Lok Sabha Question No. 736 (UNSTARRED), answered on 2018-12-14
Subject: Tax Irregularities
Ministry: FINANCE
Asked by: SHER SINGH GHUBAYA, RAVINDRA KUMAR RAY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA UNSTARRED QUESTION No. 736

TO BE ANSWERED ON 14 TH  DECEMBER, 2018/AGRAHAYANA 23,1940 (SAKA)

## TAX IRREGULARITIES

## 736. SHRI. SHER SINGH GHUBAYA & DR. RAVINDRA KUMAR RAY :

Will the Minister of FINANCE be pleased to state:

- (a) whether investigation has been initiated against e-bay company;
- (b) if  so,  the  present  status  of  the  investigation  and  if  not,  the  reasons therefor;
- (c) Whether investigation officer has not approached the complainant so far and if not, the reasons therefor;
- (d) Whether bills of Apple phone's sold since 2016 onwards have been called from  e-bay  company,  so  that  it  could  be  proved  that  e-bay  has  not committed tax irregularities and if so, the details thereof and if not, the reasons therefor; and
- (e) the reasons for not initiating investigation in such matters.

## ANSWER

## MINISTER OF STATE IN MINISTRY OF FINANCE

## (SHRI SHIV PRATAP SHUKLA)

- (a) Yes, an  investigation  has  been  initiated  against  M/s  E -bay  India  Pvt  Ltd (presently  known  as  M/s  Mintkart  India  Pvt  Ltd),  which  is  essentially  about sale  of  an  apple  phone  purportedly  sold  to  one  Sh  Sachin  Kumar  on 07.08.2016, and is underway. This investigation was initiated on the basis of a reference received in the office of Minister of State(Finance) on 08.06.2018 from Shri Ravindra Kumar Ray, Hon'ble Member of Parliament (Lok Sabha) in respect of an alleged sale of Apple i-Phone without bill by the online company e-bay.
- (b) Data of sale of mobile phones through E -bay India Pvt Ltd in proximate to the date of sale of mobile phone to Mr. Sachin Kumar on 07.08.2016 has been obtained and investigated. It emerges from investigation that on 07 -08 -2016

- only one 'Sony' mobile phone has been sold to one buyer named Mr. Sachin Kumar.  No  apple  phone  has  been  sold  to  any  person  named  as  Sachin Kumar, as per the records.  The referred transaction of 'Sony ' phone was made by a vendor of Tamil Nadu, and the matter has been referred to VAT Department of  Tamil Nadu.
- (c) Yes, attempts  were  made  by  the  investigation  team  to  contact  Mr.  Sachin Kumar, the purchaser of 'Sony' mobile phone. However, he could neither be contacted through phone nor was he available at his known address.
- (d) As  informed  at  part  (b)  of  the  answer,  the  data  of  sale  of  mobile  phones through E -bay India Pvt. Ltd in proximate the date of sale of apple phone to Mr.  Sachin  Kumar  on  07.08.2016  has  been  obtained  and  analyzed.  It  is observed  that  M/s  E -bay  Pvt.  Ltd  themselves  do  not  sell  any  goods  but provide their network/platform  to different  vendors/sellers  who  use  the network/platform of E -bay to sell their products. Since, M/s E -bay themselves are  not  selling  any  goods  they  are  not  chargeable  to  any  VAT.  However, further  investigation  regarding  any  suspected  Service  Tax  Liability  by  M/s E -bay India Pvt. Ltd is underway.
- (e) All  possible  steps  to  investigate  the  matter  have  been  taken  and  the investigation is in progress.

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