CA Online

MCA zeroes in on 225,000 more suspected shell companies P P Chaudhary said the ministry had received a report from the Institute of Chartered Accountants of India (ICAI) on systemic issues that led to the PNB fraud The government is intensifying its drive against shell companies. After taking action against 226,000 shell companies last year, the Ministry of Corporate Affairs has now zeroed in on another 225,000 suspected shell companies. The ministry has sent notices to these companies, asking whether they had filed statutory financial returns. Minister of State for Corporate Affairs P P Chaudhary told Business Standard that companies had been given a chance to respond to the notices. On the Rs 139-billion Punjab National Bank fraud, Chaudhary said the Serious Fraud Investigation Office (SFIO) was probing 107 companies and seven limited liability partnerships (LLPs) belonging to Nirav Modi’s Firestar Diamond Group and Mehul Choksi’s Gitanjali group. Though the minister refuse...

  Hawkish RBI minutes rattle currency, gilts; rupee plunges to 13-month low The market was nervous after Reserve Bank of India (RBI) Deputy Governor Viral Acharya gave hints of a policy tightening The jubilation over low first-half borrowing was short-lived for the bond market. The 10-year bond yield hit 7.79 per cent in Friday morning trade, a level last seen in February, threatening to undo the entire gains earned since the announcement of light first-half borrowing. Bond yields, however, recovered sharply to close at 7.66 per cent, marginally higher than its previous close of 7.63 per cent. The recovery was possible because of heightened buying by nationalised banks, likely as an intervention measure. It was also aided by US President Donald Trump expressing his displeasure at high oil prices, according to bond dealers. The rupee also fell to a 13-month low of 66.11 a dollar from its previous close of 65.66 a dollar. It came under pressure as foreign investors liquidat...

PFRDA makes bank a/c, mobile number mandatory for NPS subscribers Pension fund regulator PFRDA has made bank account details and mobile number mandatory for subscribers of national pension scheme (NPS), the finance ministry said today. Further, in compliance with the Prevention of Money Laundering Act (PMLA) guidelines, the Pension Fund Regulatory and Development Authority (PFRDA) has also made Foreign Account Tax Compliance Act (FATCA) and Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI) mandatory for new and existing subscribers. PFRDA takes various initiatives from time to time in order to simplify and improve the operational issues in National Pension System (NPS), like new functionality development under NPS architecture, simplification of account opening, withdrawal and grievance management. "It has been decided by the authority to make bank account details and mobile number mandatory to provide ease of operation for the benefit ...

  Delink provisional credit from tax payment, say stakeholders Earlier, the GoM, headed by Bihar deputy chief minister Sushil Modi, had zeroed on two models of simplification In the effort to evolve a consensus over provisional input tax credit for the goods and services tax (GST), stakeholders have asked the group of ministers (GoM) on the subject to de-link this from payment. The panel will make a draft of all suggestions and give it to the GST Council, for the ultimate purpose of having a simpler, single form. The Confederation of Indian Industry (CII) has suggested provisional credit be given on the basis of acceptance of invoices by buyers, not linked to payment by suppliers. Saloni Roy, senior director at consultants Deloitte India, said: "The worry in pursuing the matching concept is, where a purchaser has paid his supplier and the supplier has either not reported his supply or deposited tax, the purchaser is penalised with denial of credit.” Prakash Maheshwari, m...

  Demonetisation led to highest fake currency, suspicious transactions  The country's banks received an all-time high amount of fake currency and also detected an over 480 per cent jump in suspicious transactions post demonetisation, a first-ever report on dubious deposits made in the wake of the 2016 notes ban has revealed. The banks, including those in the private, public and cooperative sectors, and other financial institutions collectively generated 400 per cent more suspicious transaction reports (STRs) at over 4.73 lakh such dossiers during 2016-17, the report said. \ The Financial Intelligence Unit (FIU), that analyses suspicious financial transactions pertaining to money laundering and terror financing as part of the Union Finance Ministry establishment, reported that counterfeit currency transactions in the banking and other economic channels witnessed an increase by over 3.22 lakh instances during 2016-17 as compared to the last year.  This, the report a...

  Petro products need to be brought under GST Petroleum and Naural Gas Minister Dharmendra Pradhan today stressed on bringing petroleum products under the GST to provide relief to common people from spurt in fuel prices following surging global crude oil rates. Both the central and state governments have started making up their mind in this regard, he said. Petroleum products are out of GST ambit which was rolled out in July last year. "The prices of petroleum products are all time high in past four years in international market due to some disturbances in Syria and US's threats to impose fresh sanctions on Iran," Pradhan told reporters here. "Government of India is concerned over it...petroleum products have to be brought under the purview of the Goods and Services Tax (GST) but since this is the first year of the implementation of GST, so states are concerned and hesitant about their income," the minister said while responding to a query in this rega...