ED raids offices of 34 chartered accountants in New Delhi

Image result for CAThe Enforcement Directorate (ED) is carrying out a first-of-its-kind raids in New Delhi on the offices of professionals like chartered accountants and company secretaries for allegedly providing a legitimate cover to shell companies.

Image result for cs logoThe CAs and CSs are accused of helping shell companies convert black money in to white. They allegedly help shell companies by providing a legal framework for the paper companies. The raids follow notices that were earlier issued.

On Wedesnday, the ED was raiding the offices of 34 CAs in the Jain brothers case who were arrested last month in action against shell by the ED.

According to a report by PTI, the agency had arrested Surendra Kumar Jain and Virendra Jain and were later sent to 10 days custody after being produced in front of a court.

The ED, at the time said in a statement that “the modus operandi of Jain brothers was to launder the unaccounted money through the process of palcement of funds, layering of transactions and teh final integration of laundering money into the banking channel camouflaged as legitimate share premium transactions.

“Funds were brought in by the mediators on behalf of the beneficiaries through the mediators. Jain Brothers were providing accommodation entries by accepting funds from their beneficiaries through mediators and converting the same into share premium transactions in the beneficiary company. In this process Jain Brothers earned money as a certain percentage of the unaccounted money converted into share premium,” it added.

The ED also said, “during probe of some other firms ‘controlled’ by these brothers, it has emerged that during a “short period of three months between the opening and closing of the accounts of these companies, there was credit and debit summations to the tune of Rs 8,000 crore.”

Can Ngo’s sell products online???

Hello everyone,

NPO's.jpgTrust all of you doing well in your life. Today I would like to give some information’s about selling of products online by NGO’s. According to me It is great question “Can Ngo’s sell products online?” When question is great then answer is too great. The answer of this question is “Yes”. NGO’s can sell their products online or offline without any restriction. Amount earned through selling not counted business profit.  About 500 non-governmental organisations have decided to launch a website to showcase their products to tap new markets. “Most of NGOs make very interesting products, but often cannot sell them as there are no shops for them. The website will allow them to showcase their products. Startups are increasingly partnering with non-governmental organisations to market products and services offered by people from low-income groups, accessing the vast networks of NGOs and skilling marginalized youngsters in the process while taking their products such as handicrafts to international markets via online platforms.

Shop for a Cause, Dharavimarket.com, Up-cycling Project and Green the Gap are among the startups that are working with NGOs for their social enterprises, creating a bridge between non-profit and for-profit enterprises.
Amazon, Flipkart, Snapdeal and Paytm also allowed to NGO’s for selling of products. The provisions of Service Tax, Income Tax and Vat are equal for NGO’s and other type of entities.
Tata TrustMoving from just aiding non-government organisations (NGO) to funding ‘socially relevant’ startups, Tata Trusts in association with Department of Science and Technology (DST) and Lockheed Martin would invest around $20 million over a period of 10 years in new companies.

The partners intend to invest $2 million annually through the India Innovation Growth Programme (IIGP) 2.0, including provisions for seed money, for the entrepreneurs to develop technology-based solutions for the betterment of the society.

According to officials at Tata Trusts, startups which help in providing solutions to issues such as waste water management, traffic management, might be even made part of the group and taken on an expansion route. The company hopes that such companies might also help it in its smart city play and help in future smart city projects. According to DST, the 500 startups aided in the first 10 years of the programme for a mere $10 million are now combined valued at over a billion dollars.

The programme to help startups under India Innovation Growth Programme 2.0 would be rolled out by Ratan N. Tata, Chairman, Tata Trusts, Ashutosh Sharma, secretary DST, and George Strandridge, vice president, business development, Lockheed Martin Aeronautics Company at Rashtrapati Bhavan on Friday.

All Banking Payment Systems Remain Closed on April 1, 2017

Hello Everyone, Trust all of you doing well in your life. Hope all of you enjoy our updates. As per recent notification of RBI. All banking payment systems remain closed on April 1, 2017. Official notification pasted below.

RBI/2016-17/260
DPSS.CO.CHD.No./2720/03.01.03/2016-17

March 29, 2017

The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including Regional Rural Banks/
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks/Local Area Banks

Dear Sir/ Madam,

All payment systems to remain closed on April 1, 2017

A reference is invited to the our recent circular RBI/2016-17/257DPSS.CO.CHD.No./2695/03.01.03/2016-17 dated March 25, 2017 stating that all payment systems, including RTGS and NEFT would operate, as on a normal working day, during the period March 25 to April 1, 2017 (including Saturday, Sunday and all holidays). However, on reconsideration, it has been decided that all payment systems will remain closed on April 1, 2017. A separate broadcast message in this regard will be issued through the respective system to the member banks.

2. In this context it is clarified that our instructions issued vide RBI/2016-17/255 DPSS.CO.CHD.No./2656/03.01.03/2016-17 dated March 23, 2017 (on conducting Special Clearing operation on March 30 and 31, 2017) remains unchanged.

Yours faithfully

(Nanda S. Dave)
Chief General Manager-in-Charge

Single page Income Tax Return form for income up to Rs 50 lakh

Image result for Income Tax ReturnTo encourage more individuals to file returns and widen the tax net, the government is set to introduce a single-page income tax (I-T) return form from April 1. This will be for those with annual salaried income up to Rs 50 lakh, much higher than Rs 5-lakh limit proposed in the Union Budget, told by Revenue Secretary Hasmukh Adhia.

He added this would only be for those with salaried and one house rent income.There are 290 million PAN card holders (the I-T dept identification) but only 60 minutes return filers. Currently, the I-T form is three pages. It was simplified two years ago, when a controversial provision for mandatory disclosure of foreign trips and dormant bank accounts was removed.

