December 8, 2023

DGGI Cases | Directorate General of GST Intelligence

Goods & Service Tax / /

The Director General of GST Intelligence (DGGI) is a key position created under the Goods and Services Tax (GST) regime in India. The DGGI is the topmost authority in charge of intelligence gathering, investigation, and enforcement under the GST law. The Director General of Goods and Services Tax Intelligence (DG GSTI) is a senior official appointed by the Government of India under the Goods and Services Tax (GST) Act. The main responsibilities of the DGGI are: 1. Intelligence gathering: The DGGI is responsible for gathering intelligence about potential violations of the GST law. This includes collecting information from various sources, such as GST returns, financial statements, and other documents. 2. Investigation: The DGGI has the power to conduct investigations into suspected cases of GST evasion or non-compliance. This may involve summoning persons, examining records, and carrying out searches and seizures. 3. Enforcement: The DGGI is responsible for enforcing the provisions of the GST law. This includes taking legal action against offenders, imposing penalties, and recovering any taxes or duties due. The DGGI works closely with other agencies, such as the Central Board of Indirect Taxes and Customs (CBIC) and the State GST authorities, to ensure effective implementation of the GST law. The DGGI also plays a key role in creating awareness about GST compliance and educating taxpayers about their obligations under the law.   subsidiary accused for using fake GST invoices to avail ITC of Rs 21 crore For the past 8-9 months the COVID 19 pandemic has forced India into a lockdown. Most of the countries small businesses which relied on physical availability of customers have had the most hit. Small business revenues have plunged everywhere. Nevertheless, tax evaders have proved to be an exception to this rule, who no matter what the situation persists, find a way to evade tax. subsidiary Instakart Services are being accused by tax authorities for using fake GST invoices. The ecommerce giant’s subsidiary is said to have illegally availed input tax credit (ITC) worth Rs 21 Cr since July 2017. The undue credit has been availed by the firm on the basis of fake invoices issued by two of its vendors engaged in ‘manpower supply’. What do you mean by an invoice? An invoice is basically a bill of the list of goods sent or services provided, along with the amount due for payment. It is a commercial instrument issued by the supplier to the recipient. What is the importance of an invoice? Evidences of supply of goods or services A registered person cannot avail input tax credit unless he is in possession of a tax invoice or a debit note. Invoice is an important indicator of the time of supply. What was found in the investigation by GST officials pertaining to Instakart Services? The investigation by the GST Intelligence wing concerned the non-payment of GST by two vendors. However, while investigating a separate case, the Directorate General of GST Intelligence (DGGI) found that the accused had supplied fake invoices to these two vendors contracted by Instakart, which, in turn, had availed ITC based on invoices issued by these firms. After issuing summons to Instakart’s vendors, the DGGI found that these two firms didn’t exist at their given addresses. This was followed by summons issued to Instakart to investigate its dealing with these firms which only existed on paper. Major Fraud Syndicate Involving Fake Firms Busted by DGGI in Jaipur In an ongoing battle against fraudulent practices, the Directorate General of GST Intelligence (DGGI), Jaipur Zonal Unit, has made a significant breakthrough. The unit successfully exposed a massive Delhi-based crime syndicate, implicating it in a wide-ranging scam involving hundreds of fake firms and fraudulent ITC claims. The Modus Operandi of the Crime Syndicate The syndicate’s fraudulent activities were intricately planned. Collaborating closely with various brokers, the group purchased firms, bank accounts, and SIM cards to facilitate their RTGS/cash transfers. Brokers specialized in registering companies on GSTN using the IDs of vulnerable individuals, who then sold these registered firms to the syndicate. The syndicate issued false invoices, resulting in taxable turnovers amounting to Rs. 6,022 crore and leading to the illegal ITC claim of Rs. 1,047 crore. Scope of the Fraudulent Operations The fraudulent scheme spanned across 14 states, with the majority of the faux firms operating from Delhi. The syndicate’s vast network included Rajasthan, Uttar Pradesh, Punjab, Bihar, Jharkhand, Gujarat, Maharashtra, Haryana, West Bengal, Karnataka, Goa, Assam, and Uttarakhand. The subsequent investigation resulted in the attachment of 73 bank accounts linked to the syndicate and its brokers. DGGI Jaipur’s Continued Vigilance against GST Fraud DGGI Jaipur continues to make significant strides in its mission to curb GST fraud. The unit’s proactive approach has led to the booking of numerous cases involving fraudulent ITC claims, with several key arrests. The committed team is dedicated to discovering and dismantling such syndicates threatening the integrity of GST administration. FAQs Q1: How can businesses stay on the right side of the Directorate General? Transparency and compliance. Keep your financial records squeaky clean, and you won’t be on their radar. Q2: How does the Directorate General gather intelligence? It’s a blend of traditional sleuthing and modern technology. From scrutinizing financial records to leveraging data analytics, they employ a multifaceted approach to stay one step ahead. Q3: What exactly does the Directorate General of GST Intelligence do? They monitor, investigate, and enforce compliance with GST laws, ensuring a level playing field for all taxpayers. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company

