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 RATES :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: list of goods taxed at 4% :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: TDS :: ACCOUNTING STANDARD :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: form 3cd :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company
« Direct Tax »
 CBDT issues final rules for taxing share buy back by companies
 CBDT issues final rules for taxing share-buyback
 The direct tax collections up to September, 2016 are at Rs. 3.27 lakh crore which is 8.95% more than the net collections for the corresponding period last year.
 IDS is tremendous success: CBDT chief Rani Singh Nair
 Submit monthly data of appeals disposed of: CBDT to officers
 Direct tax mop-up jumps 9 per cent in H1, indirect tax up 26 per cent
 Income tax department slams notice on five Mumbai-based exporters over offshore accounts
 Redress TDS mismatch grievance of taxpayers: CBDT
 Tax department changes rule for accommodating deductions for deferred spectrum payment
 Tax dept renotifies income computation, disclosure standards
 Sushil Chandra to be the next CBDT chief

CBDT, DRI & ED told to probe exports to tax havens Bahamas & Cyprus
December, 12th 2011

The finance ministry has asked three of its investigating arms to probe all exports to tax havens Bahamas and Cyprus, an official in the ministry told ET on the condition of anonymity.

The ministry is concerned about the sudden surge in exports to the tax havens and has asked the agencies to ascertain whether the exports are genuine, said the official, who declined to be identified given the sensitivity of the matter.

A communication asking for a co-ordinated probe was sent from the revenue department to the Central Board of Direct Taxes ( CBDT), the Directorate of Revenue Intelligence ( DRI) and the Enforcement Directorate ( ED).

In the last two years, exports to Bahamas, a so-called tax haven, from India have surged from $2.2 million in 2008-09 to $2.2 billion in 2010-11. The sudden increase in exports has raised suspicions that a chunk of the transactions could be fraudulent.

"The revenue department has asked the agencies to verify the transactions since it has come to light that in some cases, the export figures do not match the inward inport figures of the two tax havens," an official in one of the agencies told ET.

He declined to specify how many such transactions have come to light, stating that the investigations were sensitive and at a preliminary stage.

The agency has written to the concerned countries for more detailed information on its imports from India to as part of its investigations, he said.

Concerns have been raised within the government on whether these transactions are a way of bringing back black money into the country through export over-invoicing. This happens by billing the overseas buyer several times more than the actual worth of the goods. In many cases, the so-called overseas buyers are shell companies or do not exist.

The Bahamas is one of the jurisdictions to have signed a tax information exchange agreement with India. Some of the others include Bermuda, Isle of Man, British Virgin Islands and Cayman Islands. Countries signing such a pact are required to share information if the other country has reasonable ground to believe that there has been a tax offence.

For the last few months, analysts have questioned India's export numbers which have shown robust growth at a time the US and Europe - the two biggest markets - are facing slowdown. While some have attributed this to inept data handling, a recent report by Kotak Institutional Equities Research has harped on the possibility of black money inflow.

The report, authored by Sanjeev Prasad, Sunita Baldawa and Amit Kumar, draws no definitive conclusions, but said, "We can attribute some part of these gaps to data limitations but the large difference between official data and our observations begs a better and more sophisticated explanation."

It highlights how export data of major engineering companies, including automobiles and metals, does not match the steep increase in official export numbers.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Outsourcing Test Solutions Software Testing Software Bug Testing Software Issues Tracking Software Issue Fix Software Code Optimization Database Design Optimization

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