filing fake invoices would not help to evade tax : Union Budget empowers taxman to attach properties

Source: tax guru

While presenting the Budget, FM Nirmala Sitharaman was well aware of the effects on revenue collection from those who were cunningly filing fake invoice to fraudulently claim input tax credit. The Budget for 2020-21 thus empowers the tax authorities to attach the properties of those who use fake invoices for tax evasion.

The tax bill read that penalty proceedings shall be initiated for fake invoice transactions of more than Rs 2 crore which shall also be eligible for provisional attachment of the assets.