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Filmmaking firm evades Rs 7.4 crore GST - GST Station

Filmmaking firm evades Rs 7.4 crore GST

Filmmaking firm evades Rs 7.4 crore GST

    HYDERABAD: Sleuths of the anti-evasion wing of the Ranga Reddy GST Commissionerate have detected a major case of tax evasion by a filmmaking firm to the tune of Rs 7.4 crore of which Rs 7.26 crore has been paid.

    Based on specific inputs, the squads gathered information about the firm, a press release by the Ranga Reddy GST Commissionerate said. It was found that the Telugu movie making firm was collecting GST on outward supplies made by them but was not remitting the same to government accounts. On further enquiry, the inputs indicated that a substantial tax amount had not been paid by the taxpayer.

    On February 6, the officers of the anti-evasion wing visited the registered premises of the taxpayers to ascertain the tax liability with regard to non-payment of GST and non-filing of statutory returns. It was learnt that the firm was engaged in production of films in Telugu and that they had entered into the business of distribution of movie copyrights recently. Investigation revealed that for a period of July 2018 onwards though the firm collected GST from clients, they had not returned or paid tax to the department.

    “Summons were issued to the taxpayer to submit documents. On verification of information furnished it was noticed that the firm availed the services of foreign-based technicians in the process of movie-making which is liable to tax under reverse charge mechanism (RCM). The client accepted their tax liability of Rs 7.4 crore,” an official with the Ranga Reddy GST Commissionerate said.

    Source- Deccan Chronicle.

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