After conducting investigations at sites connected to an organization involved in the sale of telecom equipment, the Income Tax Department uncovered massive illicit exports of pharmaceuticals from India to China, officials said. In this article, we will discuss this latest news of Income Tax dept detects illegal export of medicines in detail.
Illegal export of medicines in National Capital Area
The Income Tax Department has conducted an important search on the Illegal export of Medicines. The Indian Income Tax Department started a search operation at many sites in the national capital area on 16 August for a telecom equipment trader.
The company also claims to be doing the business of the installation and maintenance of things for various telecom companies in India, apart from trading in telecom equipment.
However they were discovered to sell pharmaceuticals from India to China on huge scales illegally,” the officials stated. They claimed that hundreds of crores of tax liabilities are now recognized.
Furthermore, cash in excess of Rs 62 Lakhs was found on the premises of the company. As a result, these three lockers are now under restriction.
Similarly, The company’s top officials were engaged in an unlawful exchange of currency between the Indian Rupee and China’s RMB.
Special Search Operation by Income Tax Department on Illegal export of medicines to China
The Income Tax Department conducted special search operations on the company. “Five properties were searched, including a company office and residential offices in India of a foreign director, company secretary, accountant and cash handler,” authorities added.
However, The identity of the company and its top management was not disclosed.
The central probe agency also states that the purchases of the assessed company were done wholly from its holding firm during its searches.
Outcomes of Search Operation
“The examination of import bills in relation to selling bills indicates that the trade of these products represents large gross profits (about 30%). However, throughout the years the firm has booked massive losses. It is therefore clear that the company’s loss is booked through fake costs for services it provides,” the officers stated.
The officials also add, “Few such recipients have been identified. In such recipients have substantial expenses have been booked over the years. However, These entities have been found to be non-existent at their addresses.”
Furthermore, the companies have also found proof of fake shell companies and tax evasion.
“Over the years, spurious costs are projected to reach hundreds of crores. In WhatsApp’s discussions, the CEO, CFO and other important individuals suggesting illicit payment to telecommunications providers, damning evidence was found during the search. WhatsApp chats also indicate commission payments for an Australian-based individual purchasing telecommunications company’s shares in India,”
Officials of the Income Tax claim to have uncovered proof of unreported money every year. According to them, these are the fraudulent scrap sales recorded in the books. Further inquiries and investigations are ongoing and offenders might face serious sanctions.
In conclusion, ITR filing, Business Compliances and Company Formation should be done seriously and as per rules and regulations. Otherwise, serious harm may come to individuals and their reputation too.
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