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Haier, Godrej, Blue Star accused of wrongly claiming USD 714,000 in tax credits for e-waste recycling never performed
Indian tax authorities accused Haier, Godrej & Boyce and Blue Star of wrongly claiming tax credits of USD 714,000 for e-waste recycling never performed, in an August 27 notice. The firms did not verify recycler WEEE-PRO's fabricated documents.
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The numbers
Figures from ET BrandEquity,
| Haier credits wrongly claimed: | USD 367,900 |
|---|---|
| Blue Star credits wrongly claimed: | USD 186,600 |
| Godrej credits wrongly claimed: | USD 159,700 |
| Maximum penalty for false claims: | 100 per cent |
Why it matters to operators and investors
If you sell appliances or electronics in India, audit your e-waste recycler certificates and paperwork now, because the notice alleges Haier, Blue Star and Godrej claimed credits on documents from WEEE-PRO that they never verified.
What to watch next
- Any of the three disclosing a provision, contingent liability or payment under protest for the challenged credits
- The adjudicating officer's order on penalty size versus the 100% ceiling
- New notices to other appliance makers naming WEEE-PRO or similar recyclers
- Enforcement or criminal action against WEEE-PRO over the alleged fabricated documents
- A court stay or appeal filing by any of the three companies