Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: ACCOUNTING STANDARDS :: VAT RATES :: empanelment :: Central Excise rule to resale the machines to a new company :: cpt :: ACCOUNTING STANDARD :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India
 
 
« General »
 Tax breather for foreign investors: All you need to know
 What the increase in tax collections does not tell us about Indian economy post demonetisation
 India’s crazy retrospective tax on foreign funds will tarnish country’s reputation
 How tax related, PAN grievances can be resolved through E-Nivaran
 Tackling income tax exemptions for equities and agriculture
 Amfi wants tax benefits for retirement plans
 Top five factors which could chart market direction in the coming week
 Tax rate hikes boost shadow economy
 Tax mop-up may decline in new amnesty scheme
 Weeks before Budget, Finance Minister Arun Jaitley lists out benefit of low tax rates
 Second home loan tax benefits

Manufacturing sees 200% rise, in tax evasion
November, 17th 2009

Tax departments search and seizure operations have revealed manufacturing to be a big tax evader in 2008-09, just behind the real estate, indicating that the sector may have acquired a bigger play in the black or the cash economy.

Gems and jewellery, the other sector hit hard by the global demand slump, has also seen a sharp increase in the quantum of undisclosed income declared in searches.

There was an over 200% jump in undisclosed income admitted to by the manufacturing sector in 2008-09, though in absolute terms it still remained well behind the real estate sector.

The searches relate to evasion of direct taxes, mostly unaccounted income.

Real estate sector is always seen as a big generator of black money, as transactions values are often depressed to evade stamp duty and also absorb cash. This is largely the reason why the maximum number of evasion cases relates to the real estate sector 123 in 2008-09.

Not just direct taxes, the manufacturing sector has also been on the radar for excise evasion. Excise duties, a tax levied at the factory gate, have not grown at the same rate as the growth in manufacturing. Excise collections had peaked at Rs 1.23 lakh crore in 2007-08 and are budgeted at Rs 1.06 lakh crore in 2009-10.

In contrast, manufacturing has grown at over 9% in the four years to 2007-08. In 2008-09 growth had dropped to 2.8%.

The proposed goods and services tax or (GST) is expected to check evasion and help plug losses. However, in the case of direct taxes, the authorities have no option other than carrying out search and seizure operations based on generation of intelligence gathered through various sources.

IT and financial services sector are generally dominated by multinationals and large Indian companies that have gone global and thus have high transparency standards. Manufacturing, which is still evolving in terms of global trends, still needs to work on transparency aspects, said Vikas Vasal, Partner, KPMG.

Lot of manufacturing is in the unorganised sector, which also makes tax evasion easier. Interestingly, Chandigarh and Lucknow have emerged as non-metro cities where high incidence of tax evasion has been reported.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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