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Irdai approves new broking consultancy norms The Insurance Regulatory and Development Authority of India (Irdai) will soon allow insurance brokers to offer consultancy for claims not exceeding  Rs 10 crore without the need for regulatory approvals. For claims exceeding Rs10 crore, the brokers will have to seek prior approval from the regulator. The last Irdai board meeting held in August cleared changes to the Brokers Regulations, said Sanjay Kedia, president, Insurance Brokers Association of India, adding that a formal notification is expected to be out soon. For the past one decade, the association’s stand has been that policyholders should have a choice to decide their service provider with regard to claims. Kedia said the broker represented the policyholder, and not allowing a policyholder to access the services of a qualified licensed broker in a completely free manner was denying him/her the right to exercise claim settlement. The Business Standard, New Delhi, 07th Septem...

Startups, unlisted companies on black money radar, probe on 200 entities Startups and unlisted subsidiaries of some major Indian companies and multinationals find themselves in the crosshairs of the income tax department for raising funds through preference shares in excess of what it considers the fair market value. The investigation arm of the income tax department has sent notices to about 200 entities under Section 56(2)(vii)(b) of the Income Tax Act, 1961, in August, two people with direct knowledge of the matter told ET. Fair market value is assessed by the tax department based on past transactions and the record of similar, comparable companies. The Section is often applied when it’s suspected that companies may be issuing shares at a premium over the fair value for laundering unaccounted cash. “In cases where deals have been done at valuations higher than the fair value arrived at by tax authorities, queries have been raised,” said Abhishek Goenka, partner, corporate and in...

Govt sets in motion anti-profiteering mechanism Businesses not passing on the benefits of lower tax incidence under the goods and services tax may be in for trouble, with the government notifying the standing committee to receive complaints on profiteering. A four-member standing committee, comprising two officers each from the Centre and states, will examine the complaints and refer cases for investigation if they find merit. “If you have got any complaints, you can send it to the standing committee or state-level screening committee,” said Revenue Secretary Hasmukh Adhia at the Business Standard GST Round Table. The detailed procedure for approaching the committees will be announced soon, he added. Meanwhile, states are in the process of notifying the state-level screening committees, which will also include central government nominees. The anti-profiteering law is a deterrent mechanism under the GST that makes it mandatory for businesses to pass on the benefits arising out of lo...

Govt orders freezing of over 2L cos’ a/cs In a major clampdown against black money, the government on Tuesday directed freezing bank accounts of more than 2.09 lakh companies whose names have been struck off from the records and said action would be taken against more such firms. Banks have also been asked to step up their vigil against those companies that are non-compliant with various regulations and not carrying out business activities for long, a senior finance ministry official said as authorities continue their crackdown against shell entities. The official said banks have been directed to freeze the bank accounts of these deregistered companies. While warning that ac- tion would be taken against erring firms, the official said the efforts would help in enhancing corporate governance standards as well as clean up of the system that otherwise is prone to be misused. The names of over 2.09 lakh firms have been struck off from register of companies for failing to comply with re...

File GST returns on time and plan your vacation, says Adhia Revenue Secretary Hasmukh Adhia at the Business Standard GST Round Table 2017 in New Delhi on Wednesday The days of leniency may be numbered in the good and services tax (GST) regime. Cautioning industry against incomplete and late filing of the GST returns, Revenue Secretary Hasmukh Adhia on Wednesday said, “Right now, we are not touching you. But the tax authorities will find out, and then you will be subject to penalties.” In his keynote address at the Business Standard GST Round Table, Adhia asked an estimated 1.1 million entities with incomplete registrations to finish the process on the GST Network without waiting for another extension in the date for filing returns, so that they don’t come under the tax scanner and face penalty. Ruling out any further extension in the date for filing returns, the revenue secretary elaborated on the success of the biggest indirect tax reform. Around 74 per cent of the fully migrated, ...