IT raids goal Chinese firms

Tribune News Service

New Delhi, August 12

The authorities has cracked down on Chinese institutions with the Income Tax Department conducting a number of search operations on Wednesday.

According to Income Tax sources, a couple of Chinese people and their Indian associates have been prima facie concerned in cash laundering and hawala transactions via shell entities.

In the raids that have been carried out at varied premises of Chinese entities, their shut confederates and a few financial institution staff, IT Department sources claimed to have came upon that on the behest of Chinese people, greater than 40 financial institution accounts have been created in varied dummy entities and have been used within the transactions of over Rs 1,000 crore over a time frame, mentioned an announcement by the Ministry of Finance. However, no particulars have been supplied.

The findings additionally included a subsidiary of Chinese firm and its associated issues which have allegedly taken over Rs 100 crore bogus advances from shell entities for opening companies of retail showrooms in India.

Further, incriminating paperwork in respect of hawala transactions and cash laundering with the energetic involvement of financial institution staff and chartered accountants have additionally been discovered because of search motion.

In the search operation which remains to be within the course of, proof of overseas hawala transactions involving Hongkong and US {dollars} has additionally been unearthed, claimed the Ministry press launch which mentioned the search operation was primarily based on “credible information”.

Meanwhile, a number of the largest importers of Chinese items have determined to show a brand new leaf. The Confederation of all India Traders (CAIT) has launched a marketing campaign ‘China Quit India’ and mentioned there was an pressing have to verify China’s rising footsteps in India and import of Chinese items.

There are confabulations within the Finance Ministry over an order issued on July 23 that amended the General Financial Rules 2017 “to enable the imposition of restrictions on bidders from countries that share a land border with India on grounds of defense and national security”.

The drawback is the principles apply to Hong Kong which is managed by China. This has affected a number of European firms which can be headquartered in Hongkong however have operations in Indian, amongst a number of different nations within the area.


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