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 :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: cpt :: VAT Audit :: due date for vat payment :: form 3cd :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES
 
 
« Sales Tax »
 Arun Jaitley May Lower Corporate And Income Tax Rates But Hike The Service Tax Rate
 Tax on high seas sales becomes dispute area
  State extends GST enrolment deadline
 State extends GST enrolment deadline
 To protect its status, state forms panel to draft legislation on GST
 India Fails to Break Deadlock on New Sales Tax
 Sales tax staff protest against goods service tax council
 Income tax survey on city jeweller
 Service tax levy to weigh on upstream companies’ earnings
 5 pc tax on online sales awaits Cabinet approval
 Amendment to Additional Sales Tax Act unconstitutional: High Court

Sales tax dept busts huge hawala racket
July, 05th 2011

In the largest ever operation of its kind, the Sales Tax department has unearthed a hawala racket with a turnover of Rs 6500 crore, according to the preliminary estimates.

Sanjay Bhatia, sales tax commissioner on Monday said that the firms raided claimed to be involved in the trade of ferrous metals and diamonds. "The total scam with the bank transactions amounts to Rs 6500 crore, of which sales tax related credits are nearly Rs 15 crore. Of this the actual evasion is around Rs1.5 crore," he added.

The rest of the money comes from income, service and excise duty tax evasion.

The 37 firms raided were operational in the tiny offices in 12 places in the city, including Grant Road, Kalbadevi, Opera House and Virar. Some of the offices were being operated from old buildings, within a 40 sq ft area and minus basic facilities like computers.

"Almost all the firms had the bank accounts with a leading private bank. The trade is shown on bank accounts but there is no physical transaction of goods," Bhatia added. The raids were conducted by deputy commissioner (investigation) Sanjay Chaudhar.

Talking about the modus operandi an official said, "The hawala operator issues a bill to the beneficiary, who in turn issues a cheque against the bill. The operator on realisation of the cheque deducts his commission and returns the remaining amount to the beneficiary in cash. Beneficiary then claims Investment Tax Credit (ITC) on such bill though the transaction never took place or the tax is deposited in the government treasury."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

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