turnover of enterprises: CCI seeks stakeholders’ feedback on proposed laws to find out turnover of enterprises
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The measure is aimed toward framing norms for the aim of imposition of penalties on enterprises and individuals based mostly on turnover or earnings of such enterprises and individuals.
“Turnover or earnings, because the case could also be, consists of the entire worth of gross sales or income or receipts, by no matter identify referred to as, and different working earnings, as per the audited monetary statements maintained by such enterprise. The turnover or earnings shall exclude oblique taxes, commerce reductions, and intra-group gross sales, if any.
“The Competitors (Modification) Act, 2023, inter alia, amended Part 27, 48 and Part 64 of the Act empowers the CCI to border laws for the needs of imposition of penalty on enterprise and/or particular person based mostly on turnover or earnings of such enterprise and/or particular person,” CCI stated.
Underneath Part 27 of the Competitors Act, 2002, the CCI can impose penalties on enterprises or people for collaborating in anti-competitive agreements or abusing a dominant place.
In case an enterprise, it’s required to arrange a consolidated monetary assertion underneath the foundations, turnover or earnings shall be derived based mostly on such audited consolidated monetary statements and if the audited monetary statements should not accessible, the turnover ought to be decided based mostly on the quantity licensed by the statutory auditor of the agency, it added. For people, the earnings ought to be based mostly on the gross complete earnings as per the Revenue Tax Returns (ITRs) underneath the IT Act guidelines, and if the person isn’t required to file an ITR, the entire earnings shall be licensed by a chartered accountant, supported by an affidavit, as per the competitors watchdog.
These norms purpose to offer a complete and clear framework for figuring out turnover or earnings for enterprises and people, contemplating numerous eventualities and making certain correct certification and documentation.
