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: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: cpt :: ACCOUNTING STANDARD :: form 3cd :: list of goods taxed at 4% :: TDS :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company
 
 
General »
 DHFL loan to Manpreet Estates under tax scan
 Council acts to ease cascading tax impact on petroproducts
 Income Tax comes a cropper tracking shell firms
 Income Tax returns: Is rental income from property taxable in hands of homeowners?
 Tax department to engage with corporates to spur receipts
 Furnish Form 67 to claim foreign tax credit in India tax return
 GST: Commerce ministry to write to finance ministry over trademark rule
 GST: Govt issues clarification to address service tax issues, misses key concerns
 How to file LUT/Bond for SEZ units under GST
 Exemption From Capital Gains On Sale Of Agricultural Land
 FinMin wants RBI to lower rates, boost domestic demand

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 2017 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