CBDT Detected Rs.300 crore Tax Evasion against Dolo-650 Makers

The Central Board of Direct Taxes (CBDT) reported on Wednesday that a search of a Bengaluru-based pharmaceutical company and makers of the widely-known Dolo-650 medicine tablet of indulging in “unethical practices”, revealed a 300 crore rupee tax evasion.

The claims followed a raid on 36 Micro Labs Ltd. locations across nine states by the Income Tax authorities on July 6.

The CBDT said in a statement that the department had confiscated “unaccounted” cash worth Rs. 1. 2 crore and gold and diamond jewellery worth Rs. 1. 4 crore following the action against the pharma. The I-T department’s governing body is the CBDT.

It claimed that under the heading “Sales and Promotion,” the group had reportedly been debiting unallowable expenses related to the distribution of freebies to medical practitioners. Travel costs, perks, and presents for doctors and other medical personnel were among these freebies.

The department also discovered instances of “violation” of the tax deduction at source (TDS) rules under section 194C of the I-T Act with regard to transactions made in accordance with agreements made with independent bulk medication producers, it was stated.