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: Central Excise rule to resale the machines to a new company :: VAT RATES :: TDS :: cpt :: form 3cd :: due date for vat payment :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
General »
 Alarm bells over return of tax inspector raj
 Shah gets notices over civic tax dues
 Tax revenue down in first six months after prohibition
 Post demonetisation, Income Tax department sends 30 cases of irregularities to Enforcement Directorate, CBI
 Don’t rush into a new tax without being prepared
 Can’t tax income from palace rent: Supreme Court
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes

Rs 9,000-cr tax evasion in import of 270 aircraft
July, 07th 2008

The Customs department has unearthed tax evasion of more than Rs 9,000 crore in the import of aircraft and the list of wrong-doers reads like a whos who of Indian business.

The air intelligence unit of the Customs department is set to impound aircraft owned by the rich and powerful in the country the seizure of Nita Ambanis birthday gift is not a one-off instance.

Investigations over months have revealed widespread violation of the law by major business firms. According to official sources, the businessmen have been taking advantage of the many loopholes in post-importation clauses of aircraft.

The scam basically is that aircraft helicopters and planes are imported without paying duty in the name of running commercial services but are then diverted for private use. Aircraft imported for private use attract a duty of nearly 28%.

Sources say that as many as 270 aircraft, imported under the non-scheduled operator (NSO) category in the past 30 months, as many as 68 operators (business concerns), have been diverted for private use rather than to run passenger services.

Under the Directorate General of Civil Aviation permit clauses, the NSOs are expected to operate their aircraft for non-scheduled and chartered passenger services. This means that such aircraft should be available to the public at large for various non-scheduled flights and also as chartered flights for a fee.

In many cases the aircraft importers have leased their aircraft to other operators who have licenses to operate, said the sources.

Meanwhile the customs department is learnt to have begun the process of issuing show cause notices to some of the importers. They include leading corporates such as Ranbaxy, GMR group, a Bharat Hotels company, Global Vectra Ltd, Taj Air, East India Hotels, and India Bulls.

The investigations have also brought to light that a good number of the importers under the NSO category are from Bellary in Karnataka, known as an iron-ore rich belt. The area has a number of rich and politically well-connected iron ore exporters, who were in the news recently during the assembly elections in Karnataka.

The duty liability arising out of alleged violation of post-importation conditions of the aircraft may be well over the conservative estimate of Rs 9,000 crore at 28% duty, said a source familiar with the investigations.

However another source in the customs department said the aircraft operators may go scot-free by paying much less duty as the current DGCA rules are ridden with loopholes.

There are many loopholes to take advantage of in the current format of DGCA permit. For instance some of the business houses follow the practice of issuing tickets to their employees to use the aircraft dubbing them as general passengers, some others use the aircraft for servicing political heavyweights, said the source.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

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