<p>For the first time in the state, the Commercial Taxes Department has busted a fake invoice racket in the services sector and arrested two persons who were running a syndicate to help companies avail fake Input Tax Credit (ITC) to inflate the turnover.</p>.<p>According to officials from the enforcement wing of the department, the culprits had set up 30 fake entities using the credentials of their family members, friends, and others.</p>.<p>Speaking to <em>DH</em>, Shikha C, Commissioner, Commercial Taxes, said the government suffered close to Rs 90 crore loss in revenue owing to the racket. “This is the first time such a racket was busted in the services sector. Our officials unearthed the scam while cracking down on evaders and scrutinising receipts,” she said.</p>.Karnataka govt establishing independent bodies to tackle fake news: I&B minister Priyank Kharge.<p>The transactions under the scanner involve a total turnover of Rs 525 crore. With further investigation, the department is expecting to make more arrests, added Shikha.</p>.<p>The fake invoices help the recipient claim an ITC for a service or goods that was never supplied. This way, they can evade taxes. “Mostly, companies that recruit manpower and labour from external agencies have been the recipients of such fake invoices,” Shikha said.</p>.<p>The department investigated 1,607 cases in three months. They identified 447 bogus entities. “A total of Rs 182 crore of input tax credit has been blocked from 1,409 entities which have benefited from the ITC passed on by these cancelled bogus entities,” it said.</p>
<p>For the first time in the state, the Commercial Taxes Department has busted a fake invoice racket in the services sector and arrested two persons who were running a syndicate to help companies avail fake Input Tax Credit (ITC) to inflate the turnover.</p>.<p>According to officials from the enforcement wing of the department, the culprits had set up 30 fake entities using the credentials of their family members, friends, and others.</p>.<p>Speaking to <em>DH</em>, Shikha C, Commissioner, Commercial Taxes, said the government suffered close to Rs 90 crore loss in revenue owing to the racket. “This is the first time such a racket was busted in the services sector. Our officials unearthed the scam while cracking down on evaders and scrutinising receipts,” she said.</p>.Karnataka govt establishing independent bodies to tackle fake news: I&B minister Priyank Kharge.<p>The transactions under the scanner involve a total turnover of Rs 525 crore. With further investigation, the department is expecting to make more arrests, added Shikha.</p>.<p>The fake invoices help the recipient claim an ITC for a service or goods that was never supplied. This way, they can evade taxes. “Mostly, companies that recruit manpower and labour from external agencies have been the recipients of such fake invoices,” Shikha said.</p>.<p>The department investigated 1,607 cases in three months. They identified 447 bogus entities. “A total of Rs 182 crore of input tax credit has been blocked from 1,409 entities which have benefited from the ITC passed on by these cancelled bogus entities,” it said.</p>