DGCEI raids premises of WWIL; suspects Rs 100 Cr Service Tax evasion; Rs 18 Cr deposited
NEW DELHI, THE DGCEI Hqs has conducted searches at the official and residential premises of M/s Wind World India Ltd. The company is engaged in manufacturing of Wind Turbine Generators (WTG) and providing services of erection, installation & commissioning and operation and maintenance of WTG.
The DGCEI sleuths conducted the operations on suspicion that the assessee has been allegedly evading service tax by not paying tax on the entire value of the above mentioned services on 17.09.2013. During the search, it was revealed that during the period April 2012 to May 2013, WWIL operated on a very novel modus operandi. They had allegedly charged and collected full amount of service tax from its clients through invoices towards providing “erection and commissioning” & “operation and maintenance services” in relation to WTG sold to them. However, for the purpose of payment of service tax, they re-worked the value of taxable services and discharged service tax on 30% value only. The amount of remaining 70% of service tax, charged and collected by them from their clients, was added by them in the value of the services in order to evade payment of such amount of service tax.
As per the DGCEI official Press Release it was also unearthed that one of their sister concerns had not paid any service tax on sale of “Development Rights” to WWIL, M/s. World Wind Resources Development Pvt. Ltd., a 100% subsidiary company of WWIL had started payment of service tax on “Development Rights” w.e.f. July 2012 while selling the same to the customer of WTG. The issue of nonpayment of service tax is under probe.
The company has deposited Rs 18.25 Crores on the day of search itself towards their prima facie liability of Service Tax. Further the service tax evasion involved in this case appears to be about Rs. 100 Crore, the case is under investigation.
Read full article: Tax India Online
THE Income-Tax Department conducted search operations in two major pharmaceutical companies and a bakery chain. The pharma majors are Cipla Read more
The Income Tax department on Monday conducted raids at the homes and offices of two of Bollywood's leading actresses - Read more
The Income Tax (IT) department officials on Thursday raided Saravana and Saravana Selvarathnam group of stores in the city, following Read more
New Delhi, Nov 3: The Income Tax Department conducted searches at the premises of industrialist Gautam Singhania, Chairman and Managing Read more
