The Central Board of Indirect Taxes and Customs (CBIC) and the Ministry of Corporate Affairs (MCA) notifies on February 25, 2021, approved a Memorandum of Understanding for the exchange of data between the two organisations. In this article, we will discuss MCA signs MoU with CBIC.
MCA signs MoU with CBIC
The Central Board of Indirect Taxes and Customs (CBIC) and the Ministry of Corporate Affairs issued the new notification on February 25, 2021, signed a Memorandum of Understanding for the exchange of data among the two organisations.
Further, The Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) was also signed a Memorandum of Understanding (MoU) for the exchange of information in July 2020. With the aim of advancements in technology and the beginning of a new era of cooperation and synergy between the CBDT and CBIC.
Now, the MoU came again into force from the date it was signed and is also a progressive initiative of MCA and CBIC who have already been colluding through multiple existing tools. Also, the latest MoU will mark the beginning of a new era of cooperation between the MCA and CBIC.
MoU on data exchange: Fundamental details
- The memorandum will help the exchange of information and data between CBIC and MCA on an automatic and consistent basis.
- Also, the agreement will allow sharing of the specific information such as the details of the Shipping Bill, Bill of Entry and the financial statements filed with the Registrar by Corporates.
- The MoU will also make sure that both organisations have seamless linkages for managerial purposes.
- MCA and CBIC, in addition to the regular data exchange, will also be suitable to exchange with each other, on request, any detail prepared in their databases, for carrying out scrutiny, investigation, investigation and prosecution.
Further benefits of MCA and CBIC Agreement
Data and Technology will be performing a significant role in fulfilling the government’s vision of maximum governance and minimum government and both organisations have well placed to fulfil this vision.
The agreement compels that both organisations to harness the data capabilities to ensure effective enforcement. Both MCA and CBIC will be benefitted from access to each other’s databases which will comprise the consolidated financial statements of the registered companies and details of import-export transactions.
The arrangement of data sharing has attained importance due to the growth of MCA21 version 3 which will be utilizing state-of-the-art technology to enhance the ease of doing business in India.
The data sharing will also enhance the regulatory enforcement and similar steps practised by CBIC such as the launch of ADVAIT- Advanced Analytics in Indirect Taxation. Also, It is a 360-degree taxpayer profiling tool.
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