MM TAX CLUB

The Reserve Bank of India, vide directive CO.DOS.SED.No.S8240/12-22-493/2022-2023 dated March 09, 2023, had placed Pune Sahakari Bank Ltd., Shivajinagar, Pune, Maharashtra under Directions from the close of business on March 10, 2023, for a period of six months. The validity of the directions was extended from time-to-time, the last being up to March 10, 2024.

2. It is hereby notified for the information of the public that, the Reserve Bank of India, in the exercise of powers vested in it under sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949, hereby extends the Directions for a further period of three months from close of business on March 10, 2024, to close of business on June 10, 2024 as per the Directive ‘DOR.MON.D-135/12.22.493/2023-2024' dated March 04, 2024, subject to review.

3. All other terms and conditions of the Directives under reference shall remain unchanged. A copy of the Directive dated March 04, 2024, notifying the above extension is displayed at the bank’s premises for the perusal of the public.

4. The aforesaid extension and /or modification by the Reserve Bank of India should not per-se be construed to imply that the Reserve Bank of India is satisfied with the financial position of the bank.

Any trust or institution registered u/s 12AA or 12AB of the Income Tax Act 1961 is exempt, subject to the fulfilment of certain conditions

Income of any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in specified sub-clauses of section 10 (23C) of the Income-tax Act, 1961 (the ‘Act’) or any trust or institution registered under section 12AA/12AB of the Act is exempt, subject to fulfilment of certain conditions specified under various sections of the Act. 

Finance Act, 2023 provided that donations made by a trust / institution (other than towards corpus) shall be treated as application for charitable or religious purposes only to the extent of 85% of such donations.

Representations have been received by the Central Board of Direct Taxes (CBDT) raising concerns as to whether the balance 15% of donation to other trust / institution would be taxable or would be eligible for 15% accumulation, since the funds would not be available, having been already disbursed.

CGST Mumbai Zone, CGST Navi Mumbai Commissionerate arrested on 01.03.2024, the Head – Finance of a firm for supplying taxable service amounting to Rs. 492 Cr approximately without issuing any tax invoice and thereby indulging in the GST Evasion to the tune of approximately Rs 88 Crores.

M/s Foodlink F&B Holdings India Pvt Ltd, Mumbai is found to have supplied taxable service amounting to Rs. 492 Cr approximately without issuing tax invoice and thereby committing offence as specified in clause (a) of sub-section (1) of Section 132 of the Central Goods and Services Tax Act, 2017. 
As per Section 132 of the CGST Act 2017, supply of goods and services without issuing tax invoices is a cognizable and non-bailable offence if the tax amount involved is above Rs. 5 Cr. 

The First arrest in the case was made in December 2023, when the Finance Controller of the said company admitted his role in illegal transfer/deposit of cash, generated from the stated modus operandi in various bank accounts not declared in GST Registration, by breaking it into smaller amounts to avoid tax scrutiny and depositing in the name of fake B2C restaurant sale. This is the second arrest in this case. 

The above accused was arrested from Ahmedabad, Gujarat and produced before the nearest Magistrate who granted transit remand. The arrested accused was produced before the jurisdictional Magistrate who has remanded the arrested accused to Judicial Custody till 12.03.2024.