MM TAX CLUB

A late businessman was doing business for 11 months in Partaval of Maharajganj. Purchased Rs 11.73 lakh from his firm through 13 e-way bill. The GST team has detected tax evasion and mismanagement in the investigation. Not only this but the firm was also being run in the name of the deceased’s wife. A fine of five lakh rupees has been imposed for finding disturbances in its stock.

The Goods and Services Tax SIB team had received information that large-scale tax evasion was going on in a garment shop at Paratawal in Maharajganj. In the last six months, the GST team was collecting evidence at the said shop on festivals and other occasions.

When the shop was inspected on Monday under the leadership of Deputy Commissioner Sunil Verma, it was found that the registration of the shop was in the name of the proprietor Shamshul Haque. Haq died in March 2022, but no legal action was taken by the family in this regard.

For example, the name of the firm, name of the proprietor, account number, etc., have not been changed. The business continued under the old name and address and account number. The firm has issued e-way bills by booking garments in bulk from traders in Lucknow and Kanpur, apart from Gorakhpur.

At the same time, another establishment was also found in the same place. Another firm was being operated in the name of Shamshul Haq’s wife Najra Khatoon. During the investigation in this firm, there was no physical evidence of stock being kept in the shop along with the sale. GST has imposed a fine of Rs 5 lakh on this firm.

The help from district administration had to be taken at the time of action

Additional Commissioner Grade-I Vimal Kumar Rai said that two firms in Maharajganj were being monitored. A firm was carrying on business in the name of the deceased proprietor. In the second firm, the business was going on in the name of the wife of the deceased. Action has been taken as per the rules.

When the GST team reached the businessman’s premises in Partaval for action, a crowd gathered. The team had gone to investigate on behalf of GST in six vehicles. Suddenly seeing themselves surrounded, the GST team sought cooperation from the district administration. DM and SDM supported the GST team by sending teams.

It is wrong to do business in the name of the deceased

Doing business in the name of a deceased person is wrong. A GST official told that if the business is being done in the name of the deceased, then it comes under the category of economic offense along with another businessman. For example, bought and sold lakhs of rupees from another trader in the name of the firm. In return, the firm can refuse while recovering that amount from the deceased. After this, the matter may come to fraud and forgery.

Megasoft Limited has paid 5 crore out of 28.6 crore Goods and Services Tax (GST) which it had allegedly evaded. The payment comes two weeks after the arrest of its two senior officials.

According to GST department (Rangareddy), the company admitted its liability and has agreed to pay the remaining amount soon. Following this, its executive director-cum-CEO Sunil Kumar Kalidindi and CFO Sridhar Thalalthoty were released on bail.

The GST payment relates to a project undertaken by Megasoft Limited after it was given land by TSIIC in Nanakramguda. In 2017, Megasoft entered into a development agreement with Darshitha Infrastructure Private Limited, a Salarpuria Sattva Group company, for construction of 'Sattva Knowledge Capital' offering office space of 2.2 million sq ft.

While Darshitha is said to have paid its share of taxes on construction service rendered, Megasoft was accused of not paying GST. The department is now also examining records of Darshitha to check the veracity of payment.

As per recent tweet from the EPFO, the organisation is going to hold Nidhi Aapke Nikat 2.0 programme on February 27 to cater to social security needs of organised workers and pensioners.

Nidhi Aapke Nikat 2.0 is a district outreach program for the organised workers and pensioners, the program will provide resolution on grievances and any other EPF related issues to workers and pensioners.

If anyone interested to visit the program they can access the camp location after scanning QR code provided in EPFO tweet below.

Jammu: J&K Finance Department Saturday ordered that before allotting any contract or releasing payment to the contractor, the status of his (contractor’s) GSTIN and authenticity of GST-3B return submitted by him should be verified through the Peridot App (available in the Playstore) or from the State Taxes Department.

GSTIN is a unique 15-digit Goods and Services Tax Identification Number which the business entities obtain after registering under GST.

Circular instructions in this connection were issued to all the Administrative Departments to direct their subordinate officers to follow these guidelines.

“Further, the DD0s should check the latest status of the contractor using the information available on Peridot App or from the State Taxes Department. The payments in favour of those contractors, who are not fulfilling Statutory Obligations under GST Taxation Law should be avoided,” it was further ordered.

Instructions were issued after the Finance Department noted that dealers or contractors whose GSTIN had been cancelled or deactivated were applying for government tenders with submission of fake or forged GST returns.

“Such practice happens because tender inviting departments do not cross-verify documents submitted by the tenderer with the State Taxes Department,” it was observed by the department with concern.

In terms of General Sales Tax Act, 1962, it was mandatory for the contractors to get NOC from the State Taxes Department before applying for a tender.

“This practice has been done away with, post implementation of GST Act, 2017. In order to have timely compliance of returns by contractors as well as DDOs, the State Taxes Department with the help of NIC Jammu has recently developed an Online Web application namely “APNA TDS” portal which helps in identifying payment made to work contract service providers by DDOs through JK Paysys portal,” the instructions mentioned.

It was instructed that before allotting any work contract, the status of GSTIN of the contractor and authenticity of GST-3B return submitted by the contractor could also be verified through the Peridot App (available in the Playstore) or from the State Taxes Department.

“Also before releasing payment to the contractor, the DDOs can verify the latest status of the GSTIN of the contractor by using the information available in Peridot App or through the State Taxes Department in order to ascertain that contractor has not defaulted in GST tax compliance,” the department ordered.

The Central Board of Indirect Taxes and Customs (CBIC) is considering allowing the e-filling of petitions from aggrieved taxpayers as the setting up of GST Appellate Tribunals (GSTAT) may take another 10 months despite a green signal by the GST Council.

The board has submitted before the Bombay High Court that it will not oppose or block any tax litigation if a taxpayer is willing to file an appeal in the high courts.

The move brings relief to taxpayers who are awaiting the setting up of tribunals and are unable to file writ petitions in high courts.

"We are considering the proposal to allow e-filling of writ petitions once the draft changes are included in the finance bill and approved," an official said, adding that meanwhile if a taxpayer wants to challenge the order passed by the commissioner (appeals), officials will not block it or raise any objection.

This is a departure from the board's earlier stance in the Bombay High Court where it had said that a writ petition should not be entertained in the high court to challenge the order passed by the commissioner (appeals). The change in stance comes as the GST Appellate Tribunals may not be fully functional till the year end, the official said. "The setting up of tribunals may not be possible before December or January, even when it is included in the upcoming finance bill," the official said, adding that this was because states have to make changes in their legislation and then the appointment process may take its own time.