How can service tax officer observe the fraud.
Arif Ali (Apt Co Advisory)
(Querist) 29 January 2014
This query is : Resolved
Dear Experts,
Suppose a entity provide two type of services. One is taxable and second is not taxable. So the Entity issue the invoices to clients for taxable services provided and charge the service tax. and collect the amount with service tax.
Later now the entity change the some invoices and show under non taxable services. and thus the entity does not deposit the service tax to Govt.
Now my question is that on servey how can a service tax officer observe that the entity have done the fraud? (apart from this that demanding the bill from clients)
Plz explain it.
Thanx.
Guest
(Expert) 29 January 2014
Are you service tax officer, the proprietor of the firm or you have been hired to save tax for your employer through unfair and fraudulent means?
Arif Ali (Apt Co Advisory)
(Querist) 29 January 2014
Sir, I was gone for interview for the post of Accounts Manager, then Interviewer has asked this question.
Guest
(Expert) 29 January 2014
You have not stated anywhere the reason for asking such an unwarranted question.
Even if you were not interviewed for the post of Service Tax officer, the question would not have been justified on the part of the interviewer.
However, for your information, a person posted on some specific position, himself devises several means of detection of fraud by virtue of his practical experience after interaction with hundreds of didhonest tax evaders, Such means of detection cannot normally be found explained in theoretical books.
R.V.RAO
(Expert) 30 January 2014
when the entity renders taxable services and collects serv.tax,obviously they are also filing serv.tax returns.they are a regd.service provider.
this is enough proof of taxable services billed and collected .
when the entity's invoices reach their customers,then only customers pay their bills.this is also a clinching evidence of collecting serv.tax.
in a serv.tax raid they will be troubled on verifying all serv.tax and billing and banking records.
kanoon ka haath lamba hota hai.
malipeddi jaggarao
(Expert) 30 January 2014
Your employer is not recruiting you as Central Excise Officer.
It is for the Central Excise people to detect the fraud.
You can as well answer as above.
I am sorry, though it is an academic query, as many experts entertained it, I would like to give this suggestion of smart reply to the candidate who faces the interview.
T. Kalaiselvan, Advocate
(Expert) 02 February 2014
Though it is an academic query, I would like to say a small thing that law will not be sleeping always, the frauds committed will surface one or the other day. The killer would have left his visiting card on the spot.
