Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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
 
 
 
 
Popular Search: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: VAT Audit :: Central Excise rule to resale the machines to a new company :: form 3cd :: TDS :: VAT RATES :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: cpt
 
 
VAT (Value Added Tax) »
  Filing of reconciliation return in form 9 for the year 2016-17
 Govt may send notice to 162 companies; ask for VAT returns
 Cenvat Credit Is Not Income Liable To Be Taxed
 Cos wanting to claim VAT refund on employees' foreign stay can get professional help
 Regarding disposal of pending form DVAT 04 & 07 Form Applications
 Disposal of pending Form DVAT 04 & Form DVAT 07 applications: regarding
 Cenvat Credit Rules, 2017 III Part
 VAT phased out in TS
 Cenvat Credit Rules, 2017 II Part
 Cenvat Credit Rules, 2017 – Part I
 How much do you know about VAT as a taxpayer?

Buyers, vendors join hands to evade VAT
January, 02nd 2013

As the state's sales tax department begins the use of advanced computer system for monitoring value added tax (VAT) payments, it has opened a can of worms. It has been found that even as buyers are claiming credits for the VAT paid earlier, the amount has not reached the government exchequer at all in a large number of cases.

"The scrutiny relates to financial year 2008-09 onwards which has led to notices being shot from this year. Several notices have been sent throughout the state. Though the total amount is not readily available, it is expected to be substantial," said an officer dealing with the matter in the sales tax office here.

VAT is a system of indirect tax under which each transaction is taxed, but a refund is also available for the levy paid in the previous deal.

Every time the tax is collected it has to be deposited in the government exchequer by the seller. For example, if a manufacturer buys raw material and pays VAT on it, he can claim a refund of the proportionate amount while paying tax on selling the end-product. However, there have been cases where the buyers have claimed to have paid tax but funds have not reached the government.

While the buyers claim innocence, passing the buck on vendors, the department says in certain cases their connivance cannot be ruled out.

The department has posted a list of 1,200 suspicious dealers whose names have been posted on its website. These businessmen had mainly secured a tax identification number (TIN) in the name of fictitious names or proxies.

Transactions were done in the name of drivers, servants and other persons who barely had means to conduct business on such a scale. They are supposed to be engaged in giving fake bills with no real transactions just to enable an input credit to the buyer. The list would grow as more cases are found, the source said.

The current system enables matching the returns filed by the buyer as well as the seller. So, if the purchases are recorded in one firms' books, it should be also shown as sale in other firm's accounts. A mismatch shows that the tax has not been paid and hence the input credit is denied, said a source in the department.

Notices to recover the tax are given to both the parties. However, buyers get enough time to reconcile the accounts with vendors only after which a recovery notice is slapped, the source said.

Some of the buyers have complained that the vendors are now not traceable. However, even in such cases, it leaves a room of doubt about genuineness of the purchase on the buyers' part.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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