Information about the ownership of funds coming from Mauritius should be disclosed, this rule may be applicable before the budget. Information on the ownership of funds coming from Mauritius should be disclosed, this rule may apply before the budget

Gujarati newsbusiness information should be disclosed on the ownership of money coming from Mauritius, this rule may happen before the budget

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Mumbai 4 hours ago Author: Ajit Singh

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India is now preparing to curb black money coming from Mauritius. The government may have to give full details of the money coming from there. Now who owns the money? Their name, address, passport number etc. have to be shown. The Central Board of Direct Taxes (CBDT), which is the largest body for income tax and corporate tax matters, may soon issue a circular. According to sources, the circular budget can be announced earlier.

The real owner should be informed about the money
Under the new rule, beneficiary ownership of funds must also be stated. Beneficiary ownership means those who hold at least 25% stake in a company or fund. The United States recently enacted an anti-corruption law to curb shell or dummy companies. It also requires companies to disclose ownership of the beneficiary. India has since taken this decision.

Till now only 3 information was required about Mauritius investment
Until now, if you are investing in India through Mauritius, it was necessary to provide information about the director of the company, the address of the company and the establishment of the company. However, this information did not reveal who was the original owner of the money. Because directors may or may not own the company. Therefore, 25 percent ownership will provide information about the source of the money.

In India, if you send money through any bank, the original route is told. Find out where the money comes from and where it goes. However, Mauritius does not have this arrangement.

Chanda Kochhar’s husband’s company also received money from Mauritius
Deepak Kochhar, husband of former ICICI Bank MD Chanda Kochhar, was named in a case related to the Mauritius Fund. Chanda Kochhar’s chair was Deepak Kochhar in the case related to the condition of Newpower Renewables. The company had invested Rs 320 crore five times from Mauritius.

IL & FS case was also related to a dummy company
Last week, the Enforcement Directorate (ED) seized shares worth Rs 452 crore in the IL&FS case. The shares are owned by S Coal Company Singapore. It is a dummy company owned by British citizen Jaime Vyas. The ED has taken action under the Money Laundering Act.

The government formed the task force in February 2017
A task force was formed by the Prime Minister’s Office in February 2017 to clamp down on dummy companies in India. The US Securities Act defines these dummy companies according to their business size and assets, although India does not have such a system.

Dummy companies business only on paper
Dummy companies don’t actually do any business. Money is only transferred from one company to another. In August 2017, SEBI directed stock exchanges to take action against 331 suspected dummy companies. In September the same year, the Ministry of Companies canceled the registration of 2 lakh 9 thousand 32 companies.

Black money was sent to other countries on dummy bills, it was returned as FDI.
The money coming from Mauritius to India is tax free as an agreement between India and Mauritius. Now India wants to attack him. Indian traders send money in the name of dummy import-export, then return it as FDI through Mauritius. This is called round tripping.

Mauritius ranks 123rd in GDP, although ahead in FDI
Mauritius ranks second in FDI in India. In 2019-20, FDI came from Singapore at ₹ 14.67 billion and from Mauritius at ₹ 8.24 billion. This is at a time when GDP is ranked 123 in the world. Mauritius had a GDP of 43 14.39 billion in 2019. Experts say that Mauritius may not have that much money. It depends on Africa itself. Under these circumstances how to invest in India?

Ban was imposed to control blackmail
In November 2016, the Modi government closed 500 and 1,000 notes. Its purpose was to curb black money.

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