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India charges 21 companies with tax fraud |
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August 5, 2000
NEW DELHI (AP) - The government has charged 21 companies during the past three years with tax fraud over allegedly false claims for credits on payments of sales tax, Junior Finance Minister V. Dhananjaya Kumar told Parliament on Friday. The companies include Ashok Leyland, Indian Rayon and Industries, J.K. White Cement, DCM Daewoo Motors, Matsushita TV and Audios, Polycab Ltd., Rama Newsprints, CEAT Ltd. and Indian Seamless Steel and Alloys, Kumar said in answer to a question from a Parliament member. He said the companies were accused of fraudulently claming credits against their taxes for payment of a sales tax or modified value-added tax totaling 755 million rupees (dlrs 16.65 million). He said nearly half the amount, 305 million rupees (dlrs 6.72 million) had been claimed by CEAT. Indian companies are allowed to claim credits for taxes paid on items used to manufacture other goods, so as to avoid double taxation. However, Kumar said, some companies claim a higher credit than the amount of tax actually paid. Kumar said that the government plans to recover the unpaid taxes and impose penalties on these companies. The cases are in court. |