IT department detects massive under invoicing, while actual value could be Rs 2,000 crores, declared value is Rs 20 crores.

IT department detects massive under invoicing, while actual value could be Rs 2,000 crores, declared value is Rs 20 crores.

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IT department detects massive under invoicing, while actual value could be Rs 2,000 crores, declared value is Rs 20 crores. 

1. The Income Tax Department carried out search and seizure operations on an importer and trader of laptops, mobile phones and peripheral parts. The search operations commenced on 10.10.2021 and were spread across the National Capital Region, Haryana and West Bengal.
2. The IT department detected import of goods in the name of shell entities at under-valued and/or wrongful declaration of description of goods imported, with an intent to evade customs duty. Upon clearance at port(s), such goods have been found to be distributed throughout India by way of out-of-books cash transactions.
3. As an example, a bill of lading declared the goods as ‘HDMI cables’ valued at Rs 3.8 lakh. However, on de-sealing and searching the same, it has been revealed that the actual goods imported are high value items like laptops, mobile phones etc which are valued at Rs. 64 crore.
4. Though the value of imports declared at the port of entry by the use of such shell entities in the past 3 years is about Rs. 20 crores, it is estimated that the actual value during this period could be more than Rs. 2000 crores, given the scale of massive under-valuation detected.
5. The wealth, so generated, has been used for acquisition of high value immovable properties; disguising of cash introduced in the form of bogus rental income and bogus unsecured loans; and deposits in foreign bank accounts.
( Press Information Bureau)

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