Firm evades tax by submitting fake 'C-forms': DRI

The State Directorate of Revenue Intelligence (SDRI) of Rajasthan has detected tax evasion by an electrical product manufacturing company here for availing tax rebate on goods worth Rs 18 crore by furnishing bogus 'C-Form', an official said.

He said SDRI has recommended Commercial Tax Department to recover 28 per cent penalty along with 12 per cent evaded tax amount within six months. Evading tax may also lead to prosecution, he added.

As per the Central Sales Tax Act, the seller has to pay only two per cent tax instead of 14 per cent if the buyer of the product provides 'C-Form'.

The action was taken on Genus Power Infrastructures Limited, located at Sitapura Industrial Area here, which sold electrical products outside the state.

The company had sold products in Karnataka and Madhya Pradesh in the year 2013-14 and the companies outside the state had released bogus C-Form of worth Rs 18 crore to avail tax rebate, the official said.