QBiz: 5,800 Shell Firms Under Scanner; Aadhaar Mandatory for PPF

Read The Quint’s compilation of top business stories.

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1. Noose Tightens Around 5,800 Shell Firms

The government has collected startling data on multiple accounts of 5,800 shell companies out of the over 200,000 that were struck off by the registrar of companies (RoC). Some of these companies operated accounts even after their names were taken off the rolls. The companies deposited and withdrew huge amounts from banks post-demonetisation, while they had meagre deposits before 8 November, 2016.

Of these, one company, Gold Sukh Trade India Limited, had 2,134 accounts alone. Another company, Ashwin Vanaspati, had 900 accounts, official sources said.

(Source: Business Standard)

2. Tax Exemption, Refund Relief, E-Wallet For Exporters Under GST

Exporters will get quicker refunds and an e-wallet facility as the Goods and Services Tax Council eased rules to provide relief amid worries that a prolonged disruption could hurt the sector.

Exporters will get refunds for July by October 10 and for August by October 18, Finance Minister Arun Jaitley announced after the 22nd meeting of the Council today. They will also get an e-wallet with a notional advance credit, preferably by 1 April, for refunds.

(Source: BloombergQuint)

3. Aadhaar Now a Must for Post Office Deposits, PPF, NSC, KVP

After making Aadhaar mandatory for bank deposits, filing income-tax returns and applying for a permanent account number (PAN), the government has made the unique identification number compulsory for all post office deposits, Public Provident Fund (PPF) accounts and the National Savings Certificate and Kisan Vikas Patra schemes.

In four separate notifications, the ministry of finance on Friday mandated the 12-digit unique ID number for establishing the identity of account holders. Existing depositors have been given time till 31 December to submit their Aadhaar numbers.

(Source: Livemint)

4. Now No PAN Card Required for Jewellery Purchase of Over Rs 50,000

Jewellery purchases exceeding Rs 50,000 won’t require the income tax permanent account number (PAN) to be provided after the government reversed an earlier notification on Friday, providing a big festive cheer for the sector and potential customers.

Jewellers will also not be required to inform authorities about jewellery purchases of over Rs 50,000 after the government rescinded a notification issued on August 23.

(Source: Economic Times)

5. Sector-Specific Plan to Boost Exports Soon

The Commerce Ministry will prepare a sector-specific action plan in two-three weeks to boost export growth to a higher trajectory based on inputs received from various export promotion councils (EPC) and industry bodies.

“Each of the EPCs has been asked to prepare a concrete strategic action plan on what can be done in the forseeable future and middle term so that exports can be increased with a specific focus on specific product grades,” Commerce Minister Suresh Prabhu said at a press conference on Friday.

(Source: The Hindu Business Line)

6. Sebi's One-Scheme-Per-Category to Shake up Mutual Funds' Industry

In a move that could lead to a huge overhaul in the Rs 20-lakh-crore mutual fund (MF) industry, market regulator Securities and Exchange Board of India (Sebi) on Friday laid down the framework for the categorisation and merger of schemes.

The market regulator provided for categories of each of the broad segments that include equity, debt, hybrid and solution-oriented schemes. For each of the five segments, Sebi has issued categories. A fund house will be allowed to launch only one open-ended scheme in each of the category.

(Source: Business Standard)

7. OMCs Undecided Whether They'll Take a Hit on Margins, Says HPCL

Oil marketing companies will wait and watch international crude prices before deciding on whether they will take a hit on margins after the government cut excise duty on petrol and diesel earlier this week, said MK Surana, chairman of Hindustan Petroleum Co Ltd.

"We have to see how the product prices move in international market and what are the effective rates of taxation at that point of time and what were the crude and product prices," Surana told BloombergQuint in an interaction. "Depending on that we have to take decisions on prices," he added.

(Source: BloombergQuint)

8. Bankrupt Firms Can't Ignore Employees, Customers in Revival Plans

Bankrupt businesses exploring turnaround options under pressure from lenders can no longer ignore the interests of their employees, vendors and customers, which in the case of real estate firms would include homebuyers, according to the latest rule changes announced on Friday.

The Insolvency and Bankruptcy Board of India, which oversees the revival and liquidation of distressed firms, amended two of its regulations to require that every turnaround scheme should also specify how the interests of these stakeholders will be taken care of.

(Source: Livemint)

9. AOL Instant Messenger to Sign Off

AOL Instant Messenger, one of the pioneering chat applications of the internet's early days, will be shut down December 15, the company said today.

The shutdown comes 20 years after the launch of AIM, which became a wildly popular feature of AOL, the largest internet provider at the time.

(Source: Economic Times)