GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Shell Companies: IT Dept, MCA to Share PAN, Audit Reports to Crack Down

Under the pact, tax authorities will now relay audit reports of corporates and specific information from their I-T returns along with PAN data to MCA.

PTI

Updated:September 14, 2017, 4:51 PM IST
facebookTwittergoogleskypewhatsapp
Shell Companies: IT Dept, MCA to Share PAN, Audit Reports to Crack Down
File photo of the Income Tax Building.
New Delhi: The income tax department and the ministry of corporate affairs (MCA) have signed a pact to regularly share data, including PAN and audit reports of firms, to crack down on shell companies.

The pact aims at curbing the menace of money laundering, black money and misuse of the corporate structure by shell companies, a finance ministry statement said.

The MoU for Automatic and Regular Exchange of Information between was signed between the MCA and Central Board of Direct Taxes (CBDT) on September 6 and took effect the same day, it said.

Under the pact, tax authorities will now relay audit reports of corporates and specific information from their I-T returns along with PAN data to MCA.

Besides, financial statements filed by corporates with the Registrar of Companies, returns of allotment of shares and statement of financial transactions received from banks will now be shared between the two departments.

"A Data Exchange Steering Group has also been constituted for the initiative which will meet periodically to review the data exchange status and take steps to further improve the effectiveness of the two agencies," it added.

The MoU will ensure that both MCA and CBDT have seamless PAN-CIN (Corporate Identity Number) and PAN-DIN (Director Identity Number) linkage for regulatory purposes.

"The information shared will pertain to both Indian corporates as well as foreign corporates operating in India," the statement said.

The data will also be shared for the purpose of carrying out scrutiny, inspection, investigation, and prosecution.

The government has already said that over 1.06 lakh directors will be disqualified for their association with shell companies.

The MCA is in the process of cancelling the registration of 2.09 lakh companies that have not been carrying out business activities for a long period.

Besides, banks have been asked to restrict operations of these companies' bank accounts by their directors or their authorized representatives.

Following deregistration of over two lakh companies currently, there are about 11 lakh companies with an active status.

Also Watch

Read full article
Most Active
Company Price Change %Gain
Reliance 1,019.30 +23.25 +2.33
ICICI Bank 293.20 +0.40 +0.14
Cipla 601.40 -0.45 -0.07
TCS 1,823.10 -1.40 -0.08
HDFC Bank 2,056.90 +33.40 +1.65
Company Price Change %Gain
HDFC 1,848.00 +21.30 +1.17
Ambuja Cements 197.80 -2.20 -1.10
Power Grid Corp 199.20 +0.85 +0.43
HDFC Bank 2,057.15 +31.75 +1.57
Jai Corp 154.50 +16.15 +11.67
Top Gainers
Company Price Change %Gain
Reliance 1,019.35 +23.30 +2.34
Vedanta 229.15 +4.85 +2.16
Kotak Mahindra 1,326.50 +23.25 +1.78
IndusInd Bank 1,965.35 +33.85 +1.75
Tata Steel 564.05 +9.05 +1.63
Company Price Change %Gain
Reliance 1,020.45 +24.80 +2.49
IndusInd Bank 1,965.75 +35.50 +1.84
Kotak Mahindra 1,330.05 +22.90 +1.75
Tata Steel 564.50 +9.65 +1.74
HDFC Bank 2,057.00 +31.60 +1.56
Top Losers
Company Price Change %Gain
UPL 652.50 -21.60 -3.20
IOC 165.20 -3.40 -2.02
HPCL 307.85 -5.15 -1.65
Dr Reddys Labs 2,365.10 -27.90 -1.17
ONGC 162.70 -2.10 -1.27
Company Price Change %Gain
Dr Reddys Labs 2,365.45 -29.25 -1.22
ONGC 162.80 -2.05 -1.24
ITC 264.10 -2.05 -0.77
Coal India 271.40 -1.70 -0.62
Wipro 259.70 -1.95 -0.75