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: list of goods taxed at 4% :: empanelment :: form 3cd :: ACCOUNTING STANDARDS :: TDS :: cpt :: due date for vat payment :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: VAT RATES :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India
 
 
« Service Tax »
 IT infrastructure firm of GST under scrutiny for tax evasion
 GST council OKs draft law on relief to states
 GST Network gets notice for avoiding service tax
 GSTN contract may attract tax
 GST Council may discuss tax rate on gold at Udaipur meet
 Govt may rework indirect tax estimates mid-way after GST
 GST Council meeting: States allowed to tweak taxpayer division after consulting Centre
 Government may rework indirect tax maths mid-way after GST entry
 Govt may rework indirect tax mid-way after GST entry
 GST rollout will reduce disparity among states
 GST: E-tailers oppose tax laws

PwC has a chequered past with taxmen
January, 09th 2009

PricewaterhouseCoopers (PwC), an advisory and consulting firm whose sister company audited the accounts of Hyderabad-based Satyam Computer Services, has a chequered past with Indian tax authorities, having admitted its mistake in at least two cases of tax evasion.

The Income Tax department as well as the service tax department had detected tax evasions by Price Waterhouse, the audit firm. PwC had to settle the cases with both the departments after it admitted to making the mistake and paid the dues -- with interest and penalty.

The question is not the amount of evasion, but the fact a top accounting firm, which provides tax advisory and audits the accounts, had involved in tax evasion is a matter of concern, said a revenue department official.

The first case relates to writing back of gratuity provision and not paying tax liable on the same. The tax loss in this case was Rs 9.13 lakh.

Basically, any expenditure towards providing for gratuity is allowed as tax deduction under the Income Tax rules. However, when the same deducted amount was not utilised and written back, it would be counted as income and tax is payable on the same.

PwC, according to revenue department, did not enter the written back amount in the tax return for 2000-01 and therefore paid less tax.

The department had imposed 300 per cent fine on the said tax amount, which PwC had contested in the Appellate Tribunal. The Tribunal had lowered the penalty to 100 per cent of the tax amount.

In April 2007, PricewaterhouseCoopers had petitioned the department for compounding of offences for filing incomplete income-tax return for 2000-01.

When the department was contemplating to initiate further legal proceedings against the firm, PwC, in order to avoid any litigation and buy peace, moved an application for compounding offences, which means acceptance of offence and willingness to pay fine to avoid any legal prosecution.

A spokesperson for the firm had said then that It was a human error, as even clearly held by Tribunal. Though negligible when compared to our total tax payments, we regret it.

In the second case, the Delhi branch of the Service Tax department had detected a tax evasion by the firm in 2007. The firm had shown a huge amount under miscellaneous expenditures in the balance sheet. It was found that the firm had repatriated some money to its parent company overseas for certain services. But service tax was not deducted.

The firm admitted guilt and paid taxes with interest and penalty running into crores, said a senior revenue department official.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

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