Benami properties of Rs 43 bn attached; Jaipur and Mumbai top the list
The income-tax (I-T) department has attached over 1,500 unaccounted properties worth Rs 43 billion across the country within one and a half years of the introduction of the revised Benami legislation. Jaipur and Mumbai top the list, with attachments of 200 properties each. Patna has seen the least number of attachments at 30, followed by Lucknow at 50, while in Kolkata, Chandigarh, and Hyderabad, 144, 110, and 100 properties got attached, respectively, says a finance ministry official.
Lower threshold for ‘beneficial owners’; new rules take effect from June 30
To identify the effective owner of a corporate entity, the ministry of corporate affairs has notified rules on ‘beneficial owners’. This provision had, in a different form, been part of the Companies Act, 1956, under section 180(7) (3). The new avatar comes under Section 90 of the Companies Act, 2013, as amended in 2017. The rules take effect from this Saturday. Earlier, an entity or an individual holding at least 25 per cent stake in a company, either alone or with related parties, was considered a significant beneficial owner.
GST: Dramatic decline in VAT-era tax evasion
An analysis conducted by three states — West Bengal, Madhya Pradesh and Maharashtra — suggests that taxpayers may have under-reported value of goods entering these states by nearly Rs 2.6 lakh crore during July 2017 to March 2018. Government officials and tax experts, however, point out that a large part of this is likely to be the amount of tax evasion — in the pre-goods and services tax (GST) or VAT era — that has, in fact, been stopped by the implementation of GST. The analysis, discussed in the last GST Council meeting, was based on a comparison between declarations in the ‘C’ from in 2016-17 with those under Integrated GST (I-GST is applicable on interstate sales).
Food retail firms need to maintain separate books of accounts, inventories
Food retail firms having foreign investments will have to maintain separate books of accounts and inventories in warehouses, the government has clarified. Currently, the government permits 100 per cent foreign direct investment (FDI) in the food processing sector, under approval route. As per norms, a foreign company can open a wholly-owned subsidiary in India to retail food products produced and or manufactured in the country by way of opening stores or online.
Orchid Pharma CoC approves Ingen Capital resolution plan
The committee of creditors (CoC) for Chennai-based Orchid Pharma has approved the resolution plan from Ingen Capital Group. The resolution professional (RP) will be submitting the CoC-approved resolution plan to the Chennai bench of the National Company Law Tribunal (NCLT), Orchid Pharma said in filing to the stock exchanges, on Monday. Ingen Capital is a manager of fixed income and distressed asset funds that invest globally in transportation infrastructure, renewable power utilities and healthcare. The financial details of the bid were not available immediately.
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