AUTOMATIC UPDATE OF E-INVOICING DETAILS IN GSTR-1
E-Invoicing is recently introduced in GST and certain taxpayers are issuing them which get filled automatically in GSTR-1. Some taxpayers are reporting the issue of details not getting populated automatically in GSTR-1.
It is advised to the taxpayers to proceed with the preparation and filing of GSTR-1, based on actual records instead of waiting for data to get auto-filled in GSTR-1.
In the Definition of Listed Companies, MCA Notifies New Amendments
On February 19, 2021, The Ministry of Corporate Affairs has issued amendments to the Companies Rules, 2014.
From April 1, 2021, the amendments will be effective. There are classes of Companies that will not be considered as listed Companies as per the new amendments. They are:
In terms of SEBI (Issue and Listing of Debt Securities) Regulations, 2008 Public companies which have listed their non-convertible debt securities were notified on a private placement but have not listed their equity shares on a known or recognized stock exchange.
In terms of SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013 or both categories; Public companies which have listed their non-convertible redeemable preference shares notified on a private placement basis but have not listed their equity shares on a known or recognized stock exchange.
In terms of SEBI (Issue and Listing of Debt Securities) Regulations, 2008, Private companies which have listed their non-convertible debt securities on a private placement basis on a recognized stock exchange.
Private Multi-Speciality Hospital in Srinagar Raided by the IT Department; Detects Transactions of More Than Rs. 100 Crores
On February 19, 2021, The Income Tax (I-T) department raided the office and the residential premises of the owner of a group in Srinagar, having the biggest private multi-specialty hospital with more than 100-beds. In four residential premises and seven sites, the raid was conducted, all the properties are in Srinagar. The core business of the group included real estate, running the hospital and household consumables trading was done.
The I-T Department has observed that Large chunks of land parcels were bought by the group, they were bought in piecemeal and were aggregated. After the land was developed, the plots were carved and were sold. According to the I-T Department, 50% of the sale proceeds (more than the registered value of the property) is received in the form of cash from suitable buyers. The cash received from such sale consideration is never been offered for tax.
Unaccounted property transactions of over and above Rs. 100 crores in cash have been made by the group from the financial year 2013-2014 onwards. The payments which were made through the banking channels for the plots by the buyers are being verified as prima-facie under investigation. The payments/investments are not done using the tax paid income.
Depending on the facts of the case, the taxes will be levied on the seller group as well as on the buyers. On all the sales of land/plots and purchases, there is substantial TDS default. Substantial evasion of stamp duty, payable to the UT government on cash paid as sale consideration more than the registered value of the property is revealed during the raids.
For levy of stamp duty on entire sale consideration, the information will be shared with the J&K Union Territory Authority as from the seized documents it is evident and notification of circle rates as per the usual market rates.
During the search, it was also observed that, from various unrelated individuals, a number of lands have been given to individuals as gifts and no income under section 56 of the I-T Act have been shown by them, though the same is chargeable to tax. From the perception of evasion of income tax, the cases of the donors are also investigated.
In the FY 2019-20, purchase of household consumables worth Rs 2 crore in 6 months in cash is made by one of the taxpayers of the group. It is a violation of tax provisions that permits payment through banking channels of more than Rs. 10,000 at a time.
Under the investigation, various Benami properties have been seized during the raids, and receipts from running the hospital are suppressed, it is also being investigated. Since FY 2015-2016, Rs. 10 Crore- 12 Crore is the average turnover of the hospital. Whereas, actual receipts of the seized evidence are to be at least four times more. During the search, evidence was found of cash of Rs. 3 Crore being paid to various doctors in the current year.
From the custody of the concerned persons, Cash of Rs 82.75 lakh and jewellery and bullion worth Rs 35.7 lakh have been held as these people were not able to explain the reason for having the same with them. A bank locker has also been sealed by the IT Department.