Rs2,000 cr unaccounted income unearthed in Telangana, AP raids
Unaccounted income of more than Rs 2,000 crore was detected in Telangana and Andhra Pradesh during the searches conducted by the Income Tax Department last week, officials said on Thursday.
 
The IT sleuths carried out search and seizure at more than 40 premises in Hyderabad, Vijayawada, Kadapa, Vishakhapatnam, Delhi and Pune on February 6. The search action included three prominent infrastructure groups based in Andhra Pradesh and Telangana, said a spokesperson of the Central Board of Direct Taxes (CBDT).
 
Investigations led to busting of a major racket of cash generation through bogus sub-contractors, over-invoicing and bogus billing. Several incriminating documents and loose papers were found and seized during the search, apart from emails, WhatsApp messages and unexplained foreign transactions unearthed during the search, said an official release.
 
Search operation was also carried out on close associates including the ex-personal secretary of a prominent person and incriminating evidence seized. The search operations revealed that infrastructure companies had subcontracted work to several non-existent/bogus entities, the official said.
 
Preliminary estimates suggest siphoning of more than Rs 2,000 crore through transactions that were layered through multiple entities with the last in the chain being small entities with turnover less than Rs 2 crore to avoid maintenance of books of accounts and tax audits etc. Such entities were either not found at their registered address or were found to be shell entities. Several such sub-contractors were controlled by the principal contractors with all their ITR filings and other compliances being done from the IP addresses of main corporate office.
 
FDI receipts of several crores in the group companies of one of the Infrastructure companies is suspected to be round-tripping of its unaccounted funds. Unexplained cash of Rs 85 lakh and jewellery worth Rs 71 lakh have been seized. More than 25 bank lockers were restrained, the official added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Newme

    1 week ago

    No mention of companies names or promoters\'.

    Centre to raise Rs 46Kcrore as interest on late filing of GST
    The government has discovered a new revenue stream to make up for the shortfall in GST collection and is looking to collect Rs 46,000 crore as interest on late payment of tax.
     
    Tax experts disputed the number saying government had promised to hand-hold the taxpayers at the time of migration to the new indirect tax regime by waiving off interest and penalties for filing their tax returns. Further, it has now resorted to extremely harsh measures to boost its tax kitty.
     
    Moreover, the levying of interest would trigger huge litigations with taxpayers challenging the demand.
     
    A.K. Pandey, Special Secretary and Member, Central Board of Indirect Taxes and Customs in a letter to all the principal chief commissioners and central tax commissioners has said that the law cast liability on the taxpayers to assess and pay the interest on delayed payment of tax.
     
    "Further, interest payable on such delayed payment of tax can be recovered under the provisions of section 79 of the CGST Act read with section 75 (12) which provides for various methods by which the proper officer shall proceed to recover any amount which is payable to the government," Pandey said in his letter seen by IANS.
     
    As per the letter, the Principal ADG (systems) on Feb 1, 2020 generated and shared the GSTIN wise list of the registered persons who have not discharged the due interest liability while filing their GSTR 3B returns belatedly. On perusal of said report, it was observed that the interest amounting to Rs 45,996 crores remains unpaid to the government on account of delayed payment of tax.
     
    The report has been shared on SFTP portal for initiating the process of recovery of such unpaid interest as per the provisions of section 79 read with section 75 (12) of the CGST Act.
     
    But, in the meantime, doubts have been raised by the field formations whether the interest has to be paid on the gross tax liability or on the net cash liability.
     
    "In this regard, the provisions of Section of Section 50 are very clear that interest liability is required to be paid on the tax liability that is paid belatedly, either through cash or through utilization of input tax credit (ITC). In other words, interest is required to be paid on total tax amount of tax liability as shown in Form GSTR 3B," the CBIC letter said.
     
    "In view of the above, you are requested to look into the issue personally and to urge field formations under your jurisdiction for making recovery of applicable interest from identified taxpayers and to furnish weekly report of GSTIN wise recovery of interest made in this regard," it directed.
     
    Rajat Mohan, Senior Partner, AMRG & Associates said that that the move is against the taxpayers who had been promised hand-holding and support at the time of roll-out of the GST.
     
    "It is demotivating for the taxpayers. If at all, the government wants to levy interest on delayed payment of tax it should be on net tax liability and not the gross tax liability," he said.
     
