K ltd is company which is selling a product "xyz" which attract an VAt input tax of 5 % but they not taking input credit and charge entire amount as purchase value. they are selling that product to various customer for which they are not collecting and paying such output tax to govt. if we calculate approximately it comes around 50 lakhs. Like this past 3 to 4 year they are not paying such tax and statutory auditor is also not reported in his report for all those years.
Now what are all that consequence that company and statutory auditor has to face if that matter comes to knowledge of sales tax authority.
CAclubindia
