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New Delhi, July 13
The Central Bureau of Direct Taxes (CBDT) has accused the makers of the well-known Dolo-650 medication pill of indulging in “unethical practices” and distributing freebies of about Rs 1,000 crore to docs and medical professionals in change for selling its merchandise.
The CBDT, which capabilities underneath the Ministry of Finance, made claims following the raids carried out by the Income Tax sleuths on July 6 at 36 premises of Bengaluru-based Micro Labs Ltd. throughout 9 states.
While the CBDT assertion didn’t determine the group, sources confirmed it to be Micro Labs Ltd.
After the motion in opposition to the drug-maker, the CBDT mentioned in a press release that the division seized “unaccounted” money of Rs 1.20 crore and gold and diamond jewelry of Rs 1.40 crore
“During the course of the search operations, substantial incriminating evidence, in the form of documents and digital data, has been found and seized,” it mentioned, including: “The initial gleaning of the evidence has revealed that the group has been debiting in its books of account unallowable expenses on account of the distribution of freebies to the medical professionals under the head ‘sales and promotion’.”
The CBDT alleged these “freebies included travel expenses, perquisites and gifts etc. To doctors and medical professionals for promoting the group’s products under the heads ‘promotion and propaganda’, ‘seminars and symposiums’, ‘medical advisories’ etc.”
“The evidence indicates that the group has adopted unethical practices to promote its products/brands. The quantum of such freebies detected is estimated to be around Rs 1,000 crore,” it additional mentioned.
Dolo-650, an analgesic (ache killer) and antipyretic (fever-reducing) oral pill, was being extensively prescribed by docs and medical store house owners for COVID-19 contaminated sufferers to cut back ache and fever.
The CBDT additionally alleged sure different irregularities on a part of the group that has a presence in additional than 50 nations and manufactures pharma merchandise and energetic pharmaceutical components (API).
The quantum of tax sought to be “evaded” by way of such means is estimated at over Rs 300 crore, the CBDT mentioned within the assertion. It added that the division additionally discovered cases of “violation” of provisions of tax deduction at supply (TDS) underneath part 194C of the I-T Act in respect of transactions underneath contracts entered into with the third-party bulk drug producers.
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