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 with a pan India presence across all 29 states and 7 Union Territories of India, headquartered in the Lower Parel Innovation District (LPID) of Mumbai, is the outcome of the professional & entrepreneurial commitment of its Founder Rana Kapoor and its Top Management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the future businesses of India.
YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers.
YES BANK has a knowledge driven approach to banking, and offers a superior customer experience for its retail, corporate and emerging corporate banking clients. YES BANK is steadily evolving as the Professionals’ Bank of India with the long term mission of “BUILDING THE FINEST QUALITY LARGE BANK OF THE WORLD IN INDIA”.
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