The Income Tax Department has launched a nationwide survey on FMCG company Marico, sources told Zee Business.
Around 200 income tax officials are deployed in the exercise, the sources added.
The survey is led by the Mumbai-based income tax investigation unit.
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At the time of publishing this report, Zee Business was yet to receive response on its email to Marico.
The Income Tax Department’s action comes at a time when the country is awaiting the launch of GST 2.0 rate cuts with effect from September 22.
The GST Council has rolled out a series of tax rationalisation moves, simplifying the indirect tax system to two instead of the four main rates with an aim to provide tax relief to the public at large.
The GST cuts span a number of industries, ranging from automobiles to FMCG products.
Marico shares
Marico shares declined as much as 1.5 per cent to Rs 713 apiece on BSE after the news.
At 11:10 am, the Marico stock was down 1.0 per cent for the day, at Rs 716.5 apiece on the bourse.
What is an income tax survey? Is it different from a raid?
An income tax survey is a procedure conducted by the taxman mainly to collect information about an assessee’s business operations, covering details ranging from assets to financial books.
These surveys are authorised under Section 133A of the Income Tax Act, 1961.
Typically, these surveys are performed at the business premises during normal business hours, with an objective of verifying records, ascertaining income, and collecting details for assessment purposes.
This action is different from an income tax raid. Also known as searches, income tax raids is typically a ‘search and seizure’ operation under Section 132 of the Income Tax Act that enables the taxman to enter any location — including residential or office premises — at any time, with investigators having powers to seize cash, valuable items or any other kind of suspected evidence.
