Prashant Kishor-led outfit which helped Modi become PM under tax scanner

Association of Citizens for Accountable Governance's service tax obligations being looked into by authorities

Association of Citizens for Accountable Governance (CAG), the outfit which hardsold brand Modi during the 2014 Lok Sabha elections and was led then by Prashant Kishor, has been issued summons by tax authorities, reported the Economic Times on Tuesday. 

According to the financial daily, tax authorities have asked CAG to declare details of its income and sources of income for the last four years. The report adds that the summons have been issued by the Directorate General of Central Excise Intelligence in Nashik. 

Sushil Kumar Kale, deputy director of the Directorate General of Central Excise Intelligence, refused to comment on the case when contacted by Economic Times. 

Kishor, who Economic Times says is not mentioned in company reports as either its chairman or director, was also unavailable for comments.

Kishor had brought together a group of graduates from India's premier institutes and multinational companies to work on Narendra Modi's 2014 election campaign under CAG's banner. Kishor, leading an outfit called I-PAC (Indian Political Action Committee), went on to work with Bihar Chief Minister Nitish Kumar in last year's Assembly polls in the state. Business Standard could not independently verify whether Kishor, who is currently consulting for the Congress, is still associated with CAG or not. 

According to the report, the summons were issued by MD Pekhale, superintendent, Central Excise Intelligence, on April 26 and sent to the company's address in Ahmedabad. Under the summons, CAG's officials had been asked to appear before the central excise authorities on May 4. According to revenue officials contacted by the paper, the case is still going on. 

The newspaper quotes authorities saying that an enquiry into the service tax obligations of CAG is being conducted under Finance Act 1994. Additionally, the authorities have told the Economic Times that Nirav Rameshchandra Vora, listed as a director for the organisation, has been summoned in person to "present evidence along with documents and details".  

According to the report, the issued notice asks Vora to present annual reports, bills, invoices, expenditure ledgers, bank statement with payment receipts among other evidence. 

The report cites ministry of corporate affairs data saying that the Association of Citizens for Accountable Governance is a company registered in India, with its registered office in Mumbai.

The company was registered as a private company limited by shares with the Registrar of Companies, Mumbai, on July 12, 2013. Himanshu Anirudhsinh Chudasama and Vora have been listed as the directors, the report adds.

According to the Economic Times, the Central Excise Intelligence Directorate has also asked the company to furnish its income ledgers so that details of annual incomes can be reviewed. The report adds that according to the notice, failure to comply with the order would attract action under section 174 and section 175 of the Indian penal code. 

The report says that ministry data shows that the company's current status is "active" and that it has an authorised share capital Rs 100,000 and paid capital of Rs 1,000.  

According to the article, CAG's last annual general meeting was held on September 30, 2014, and its balance sheet was last filed on March 31, 2014.