Page 11 - Banking Finance October 2024

ROUNDUP

hosting service providers. A key deci-
sion involves granting GST credit on
demo vehicles used by authorized au-
tomotive dealers for test drives, allow-
ing such vehicles to be classified as part
of the supply chain, thus making them
eligible for input tax credit.
Ò»©­ Another circular clarified the GST

treatment for data hosting services
offered by Indian firms to foreign cloud
computing companies. Previously, tax
authorities had not considered such
services as exports, leading to GST li-
abilities. This clarification now enables
these firms to be treated as exporters,
CAG Calls for Identification of High-Risk Taxpayers in providing relief from additional GST
GST Composition Scheme payments.
The Comptroller and Auditor General (CAG) has urged the Finance Ministry
to periodically identify high-risk taxpayers within the GST Composition SEBI Urges Chartered Ac-
Scheme to combat tax evasion. The CAG's analysis of 8.66 lakh composition countants to Be Cautious
taxpayers revealed that many had a high risk of exceeding the turnover
threshold for the scheme. When Auditing SMEs
The Securities and Exchange Board of
Taxpayers eligible for the scheme must have a turnover of less than Rs. 1.5
India (SEBI) has advised chartered ac-
crore, or Rs. 75 lakh in special category states. The CAG pointed to two
countants (CAs) to exercise extra dili-
major risks: under-declaration of the value of sales by taxpayers to remain
in the scheme and failure to meet eligibility criteria. The report recom- gence when auditing companies listed
on the SME (Small and Medium-sized
mended cross-verification of taxpayers' data with other sources, such as IT
returns and vehicle registrations, to ensure compliance. Enterprises) exchange platforms.
Speaking at an industry event, Ashwani
Bhatia, SEBI's whole-time member,
China to Raise Retirement and is projected to exceed 80 by 2050, stressed the importance of thorough
while the workforce supporting the auditing as these SMEs have the poten-
Age Starting January 2025 elderly population is declining. Extend- tial to grow and eventually list on the
China's top legislative body has ap- ing the working years is expected to main board.
proved a proposal to raise the country's ease the strain on pension funds, al-
retirement age, marking a significant though it may not be well-received by Bhatia compared CAs to "first-level
reform aimed at addressing the eco- all workers, who could be reluctant to regulators," noting their role in ensur-
nomic challenges posed by a shrinking delay their retirement. ing the orderly conduct of companies.
workforce. Starting January 1, 2025, the SEBI highlighted the growing impor-
retirement age for men will increase tance of SMEs, which have raised Rs.
from 60 to 63 years, while for women GST Relief for Advertising 14,000 crore, including Rs. 6,000 crore
in white-collar jobs it will rise from 55 Agencies and Automobile in FY24 alone, from the market.
to 58. Women in blue-collar work will
see the age increase from 50 to 55. Dealers SEBI Fines Anil Ambani and
The reforms will be implemented The Union Finance Ministry has an- Associates Rs. 624 Crore
gradually over a 15-year period. The nounced GST relief measures for the
changes are crucial as China's life ex- automotive and advertising sectors, as for Fund Diversion
pectancy has risen to 78 years in 2021 well as for exporters of goods and data SEBI has imposed a Rs. 624 crore fine

10 | 2024 | OCTOBER | BANKING FINANCE