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Addition and Removal of Directors under Companies Act, 2013

Companies Act 2013 / /

The directors of a company bear the responsibility for managing its day-to-day operations, while the shareholders, who are the rightful owners, delegate this role to the directors as their representatives. The Companies Act 2013 in India distinctly delineates directors’ and shareholders’ rights and duties. As a general principle, the entity that appoints a director retains the authority to remove them.  IndiaFilings can assist you in filing for the removal of director, which can be initiated for various reasons. Three distinct procedures are depending on the specific cause for removal. Regardless of the circumstances, IndiaFilings is available to facilitate the director removal process for your Company, ensuring a streamlined and hassle-free experience. Directors are the organization’s top decision-makers. In addition to serving as a trustee, agent, employee, and officer of the corporation, a director also performs several other duties. Their job is to oversee and manage the company’s services.This article briefly describes the Appointment and Removal of Directors, the Elimination of the Directors, & Removal Process. The administration of the company is in the hands of the directors. They take decisions on policy matters. They serve in three different ways As a trustee As an agent As a partner Appointment of a Director Wherever the Articles of Association permit, the existing Board of Directors can appoint other ‘Additional directors can hold office till their confirmation at the next meeting of shareholders. However, in all other cases, shareholders have the sole authority to appoint Directors in general meeting. Further, there are some categories of directors like nominee directors/ regulatory directors who are not appointed by shareholders. The director, proposed to be appointed, should declare that he or she is free of all disqualifications which are mentioned under Section 164. Further, he should give his consent in forms DIR -2 and DIR -8 and disclosure of interest in MBP-1. A director should obtain a Director Identification Number (DIN) before appointment. The process of appointing the director is as follows: Form DIR 2 – Director’s ConsentThe first thing to be done to appoint a director in a firm is to get the proposed director’s permission. The proposed director’s approval to serve as a director in the firm must be submitted in Form DIR 2 along with the other required documents. Get the Director’s DSC and DINThe following step is to obtain the proposed director of the company’s Digital Signature Certificate (DSC) and DIN. If they do not already possess a DSC, they are obligated to apply for one from the relevant authorities in India.When it comes to the Director Identification Number (DIN), if the director does not already have one, he must notify the company as soon as possible. The business must next adopt a decision and submit DIR Form 3 to apply for the proposed director’s DIN. Call the Board and EGMA general meeting of the firm is where decisions on the appointment of directors are to be taken. Accordingly, the firm will notify all its shareholders that it will be conducting an Extraordinary General Meeting, EGM.After the notice to call for EGM is sent to all shareholders, the next step is to hold the meeting at the specified time and date and pass all the required resolutions for the director’s appointment in the company. Letter of AppointmentOnce the resolution has been approved, a letter of appointment will be sent to the new firm director. The appointment letter will outline the director’s salary and other benefits. DIR-12 to ROCWithin 30 days after the Director’s appointment, the firm must submit Form DIR 12 and other supporting documentation to the Registrar of Companies, ROC. Resignation of a Director Section 169 of the Act governs a situation of resignation of a Director. On receipt of the notice/letter of resignation, Company has to file DIR-12 within 30 days. Also, the resigning director may, at his option, submit DIR -11 also. Elimination of the Directors According to The Companies Act, 2013, a private limited company must have at least two Directors before officially beginning operations. Except in circumstances of government appointment, shareholders can vote to remove a company director at the General Meeting. When one of the following conditions is met, a director of the firm may be removed: If a director does any action that could result in disqualification under the Act If a director has missed more than one year of Board meetings If a director has announced a voluntary resignation If a director is indefinitely suspended from participation by the court or the Tribunal If a director commits violations of Article 184 by signing contracts If a director is found guilty on charges and given a prison term of at least six months. Reason for Director Removal As mentioned above, A director may be subject to removal for any of the following reasons: Incurring any disqualifications as specified under the Companies Act. Prolonged absence from board meetings spanning over 12 months. Entering into contracts or agreements contrary to the provisions outlined in Section 184 of the Companies Act. Receiving a disqualification order from a court or tribunal. Being convicted by a court for an offense and sentenced to a minimum of six months in prison. Failure to adhere to the terms and regulations stipulated in the Companies Act of 2013. Voluntarily resigning from their position. Methods for Director Removal The removal of a director from a company can be carried out through three distinct methods: Resignation by Directors: When the directors voluntarily tender their resignation. Director Absence from Board Meetings: When a director remains absent from board meetings for 12 months. Shareholder-initiated Removal: When shareholders decide to remove a director. Relevant Provisions of the Companies Act, 2013: Section 169 of the Companies Act, 2013: This section pertains to the removal of directors and outlines the legal procedures and requirements for director removal. Section 115 of the Companies Act, 2013: This section likely relates to the appointment of additional directors, but providing specific details without additional context is challenging. Section 163, Companies Act, 2013: This section allows for proportional representation in appointing directors. Depending on the Company’s governance

