Pulwama, July 26: With catching of many cement trucks deficient in tax compliant documents by district administration officials in Khrew area of Pulwama district, point towards possible huge tax evasion scam.
Sources told Cross Town News that District Magistrate Pulwama wrotw to the State Taxes Dept to conduct a thorough tax audit of the cement factories located in Khrew having annual turnover of hundreds of crores.
DC Pulwama recommended to the tax authorities to match the production details with sales reflected and taxes deposited, reconciliation of credits and e-way bills log.
Pertinent to mention here that during the COVID-19 lockdown restrictions and regulated movement of goods vehicles; Tehsildar Pampore happened to catch hold of many cement laden trucks deficient in tax invoices and not carrying the mandatory E-Way bills, which in itself is violation of provisions of GST Act.
There have been since a long time, continuous complaints regarding massive tax evasion and non payment of taxes by certain cement manufacturing units in Khrew area.
Sources told Cross Town that News that District Magistrate has sensed a huge scam in this regard and consequently the matter has been referred to the State Tax Department last week along with details for a thorough enquiry.
Non issuance of invoices/ under invoicing/ under reporting of sales/ false availment of exemptions is being suspected in the instant case as Cement manufacturing has a complex tax structure; with input tax credit admissible on limestone/coal with subsidy on electricity and 28% (SGST+CGST) GST levied on sales.
Already directions are in place to the Geology Mining Dept officials in the district by the District Magistrate to verify details of usage of limestone from in-situ quarries and tallying the same with each unit’s production figures.
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