Ludhiana: The Excise and Taxation department of the Punjab government has unearthed a scam of VAT evasion in which a company submitted fake C-Forms worth Rs.23 crore with the department. A Mandi Gobindgarh based firm named ‘World Wide Products Pvt Ltd’ had submitted fake C-forms worth around Rs.23 crore regarding the sale of steel chairs to a Delhi based firm.
Deputy Excise and Taxation Commissioner, Ludhiana, JK Jain informed that World Wide Products had supplied steel chairs to some Delhi based firms. When a company supplies some products to some firm outside the state (which in this case is Delhi), that firm is charged VAT at 2 percent concession rate according to Central Sales Tax Act 1956. For availing this concession rate, the seller has to submit a C-Form (which in this case were found to be fake). In the absence of C-Form’s, the firm has to deposit VAT at 14.3 percent.
DETC informed that World Wide Products had submitted 11 different C-Form’s worth Rs 22.53 crore with the department and on the basis of this sale, he deposited VAT at 2 percent. DETC JK Jain said that the department got suspicious and got the C-Form’s submitted by World Wide Products Pvt Ltd scrutinised from Trade and Taxes Department, New Delhi . Assistant Commissioner, Trade and Taxes Department has confirmed that the C-Form’s mentioned by World Wide Products Pvt Ltd were never issued by the department to World Wide Products Pvt Ltd.
Jain said that the firm showed VAT at 2 percent in his income tax returns as well, which is illegal. So now, World Wide Products Pvt Ltd has caused a loss of Rs 2.77 crore to the state exchequer by committing fraud with the state government.
The department have written a letter to the SHO of Mandi Gobindgarh to register an FIR against Jaspal Singh and Jaswinder Kaur, owners of World Wide Products, Mandi Gobindgarh. He informed that the Excise and Taxation Department would also initiate departmental proceedings against World Wide Products Pvt Ltd. as per law.
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