Bonus Clawback: A New Low for Senior Managers
The Government of India is planning to take back bonuses and other benefits paid or payable to top IL&FS Managers, accused of major financial irregularities and corporate fraud.
Similarly, in the Videocon loan case, ICICI Bank stated that, the ex-MD, Chanda Kochhar, will have to return bonuses worth Rs 9.8 crore to the Bank following the Justice BN Srikrishna Committee report, which found her guilty of violating the bank’s code of conduct.
NB: A clawback is a provision where incentive-based pay, like a bonus, is taken back from an employee after detection of misconduct.
In the face of rising incidences of corporate fraud in India, a number of companies are now making rules to recover any losses from executives who are found to have indulged in unfair practices.
Compliance Takeaway: Mere resignation of Corporate Executives and Directors from their posts will not exonerate them from Ethics & Compliance violations, during their tenure.
No e-way generation for non-filers of GST returns
Non-filing of GST returns within stipulated timelines by a consignor, consignee, transporter, e-commerce operator or courier agency consecutively for two months will be barred from generating electronic e-way bills for transporting goods, as per the directives of the Ministry of Finance.
Transporters of goods worth over Rs 50,000 are required to present e-way bill during transit to a GST inspector, if asked.
This anti-GST evasion directive shall come into force from June 21, 2019, as reported by the Economic Times.
Further, businesses under GST composition scheme will be barred from generating e-way bill in case they fail to file tax returns for two consecutive filing periods, being six months.
Compliance Takeaway: FMCG, Logistics, E-commerce businesses will need to audit GST compliance by business partners and issue periodic alerts.