Page 12 - Banking Finance January 2025

ROUNDUP

Only 30% of MSMEs borrow to fund year increase. These figures under- Government Introduces
growth initiatives such as marketing, score the robust growth in tax rev-
machinery upgrades, or office expan- enue, reflecting strong economic ac- QR Code-Enabled PAN 2.0
sion. Demand for business loans is con- tivity and compliance. The government has announced the
centrated in metro cities, with Delhi rollout of the PAN 2.0 project, featur-
NCR, Mumbai, and Bengaluru leading Government Strikes Off ing QR code integration to enhance
applications. However, non-metro cit- functionality. Union Minister Ashwini
ies like Jaipur and Surat are emerging 2.33 Lakh Shell Companies Vaishnaw clarified that existing PAN
contributors, reflecting increasing in Five-Year Cleanup cards remain valid and do not require
credit penetration in smaller markets. In a large-scale crackdown, the Minis- reissuance.
try of Corporate Affairs (MCA) has According to a government release,
Net Direct Tax Collection struck off 2.33 lakh dormant and poten- PAN 2.0 is part of an e-governance ini-

Surges 17% on Strong Ad- tially illicit companies over five years to tiative aimed at reengineering tax-
combat economic offenses like tax eva- payer registration processes and inte-
vance Tax Growth sion and money laundering. grating PAN as a common digital iden-
India's net direct tax collection rose Maharashtra and Delhi led the tally, tifier for government agencies. The
16.45% year-on-year to over Rs. 15.82 with 36,856 and 35,637 companies re- upgraded system will streamline PAN
lakh crore by December 17, 2024, moved, respectively, followed by Uttar and TAN activities, consolidating ser-
driven by a 21% surge in advance tax Pradesh, Karnataka, and Tamil Nadu. vices to provide a seamless digital ex-
payments to Rs. 7.56 lakh crore, ac- The cleanup, detailed in the Rajya perience. This transformation is ex-
cording to government data. The gross Sabha by Minister Harsh Malhotra, pected to bolster transparency and
direct tax collection, including corpo- targets inactive firms that failed statu- efficiency in taxpayer registration.
rate tax, personal income tax, and se- tory compliance for consecutive years.
curities transaction tax (STT), grew While no statutory definition of "shell GST mop-up falls to 3-
20.32% to ?19.21 lakh crore. companies" exists, the operation re- month low of Rs.1.76 lakh
Corporate tax contributions stood at flects the government's focus on
Rs. 7.42 lakh crore, while non-corpo- strengthening corporate transparency crore in December
rate taxes amounted to Rs. 7.97 lakh and compliance. Smaller states and Collection from the Goods & Services
crore. STT collections during the period Union Territories reported minimal Tax (GST) fell to a 3month low of
reached Rs. 40,114 crore. The govern- impact, underscoring the systemic na- Rs.1.76 lakh crore in December, accord-
ment issued refunds worth Rs. 3.39 ture of non-compliance in major eco- ing to government data releas. How-
lakh crore, marking a 42.49% year-on- nomic hubs. ever, this marks an increase of nearly 7
per cent from the Rs.1.65 lakh crore
collected in the same month last year.
SEBI Introduces Stringent Norms for Secretarial Au-
Collection in December reflects goods
ditors consumed and services availed of in
The Securities and Exchange Board of India (SEBI) has revised its listing ob- November, a month when consumption
ligations and disclosure requirements (LODR) regulations to formalize the typically slows after the festival season.
appointment, reappointment, and removal of secretarial auditors in listed Experts believe that net collection in
entities. Only peer-reviewed company secretaries or firms can now under- the AprilDecember period has shown
take secretarial audits.
some stability while the Statewise
These changes align secretarial auditors' appointment process with that of growth indicates a mixed trend.
statutory financial auditors, enhancing their professional standing. The re-
Data revealed that the Central GST
visions follow recommendations by a SEBI committee led by SK Mohanty, collection stood at Rs.32,836 crore,
aimed at improving ease of doing business for listed and prospective com- State GST at Rs.40,499 crore, inte-
panies. This marks a significant step in standardizing governance practices grated IGST at Rs.47,783 crore and
in corporate India.
cess at Rs.11,471 crore.

BANKING FINANCE | JANUARY | 2025 | 11