Bogus Sales Purchase

[Kalpessh Daftary]

Dear Sir,

As my company trade in Duty free transferable licenses in Maharashtra where 4% is VAT , above Duty free transferable licenses

1. We explain how this duty free transferable licenses are traded as it’s generated by the Exporter of the goods and if they can’t utilized against their import they sold to the importer at certain discounted price through broker or trader.
2. Duty free transferable licenses issue by Jt. Director General of Foreign Trade which comes under Ministry of Commerce and all Duty free transferable licenses had unique identification no i.e licences no. that identification of goods .
3. Duty free transferable licenses verified and utilized by Custom department which comes under Ministry of Finance.
4. Duty free transferable licenses details are available online from issue to utilize.

ITO issue us a notice that our purchase are bogus and from one of the trader ( in our chain ) say that he made only entry bt our sales and purchase also get VAT refund for the same transition

What we have to do

AI Summary

Bogus purchase allegations over duty free transferable licences prompt scrutiny of transactional traceability and VAT refund claims. Allegation concerns bogus purchases of duty free transferable licences traded via brokers and traders; licences bear unique identification numbers issued by the Directorate General of Foreign Trade, are verifiable and utilizable by Customs, and have online issuance to utilisation records. The tax authority has issued a notice challenging the genuineness of purchases and alleging that a trader in the chain made only entries and obtained VAT refunds, raising the need to rely on licence IDs, customs verification, online traceability, and transactional documentation to rebut the allegation.