M/S G4S Secure Solutions (India) Pvt. Ltd (Formerly known as G4S Security Services (India) Pvt. Ltd) situated at Subhneel House, Near Behramal Chowk, Jharsuguda is dealing with tax theft
The G4S claims to be an MNC having business reach across the globe. But what it does in the state of Odisha is seer act of illegal means of tax evasion to the tune of several lacs.
The Company purchases various types of seals, both plastic & metallic, from Safcon Seals Pvt. Ltd, Kolkata by paying CST @ 12.5 % and 13.5 % charged by the seller in its invoices. This has been going on since 2009. The average monthly purchase is Rs 2.5 lacs approximately. The materials are brought into the state of Odisha by train by the Branch Manager Mr. Ashok Paul, Operation Manager Mr. Padmakar Tiwary. No permit is obtained for this from your authority. No entry tax is paid by the Company. The total purchase till date can be estimated as Rs. 1 crore.
The seals are stored in a room near its branch office in the custody of the executives Mr. Sashikanta Das and Manjit Khalko. From there the seals are transferred to various places for sealing of the containers of M/S Vedanta Aluminum Ltd. The company is providing security service to Vedanta Aluminum Ltd and raising invoice every month towards the labour cost for providing security personnel of multiple designations and also the cost of seals specifying the number of seals used and the per unit cost of such seal. The company is levying service tax on the entire amount including the cost of seals. Thus no vat is collected on the sale value of seals nor is G4S paying any vat to the Odisha Government. The loss of vat to the state Govt. is approximately 13 lacs. The loss towards nonpayment of entry tax by G4S is another 2 lacs.
The G4S is not having any TIN for this trading activity. Its memorandum of association does not permit it to engage in trading activity. The entire payment to the seller at Kolkata, Safcon Seals Pvt. Ltd has been made through cheques and the correct figure can be ascertained from the bank statement of its Axis Bank Account maintained at Rourkela. The Sale bills can be obtained from the ERP record at Rourkela branch, D/14, Civil Township, Rourkela and Mr. Sashikants Dash, Accounts Executive can help you in this matter. The purchase invoices are with Mr. Sashikanta Dash.
As an alert citizen of the State I brought forward this to your notice for refraining the Company from such illegal activity. I am sure; your authority will take the effective and immediate steps for recovery of the huge tax evaded amount by the MNC with the applicable interest and the penalty. I am giving below the contact numbers of the G4S officials whom your authority can call upon to throw light on this:
1. Ashok Paul : 7873058505
2. Sashikant Dash : 7873058506
3. Padmakar Tiwari : 7873058508
Thanking you.
Regards,
K.Mohanty
1. Commissioner of Commercial tax, Odisha
2. The Chief Minister Of Odisha, At-6R/3, UNIT-6, Forest Park, Bhubaneswar-751006
# As you know the total tax due will be nearly 15 lacs.
# Add to it the two times penalty of 30 lacs.
# Add to it the compound interest @ 2 % per month.
# The total demand will be around 70 lacs. At the minimum 50 lacs.
# You can appeal in the court against the demand for the stay. In that case you have to deosit 50 % of the demand as security till the disposal of the case.
# One of the cabinet minister of the state will intervene in the matter to see that the recovery is made at the earliest.
# This mail is intended for you only as a senior accounts person you will better understand it.
# Of course you will get a relief by way of waiver of penalty if you suo motto deposit the tax before they catch you.
# The above letter will reach the destinations by tomorrow. If you can stop it then stop.
Dont blame that you had not known it.
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