Black Money - Trade Mis-pricing - SIT needs to sensitise Indian Customs

I think you have cited the greasing the palms of the officers of ICD's as an example. The location need not be remote. I have a case of a Commissioner sitting over the investigation where Rs. 140 Crores were brought by overinvoicing and distributed as loans to sundry entities without paying a penny as income tax despite showing over Rs. 139 Crore as taxable profit in the exporting company. The modus operandi is simple. While the exporting company exported the goods for Rs. 140 Crores, it showed the cost of IPR at Rs. 139 Crores as payable to a partnership firm,owner of IPR. Since so much is payable towards the cost, the exporter has not made any substantial taxable profit. On the other hand, since the IPR owner, the partnership firm has not actually received the money, it has not realised the profit and thus there is no tax incidence. In fact, the partnership firm does not even file any return with IT. Commissioner of Customs in Mumbai not interested in the real investigation. It is not a coincidence that both the Commissioner and his deputy had their earlier stint at Surat, where the firm and the company are situated.

sureshbala sureshbala 06/02/2015