The Central Bureau of Investigation (CBI) has witnessed a huge difference in the income tax returns and service tax returns which led them to command the tax officers to dig the situation deeper. There is a clear possibility that some companies have bugged up the legal procedures and so the further investigation will be done.
The Department of Revenue has directed tax officials to examine the difference between income tax returns and service tax returns of companies. Tax officials will investigate the difference in income tax and service tax return by scrutinizing the business data provided by the companies for the financial year 2015-16 and 2016-17.
PK Das, chairman of the Central Board of Direct Taxes and Central Board of Excise and Customs (CBIC), informed the regional officials in letter about the difference of 12 lakh crores in the tax deduction (TDS) for income tax return / source for the year 2015-16 and the value of services as declared in the service tax returns for the period.
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The financial year 2016-17 also attested the same kind of difference. Statistics have been shared with regional offices. Das ordered the tax officials to verify the data and report the same to the CBI. According to Das these huge differences leads to revenue loss and so it should not be ignored.
The difference in Income Tax Returns and Service Tax Returns has come up in the context of Permanent Account Number (PAN). It was found that the PAN is either not registered under the service tax or if registered, service tax returns have not been filled whereas some cases revealed the disparity between the declared business value between ITR or TDS and service returns.
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Since July 1,2017 Service Tax has been merged with Goods and Services Tax (GST) and so the new indirect tax regime takes only two financial years in the investigation circle. The new service tax collection in the financial year 2016-17 amounted to Rs 2.54 lakh crore, which was 2.11 lakh crore in 2015-16.
