenue Intelligence developed specific intelligence on two passengers intending to smuggle foreign currency outside India. DRI officers intercepted these two passengers at the Chhatrapati Shivaji Maharaj International Airport, Mumbai, in the early hours of 26th November, 2021.  They were scheduled to travel to Sharjah. Examination of their baggage yielded foreign currency in the form of US Dollars and Saudi Dirhams, valued at Rs 3.7 crore.

 

The foreign currency was found concealed deep in ingeniously designed false bottoms of the carry-on luggage. The mode and manner of concealment would have made the detection difficult in ordinary baggage scans.

The two intercepted passengers had no documents for the illicit possession or for legal export of the said foreign currency. The foreign currency recovered from these passengers has been seized in terms of Section 110 of the Customs Act, 1962. Further investigations in the matter are on.

Besides amounting to “smuggling” in terms of the Customs Act, illicit export of foreign currency provides a means for laundering proceeds of unlawful and criminal activities. Further, it also poses a grave threat to national economy and national security.

DRI maintains an active vigil and operational readiness to check the smuggling of foreign currency, gold, narcotics and other contraband goods into and out of India. This was the fourth such case of large foreign currency seizure at an international airport, in the last one and a half months.

Sovereign Gold Bond Scheme 2021-22 (Series VIII) – Issue Price (MoF Press Release dated 26 Nov 2021)

Posted on by Business So Simple in Financial Prudence

In terms of Government of India Notification No.4(5)-B(W&M)/2021 dated October 21, 2021, Sovereign Gold Bonds 2021-22 (Series VIII) will be opened for subscription during the period November 29- December 03, 2021 with Settlement date December 07, 2021. The issue price of the Bond during the subscription period shall be Rs 4,791 (Rupees Four thousand Seven hundred ninety one only) – per gram, as also published by RBI in their Press Release dated November 26, 2021.

The Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs 4,741 (Rupees Four thousand seven hundred forty one only) per gram of gold.

Global Access to Broker Dealers (IFSC Authority Press Release dated 25th Nov 2021)

Posted on by Business So Simple in Financial Prudence

The International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021 (CMI Regulations) have been notified in October 2021 providing the regulatory framework for various categories of capital market intermediaries operating in the International Financial Services Centres (IFSC), including broker dealers.

The broker dealers play a significant role in development of the capital market ecosystem, particularly retail participation. The Expert Committee Report on IFSC International Retail Business Development had recommended that the broker dealers in the IFSC may be provided access to global markets.

Based on the representations received from stakeholders at various forums and in line with the practices in some of the competing offshore jurisdictions, the broker dealers in the IFSC have been permitted access to global exchanges outside IFSC with adequate checks and balances.

The broker dealer in the IFSC is permitted to access global access through any of the following manners:

  1. Cross-border arrangement with an entity providing access to an exchange outside IFSC, provided that such entity is a regulated entity in the other jurisdiction; or
  2. Registering itself as a trading member of an exchange outside IFSC, provided that the broker dealer is trading on its proprietary account and does not have any client dealing.

The broker dealer providing global access shall comply with the regulatory provisions of the CMI Regulations and conditions laid out in the circular issued in this regard.

Further details on the global access are available on the IFSCA website at https://ifsca.gov.in/Circular