Evasion of Tax
Monu Bhardwaj
(Querist) 27 May 2011
This query is : Open
A person is carrying trading business. He is Operating business by creating four Pvt Ltd Companies in which he and his wife are directors in 50:50 ratio of shareholding. He is also running a partnership firm in which he and his wife are partners in the equal ratio. The whole process of business is as follows:
1. They are raising unsecured loans in personal names and transfer the same in one of the company. Company is paying interest and instalment of that interest by the company’s cheque directly to the bank/financial institution.
2. No TDS is being deducted from these payments.
3. Directors transfer funds to purchase property in their personal names.
4. Interest of Rs. One Crore per year is debited to the profit and loss account.
5. Limits CCs of Rs.10 Crore had been raised in the relevant companies but used for purchase of property.
6. No enough working capital is left in the business and they raise further loan secured or unsecured or home loan.
7. No statutory compliance have been made.
8. Furhter they create a vogus proprietorship firm and the turnover is Rs 2 Crore per year and the whole sale from this concern is in cash. There is no cash in the books but they deposit lacs of Rupees in bank from black money.Cash balance is also negative which will be made positive from receiving cash from old accounts of bad debtors.
9. They are using faque Form C for avoiding sale tax in the above concerns.
10. They are not registered in PF ESI Shop Establishment Acts.
In the above all they are evading lacs of rupees sale tax service tax income tax and not paying the employees their salaries in time.From April 2010 they announce increment in our salary but we have not received arrear of salary from April 2010 to Dec 2010.We have not received our leave encashment for the financial year 2010.
My problem is that I was the previous accounts head of this concern and they are threating me that if I say something to someone they file a FIR against me or theat me by saying that they can destroy me and my family.
I humbly request all the members of LawyersClubindia to help me by suggesting where to complaint against these concerns by not disclosing myself or keep my identity confidential.
