DGI&I unearths tax fraud of Rs 215.72 million

13 Jul, 2012

Directorate General Intelligence and Investigation (DGI&I)-Inland Revenue, Karachi, unearthed a tax fraud of Rs 215.72 million approximately. According to sources, the DGI&I on the directives of Federal Board of Revenue (FBR) started investigation to verify the veracity of the refund claims paid to registered persons engaged in supply of local zero rated goods under SRO 549(I)/2008.
This SRO has granted zero rated facility to the agriculture sectors on the supplies of Sprinkles, Drip Equipment, Spry Pumps and their Nozzles.
Moreover, the sources said that after scrutinising the records of M/s Eksha Industries Karachi-STRN 1100620088564 registered as manufacturer of plastic products, the Directorate came to know that this Company besides declaring nominal sales of plastic products was continuously claiming sales tax refunds since April 2009 onwards against the local supplies of Sprinkles, Drip Equipment, Spray Pumps and their Nozzles to only unregistered persons. However, the Company, which is closed for long and the production of such goods has never been made in its premises, was claiming huge fake sales tax refunds on the local supplies of aforesaid goods to unregistered persons.
The sources said the accused registered person M/s Eksha Industries has individually and jointly committed the tax fraud by claiming fake sales tax refunds against fake production and supply of domestic zero rated goods to unverifiable buyers through prima facie fake and flying input tax invoices thereby deprived the national exchequer to the tune of Rs 215.72 million and have also violated provisions of Sales Tax Act 1990.
Moreover, they said the FIR (4/12) in this regard has been lodged under section 37A of the Sales Tax Act 1990 and the proprietor of the said company namely Younus Mandvawala son of Qasim Mandvawala has also been arrested. Further investigation is underway to nab other associates of the accused person.

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