Mumbai, September 22, 2018:
With reference to the Domestic Money Transfer (DMT) program, the Additional Commissioner of Central Tax & Central Excise, Mumbai Central (GST Office) had raised certain observations in the method to compute the applicable GST on transactions. Towards this, the GST office had computed an amount of INR 38.04 crore of GST/Service Tax, payable by the Bank. The Bank has taken legal views on record from Tax Experts confirming the Bank’s interpretation of the law to be correct & tenable. The Bank continues to believe that its GST/Service tax computation and collection process for the DMT program is accurate. Furthermore, YES BANK’s process is in line with the prevalent industry practice followed across all banks. In addition, there has been no written communication in the form of a show cause notice, or otherwise, provided to YES BANK on the matter by the authorities.
However, given that Domestic Remittances are a very crucial and integral part of the national financial inclusion agenda, benefitting the most marginalized and financially excluded individuals of the country, YES BANK is keen to pursue uninterrupted functioning of this socially important offering. Therefore, the Bank has taken a decision to pay GST/Service tax claims amounting to INR 38.04 crore “Under Protest”.
The Bank would like to reiterate that this should not, by any means, be considered as an admission of liability. YES BANK will continue to engage with the GST Office to explain its case and if required, follow the course of law to clarify interpretation issues, if any.
About YES BANK
YES BANK, India’s fourth largest private sector bank is a high quality, customer centric and service driven Bank. Since inception in 2004, YES BANK has grown into a ‘Full Service Commercial Bank’ providing a complete range of products, services and technology driven digital offerings, catering to corporate, MSME & retail customers. YES BANK operates its Investment banking, Merchant banking & Brokerage businesses through YES SECURITIES and its Mutual Fund business through YES Asset Management (India) Limited, both wholly owned subsidiaries of the Bank. Headquartered in Mumbai, it has a pan-India presence across all 28 states and 9 Union Territories in India including an IBU at GIFT City, and a Representative Office in Abu Dhabi.
For more information, please visit the Bank’s website at http://www.yesbank.in/
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