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Fake entry

sidharth shankar (Student) (154 Points)

17 April 2012

How do compaines show fake bills to get tax advantage....and how does the party issuing bills get benefit from it......???

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3 Replies

CA Saiyum khan (Practicing CA) (690 Points)
Replied 17 April 2012

This is some thing not to be dicussed in such public domain. You will no once you will get involved practically in professin.

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Ankita Benegal (CA Final) (66 Points)
Replied 17 April 2012

companies getting fake bill can claim input tax credit (Excise,Service Tax) on an amount not paid only!

companies issuing such bills do it for goodwill or maybe a bribe!

why sould we not discuss it in public forum...students should understand this,and seniors should help them understand it

when we know the different methods of corruption,then only can we combat it

running away isnt going to help anyone!!!

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sidharth shankar (Student) (154 Points)
Replied 17 April 2012

Totally agree with ankita....

We should have knowledge of every aspect of our profession and this is something very common....so if u know the process kindly share with us....thers nothing wrong in discussing such things....

As far i know, company issues the bill to increase their sales figure, mostly to get bank loan....but the thing is they have to pay a tax for such increased sale....there must be something in between that will compensate the payment of tax for them....becuase i dont think the company will pay tax of Lakhs just to get the loans....as far goodwill is concerned you wont pay a 30.9% tax just for goodwill......

and the most important thing....how do C.A's benefit from such transactions......because they are the one who give practical shape to such transactions...isnt it????

Saiyum Ji....need you help.....!!