Veneer classification and transport controls: stricter on road verification and supply chain checks to prevent undervaluation and diversion. The circular identifies a tax evasion scheme involving interstate transport where face veneer consignments are diverted in transit and replaced by core veneer, with manufacturers under reporting face veneer consumption and selling undeclared production at undervalued prices. It mandates physical verification by mobile teams to classify consignments as face or core veneer, reconciliation of manufactured output with face veneer purchases during scrutiny and audit, and detailed data analysis of low value invoices with targeted audits where anomalies are found.
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Veneer classification and transport controls: stricter on road verification and supply chain checks to prevent undervaluation and diversion.
The circular identifies a tax evasion scheme involving interstate transport where face veneer consignments are diverted in transit and replaced by core veneer, with manufacturers under reporting face veneer consumption and selling undeclared production at undervalued prices. It mandates physical verification by mobile teams to classify consignments as face or core veneer, reconciliation of manufactured output with face veneer purchases during scrutiny and audit, and detailed data analysis of low value invoices with targeted audits where anomalies are found.
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