Himachal firm to pay Rs 2,100-crore tax penalty

Himachal Pradesh's excise and taxation department has fined a Poanta Sahib-based private company Rs 2,100 crore for alleged tax evasion.

"We have issued a notice to the company to pay Rs 1,000 crore tax and Rs 1,100 as penalty within a fortnight," said R S Negi, excise and taxation commissioner.

"We checked the records and found very high production, sales and stock transfer was shown by the company compared to the entry tax paid for import of raw material," Negi said.

The company produces non-edible refined oils used in machines. Another company in Baddi is also being investigated for tax evasion, Negi said.

"There was a rise in tax collection in the last few months. At this rate, the tax collection could rise to Rs 6,000 crore from Rs 4,500 crore," he said.