Tax evasion of Rs 5,708 cr detected
While the issue of black money is the hottest topic for discussion at present, the tax evasion of Rs 5,708.0 crore in indirect taxes segment alone during the last financial year, speaks a lot about this deep-rooted problem in the economy.business Updated: May 19, 2011 21:06 IST
While the issue of black money is the hottest topic for discussion at present, the tax evasion of Rs 5,708.0 crore in indirect taxes segment alone during the last financial year, speaks a lot about this deep-rooted problem in the economy.
The directorate general of central excise intelligence (DGCEI) has detected duty and tax evasion to the tune of
Rs 5,708.0 crore during the last financial year 2010-11.
DGCEI — an apex intelligence body working under the finance ministry detected tax evasion by booking 1,190 cases during the period. It also made recoveries of Rs 431.0 crore in its ongoing investigation cases.
According to a DGCEI data, the duty evasion in the central excise was at Rs 1,356.0 crore, cases of evasion totalling to an amount of Rs 4,352.0 crore were registered under the service tax category, during the same period.
In 2010-11, the detections of cases made by DGCEI increased 29%, the amount detected increased by 14% and recovery of duty increased by 15% as compared to the previous year, the data showed.
An official source said the tax evaders adopted a common modus operandi of evasion such as clandestine removal of goods without payment of duty, misuse of input credit scheme and evasion by wrongfully availing the exemption notifications and undervaluation of excisable goods.
The service tax evasion took place in the form of undervaluing taxable services, misuse of input credit scheme, non-payment or short payment of service tax under reverse charge mechanism and instances of service tax collected but not deposited to the government exchequer.
The indirect taxes collection in year-2010-11 was Rs 3.4 lakh crore, registering 39% growth over the previous year — of which share of central excise and service tax constitute 61% of the total collections.
First Published: May 19, 2011 21:03 IST