New Delhi, Mar 9 (PTI) The Income-Tax Department is conducting a multi-city verification exercise across various restaurants after its Hyderabad investigation wing recently found alleged under-reporting of sales by these outlets through manipulated billing software to evade tax, official sources said on Monday.
Tax authorities are surveying (visiting only office premises) several restaurants, including around five in Delhi, to understand their billing system. The verification exercise is expected to end in a few days, they said.
The probe began after the department’s investigation wing in Hyderabad recently surveyed the premises of a local company that creates restaurant billing software. It was found that certain hotels and restaurants were allegedly manipulating the software to under-report their income.
Officials estimate that the suspected tax evasion could amount to crores of rupees for restaurants located in Hyderabad alone.
This survey and verification effort has been launched across multiple cities since Sunday and aims to assess the extent of possible tax evasion, they said. PTI NES MPL MPL
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