51 CAs and 3 CSs on radar in I-T crackdown against black money

Image result for EDThe ED will initiate action against them soon. The professionals are likely to face action in a case of money laundering to the tune of Rs 11,000 crore.

As many as 54 chartered accountants and company secretaries are under scanner of the income tax (I-T) department and the Enforcement Directorate for money laundering through shell companies, according to sources.

The ED will initiate action against them soon. The professionals are likely to face action in a case of money laundering to the tune of Rs 11,000 crore.

The agency had arrested two people Virendra and Surendra Jain in connection with the case four days ago. The agency is likely to send them notices soon for questioning, may initiate action under provisions of the Money Laundering Act.

These professionals are instrumental in circulating black money.

COME CLEAN BY MARCH 31: I-T DEPT TO BLACK MONEY HOARDERS

The income tax department today warned black money holders that it has “information” about their illegal deposits and they should avail the soon-to-end Pradhan Mantri Garib Kalyan Yojna (PMGKY) window to come clean on their unaccounted wealth or “regret later”. The window under the Pradhan Mantri Garib Kalyan Yojna (PMGKY) closes on March 31.

Related imageAdvertisements issued in national dailies said that the income tax department has information about your deposits. The department also said that total “confidentiality is ensured” to those who declare their black assets and funds under this scheme.

The department had also of late cautioned those who had undisclosed income to either avail this scheme or face stringent action under Benami laws, adding that the defaulters’ names would also be shared with the central probe agencies like the Enforcement Directorate and the CBI.

Image result for ca

Professional Misconduct of CA Results Investigation of ICAI – Direction By NCLT

Case – East India Investments Holdings PTE Ltd Vs Mr Sudhindran Parikkal & Mr Chockalingam – NCLT Chennai bench.

Image result for ICAIMisconduct on the part of chartered accountants- NCLT refers the case to the institute of chartered accountants for investigation.

It was alleged by the petitioner that Respondents are being chartered accountants who certified the company documents such as DIR-12 and INC-22 without proper verification and without following the procedures laid down in the declaration contained in the certificates.

It was contended by the petitioners that the practising professionals colluded with company and certified the documents with the mala-fide intentions mainly for promoting personal gain and with an intention to defraud.

The petitioner considered the erred chartered accountants and included them in the petition and prayed for a direction to the Institute of Chartered Accountants of India to initiate disciplinary action against the erred professionals.

The chartered accountants averred their innocence and claimed immunity against false allegation as they certified the documents on the basis of the information provided by the company officials.

The petitioner argued that if such kind of misconduct is not taken note of , then , the same is likely to encourage other such chartered accountants to follow suit where the reputation of Chartered Accountants Institute will be finally in peril.

Image result for NCLTIn this case, the NCLT referred the allegations on the chartered accountants involved and directed the Institute of Chartered Accountants of India to initiate the investigation of professional and other misconduct .

The above case is an eye opener to all the professionals who are certifying the forms for MCA to show utmost care and diligence and check for all the information needed before certifying forms for filing with the ROC.

NCLT impose penalty on company for non appointment of CS

M/s CARMEL ASIA HOLDINGS PRIVATE LIMITED WAS ASKED TO PAY A COMPOUNDING FINE OF Rs 4,72,675 for Not Appointing Company Secretary

Bangalore NCLT has made remarkable verdict where it ordered to pay a compounding fee of Rs 4,72,875 for Not Appointing Company Secretary .

Image result for ncltThe Company approached the erstwhile CLB and the present NCLT , Bangalore to compound the offence committed by it under section 383A for not appointing company secretary under section 383 A of the Companies Act ,1956. (Section 203 of Companies Act 2013)

It was argued by the petitioner company that even though it had appointed many company secretaries , they left the company in search of green pastures.

The Practicing Company secretary of the Company has informed the NCLT that the petitioner company is a subsidiary of M/s Sandur Power Company Limited and did not have adequate business activities and due to limited exposures , the appointed company secretaries are leaving the company in a short period. As such , the company is not able to get full time secretary during the intervening period.

It reflects that Petitioner Company has taken reasonable efforts to comply with the provision of the section 383 A of the CA 1956 but could not get a Company Secretary for the continuous period.

383A. Certain companies to have secretaries (1) Every company having such paid-up share capital as may be prescribed (Rs. 5 crores) shall have a whole-time secretary and where the Board of directors of any such company comprises only two directors, neither of them shall be the secretary of the company: Provided that every company not required to employ a whole-time secretary under sub-section (1) and having a paid-up share capital of 10 lakh rupees or more shall file with the Registrar a certificate from a secretary in whole-time practice in such form and within such time and subject to such conditions as may be prescribed, as to whether the company has complied with all provisions of this Act and a copy of such certificate shall be attached with Board’s Report referred to in Section 217.

It is to be noted that argument by the company that it took earnest efforts to appoint a company secretary and is using the services of a practicing company secretary was not accepted by the NCLT , Bangalore.

Image result for Tribunal orderNow , the available company secretaries has touched the land mark trend of 50000 numbers , companies in India cannot argue that adequate company secretaries are not available for employment and they are taking earnest efforts to find a company secretary or using the services of a practicing company secretary.

There are lot of company secretaries who have qualified recently are find it difficult to sit in a job and they are jobless. They are vexed to blame themselves for successfully completing the company Secretaries course.

If any member finds that a company avoids to fill in a company secretary position , they can bring it to the notice of concerned Registrar of Companies.

NCLT , Bangalore decision is a land mark decision and it is an eye opener for those erring companies which has not appointed a company secretary.

Click here to read final order