Exchange of information between Ministry of Corporate Affairs and CBIC
Recently, CBIC entered into another MOU with Ministry of Corporate Affairs (‘MCA’) for exchange of information.
To ease this process, MCA will launch new version of its portal viz. MCA21 Version 3 during Financial Year 2021-22 and correspondingly, CBIC will launch Advanced Analytics in Indirect Taxation (‘ADVAIT’) to have seamless exchange of information. Principally, information such as summary of Bills of Entry (Imports) & Shipping Bills (Exports) will be shared from CBIC’s end and Consolidated Financial Statements & Return of Allotment of Shares will be shared from MCA’s end. Additional information may also be shared (on request) for carrying out scrutiny, inspection, investigation and prosecution.
Data analytics and mining has become integral part of Government’s plan to check tax evasion and this MOU is another step in that direction. Post MOU between CBDT and CBIC, many taxpayers were issued Show Cause Notices (SCN) demanding Service Tax due to differences in Form 26AS and Service Tax returns. This MOU necessitates taxpayers to ensure that data filed with different regulatory authorities matches with each other to avoid litigation in future.