Hyderabad: The Directorate General of Goods and Service Tax Intelligence (DGGI) arrested the chairman of a Pune-based company, which deals with medical education consultancy services, for evading approximately Rs 11.81 crore of GST and sent to judicial custody.
According to intelligence personnel, a Philippines-based consortium of medical colleges appointed a principal education associate (PEA), registered in Pune and Chennai, who in turn appointed agents in different parts of country. These agents advertise and interact with students, who aspire to pursue medical education in Philippines, and their parents. For recruiting students and ensuring their smooth admission, huge amounts are collected by the associates, part of which is shared with the PEA. Most of these transactions, involving tuition fees, visa processing fees, hostel fees and other related charges are in cash. As they are not accounted for in books of accounts, they escape all taxes, including service tax, GST and income tax. No invoices are issued and services are provided clandestinely in order to evade tax.
Based on intelligence inputs, officers from Warangal Regional Unit (WRU) of DGGI, simultaneous searches were conducted at several businesses as well as residential premises of certain taxpayers in Hyderabad, Vijay-awada, Chennai and Pune. They are all into providing medical education consultancy services to students aspiring for MBBS and MD in the Philippines.
Searches were carried out on December 20 and 31 and January 6 and 8. Investigation reve-aled that the Hyderabad-based associate dealing with the two Telugu-speaking states has sponsored over 550 students. Incriminating documents and voluntary depositions made by various directors and other key persons, suggest that PEA has evaded Rs 11.81 crore of GST.
