Yes Bank slapped with Rs 38 crore in GST fines for alleged violations in domestic remittances

A bank official, however, said the money has been paid 'in protest' and the lender believes that it has not violated any norms.

Press Trust of India September 21, 2018 17:12:15 IST
Yes Bank slapped with Rs 38 crore in GST fines for alleged violations in domestic remittances

Mumbai: Midsized private sector lender Yes Bank has paid Rs 38 crore in fines to the GST department for alleged violations in domestic remittances, officials said Friday.

Sources, however, said the money has been paid "in protest" and the lender believes that it has not violated any norms.

Yes Bank slapped with Rs 38 crore in GST fines for alleged violations in domestic remittances

Representational image. News18.

The bank, which saw Friday its stocks bleed as much as over 35 percent intra-day and close with a loss of 29 percent after news came out that the RBI has asked incumbent CEO Rana Kapoor to step aside by end of next January, has paid the fine earlier this week.

Many peers have received similar demands and the "in protest" payment will be taken to its logical end, the officials added.

The issue relates to remittances by migrants from urban pockets to their homes in rural areas. The tax department feels the bank has violated norms and underpaid the tax, while the bank feels the opposite.

Over Rs 32 crore has been paid to the GST department, while Rs 6 crore has been paid in service tax which has been replaced by GST from July 2017.

Sources also claimed that there was no formal demand or even a showcause notice to the bank and the payment was made on the basis of the demand made during "bilateral meetings" with the tax authorities.

A bank spokesperson was not immediately available for comment

Updated Date:

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