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Rajasthan SSO

Business / /

The Rajasthan SSO (Single Sign-On) portal is an online portal developed and launched by the State Government of Rajasthan in 2013. It is designed to facilitate the citizens to access different online services under a single portal and avail benefits of various e-services. To access the e-services on the Rajasthan SSO portal, an individual should create an SSO ID by registering on the portal. The SSO ID will serve as a unique digital identity to access the e-services offered by the State Government of Rajasthan. The SSO ID can be used to access various online services like applying for a Jan Aadhar card, applying to jobs, educational institutions, etc. The Rajasthan Government implements all the schemes through the SSO ID. An individual can also get the Aadhar card, food security or government farm, labour card, etc., integrated through this portal. Services Provided on RSSO Rajasthan Single Sign-On (RajSSO) is meant to deliver numerous services of the state government. The portal seeks individuals personal data to avail various services under RSSO. As all the data entered by the people in the SSO portal is secure and safe. A common resident can use this portal for the following departments. Business Registration Bhamshah Bank Correspondence Arms License Artisan Registration e-Mitra E-Mitra Reports Attendance MIS Building Plan Approval (BPAS) Bhamashah Rojgar Srijan Yojana (BRSY) Bhamashah Swasthya Bima Yojana (BSBY) Challenge for change GST Home Portal Circuit House Management System (CHMS) DCE APP Digital Visitor Register Disaster Management, Relief & Civil Defence Department (DMRD) Drug Control Drug Control Organization (DCO) e-Bazaar e-Devasthan Electronic Health Records (EHR) Electrical Inspectorate Department (EID) e-Learning Electrical Inspectorate e-Library e-Sakhi Employment e-Tulaman Forest and Wildlife GEMS GPS Consultancy HSMS TAD Higher Technical & Medical Education (HTE) IFMS-RajSSP Integrated Health Management System (IHMS) iStart ITI APP Job Fair Labour Department Management System (LDMS) Local Self Government (LSG) Eligibility Criteria for Rajasthan SSO Portal Registration The following are eligible to register on the Rajasthan SSO portal: All residents of Rajasthan state. Indian citizens having a google account. Udhyog industrial owners or businesses having a Business Registration Number (BRN). Rajasthan state government servants having a State Insurance and Provident Fund (SIPF) number. Uses of Rajasthan SSO Portal pply for Government Jobs: An individual can apply for any state government job in Rajasthan through this portal and check the application status. Bill Payment: An individual can make bill payments using SSO ID like water, electricity, mobile and landline bills. An individual can also verify and validate the bill payment. Application Submission: Using the Rajasthan SSO ID, an individual can submit online applications for different purposes like applying for university admission, jobs, applying for RTI, licence application, seeking an arms licence, etc. Various Services in One Place: An individual can avail of various state government services such as e-Mitra, Bhamashah Card Service, Jan Aadhaar, Rajasthan Employment Service, etc., through this portal. Rajasthan SSO ID Registration Procedure The residents of Rajasthan can create SSO ID online by following the steps mentioned below: Access the RajSSO Portal Step 1: The applicant must visit the homepage of the Rajasthan SSO Portal to create SSO ID online. New User Registration Step 2: In case you are a new applicant of RSSO portal,  you have to register in the SSO portal to avail all the services offered by the government. Then click on the option “Register” for the New User Registration. Step 3: Then you will be redirected to the SSO registration page. The registration page will appear with the following options. Citizen Udyog Government Employee Registration Process for Citizens The citizens can get the digital SSO id by the following points mentioned below: Step 4: You have to click on the citizen tab and then click on the enter button. Step 5: Then you can register using one of the five digital identities through, Aadhaar Twitter account Facebook account Google account Bhamashah account A local digital identity provided by the government, which is linked to the individual’s bank accounts. Step 6: You also have to enter your mobile number that is already linked with your Aadhar card number. Step 7: After registering at SSO, you can enter the login credentials (ID and password) at shall be able to login in SSO. Registration Process for Government Sector Employees You can get the digital SSO ID as government Rajasthan employees ID for which you have to follow the below steps: Step 8: The government employees have to select “Government Rajasthan Employees” tab and then click on the Enter button if you want your digital ID as Government Employees of the Rajasthan state. Step 9: After that, you have to enter the details of the SIPF number and password. Step 10: After registering at SSO, you can enter the login credentials (ID and password), shall be able to login in SSO. Registration Process for Private Sectors Udyog (Industries) The Udyog (Industry owner) can register for SSO digital id by any of the below following steps: Step 11: You have to select the Udyog option and then click on the enter button. Step 12: After that, you register for the digital id by entering any of the below details, Business Registration Number (BRN) or Udyog Aadhaar Number (UAN) and Aadhar Number Step 13: After registering at SSO, you can enter the login credentials (ID and password) at the login space from where you can access the applications. FAQs Q: How can I update my profile information on Rajasthan SSO? There should be an option within your Rajasthan SSO account to update or edit your profile information. This may include details such as your address, contact number, and other personal information. Q: What is the eMitra service and how can I use it through Rajasthan SSO? eMitra is an initiative by the Government of Rajasthan to provide various services online. Through Rajasthan SSO, you may be able to access and avail eMitra services using your single sign-on credentials. Q: How can I reset my Rajasthan SSO password? The process for resetting your Rajasthan SSO password may involve visiting the official website, entering your registered email or mobile number, and following the instructions for password

