CA Online

SEBI probing into sharing of listed companies info on social media Markets regulator Sebi will look into the complaints of some individuals allegedly circulating key financial details and other information about listed companies on social media groups before they are made public, an official said. Sebi will also seek clarification from brokerages and listed firms if such individuals are found to be associated with them, the official said on the condition of anonymity. The information about the listed companies are mostly being made through SMSes, WhatsApp and various social media platforms, wherein names of some established brokerage houses and exchanges are also being misused. While the Securities and Exchange Board of India (Sebi) has already taken action in several such cases so far, it is investigating a number of others involving similar activities, the official said. Citing an investigation, Reuters reported today that messages are being circulated on private WhatsApp

RBI Likely to Zero In on 50 More Stressed A/Cs The Reserve Bank of India is likely to come up with a fresh list of around 50 loan accounts that are either under stress or close to being classified as nonperforming assets. The regulator may set a March 31 deadline for banks to find a resolution on these or commence bankruptcy proceedings against the borrowers, a finance ministry official said. These accounts are in addition to the 41 that the central bank has already identified, including several against which banks have now started bankruptcy proceedings. This new list of accounts had come up during discussions on the recapitalisation of state-run banks. These assets identified by the RBI have been accounted for in the ? 2.1-lakh crore bank recap ? plan announced last month, and so will not bloat the capital requirement of lenders beyond what has been estimated, the official said. But classifying the loans as NPA will dent the profitability of banks, as they must set aside more

Cabinet clears setting up of GST anti profiteering body The Cabinet on Thursday set the ball rolling for establishment ofanational antiprofiteering authority amid reports that restaurants were not passing on the benefits of reduced goods and services tax (GST) rates to consumers. The Cabinet cleared the creation of the posts of chairman and members of the authority, which will ensure consumers receive the benefits of reduced prices in the new indirect tax regime. “This paves the way for immediate establishment of this apex body,” said Union law minister Ravi Shankar Prasad. “The National AntiProfiteering Authority is an assurance to consumers. If any consumer feels the benefit of tax rate cuts is not being passed on, he can complain to the authority,” the minister added. The GST Council had last week decided to lower rates on about 200 items. It had also reduced the rate on restaurants to five per cent. There have been complaints that some restaurants are not passing

Sebi Attaches UBHL Bank Accounts, MF Units and Securities Says Mallya-owned co defaulted on ?15 L penalty imposed by regulator in 2015 The Securities and Exchange Board of India has attached all bank accounts, securities and mutual fund units held by Vijay Mallya-owned United Breweries Holdings Limited (UBHL).The regulator said UBHL has defaulted on the payment of a penalty imposed by it in 2015. It has directed banks, depositories and mutual funds not to allow any debit in their accounts. However, credits have been allowed. Sebi had imposed a penalty of ?15 lakh in 2015 for disclosure lapses by United Breweries Holdings. The regulator said United Breweries is liable to pay the amount along with an interest of 12% per annum (from Nov 27, 2015 to Nov 13, 2017), which adds up to ?3.5 lakh, and a recovery cost of ?1,000, a total of ?18.5 lakh. “There is sufficient reason to believe that the defaulter may dispose of the amounts in the bank accounts/securities in the demat accounts held

Govt finds 130,000 firms without PAN An investigation the Ministry Affairs (MCA) more than 130,000 out of 224,000 taken did not have a permanent account number (PAN) even as they transacted crores of rupees.Sources said the probe indicated only 93,000 firms off by the Registrar of Companies had PAN, which is mandatory transaction above Rs 50,000. The findings showed these firms did not pay taxes and made it difficult for the authorities to track their transactions, sources said. Absence of statutory filings was cited as a reason for deregistering the firms. It is learnt that the Ministry of Corporate Affairs is now likely to examine whether all active companies have PAN or not. After the recent rounds of deregistration by RoC, 1.13 million companies remain active.The PAN issue adds to the concerns of the ministry over many banks failing to submit post demonetisation transaction details of companies which were deregistered recently. State Bank of India (SBI), for instance, has not p

Surat is the new shell firm capital Surat has replaced Kolkata as the new capital of shell firms that evade taxes.According to the income tax (IT) department,a majority of the companies featuring on the new list of firms provided by the government are based in Kolkata had topped the first list. The tax department began tightening the noose shell firms earlier this year, as more details such companies to light after In the new list, tax have found over 80 per cent of the 2,138 shell firms, which deposited unaccounted cash of at least Rs 5,000 crore during the note ban, were from Surat. The tax department expects this number to go up.This list featured 5,800 shell companies, shortlisted by the finance ministry, which had deposits of Rs17,000 crore in near zero balance accounts after demonetisation and nearly an equal amount of withdrawal thereafter. Earlier, the tax department had identified 16,000 shell firms floated in Kolkata between 2011 and 2015, to launder money.The probe

No GST on Advance Taken by FMCG Cos Cos say amount taken from dealers was not against a specified product and so tax rate was not clear In a big relief to all FMCG companies and others that take advance from dealers before they supply goods, no goods and services tax (GST) would be levied on such advance.The department of revenue has issued a notification allowing the relaxation after the same was approved in the GST Council meeting last week in Guwahati. The notification exempts all taxpayers from payment of tax on advances received in case of supply of goods. The companies were having trouble levying GST on such advance as it was not against a specific product and so it was not clear what rate had to be applied.Besides, some funds were blocked because of this payment of tax on advances. “Under VAT regime, there was no tax on advances for goods but was introduced under GST. Since the input credit was only available after receipt of goods, this led to working capital blockage f