Uttar Pradesh State Tax Department conducted inspections at the premises of three advertising and display service firms located in Dalibagh, Jiamau and Transport Nagar following complaints of discrepancies in input tax credit (ITC) and circular trading. The department also recovered Rs 2.48 crore during the investigation, officials said.
The investigation was launched by Special Investigation Branch (SIB) of Lucknow Zone-I after data analysis of TDS/TCS payments, turnover and tax liability revealed discrepancies. Officials analysed data available through GST Prime Portal and other analytical tools to compare TCS deducted on payments made by govt departments and local bodies to service providers with their declared turnover and tax liability.
According to State Tax Department, data analysis indicated that three firms providing advertising and display services were allegedly engaged in circular trading and passing on irregular input tax credit to reduce their tax liability. Officials said the firms were allegedly using improper ITC to discharge their tax obligations.
During the investigation, officials allegedly found that the firms had claimed ITC in excess of the credit reflected in their electronic ITC ledgers. The department also found transactions that allegedly indicated circular trading and the use of irregular ITC for payment of tax liability.
Following the inspections, the three firms deposited Rs 2.48 crore with the department. Officials also seized several documents and records for detailed examination. The department said scrutiny of the seized records could reveal additional instances of tax evasion.
Source from: https://timesofindia.indiatimes.com/articleshowprint/134491800.cms
