W Bengal govt to constitute investigation unit to check tax evasion
Updated: Sep 02, 2014 04:28:56pm
Kolkata, Sept 2 (KNN) The Directorate of Commercial Taxes, Government of West Bengal has decided to constitute a dedicated Input Tax Credit (ITC) Investigation Unit to enquire into and investigate instances of significant tax evasion through false and exaggerated claims of input tax credit.
A circular to this effect was issued by the Commissioner, Sales Tax, West Bengal, Binod Kumar on August-27.
On the need for such a unit, “It has been found that there are several instances of tax evasion through false and exaggerated claims of input tax credit under the West Bengal Value Added Tax Act, 2003, by means of bogus circular trading and fictitious transactions involving fake tax invoices, or tax invoices issued without any corresponding transfer of property in goods, or the like,” the trade circular said.
“Besides contravention of the provisions relating to claim of input tax credit, in some cases there have also been commission of offences under the said Act as also under the appropriate provisions of the Indian Penal Code, 1860. So it has been found necessary to create a specialized Unit to investigate into alleged cases of false claims of input tax credit, cases of transactions relating to excess claim of input tax credit, and cases of issue of tax invoices by dealers in contravention of the provisions of the West Bengal Value Added Tax Act, 2003, and take appropriate actions as may be deemed necessary for the purposes of the Act,” it added.
The ITC Investigation Unit will be located in the Office of the Commissioner of Commercial Taxes. In its task, the Unit may also seek appropriate assistance from the Data Analysis Wing and the Cyber Crime Cell of the Directorate.
As far as jurisdiction and powers are concerned, an officer placed in the unit will have jurisdiction throughout the whole of West Bengal and shall have all the powers as may be exercised under the West Bengal Value Added Tax Act, 2003, by a person of similar designation for effective discharge of his functions.
The unit will be headed by a Joint Commissioner of Sales Tax and shall have other officials as felt necessary to discharge its functions. Further, it will be under the administrative control of Special Commissioner of Commercial Taxes, West Bengal.
The order has come into effect from September-1, as per the circular. (KNN/ES)
A circular to this effect was issued by the Commissioner, Sales Tax, West Bengal, Binod Kumar on August-27.
On the need for such a unit, “It has been found that there are several instances of tax evasion through false and exaggerated claims of input tax credit under the West Bengal Value Added Tax Act, 2003, by means of bogus circular trading and fictitious transactions involving fake tax invoices, or tax invoices issued without any corresponding transfer of property in goods, or the like,” the trade circular said.
“Besides contravention of the provisions relating to claim of input tax credit, in some cases there have also been commission of offences under the said Act as also under the appropriate provisions of the Indian Penal Code, 1860. So it has been found necessary to create a specialized Unit to investigate into alleged cases of false claims of input tax credit, cases of transactions relating to excess claim of input tax credit, and cases of issue of tax invoices by dealers in contravention of the provisions of the West Bengal Value Added Tax Act, 2003, and take appropriate actions as may be deemed necessary for the purposes of the Act,” it added.
The ITC Investigation Unit will be located in the Office of the Commissioner of Commercial Taxes. In its task, the Unit may also seek appropriate assistance from the Data Analysis Wing and the Cyber Crime Cell of the Directorate.
As far as jurisdiction and powers are concerned, an officer placed in the unit will have jurisdiction throughout the whole of West Bengal and shall have all the powers as may be exercised under the West Bengal Value Added Tax Act, 2003, by a person of similar designation for effective discharge of his functions.
The unit will be headed by a Joint Commissioner of Sales Tax and shall have other officials as felt necessary to discharge its functions. Further, it will be under the administrative control of Special Commissioner of Commercial Taxes, West Bengal.
The order has come into effect from September-1, as per the circular. (KNN/ES)
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