Poonta Sahib oil firm penalised Rs 2,100 cr over tax evasion
The economic intelligence unit of the Himachal Pradesh excise and taxation department has unearthed massive tax evasion by a Paonta Sahib-based refined non-edible oil manufacturer and imposed a penalty of Rs 2,100 crore on it.chandigarh Updated: Jun 23, 2014 08:33 IST
The economic intelligence unit of the Himachal Pradesh excise and taxation department has unearthed massive tax evasion by a Paonta Sahib-based refined non-edible oil manufacturer and imposed a penalty of Rs 2,100 crore on it.
The economic intelligence unit (EIU) levied Rs 1,000 crore on account of tax recovery and Rs 1,100 crore as penalty, and asked the defaulting unit to deposit the full amount within 15 days.
The EIU had gathered information about evasion of VAT and investigated production and sale details of the unit producing refined non-edible oils used for heavy machinery including aircraft, excise and taxation commissioner RS Negi said.
The private firm has shown voluminous stock transfers and sales and also availed Income Tax exemption, but the Entry Tax paid for bringing in raw materials for manufacturing oil did not match with the sales, raising doubts that "either there is evasion of Entry Tax on import of raw material or the unit has shown fictitious production", Negi said, adding that further investigations are in progress.
The investigators found discrepancies in production and sale proceeds and short payment of the Entry Tax, and on physical verification it was found that the company had shown much higher production volume, stock transfer and sales as compared to entry tax paid for import of raw material.
"Either the industry evaded the entry tax or sales shown were inflated to derive the benefit of Income Tax exemption as the online declarations and physical verification did not match," Negi said.
He said another Baddi-based industrial unit was under scanner the department for alleged tax evasion.
He said with the department cracking down on tax evaders there has been revenue increase of Rs 148 crore during the months of April and May, as compared to last year, and if this trend continues the tax collection would touched Rs 6,000 crore this year against Rs 4,500 crore during 2013-14.