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CA in Noida: Find the best expert for your needs

Business / /

Chartered Accountants in Noida: Find the Right Expert for Your Needs Looking for a reliable and experienced Chartered Accountant (CA) in Noida? You’ve come to the right place! This page is your one-stop resource for finding the perfect CA for your individual or business needs. Why Choose a CA in Noida? Noida is a rapidly developing city with a thriving business environment. This means there is a high demand for qualified and experienced Chartered Accountants. By choosing a CA in Noida, you can be sure of: In-depth knowledge of Indian tax laws and regulations: Noida CAs are well-versed in the complexities of Indian tax laws and regulations. This ensures that you receive accurate and up-to-date advice on your tax obligations. Experience with diverse industries: Noida CAs have experience working with a wide range of businesses, from small startups to large multinational corporations. This means they can tailor their services to meet your specific needs. Competitive fees: Noida CAs offer competitive fees, making them a cost-effective solution for your accounting needs. What Services Do CAs in Noida Offer? CAs in Noida offer a wide range of services, including: Tax preparation and filing: Whether you are an individual or a business, your CA can help you prepare and file your taxes accurately and efficiently. Accounting and bookkeeping: CAs can provide comprehensive accounting and bookkeeping services to help you keep track of your financial records. Auditing and assurance: For businesses, CAs can provide independent audits and assurance services to improve transparency and accountability. Financial planning and consulting: CAs can help you develop a sound financial plan to achieve your personal or business goals. Company formation and registration: CAs can assist you with the process of setting up a new company in India. And much more! How to Find the Best CA in Noida: Consider your specific needs: What services are you looking for? What is your budget? Do your research: Read online reviews and compare prices from different CAs. Ask for referrals: Talk to your friends, family, and business associates for recommendations. Meet with potential CAs: Schedule consultations with a few different CAs to find the right fit for you. Here are some additional tips for finding the best CA in Noida: Look for a CA who is a member of the Institute of Chartered Accountants of India (ICAI). Choose a CA who has experience working with businesses in your industry. Make sure the CA is available to meet with you regularly. Ask about the CA’s fees and billing structure. By following these tips, you can find the best CA in Noida to help you achieve your financial goals.

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