Providing more time for stakeholders, fair trade regulator CCI on Tuesday said it has extended the deadline for submitting comments on the proposed draft regulations for determination of 'turnover' of enterprises.
Comments on the draft regulations can be submitted to the watchdog till January 25.
The proposed regulation pertaining to "turnover" holds significance as it could impact the amount of penalties imposed on businesses for engaging in anti-competitive behaviour.
"CCI extends timeline up to 25.01.2024 for receiving stakeholder feedback on the draft Competition Commission of India (Determination of Turnover or Income) Regulations, 2023," the regulator said in a post on X.
The Competition Commission of India (CCI) has proposed that indirect taxes, trade discounts, and intra-group sales will not be considered while computing the turnover of an entity for imposing a penalty for any violation of the rules.
The measure is aimed at framing norms for the purpose of imposition of penalties on enterprises and persons based on the turnover or income of such enterprises and persons.
Under Section 27 of the Competition Act, 2002, the CCI can impose penalties on enterprises or individuals for participating in anti-competitive agreements or abusing a dominant position.
In case an enterprise is required to prepare a consolidated financial statement under the rules, turnover or income shall be derived based on such audited consolidated financial statements, and if the audited financial statements are not available, the turnover should be determined based on the amount certified by the statutory auditor of the firm.
For individuals, the income should be based on the gross total income as per the Income Tax Returns (ITRs) under the IT Act rules, and if the individual is not required to file an ITR, the total income shall be certified by a chartered accountant, supported by an affidavit, as per the competition watchdog.
These norms aim to provide a comprehensive and clear framework for determining turnover or income for enterprises and individuals, considering various scenarios and ensuring proper certification and documentation.