Thursday, September 13, 2018

INCOME TAX RAID - 42 Bogus Firms - 30 Cr. tax Refund Scam in Panipat

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42 bogus firms - 30-cr tax refund scam in Panipat

Chandigarh, September 13, 2018:  Days after a bogus tax refund scam of Rs 100 crore came to light in Gurugram, 42 bogus firms in Panipat, all registered in the name of an untraceable person, are alleged to have siphoned off at least Rs 30.6 crore. Looking into the inter-state and inter-district ramifications of the scam, the Haryana Government has ordered a probe by the Vigilance Bureau. The scam, pertaining to bogus VAT refund claims during 2016-17 and 2017-18, came to light during the scrutiny of Gurugram-based firm Vipin Enterprises’ transactions. The authorities found that Panipat-based Paras Enterprises also played a fraud with the government through bogus business with Vipin Enterprises.

2 bogus firms - 30-cr tax refund scam in Panipat

SHADY DEALS
42 non-existent firms based in Panipat firms, all headed by an untraceable individual, siphoned at least ~30.6 crore

The figure may touch ~50 crore by the time the probe is completed

All these firms had given the same mobile phone number as contact of their proprietors, but the number seems non-functional

Paras Enterprises proprietor Tarun Kumar cannot be traced so far. In fact, no such firm exists at the registered address of 7-Ward Chungi, Sanoli Road, Panipat. The mobile phone number provided at the time of registration as that of the proprietor also belongs to someone else. Investigations revealed that 41 more firms had given the same number as the contact of their proprietors. Paras Enterprises and other such firms claimed input tax credits (ITC), commonly called tax refunds, worth Rs 17.33 crore showing transactions at a number of stages with bogus dealers.

The dealer’s returns reflected interstate purchases worth Rs 52.08 crore, but the Form C amounting to Rs 155.2 crore were issued to the firm pointing to a minimum revenue loss of Rs 30.6 crore to the government as no tax was paid by the dealer for the corresponding sales.

Since Paras Enterprises has turned out to be a non-existent firm, the authorities believe the inter-state purchases declared by the firm are also dubious and dealers in other states may also have derived undue benefits against fictitious sales of the Panipat-based firm. The authorities have provided names eight firms (one from Jaipur, one from Mumbai and six from Delhi) to the bureau for further probe.

The role of some department officials, who facilitated the registration of bogus firms and issued Form C to them, has also come to light and the government is contemplating departmental action against them. The government had suspended the ETOs and ordered a probe by the State Vigilance Bureau.

Source: the Tribune.