Inland Revenue Office (IRO) Area No 1 Sunday decided to recover income tax and VAT from fiscal year 2003/04 along with penalty from the store.[break]
Shishir Kumar Dhungana, chief administrator of IRO Area No 1, said they had decided to recover Rs 25.4 million as income tax with penalty and Rs 68 million as VAT from the promoters of the store. He said the store was evading tax by producing fake transaction details to tax office and concealing the actual transactions.
“Our investigation showed that the store had manipulated the real transaction amount and computer billing system, inflicting huge revenue loss to the government,” Dhungana added.
The store had furnished daily transaction of around Rs 2.5 million in the month of June. However, the investigations unearthed that the daily transactions of the store were about Rs 5 million.
“Daybook of transactions maintained by the store and its bank statement don´t match. This means the store manipulated the transactions to evade tax,” Dhungana added.
Basanta Malla, proprietor of the store, claimed that the transactions amount furnished by the store did not match with bank statement due to the mistake of his employees.
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