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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,

Banks without Aadhaar centres to face Rs 20,000 fine The Unique Identification Authority of India (UIDAI) has given banks one more month to open Aadhaar enrolment centres inastipulated 10 per cent of branches. UIDAI will imposea Rs 20,000 fine per uncovered branch after September 30, chief executive officer Ajay Bhushan Pandey said. UIDAI, in July, had asked private and public banks to open Aadhaar enrolment and updation facility in one out of the every 10 branches by Augustend. The reprieve of one month has now been granted as many banks sought additional time from the authority for setting up such facility on their premises. The Business Standard, New Delhi, 06th September 2017

Exporters demand total exemption from GST Exporters have petitioned the government for an outright exemption on payment of goods and services tax, saying that the time it takes to get reimbursements under the current mechanism was causing a working capital crunch. According to industry claims, about Rs 1.85 lakh crore of working capital will get stuck annually due to the implementation GST. Several exporters said they are already facing a capital shortage and have begun to turn away orders. Prior to the implementation of GST on July 1, exporters were exempted from paying duties. Now, they have to pay the tax first and then seek a refund, a process that ties up a portion of their working capital and pushes up manufacturing costs as they have to pay duties on inputs. This has particularly hit small exporters, who work on meagre resources and for whom getting bank financing is tough. Moradabad-based brass handicraft manufacturer and exporter Paragon Metals has Rs 6 lakh of drawback bl

Over 2 lakh companies' bank accounts frozen The Finance Ministry has imposed restrictions on the operation of bank accounts of more than 2 lakh companies which have been "struck off" from the Register of Companies.The bank accounts of these companies will remain frozen unless they are legally restored by the National Company Law Tribunal (NCLT). All banks have been asked to take immediate and appropriate action. The Finance Ministry's official statement These individuals will not be able to operate bank accounts till such companies are legally restored by an order of the NCLT.Struck-off companies failed to respond to show-cause notices Most of these companies have been removed from the RoC due to issues with filing of returns and other formalities related to compliance. This was done after notices had been served to 2.97 lakh companies which had failed to respond to show-cause notices sent earlier. The existing directors and authorized signatories of these compani

House panel to meet on bankruptcy resolution Wednesday will see the first meeting of Parliament´s joint committee to study the government´s Bill to put in place a resolution framework to deal with bankruptcy situations at banks, insurance companies and entities such as nonbanking financial companies. The Financial Resolution and Deposit Insurance Bill was referred to the joint committee on August 10, during the monsoon session, and the panel was constituted on August 19. It has 20 members from the Lok Sabha and 10 from the Rajya Sabha. Bhupender Yadav, the latter´s member from the ruling Bharatiya Janata Party, heads it.The report is supposed to come in the winter session of Parliament. This, with the Insolvency and Bankruptcy Code enacted last year, is aimed to provide a comprehensive resolution mechanism. It is to put in place the process for designation of systemically important financial institutions, establishment of a Resolution Corporation for protection of consumers of spec