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: cpt :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: empanelment :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: ACCOUNTING STANDARDS :: TDS
« General »
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces
 CAG lens on entities avoiding tax with ‘farm income’ claim

Rs 450 crore recovered from tax evaders by revenue intelligence arm of Finmin
May, 20th 2011

A revenue intelligence arm of the finance ministry has unearthed excise and service tax evasion to the tune of Rs 5,700 crore in the last one year. Actions have been initiated against evaders comprising bigwigs from sectors such as telecom, iron and steel, copper, cement and plastic. Recoveries of Rs 450 crore have already been made.

The Directorate General of Central Excise Intelligence ( DGCEI )) has booked 1,200 cases of duty evasion in the financial year ending March 2011, amounting to Rs 5,708 crore, sources said.

Evasion of more than Rs 1,350 crore has been detected on account of wrongful Cenvat credit and excise duties. The highest duty evasion was, however, on the service tax front where officials have made cases amounting to more than Rs 4,300 crore. If penalty is levied, the amount to be recovered from these industries could be upwards of Rs 10,000 crore.

On service tax front, evasion has been found in the areas of import of services such as hiring of consultants and specialized services by Indian arms of telecom, business auxiliary, banking and financial sectors among others from foreign countries.

To plug the loopholes on duty evasion, the finance ministry had introduced major amendments in the Cenvat credit rules this year. It had broadened the definition of "input" goods by stating that "all goods used in the factory by the manufacturer of the final product, except those specified in the negative list and goods having no relationship whatsoever with the manufacture of final product would qualify for treatment as inputs." Almost everything used in a factory, except food consumed by employees, was brought into the tax net.

In addition, it was specified that "any goods including accessories cleared along with the final product and goods used for providing free warranty have also been included in the definition of inputs. Similarly, goods used for generation of electricity or steam for captive use also constituted inputs."

Despite these amendments, sleuths found that largescale goods were removed from some of these factories clandestinely without payment of duties. Some iron and steel industries bought scrap from local markets but manufactured fake invoices and claimed huge Cenvat credit on them showing these goods as purchase of sponge.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

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