The income tax department of India investigated Tax evasion in pharmaceutical company Alkem Laboratories, prompted by a tip about potential tax irregularities. This investigation, which took place in September 2023, involved surveys at Alkem’s offices, questioning relevant personnel, and scrutinising the company’s financial records.
According to sources, the investigation revealed that Alkem Laboratories had allegedly engaged in significant tax evasion. It is reported that the company claimed inflated and illegitimate deductions amounting to over ₹1,000 crore for its manufacturing units in Sikkim. These deductions were purportedly made under various special tax benefits, including Section 80-IC, according to internal sources.
Additionally, the investigation uncovered alleged payments made by Alkem Labs to medical professionals in exchange for prescriptions of their drugs. Sources suggest that these payments amounted to hundreds of crores. The findings of this probe could potentially lead to significant penalties for the company.
Alkem Labs’ investigation underscores the significance of adhering to transparent business practices. Consulting with tax law specialists early on can help companies navigate intricate tax regulations and potentially mitigate substantial penalties, according to a Vakilsearch expert.
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