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: form 3cd :: TDS :: Central Excise rule to resale the machines to a new company :: VAT RATES :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: cpt :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: due date for vat payment :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« General »
 How to claim tax benefit on tuition fees under Section 80C
 Online Income Tax grievance redressal facility launched at 60 offices
 Demonetisation impact on government tax revenue marginal; direct tax personal income grew at above budget estimates
 ICAI seeks more accountability, transparency in defence sector
 Will Budget help double farmers’ income?
 Verify online deposits made post demonetisation, income tax department asks taxpayers
 Union Budget 2017: Best budget is do not change anything, do no harm, implement well
 Why salaried class deserves standard deduction
 3 new taxes that Modi government could introduce, but won't
 Tax gains may showcase demonetisation windfall
 Tax exemption for ELSS will help broaden investor base, channel household savings

I-T dept gains with fatter tax collection
January, 09th 2009

Guess what? The only guys to have gained from Ramalinga Raju's fudged accounts seems to be the Income-Tax department.

Each time Satyam would have declared an 'inflated' income, this would have automatically led to an inflated profit figure as well. The irony is thecompany would then have to fork out real money as tax on this fictitious profit. And, as the company kept pumping up the numbers each year, the tax outgo also would have increased substantially. Satyam Computer Services, on a standalone basis, has disclosed a tax outgo of over Rs 800 crore since the financial year 2002-03, up to 2007-08.

Since 2004, the total income tax paid by Satyam on a consolidated basis stands at $169 million. Raju's letter talks about the gap in balance sheet that has arisen purely on account of inflated profits over a period of several years.

A source in the I-T department insisted that the department may not even consider returning whatever extra tax that may have accrued as a result of the fudging of accounts.

There may have been many cases wherein an individual or company would have understated income figures.

Given the magnitude of this case, the source added that it could surely be termed as a first of its kind from the I-T perspective.

As per Raju's own admission, Satyam's balance sheet as on September 30, 2008, carries an inflated (non existent) cash and bank balances of Rs 5,040 crore (as against 5,361 crore reflected in the books). It also carries a non-existent accrued interest of Rs 376 crore.

"There's been a serious lapse. The auditors should have scrutinised bank account documents. It cannot be a mere oversight. As for the income tax,which has already been filed with the department over the years, there is less chance of the department returning it," said the source, on conditionof anonymity.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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