Income Tax Investigation on Restaurants | Business | Sarthak Ahuja

Описание: The Income Tax Department can now see who is deleting invoices from their accounts and suppressing sales...

It is reported in TOI today that the department took access of a cloud billing software which is said to be used by 10% of restaurants in the country...

They scanned the data of 1.77 lakh restaurants since 2019-20 and found that most businesses scanned had been suppressing their sales by 27% to avoid income tax...

They analyzed things such as:

a) Deleting of cash invoices after recording
b) Wiping bills clean for a select date range

And apparently, under reporting of Rs 70,000 crores (USD ~8 Bn)... which means a possible loss of over USD 2 Bn in taxes by just analysing restaurants on the billing system...

Where Karnataka, Telangana, and Tamil Nadu have said to have the maximum amount of underreporting.

The name of the accounting software has not been revealed, and the department is currently calculating demand of taxes and penalties based on this data... so notices may be issued in a few days for investigation.

Again, if you’ve been doing accounting jugglery in your accounting software, which works on the cloud... know that the tax department has information, so please do not engage in any such transactions, and pay your taxes!

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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.
Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years