Tax Evasion

Need of Controlled Foreign Corporations (CFC) legislation in India

Goods and Services Tax - There is a great need and importance of introducing CFC i.e. controlled foreign corporation legislation in Indian tax law, as it is one of the biggest measures to avoid payment of income tax in India by the resident persons of India. In the current scenario, there are no such provisions existing in income tax act, […]...

Tax Avoidance vs Evasion: A Harmonious reading of landmark Judgements of SC

Goods and Services Tax - In McDowell it was held that if a transaction was carried with an intention to avoid taxes it was up to the judiciary to decide whether the same ought to be regarded. In other words, the duty to decide the validity of the transaction was left to the court....

Counter stroke on dark side of e-commerce (Tax Evasion)

Goods and Services Tax - E-commerce is the activity of electronically buying or selling of products on online services or over the Internet. The history of e-commerce begins with the first ever online sale: on the August 11, 1994 a man sold a CD by the band Sting to his friend through his website NetMarket, an American retail platform. This […]...

How Tax Haven Countries are used for Tax Evasion

Goods and Services Tax - There was a great need and importance to stop malicious practices of tax evasion. To combat the same, government of various countries have come forward to act accordingly and has formed and amended their treaties and agreements with other countries in order to protect the economy and revenue interest of their country. In the year [&hellip...

Lovers of Money and tax non-compliance society

Goods and Services Tax - The love towards money can lead to problems like demonetarization of currency etc which can further lead to more tax evaders in our society....

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Undisclosed foreign assets of more than Rs. 1000 crore detected

Goods and Services Tax - Taking forward the mission of the Government against black money, particularly undisclosed foreign assets, the Income Tax Department conducted searches on 19th January, 2020, on a group which has been on their radar for having substantial undisclosed foreign assets. The operation covered 13 premises in NCR....

India-Switzerland discuss enhanced cooperation in fight against tax evasion

Goods and Services Tax - Fighting the menace of Black Money stashed in offshore accounts is a key priority area for the Government of India. Following the agreement between Prime Minister Shri Narendra Modi and Swiss President Mr Ueli Maurer for enhanced cooperation in the fight against tax evasion, the two sides have worked closely for expeditious information ex...

DGGI arrests two businessmen for GST evasion of Rs. 40 crores

Goods and Services Tax - Gurugram Zonal Unit of DGGI has arrested two businessmen in a case of fraudulent issuance of Input Tax Credit invoices without actual supply of goods, involving GST evasion of approximately Rs 40 crores on the taxable value of concocted supplies of Rs 210 crores. Ministry of Finance Gurugram Zone DGGI arrests two businessmen for fraudulen...

Detection of GST Evasion and comparison with pre-GST period

Goods and Services Tax - Investigation in 3626 cases of GST evasion/violations has been initiated in the present financial year by CGST (Central GST) formations (up to December, 2018). On the basis of investigation conducted so far it emerges that the amount of tax involved in these 3626 evasion/violations cases as mentioned in part(a) above is estimated to be Rs...

GSTN started sharing Mis-match data with tax authorities

Goods and Services Tax - GSTN has started sharing data with tax authorities on the following: a.Mis-match between figures reported in GSTR-1 & GSTR-3B. b.Mis-match between figures reported GSTR-3B &that computed by the system in GSTR-2A. c.Taxpayers who have generated e-way bill but not filed tax returns....

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Rohtak Court grants transit remand of accused to Patiala Court in GST evasion case

Parveen Jain Vs Directorate of GST Intelligence (Rohtak Court) - Parveen Jain Vs Directorate of GST Intelligence (Rohtak Court) In this case the firms which played vital role in issuance of fake invoices are registered at New Delhi. The complainant department has not shown so far that the six firms located at Rohtak (mentioned in Para no 3 of Reply) or their prop...

GST Evasion Case: HC Grants Conditional Regular Bail

Basanat Pherumal Makhija Vs State Of Gujarat (Gujarat High Court) - The authorities will release the applicant only if he is not required in connection with any other offence for the time being. If breach of any of the above conditions is committed, the Sessions Judge concerned will be free to issue warrant or take appropriate action in the matter....

No bail by Meerut Court in GST evasion case

Chahya Devi Vs State of U.P. (Meerut District Court) - Chahya Devi Vs State of U.P. (Meerut District Court) The present bail application has been moved by accused Mrs. Chahya Devi wife of Vijay Kumar Arya, proprietor M/S. Prabhat Zarda Factory (Oversease) R/0 J16 Sector 11] Noida 2012301 in case no. 167 of 2020 under Section 132(1)(a) 132 (1) (b) re...

Anticipatory Bail refused to person allegedly involved in Custom Duty evasion

DRI Vs Vishesh Jain (Patiala High Court) - DRI Vs Vishesh Jain (Patiala House Court) There are specific allegations against the applicant/accused that he is involved in duty evasion of about Rs. 13.0 crores by under valuing the imported white paper. The case of duty evasion on account of under valuation needs a very deep and thorough probe a...

DGGI Refused to Grant Bail to Person Accused of GST Evasion

Satender Kumar Singla Vs. Directorate General GST Intelligence (DGGI) (Rohtak Court) - Present petition is filed to seek bail to the person accused of establishing bogus firms & issuing only invoices without actual supply....

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Bogus Invoices with wrong availment of Rs. 25.5 Crore ITC detected

IV/06-Prev/72/Capital Impex/2018-19/Gr.C - (30/01/2019) - CGST, Vadodara, upon intelligence developed through data analysis, have booked a case of issuance of fake invoices valued at Rs. 107 Crores without any physical movement of goods, leading to wrongful availment of ITC worth Rs 25.5 crores and passing on of ITC worth Rs 19 crores....

DGCI arrests Company MD in fake GST bill case

F. No. DGGI/VZU/INV/GST/53/2018/ - (30/01/2019) - DGGI arrested a managing Director (MD) of a company Following intelligence developed by the officers that fake invoices were received by the company without receipt of goods from various companies and fake invoices were issued without supply of goods. Directorate General of GST Intelligence Visakhap...

GST liability difference of Rs. 67 Crore detected by CGST Vadodara

F.No. IV/16-46/CCO/T/ST/213/Pt-II - (30/01/2019) - The officers of Daman Cornmssionerate have detected a case of default in GST payment against Mrs Radha Madhav Corporation Limited which had stepped filing return since August 2018 and there was a noticeable difference in declared ilatlity in two returns prescribed in CGST Act,2017 namely GSTR-1 and ...

Benami GST Registration – measures to prevent evasion of tax

Circular No 19/2018 - (07/09/2018) - The registration procedure under Goods and Services Tax Act is simplified with the objective of ease of doing business. After online application, the applicant is deemed registered within 3 days. Therefore, since Oct 2017 in every Quarterly Performance Report, it has been specifically instructed to ...

Prosecution Guidelines in case of Excise duty / Service Tax Evasion

Circular No. 1009/16/2015-Central Excise - (23/10/2015) - Circular No. 1009/16/2015-CX Whoever commits any of the offences specified under sub-section (1) of Section 9 of the Central Excise Act, 1944 or sub-section (1) of section 89 of the Finance Act, 1994, can be prosecuted. ...

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