Skip to main content

KYC non-compliance


Govt deactivates ID numbers of 2.1 million directors

The government began the process of deactivating the identification numbers of almost 2.1 million directors of companies that did not comply with KYC standards, according to a senior official. The director’s identification numbers (DIN), a unique number assigned to people who are eligible to be directors at meetings of registered companies, are being deactivated. They will be reactivated after paying a fee of 5,000 rupees along with the required form and the affected people could also face a lawsuit.

The latest movement of the Ministry of Corporate Affairs also comes at a time when the government has intensified the crackdown on the front companies, which are suspected conduits for illicit cash flows. In June, the ministry decided to carry out the KYC process (Know Your Client) for all directors, including those who have been disqualified.
The last date to comply with the new rules by sending the form ‘DIR-3 KYC‘ without charge ended on September 15. The senior ministry official said that of the 3.3 million active directors, only about 1.21 million directors completed the KYC process. The balance of around 2.1 million people did not meet the requirement.
The process of deactivating the non-conforming DIN is in progress and is likely to be completed on September 17, 2018.
After the deadline of September 15, the MCA 21 system will mark all approved DINs, assigned on or before March 31 of this year, against which the DIR-3 KYC form has not been filed as “deactivated“. The reason for the deactivation would be “no presentation of DIR-3 KYC,” according to the ministry. Interested parties use MCA 21 to submit the required documents to the ministry.
According to another communication from the ministry, which is implementing the Companies Law, the form can be presented “with respect to such deactivated DINs only with a rate of Rs 5,000, without prejudice to any other measure that may be taken”.
Last year, the ministry had disqualified more than 300,000 people from the management of registered companies in the midst of fighting illicit funds flows. These people were directors of companies that did not carry out commercial activities for a long time.

Comments

Post a Comment

Popular posts from this blog

What is ITR4 Form? | How to fill ITR-4 Form? | Certicom

The report, issued by the Ministry of Finance, the deadline for filing tax returns is extended from 31 July 2018 until 31 August 2018. For the year of assessment 2018-19, the format was changed to include the GST part with detailed financial information. The old tax form ITR-4S was renamed ITR-4. 1. What is the ITR 4 for AY 2017-18 and 2018-19 AY? Form ITR-4 is the tax return form for those taxpayers who have opted for the scheme estimated income under section 44 ad, 44ADA Section and Section 44AE the Income Tax Act. However, if the turnover of the business referred to above is greater than Rs 2 crore, the taxpayer must submit an ITR-third Click here to download the ITR-4 for the assessment year 2018-19 download What is the structure ITR 4 for AY 2018-19 and 2017-18 AY? ITR-4 is divided into: Part A: General information Part B: gross total income of the five chapters Revenue Part C: deduction and the total taxable income Part D: The tax calculation and tax status C...
Post a Comment
Read more

GST Returns |Types Forms | Due dates | Penalties | certicom

Types of GST Returns and Their Assessment Information Implementation of Statements based on New Regulations and Notifications     GSTR-1 Quarterly Returns (Annual Report Statement Debtors 1.5 Crore has the option to retrieve the quarterly return filing) Period (Quarterly) Due dates Jan- Mar 30th April 2018 Apr-June 2018 31st July 2018 For turnover of more than Rs 1.5 cr Period Dates July to Nov 10th Jan 2018 Dec 10th Feb 2018 Jan 2018 10th Mar 2018 Feb 2018 10th Apr 2018 March 2018 10th May 2018 April 2018 31st May 2018 May 2018 10th June 2018 June 2018 10th July 2018 GSTR-2 and GSTR-3   the installation is currently suspended but the dates of July 2017 to March 2018 will be made later by the Executive Committee. GSTR-3B GSTR-3B was launched in June 2018 All businesses must install GSTR-3B for the next month until September 2018. The date of April 2018 is extended on 22 May 2018 from May 20, 2018. Read the free release here. fili...
Post a Comment
Read more

Maintenance Books Accounts Under GST& Companies Act | Certicom

Maintenance Books of Accounts Under Income Tax , GST & Companies Act Books with invoices, including vouchers and receipts, must be maintained under different statutory laws – Income Tax Act, Companies Act 2013 and  GST  Act. Books accounts that maintain, retention and claim lists are different according to all 3 laws. According to the Income Tax Act If the sales/turnover / gross income of the company or profession are more than Rs. 25,00,000 or income from  business or profession  is more than Rs. 2,50,000 in any of 3 recent years,  accounting  records will be kept in a satisfactory manner. The following Professions are covered by this provision – Legal Medical Engineering Architectural Accountancy Technical Consultancy Interior Decoration Authorised Representative (one who charges fees for representing someone before a tribunal or any authority) Film artist (Producer, Editor, Actor, Director, Music director, Art Director, Dance Di...
Post a Comment
Read more