Taxman on hunt down for India Inc's major tax evasion nexus

The taxman is hot on heals of a tax evasion nexus centered on metros. Tax sleuths in metros are currently engrossed in breaking an alleged tax evasion nexus between entry operators and India Inc, reports CNBC-TV18's Ashwin Mohan.

Allegedly, the nexus is currently a huge tax evasion route. Sources says that chartered accountants are allegedly running non-genuine entry operator companies that are not rendering services and are not buying or selling goods.
Sources reveal that chartered accountants supposedly are charging commission for invoices, using them to inflate expenditure and are showing fake entries to show investment in share capital. The companies are believed to use this route in order to bring unaccounted money to business.
The nexus supposedly is rampant in the steel, IT and the auto. Sources tell CNBC-TV18, I-T department is said to have detected mismatch in materials receipt and financial records. I-T department searched chartered accountants and is believed to be taking action against the beneficiary companies. It is also alleged that the nexus is prevalent in Kolkata, Delhi and Mumbai. I-T department made referral about two months back to the Institute of Chartered Accountants of India (ICAI). However, there was no official comment from ICAI.