Punjab excise and taxation department said that as many as 170 business firms have indulged in bogus transactions with some fake companies to claim exemption from Value Added Tax to the tune of INR 2,000 crore.

Mr A Vinu Parsad excise and taxation commissioner said that several companies were involved in preparing bogus invoices and setting up fake firms to claim tax exemption. Criminal cases against some of them have also been registered.

The fraud came to light when the department sleuths raided a local steel unit and discovered fake transactions worth hundreds of crores. During investigations neither the seller nor the buyer were found when a team of income tax officials went to verify the addresses mentioned in the invoices. It said that these firms had sought and received the VAT refunds earlier.

(Sourced from Daily News & Analysis)