Last Updated on December 30, 2023 by The Health Master
Tax Evasion Worth Over Rs 6 Crore
In a recent operation conducted by the Uttarakhand tax department, nine pharmaceutical manufacturing companies and pharma trading units in Dehradun, Haridwar, and Roorkee came under scrutiny.
The investigation revealed rampant tax evasion and fraudulent practices, leading to the detection of more than Rs 6 crore in bogus billing.
The tax department also found that some of these firms were not even genuine businesses, adding to the severity of the issue.
Nine Pharma Companies Raided, Uncovering Bogus Billing and Tax Evasion Worth Over Rs 6 Crore
Pharma Companies’ Deceptive Tactics:
During the course of the investigation, the tax department unearthed a series of deceitful tactics used by the pharmaceutical companies to evade taxes:
Fake Pharma Packing Materials Purchase:
- The companies produced bogus bills, claiming to have acquired pharma packing materials from suppliers based in Delhi, Gujarat, and Madhya Pradesh.
- However, upon inspection, no verifiable records were found to substantiate the transportation of these materials, indicating the fraudulent nature of the transactions.
Non-Existent Firms:
- Shockingly, four of the raided companies were found to be completely nonexistent, raising serious concerns about the authenticity of the entire operation.
- This revelation further deepened the suspicion of orchestrated tax evasion and fraudulent billing practices.
Tax Evasion Uncovered:
The tax department’s rigorous investigation culminated in the detection of a whopping Rs 6.4 crore worth of tax evasion committed by these pharmaceutical companies.
The evasion was primarily accomplished through the misuse of the input tax credit, a scheme meant to benefit genuine businesses by offsetting their tax liabilities.
Swift Actions Taken:
Upon confirming the tax evasion, the Uttarakhand tax department took immediate action to prevent further financial misconduct:
Blocking Input Tax Credit:
- An input tax credit amounting to Rs 2.43 crore was promptly blocked for all the involved companies.
- This action aimed to curtail their ability to exploit the tax credit scheme in the future.
Seizure of Bank Accounts:
- As part of the stringent measures, the tax department seized the bank accounts of the erring companies.
- This step aimed to restrict their access to financial resources used in furtherance of their illegal activities.
Admission and Penalties:
Some of the companies involved in the investigation acknowledged their wrongdoings during the inquiry.
As a result, they were subjected to penalties as a form of retribution for their offenses:
Default Acknowledgment and Penalty:
During the investigation, some firms admitted to defaulting on paying taxes and participating in fraudulent practices.
To rectify their actions, they paid a cumulative penalty of Rs 30 lakh as a consequence of their transgressions.
Conclusion:
The Uttarakhand tax department’s raid on pharmaceutical companies in Dehradun, Haridwar, and Roorkee revealed a distressing web of tax evasion and bogus billing practices, amounting to more than Rs 6 crore.
The detection of non-existent firms among the accused further intensified concerns about the prevalence of such fraudulent activities.
Swift action, including the blocking of input tax credits and the seizure of bank accounts, was taken to curb future misuse of the tax credit scheme.
The penalties imposed on the companies involved serve as a stern warning against tax evasion and aim to promote compliance with tax regulations in the pharmaceutical sector.
Disclaimer: This article contains information derived from the source mentioned below. Our team utilized an AI language model, to rewrite and present the news / article in a unique format.
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