Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: TDS :: articles on VAT and GST in India :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: VAT RATES :: due date for vat payment :: cpt
Direct Tax »
 Filing tax return before March 31? Here is what you should do and what not
 CBDT invites suggestions to draft new Direct Tax Law
 Deadline For Income Tax Returns Filing Only 12 Days Away. 10 Points
 Income Tax: E-assessment ensures greater efficiency in the taxation system
 10 Points Deadline For Income Tax Returns Filing Only 2 Weeks Away.
 Income tax returns (ITR) filing: A step by step guide to check your ITR status online and offline
 How to save tax; amazing tips to make your money stay in your wallet Income tax returns (ITR) filing
 Want to save tax? Here are the best options
 Suggestion For Option To Assessee For Higher And Lower TDS/TCS For Optimization Of Tax Collection And Refunds
 CBDT to conduct nationwide review of tax collection for FY18 today
 Here are a few last-minute tax saving ideas Not planned taxes yet?

I-T finds tax evasion by NSEL borrowers
October, 11th 2013

The income-tax (I-T) department has found tax evasion by National Spot Exchange Ltd (NSEL) borrowers, following its search on them in August. The amount of tax on that is yet being finalised by the various income tax circles could be around Rs 100 crore or even more. The tax evasion has been found from a few the borrowers based in northern part of India, especially in Delhi and Ludhiana.

The I-T department had carried out surveys on the premises of the 24 borrowers across states on August 23, just three days after NSEL could cough up just a little over half of the Rs 174 crore due in the first weekly settlement, which led to exchange defaulting. Borrowers are facing charge of borrowing Rs 5,572 crore from the investors using platform of the NSEL and when the exchange suspended trading they could not pay back.

These borrowers were borrowing money from the NSEL platform as that had become a fund-raising platform and commodities trading took back seat. Interest paid by these borrowers on the amount borrowed is allowable as business expense under the I-Tax Act, as borrowing was also for business. However, during the survey, some of the borrowers were found to have diverted money for use other than their business. Hence, interest paid on such borrowing will not be allowed as business expense and they will have to pay income tax on that with interest and penalty, said an I-T official.

According to an affidavit filed by NSEL’s former managing director Anjani Sinha last month, some of the borrowers with very high exposure were borrowing fresh money just to pay cost of interest and rolling over cost, which was running to 20-30 per cent of their borrowing and in absolute terms in the range of Rs 50-200 crore. Even part of these expenses not allowed as business expense there could be a huge tax recovery.

I-T has also wrote to 13,000 investors of NSEL to know if the money they had invested in NSEL-traded products was tax-paid money or not. Responses have started coming in and the investigation wing is passing on this information to the intelligence and criminal investigation wing (I&CI). This wing works to develop a robust database of financial information and aid the regular investigation wings of the I-T to undertake “specific and result-oriented” search and survey operations.

I & CI will maintain that as a data base for future investigation. According to an I-T official, from the data base of the NSEL investors, randomly some cases will be picked up and detailed inquiries will be done. One of the issues being raised not just that whether the tax was paid on the money invested in NSEL but also if they had such an income that allow them choice to put money in NSEL products that which are their other incomes and whether they pay proper tax on that.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions