ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Tax EvasionSubscribe to Tax Evasion

Adani Group Accused of Evading ₹1,000 Crore Taxes in Diamond Trade

The authors would like to clarify that the first paragraph in the “Conclusions” section (p 40) should have read as follows: “The DRI filed an appeal against the CESTAT order in the Supreme Court on 6 April 2016, which was eventually disposed of on 22 July 2016. The Ministry of Finance now has to file a review petition against this decision. The question that remains unanswered: what has dissuaded the ministry from filing this review petition even though more than five months have gone by?” This is the corrected version of the article. The corporate conglomerate headed by Gautam Adani has been accused by the Directorate of Revenue Intelligence of having allegedly evaded taxes and laundered money to the tune of around ₹1,000 crore while trading in cut and polished diamonds and gold jewellery. The DRI has claimed that companies in the Adani Group misused export incentives and indulged in high-velocity circular trading through a complex web of front companies located in different parts of the world. The government seems strangely reticent about filing a review petition in the Supreme Court that could protect its revenue interests.

VAT in an Impasse

By taking the position that a patchwork VAT will not serve the purpose and threatening even to go back on its commitment to compensate the states for possible loss of revenue, the centre has created an impasse over the introduction of VAT. This may be the right time to reflect on VAT once again and consider seriously whether it will be at all worthwhile having the tax in the form it is being sought to be introduced.

Indian Textile Industry:Stifled by Warped Policies

The Indian textile industry is too fragmented and obsolete to benefit from the market openings which will follow the elimination of quota restraints. Evasion of excise duty is the basis of competitive advantage in the domestic textile industry, and this has driven the better units in the organised sector away from the domestic market into exports. But exporting units are vulnerable if they are deprived of access to the domestic market. It may be too late for government to untangle the knots it has created, but at least the 2002-03 budget proposals are a step in the right direction.
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