Page 16 - Banking Finance June 2023

ROUNDUP

limited liability partnerships or trusts, sides audit deficiencies, the regulator project is estimated to generate 4.5
and buying and selling of business en- also alleged the auditors of abdicating million carbon credits. With the value
tities. responsibility, resulting in professional of each carbon credit calculated at $6,
misconduct. the income under the current project
Parminder Chopra, first will be to the tune of Rs 230 crore.
GST evasion doubles to Rs. Carbon markets are trading models
woman to head PFC
The Public Enterprise Selection Board 1.01 lakh crore in FY23 wherein carbon credits are sold and
bought. It allows investors and compa-
(PESB) has recommended the name of GST evasion detection by tax officers
nies to simultaneously trade carbon
Parminder Chopra to succeed as the almost doubled year-on-year to over Rs
credits and carbon offsets. This miti-
next CMD of India's largest NBFC by 1.01 lakh crore in the just concluded
gates the environmental crisis, while
networth (all reserves), Power Finance 2022-23 fiscal, an official said.
creating new market opportunities.
Corporation (PFC).
During the last fiscal, a recovery of Rs
Each tradable carbon credit equals a
Chopra will be the first woman to be 21,000 crore was made by the officers
tonne of carbon dioxide or other
appointed as the Chairman and Man- of the Directorate General of GST In-
greenhouse gases reduced or seques-
aging Director (CMD) of the telligence (DGGI).
tered. The global carbon credit market
Maharatna company. Her name was
The official said the government is tak- was valued at $760 billion in 2021 and
recommended by the PESB.
ing steps to increase compliance and is projected to touch $2.68 trillion by
She has been with the company since using data analytics and human intelli- 2028.
2005 and has been serving as the Di- gence to identify fraud.
Interestingly, India is a significant ex-
rector (Finance) and CFO since 2020, as
"DGGI officers have detected evasion porter of carbon credits. It issued 278
well as a member of the board of di-
to the tune of Rs 1,01,300 crore in million credits in the voluntary carbon
rectors, said the non-banking financial
2022-23. Of this, recovery of Rs 21,000 markets between 2010 and 2022, ac-
company (NBFC) for the power sector.
crore have been made," the official counting for 17 per cent of global sup-
told. ply, according to analysis by S&P Glo-
NFRA cracks whip on audit
In 2021-22, DGGI, the investigative bal.
firms for deficiencies agency under the Goods and Services
The National Financial Reporting Au- Tax (GST) regime, detected evasion of Intra-firm services regis-
thority (NFRA) has issued a series of over Rs 54,000 crore and made a tax
tered separately to draw
orders this week, imposing sanctions recovery of over Rs 21,000 crore.
on audit firms and individual partners GST: AAR
The total number of Goods and Ser-
for deficiencies in performing statutory Intra-company services provided by
vices Tax (GST) evasion cases has gone
audits, showed the orders posted on employees of a branch office to the
up this fiscal with about 14,000 cases
the website of the regulator. head office or vice versa will attract
detected in 2022-23, up from 12,574
Goods and Services Tax (GST) if the two
The audit watchdog has imposed a cases in 2021-22 and 12,596 cases in
offices have separate registrations, the
penalty of Rs. 100,000 each in the case 2020-21.
authority for advance rulings (AAR) in
of four partners of a Kerala-based au-
Tamil Nadu has ruled.
dit firm that performed the statutory
Farming linked with global
audit of branches of Dewan Housing GST will be applicable even if employ-
carbon credit market
Finance Corp. Ltd for the financial year ees have been appointed for the com-
2017-18. The Uttar Pradesh government has pany as a whole. Usually, two offices
launched an agroforestry project to link have separate registrations if they are
In addition to the monetary penalties,
farming with the global carbon credit located in two different states.
the partners have also been debarred
market and generate additional rural
for one year from auditing financial Abhishek Jain, national head indirect
income.
statements or doing internal audits of taxes at KPMG, said such services will
any company, showed the orders. Be- The agroforestry carbon finance attract 18 per cent GST as he warned
BANKING FINANCE | JUNE | 2023 | 15