Is B guilty in this case?
Querist :
Anonymous
(Querist) 10 April 2011
This query is : Resolved
A, is a chartered Accountant. B, is a lower middle class person and CA student working with A. A had opened bank a/c in the name of B and started evading service tax and TDS liability. When B came to know about this he has closed a/c and left the job. Now A is doing same thing under another name. Due to personal problems he couldn’t take any actions against A. But now he wants to expose this before respective Government department and want to punish A. Suppose he discloses all the fact before Government departments want consequences B has to suffer. Is B equally guilty of A? What if he is ready to be witness for Government and help the Government to investigate the case?
Advocate. Arunagiri
(Expert) 10 April 2011
You have not made clear what is the offense, assuming if there is any offense, A will be the accused and B will be the co-accused.
bhagwat patil
(Expert) 10 April 2011
if signs taken on instruments under pressure or any other type which are not admissible to you, it is mandatory to you to inform nearby any govt authority it may be DM,as soon as you come to know the misuse of your a/c you inform DM by telegram,or mail to DM,keep copy with you it will help you to prove your innocence.
R.Ramachandran
(Expert) 10 April 2011
You say the SB Account is in the name of the CA student and the income of 'A' is being credited into the said account of CA Student. (Is the amount is being credited in cash or in the form of Cheque i.e. whether cheque itself is being received from the clients in the name of the CA Student? Is the CA Student issues any invoice in his own name or receipt signed by him to the client)
Since you are taking about evasion of 'service tax' in this manner, I assume that the annual income is more than Rs. 10 lakhs. If that be the case, whether the CA student, being the SB Account holder is paying income tax on the amount of income in his SB Account and also files annual IT Returns?
Please also indicate whether CA student is withdrawing cash and giving it back to the CA 'A', or the CA Student is issuing cheques to 'A', or maintains the entire balance in his account as it is?
Please give the above details, before answer could be provided to your question.
Querist :
Anonymous
(Querist) 11 April 2011
It was a Current Account. Fees from Clients were received by cheques which were deposited into this account. Amount was withdrawn by self cheque and given back to A. A had already registered under service tax act and had number. He has evaded service tax as well as TDS to be deducted by the clients. The income tax on above income is not paid because while filling return income was kept below taxable limit. Thus it was evasion of service tax, TDS and Income Tax. Now B, being poor guy, he has no option but to obey A. when he closed the account A has dismissed B from the Job. A has also play role and be a reason for divorce of B. He has affair with wife of B and then projected himself as well wisher of her and separated us. After long fight in court B’s wife has divorced B. At that time B was not in a position to bring all these thing into picture and it was not proper time as B want to concentrate only on his divorce case and now he wants to expose A.
R.Ramachandran
(Expert) 11 April 2011
It is too late in the day for 'B' to do anything. If he tries to do anything, first and foremost he himself will be in soup. Better keep quiet.
R.Ramachandran
(Expert) 11 April 2011
More over, it is not clear how 'B' a CA student can have 'current account' opened in his name. It is quite baffling.
Querist :
Anonymous
(Querist) 11 April 2011
After completion of article ship, A had offered job in his Firm and after some time A has opened current account in the name of B and rest of the story B has narrated above.
R.Ramachandran
(Expert) 11 April 2011
I think you are ready to see reason, but bent upon acting in the way in which you originally wanted to act. I leave it to you.
The fact remains, that the CA student is not a babe in the woods. He was party to the whole affair. He not only got the 'current account' opened - which is not at all possible for any individual unless he is running a business, but got the cheques deposited, withdrew the cash and handed it back to 'A', did not file income tax returns and did not pay 'income tax'. He cannot at his sweet will and time now go and complain about anybody.
