Sunday, August 14

Tag: circular trading

Circular Trading in Companies: Everything You Need to Know
Academia

Circular Trading in Companies: Everything You Need to Know

Circular Trading has been ever existing in the Indian Market, but many tend to believe that it only takes place in the stock market. However, that is not the case, Circular Trading can also take place into companies or trading businesses. Before we further get into the depth and analysis of circular trading, let’s start with the basics and try to understand the following aspects. What is Circular Trading in Companies? Circular Trading is a type of scam that takes place when a company tries to create a flow of fake sales transaction with its collusioned parties by producing fake invoices. Now, we all wonder, why do they do that? What is the illegal advantage of it? Circular Trading: It’s illegal Advantages This type of scam basically creates a huge financial impact on companies...
Tax Officials Raid Companies Involved in Circular Trading
Corporate, News

Tax Officials Raid Companies Involved in Circular Trading

Highlights The Indirect Tax Department targets raid over several promoters of companies involved in circular trading.Companies also prepared counterfeit invoices of INR 25,000 crore which was issued by the small and medium companies.The Indirect Tax Department has raided several states like West Bengal, Punjab, Rajasthan, Punjab, Haryana, Maharashtra, and New Delhi. Circular trading is a type of securities fraud that can take place in stock markets, causing price manipulation and often related to pump and dump schemes. Tax officials begin to go after companies that tried to fend off Goods and Services Tax (GST) and are involved in circular trading. Officials claim to have arrested various promoters of such companies. Many suspects that circular trading may be used to increase ...