Tax­man Scans Cos with Sud­den Rise In Cash Sales

The Economic Times - - Economy: Macro, Micro & More -

Tight­en­ing its scrutiny of cash de­posits post note ban, the tax depart­ment is closely look­ing at any busi­ness en­tity show­ing sud­den spurt in cash sales in Novem­ber and De­cem­ber in a bid to de­tect pos­si­ble tax eva­sion. In ev­ery case of ab­nor­mal in­crease in cash sale, the tax depart­ment will match the sales and in­ven­tory data claimed by any com­pany, en­ter­prise or trad­ing estab­lish­ment with those of prior months to find out if black money was be­ing cam­ou­flaged as busi­ness sales, a se­nior gov­ern­ment of­fi­cial said. On the tax­man's radar are traders and busi­ness es­tab­lish­ments that have shown sud­den rise in cash sales or in­ven­tory pur­chase im­me­di­ately af­ter Novem­ber 8 when the gov­ern­ment un­veiled its de­ci­sion to de­mon­e­tise old 500 and 1,000 ru­pee notes.


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