Corporate Updates – 06-11-2017


RBI has Introduce Legal Entity Identifier Code for large corporate borrowers. The Legal Entity Identifier (LEI) code is conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis. LEI is a 20-digit unique code to identify parties to financial transactions worldwide. It has been decided that the banks shall advise their existing large corporate borrowers having total exposures of ₹ 50 crore and above to obtain LEI and borrowers who do not obtain LEI as per the schedule are not to be granted renewal / enhancement of credit facilities. A separate roadmap for borrowers having exposure between ₹ 5 crore and upto ₹ 50 crore would be issued in due course. Entities can obtain LEI from any of the Local Operating Units (LOUs) accredited by the Global Legal Entity Identifier Foundation (GLEIF). After obtaining LEI code, banks shall also ensure that borrowers renew the codes as per GLEIF guidelines. These directions are issued under Section 21 and Section 35(A) of the Banking Regulation Act, 1949.


CBDT has issued clarification on Cash sale of agricultural produce by cultivators /agriculturist on the basis of representations received from the stakeholders regarding applicability of income-tax provision to cash sale of agricultural produce by cultivators / agriculturists to traders. It is clarified that cash sale of the agricultural produce by its cultivator to the trader for an amount less than Rs 2 Lakh will neither result in any disallowance of expenditure under section 40A (3) of the Act in the case of trader nor attract prohibition under section 269ST of the Act in the case of the cultivator and shall not require the cultivator to quote his PAN/ or furnish Form No.60.

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