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Showing posts from July 28, 2017

IT dept to share vital data with MCA to nail down shell cos

The tax authorities will now relay audit reports of corporates and specific information from their I-T returns as also PAN data to the ministry of corporate affairs, as the government plans to crack down harder on shell companies. Coming down heavily on shell companies, the Ministry of Corporate Affairs (MCA) has already cancelled registrations of over 1.62 lakh companies for non-filing of financial statements for the immediate two preceding fiscals. The Central Board of Direct Taxes (CBDT), the apex policy making body of the I-T department, in an order has asked the Principal Director General of Income Tax (Systems) to share "bulk information" to the MCA. Bulk information would mean Permanent Account Number (PAN) data of corporates, their Income Tax returns (ITRs), audit reports and statement of financial transactions (SFT) received from banks relating to corporates. Also the tax department would share identified PAN Challan Identification Number (CIN) as well as PAN Director i…

GST compliance delays billing cycle for telecom companies

A section of postpaid users and corporate customers are getting their monthly mobile bills late as big phone companies are struggling to capture the impact of the goods and services tax (GST) on invoices issued post-July 1.  Bharti AirtelBSE -1.17 %, India’s No 1 phone company, has sent out text messages to some of its postpaid customers saying their bills would be delayed by at least a week this month owing to technical issues. ET has seen these text messages.  Airtel BSE -1.17 % postpaid customers in Delhi and Kolkata told ET that they had been informed by the company’s customer care wing that the reason behind the delayed billing was GST-related.  The country’s second-largest mobile carrier, Vodafone India, in turn, is learnt to be facing a tough time billing corporate or ‘enterprise customers’ on schedule as many clients have not shared their GST registration numbers.  Under GST rules, telcos are required to the mention a corporate customer’s GST registration number in their monthly m…

Without UID, expatriates unable to file tax returns

Many expatriates living in India and non-resident Indians living in any other country may just end up in tax trouble with no fault of theirs. They all are set to miss the July 31 deadline for filing income-tax returns due to snags in the e-filing system.  Several expats are unable to file tax returns because the e-filing system would not accept it without an Aadhaar card link.  This despite the government, through a recent notification, clarified that foreign citizens are not required to obtain Aadhaar card for tax filing purpose. “In several cases, the income tax e-filing system is not allowing expatriates to upload their returns without Aadhaar as they have been tagged as Indian citizens in the income tax database,” said Amit Maheshwari, partner at Ashok Maheshwary & Associates LLP that is helping several expats deal with the problem. “This anomaly seems to have its origin at the time of allotment of PAN,” he said. That is not the only problem.  “In several cases, expats who are no…

Amendments to companies law passed to ensure stringent action against defaulters

Minister of State for Corporate Affairs Arjun Ram Meghwal said the passage of this Bill will help increase the size of the country’s economy and investor protection and corporate governance were the two main objectives of the measure The Lok Sabha on Thursday passed a Bill to amend the companies law seeking to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve the ease of doing business in the country. Piloting the Companies (Amendment) Bill, 2016, Minister of State for Corporate Affairs Arjun Ram Meghwal also said that NSEL and PACL scams were a legacy of the previous regime, which the current government is trying to address. The Bill, which was passed by a voice vote, provides for more than 40 amendments to the Companies Act, 2013, which was passed during the previous United Progressive Alliance (UPA) regime. The Bill was introduced in the Lok Sabha in March 2016, and then referred to the Standing Committee on Finance. Af…

Reserve Bank extends 'rest' period for auditors to 6 years

Central bank has extended the rest period of statutory auditors to at least 6 years The Reserve Bank of India (RBI) on Thursday criticised private and foreign banks for appointing the same set of auditors alternatively after mandatory rest of two years, as such practice establishes a “comfortable relationship that may lead to compromise in strict adherence to audit principles. As per the extant rules, a statutory auditor has to be appointed for a period of four years and then there should be a rest of two years. Now the central bank extended the rest period to at least six years. According to RBI, in some cases in private and foreign banks, the same audit firm was reappointed after a gap of two years’ rest. In a few other banks, the immediately preceding statutory auditor firm was appointed on completion of the four-year tenure of the current statutory auditor. “The statutory central audit responsibility in such banks thus remained confined to two audit firms which were appointed on a cyc…