Korean nationals held for failing to deposit 40 cr tax collected

According to a release, Yongsuk Choi, Managing Director of Chowel India Pvt. Ltd. and the General Manager of the firm were arrested on Monday and later remanded to judicial custody.

GST officials claimed that the company had made taxable supplies and collected GST from its buyers but failed to deposit the tax collected with the government. The tax liability, according to them, came up to Rs 40 crore. Also, the company had not filed statutory returns for more than 20 months.

“Despite several summons, the Managing Director and other officials of the company failed to cooperate with the investigators. After sustained surveillance, the persons whereabouts were located and their statements recorded. Both the MD and GM of the firm admitted to their statutory tax liability and to the fact that GST has been charged to and collected from the company’s buyers,” GST officials stated in the release.

After the officials gathered enough evidence that both the accused were trying to flee the country through land borders in order to evade tax, both were arrested.

The release claimed that GST department had also observed that many taxpayers under investigation were dodging summons issued by the department in the course of the investigation. Such persons have been warned the not responding to summons constituted an offence carrying a jail term of six months.