    A senior state GST officer said that the letter had been received but expressed reservations over the way the amount of interest on late payment of tax has been arrived.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    The RTI Activist in Arvind Kejriwal
    While Arvind Kejriwal is being hailed as an astute politician, leading a relatively new political party, the Aam Aadmi Party (AAP) and; bringing it impressively back to power in Delhi in the state assembly elections for the third consecutive term, his seed of social commitment is in his prolific use of the Right to Information (RTI) Act and spreading public awareness about it.
     
    The late Prakash Kardaley, former resident with The Indian Express often recalled how it was a young government officer, Arvind Kejriwal, who had brought to his notice a small news item in a Hindi daily that a law to empower citizens to receive information from government offices was in the offing. It alerted Mr Kardaley to the potential of the RTI act and he went on to become an integral part of its journey at the state and central level and a stalwart of the RTI movement. 
     
    So, when the Delhi Assembly RTI Act came into being in 2001, Mr Kejriwal, had floated a social forum called ‘Parivartan’ where he empowered citizens in his free time. 
     
    Quite admirably, he would walk through slum and chawl clusters with a mike amplifier in hand, calling out for those who do not have ration cards or are not getting their rightful ration with the card to learn how to deal with the issue.
     
    He would then guide them on filing RTI applications. Soon, hundreds of applications reached the food and civil supplies department, which was quite shocked at this citizens’ demand. The department responded positively. 
    Arvind Kejriwal’s effort had thus helped hundreds of people obtain duplicate ration cards or get their monthly rations. 
     
    He also used RTI to streamline power connections and water supply. 
     
    At that time, his mentor was Aruna Roy, noted activist and former IAS officer, who had pioneered what was known as the freedom act in Rajasthan.
     
    Mr Kejriwal, along with other RTI activists, also steered a campaign that was started the noted Maharashtra based activist, Anna Hazare, against the Congress government’s proposal to delete file notings from the ambit of the RTI Act. Thanks to the unity and tenacity of RTI activists, who fought this campaign together, the move was dropped.
     
    When the central RTI Act 2005 was implemented, Mr Kejriwal led a sustained battle against privatisation of water supply in Delhi. He took on the World Bank and the Delhi Jal Board (DJB) to fight a hard battle through Parivartan. 
     
    Here too, he used the RTI Act to obtain voluminous documents – over 9,000 pages of correspondence between the World Bank and DJB of biddings, DJB’s correspondence with the state and central governments as well as reports of various consultants.
     
    The RTI documents revealed that more than 60% of the funding by the World Bank would go into paying salaries and fees of high profile consultants who would script the basics of water usage in Delhi, thereby making water supply expensive for Delhites. 
     
    The documents also revealed that the World Bank was pressuring the Delhi Jal Board to select a particular consultancy firm for the job. The alumnus association of Indian Institute of Technology (IIT) Delhi and IIT Kharagpur too held a press conference urging the Delhi government to withdraw the World Bank loan, but to no avail. 
     
    Arvind Kejriwal also whipped up a mass public campaign along with Aruna Roy. Buckling under pressure, the DJB was forced to withdraw the collaboration.
     
    With his award money from the Ramon Magsaysay Award, Arvind set up the Public Cause Research Foundation (PCRF) to build emergent leadership. The Foundation had also done valuable research in the use of RTI in India. It is rather inactive today. 
     
    In 2017, the Delhi government with Arvind Kejriwal as chief minister, became the second state after Maharashtra, to start an e-portal for filing RTI applications. 
     
    He had then said in a press conference that if all governments decide to upload all relevant information that affects people’s life in the public domain, there will be no need fro the RTI act and will help improve transparency. 
     
    While wishing him a successful third tenure, we hope that he implements the Jan Soochna Portal pioneered by the Rajasthan government and followed by Karnataka. (Read: Rajasthan, Which Pioneered the RTI Movement, Launches Unique Portal for Suo Moto Disclosures)
     
    This portal is exemplary in terms of transparency as most of the documents of various public authorities are uploaded and are easily accessible to public. 
    Something that Mr Kejriwal loves and swears by!
     
    (Vinita Deshmukh is consulting editor of Moneylife, an RTI activist and convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation series on Dow Chemicals. She co-authored the book “To The Last Bullet - The Inspiring Story of A Braveheart - Ashok Kamte” with Vinita Kamte and is the author of “The Mighty Fall”.
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    COMMENTS

    veereshmalik

    2 weeks ago

    Some of us may recall the first RTI meeting in 2005 in Pune. I have photographs somewhere.

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