Page 13 - Banking Finance October 2022

ROUNDUP

in a row. For the month of August, Rs for deciding whether prosecution In an interview, Nitin Gupta, Chairman
1,43,612 crore was collected, said the should be launched is the availability of of the Central Board of Direct Taxes
Ministry of Finance in a statement. It adequate evidence, the GST investiga- (CBDT), said he is hopeful of crossing
further added that revenues for August tion wing under the Finance Ministry the budget target during the current
was 28 per cent higher than the GST said, while issuing instructions for fiscal. "The budget target for direct
revenues in the same month last year. launching prosecution. taxes is Rs. 14.20 lakh crore. Till date,
we have healthy net collections of
Gross GST revenue collected in August Prosecution should normally be
around 4.80 lakh crore after account-
was Rs 1,43,612 crore, out of which launched where the amount of tax
ing for the higher refund outgo, which
CGST was Rs 24,710 crore, SGST was evasion, or misuse of ITC, or fraudu-
is 80 per cent higher than last year.
Rs 30,951 crore, IGST was Rs 77,782 lently obtained refund is more than Rs
There is a big buoyancy in the tax col-
crore including Rs 42,067 crore col- 5 crore, it said. Launching of prosecu-
lections. If this trend continues in the
lected on import of goods, and cess tion by taxmen means commencement
second instalment as well, we do ex-
was Rs 10,168 crore, including Rs of legal proceedings.
pect a fairly good collection over and
1,018 crore collected on import of
above the budget target," Gupta said.
goods. Deposits rule: Now, audi-
During FY22, direct taxes grew by 49
The ministry said that it had settled Rs
tors, too, must confirm per cent to reach Rs. 14.10-lakh crore.
29,524 crore to CGST and Rs 25,119
company's compliance
crore to SGST from IGST. After regu-
lar settlement, the total revenue of with MCA guidelines. In shell firm clean-up 2.0,
the Centre stood at Rs 54,234 crore
The Ministry of Corporate Affairs MCA tells registrars to
and Rs 56,070 crore for states.
(MCA) has amended its acceptance of
physically verify compa-
In August last year, the GST revenues deposits rules so as to bring in trans-
stood at Rs 1,12,020 crore, which is 28 parency and enhance the role and re- nies' registered address
per cent lower than August this year. sponsibilities of statutory auditors. Stepping up its drive to weed out shell
During the month, revenue from im-
The MCA's move will widen the re- companies and inoperative businesses,
port of goods was 57 per cent higher
sponsibility of deposit rules compliance the Ministry of Corporate Affairs (MCA)
and the revenue from domestic trans-
from directors to include statutory has brought in rules to tighten the veri-
actions (including import of services)
auditors, said company law experts. fication process post-incorporation.
was 19 per cent higher than the same
The Amendment to the Companies In the first stage of extinguishing shell
month last year.
(Acceptance of Deposits) Rules, 2022 - and defunct companies, the MCA has,
which came into effect on August 29 - in the last five years, removed over
Officers can launch pros-
will bring in greater transparency on four lakh corporates from its Register
ecution in cases of over Rs. acceptance and receipt of amounts by of Companies owing to several de-
5-crore GST evasion companies as deposits and also faults, including non-compliance on fil-
amounts received by companies but ing of financial statements and annual
GST officers can now launch prosecu-
not treated as deposits, they added. returns.
tion against offenders in cases where
the amount of evasion or misuse of The latest rule spells out the process
input tax credit is more than Rs 5 Direct tax collection in
to be followed by the Registrar of Com-
crore, the Finance Ministry has said.
April-August surges 33% panies (RoCs) for physical verification of
However, this monetary threshold will Collections from direct taxes in the the registered offices of companies
not be applicable in the case of ha- that are suspected not to be in exist-
April-August period touched Rs. 4.80
bitual evaders or in cases where arrests ence or not having business operations
lakh crore, marking about 33 per cent
have been made at the time of inves- though they have been incorporated
growth over the Rs. 3.60 lakh crore
tigation. and have intimated MCA21 about their
collected during the corresponding
"One of the important considerations period in the last fiscal. registered office address.
BANKING FINANCE | OCTOBER | 2022 | 13