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
Latest Expert Exchange
General »
 Government likely to withdraw tax notice on free banking services
 Senior Citizens Savings Scheme Rules, 2004
 How salaried individuals can avail full potential of I-T benefits
 The Central Board of Direct Taxes unveiled new Income Tax Return forms for assessment year 2018-19 on 5 April. Although the manner of filing returns remains the same as compared to last year, certain changes have been incorporated in the new ITR forms.
 Income Tax efiling: Must-do steps to file your IT return for FY 2017-18 on time till you get Form 16
 What are the tax filing deadlines for financial year 2017-18?
 How income tax department can penalise you for under-reporting, misreporting income
 Start your tax planning right now
 Government confident of meeting fiscal deficit, tax revenue targets
 Clarification with respect to the E-way Bill System
 Here is how you can save on taxes

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 2018 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