Leading gaming companies have evaded about Rs 23,000 crore between April 2019 and November 2012, which is under the radar of tax officials
Online gaming companies have evaded about Rs 23,000 crore between April 2019 and November 2012, which is under the radar of tax officials, Minister of State for Finance Pankaj Chaudhary said on Monday.
The Minister said a proceeds amounting to more than Rs 1,000 crore has been attached so far by the Enforcement Directorate in several cases related to Cyber and Crypto assets frauds. ”Online gaming companies have been siphoning the funds,” Chaudhary said.
Chaudhary also said the Central Board of Indirect Taxes and Customs (CBIC) formations have initiated investigations against some gaming companies (including online gaming firms) located in India as well as abroad. “The estimated evasion of GST by these gaming majors stands at Rs 22,936 crore between April 2019 and November. 2022,” the Minister said.
According to the Minister, the Directorate of Enforcement is investigating several cases related to Cyber and Crypto assets frauds wherein the online gaming companies have been used for siphoning the fund.
As on December 6, 2022, a proceeds of over Rs 1,000 crore have been attached, seized or freezed under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA). Also, 10 Prosecution Complaints (PCs), including two supplementary PCs, have been filed before the Special Court PMLA.
Under section 37A of the Foreign Exchange Management Act, 1999, assets amounting to Rs 289.28 crore have been seized by the government.
Chaudhary said that there is no specific identification code for online gaming entities in Income Tax Return. “The disclosure of information about specific taxpayer is prohibited except as provided under section 138 of the Income Tax Act, 1961,” the Minister added.