The Central Board of Direct Taxes (CBDT) on Wednesday said it has detected a tax evasion of Rs 300 crore during a search conducted on a Bengaluru-based pharma company.
While the CBDT did not name the company, sources from the Income Tax Department told ET the company was Micro Labs, the maker of the Dolo tablets that help relieve pain and fever.
A statement issued by the CBDT said tax officials conducted searches on July 6, covering around 36 premises spread across nine states.
It said the group allegedly had been debiting in its books of account unallowable expenses on account of distribution of freebies to medical professionals under the head ‘Sales and Promotion’. These freebies included travel expenses, perquisites and gifts to doctors and medical professionals.
The quantum of such freebies is estimated to be around Rs 1,000 crore and the amount of tax evaded is over Rs 300 crore, the department said. During the search, unaccounted cash of Rs 1.20 crore and unaccounted gold and diamond jewellery worth over Rs 1.40 crore had been seized, it said.