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The proposed regulation pertaining to “turnover” holds significance because it might influence the quantity of penalties imposed on companies for participating in anti-competitive behaviour.
“CCI extends timeline as much as 25.01.2024 for receiving stakeholder suggestions on the draft Competitors Fee of India (Dedication of Turnover or Revenue) Rules, 2023,” the regulator stated in a put up on X.
The Competitors Fee of India (CCI) has proposed that oblique taxes, commerce reductions, and intra-group gross sales won’t be thought of whereas computing the turnover of an entity for imposing a penalty for any violation of the foundations.
The measure is aimed toward framing norms for the aim of imposition of penalties on enterprises and individuals primarily based on the turnover or earnings of such enterprises and individuals.
Below 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 is required to organize a consolidated monetary assertion underneath the foundations, turnover or earnings shall be derived primarily based on such audited consolidated monetary statements, and if the audited monetary statements will not be accessible, the turnover must be decided primarily based on the quantity licensed by the statutory auditor of the agency. For people, the earnings must be primarily based on the gross complete earnings as per the Revenue Tax Returns (ITRs) underneath the IT Act guidelines, and if the person just 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 goal to supply a complete and clear framework for figuring out turnover or earnings for enterprises and people, contemplating varied situations and guaranteeing correct certification and documentation.
