Evasion of taxes by Businesses- Addl Inputs
Many of you have continued to report in circles that despite GST, no billing, underbilling,and evasion of taxes is continuing in India. With this post we would like to seek your fresh inputs on how businesses are evading taxes in India both on the GST front as well as on the Income tax front. Below are some of the issues raised in 2018.
We look forward to your inputs!
Issues - Tax Collection Leakages and Evasion
1.Businessmen collude with tax officials and give them bribes to help evade taxes
2.Most of the small stores still ask for cash payments to save on taxes
3.Many retail shops do not issue a purchase invoice to the customer
4. Doctors and lawyers still do not issue receipts for their consultation and other services by default and make it cumbersome when people ask
5.Properties are undervalued to save on stamp duty
6.Real estate and jewellery are businesses where the biggest tax evasions continue to happen
7.The products are under-valued while importing to evade taxes
8.Input tax credits are being taken against fake invoices
9. Businessmen print duplicate receipt books and report meagre sales to save on taxes
10. A lot of theft of GST still takes place by showing lower rental value (below Taxable levels)
11.Tuition provided by teachers especially for professional coaching goes unrecorded
12.Small popular shops like sweet shops, dairy etc. don’t provide proper bills and evade taxes
13.Sole proprietors, partnership farms, professionals with private practice commonly fudge their income levels
14. Most of the landlords do not declare their house property income in their income-tax return
15. The same family does business in the name of several firms and files separate returns for each firm to avail exemption limit and minimum tax slab benefits
16.Most of the NBFCs are obtaining TDS exemption forms from the individuals who are even not eligible for submission of the forms and exempt them from TDS. They never show this interest as income. Hence these NBFCs are flooded with the deposit
17.The department is aware of the fact that most of the payment of banquet halls and caterers is done by cash to save on GST but nothing is done about it
18.Textiles industry evades by cutting lengths in to pieces and show wastage to avoid taxes
19.Diamond, gold and silver jewellery traders and gold smiths evade by not declaring received pure gold and report impurities as losses
more
We look forward to your inputs!
Issues - Tax Collection Leakages and Evasion
1.Businessmen collude with tax officials and give them bribes to help evade taxes
2.Most of the small stores still ask for cash payments to save on taxes
3.Many retail shops do not issue a purchase invoice to the customer
4. Doctors and lawyers still do not issue receipts for their consultation and other services by default and make it cumbersome when people ask
5.Properties are undervalued to save on stamp duty
6.Real estate and jewellery are businesses where the biggest tax evasions continue to happen
7.The products are under-valued while importing to evade taxes
8.Input tax credits are being taken against fake invoices
9. Businessmen print duplicate receipt books and report meagre sales to save on taxes
10. A lot of theft of GST still takes place by showing lower rental value (below Taxable levels)
11.Tuition provided by teachers especially for professional coaching goes unrecorded
12.Small popular shops like sweet shops, dairy etc. don’t provide proper bills and evade taxes
13.Sole proprietors, partnership farms, professionals with private practice commonly fudge their income levels
14. Most of the landlords do not declare their house property income in their income-tax return
15. The same family does business in the name of several firms and files separate returns for each firm to avail exemption limit and minimum tax slab benefits
16.Most of the NBFCs are obtaining TDS exemption forms from the individuals who are even not eligible for submission of the forms and exempt them from TDS. They never show this interest as income. Hence these NBFCs are flooded with the deposit
17.The department is aware of the fact that most of the payment of banquet halls and caterers is done by cash to save on GST but nothing is done about it
18.Textiles industry evades by cutting lengths in to pieces and show wastage to avoid taxes
19.Diamond, gold and silver jewellery traders and gold smiths evade by not declaring received pure gold and report impurities as losses
more
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Traders / service Providers use their illiterate workers / temporary employees to make bills in their own names & get the amount paid either in cash / cheque. Get the same en-cashed from their accounts. more
Apr 10
A unit of Amazon India, Appario Retail Pvt. Ltd. having registered office at 1st Floor, UB Plaza, St. Marks Road, Shantala Nagar, Bangalore 560001, Karnataka, is a possible GST Tax evader, as they are deducting GST for all the purchases done on e-commerce portal Amazon but when asked by the purchaser to give a proper GST invoice, then they are simply not giving it by citing some of their internal policy. So, I request GST officials to investigate Amazon India and its subsidiary unit Appario Retail Pvt. Ltd. in the matter of Tax evasion. They are the big fish, please catch them first. more
Apr 02
Under billing or no billing is still continuing even in large Industrial houses what to talk about small ones with the direct connivance of revenue authorities. Fake GST invoices are raised to claim ITC/refund but due to corruption rarely such transactions are detected and strict action taken against the wrong doers. Only harsh anti corruption laws /fraudulent trade activities will help in tackling this serious economic menace. more
Mar 29
Most important point here is even largest on-line retailer / e-commerce players like Amazon India are not clean on GST Tax Compliance. Recently I purchased a high value electronic item on Amazon India portal, and they have deducted GST on that purchase, however as a customer when I asked them for giving my GST number mentioned invoice , which is a right of every buyer to ask for a proper GST number mentioning invoice, then they are denying that by citing some internal policy issues. So question is here, if a supplier denies giving proper GST no. mentioned invoice to the purchaser , then what is the legal rights available with the purchases to complain against such on-line e-Comm. merchants. And if supplier is not giving GST no. enabled invoices, then what kind of rights have been given to the customers to take that GST no. enabled invoices from the suppliers. more
Mar 29
