Silk Expo sealed for tax evasion
Jammu, Dec 23: State Taxes department on Sunday claimed to exposing a major tax evasion during an inspection to the Silk Expo at Jehlum Resort, Jammu. The company was sealed to stop further tax evasion, an official spokesperson said.
He said the inspection team headed by Additional Commissioner, State Taxes Administration & Enforcement, Jammu, Mohammad Shahid Saleem Dar noticed that a total value of the material for sale was disclosed at Rs 18 lakh only by the company but the total value of the material available for sale turned around Rs 1.62 crores.
Officials said that the Silk Expo, which is in business since 15th of December 2018, has been recording daily sales of around Rs 4 lakhs.
After the inspection, the department sealed the company to ensure no further tax evasion due to further sales as no proper invoices have been issued till date and there is every apprehension of further tax evasion in case it is continued to run.
The spokesperson of the department added that such evasion hit the local traders, who are doing “genuine and honest business”, very hard as their sales in the market get badly affected.
The spokesman said that the Silk Expo has got registration as Casual Taxpayer under GST law and has deposited only Rs5,000 SGST and a similar amount of CGST. As per law, the casual taxpayer has to deposit tax leviable in advance in his/her electronic cash ledger to be calculated on the basis of the stock.