A public interest litigation case has been filed in the Bombay high court seeking a probe into alleged tax evasion by companies conducting online lotteries.
It isÂ alleged that althoughÂ Â Maharashtra has enacted the Lottery Tax, under Â lottery companies have to pay the tax in advance. Â However , the lottery companies areÂ bypassingÂ the law byÂ Â conducting multiple lotteries in one draw and evade tax to the tune of crores,ââ said advocate Mohan Tekavde.Â Â The modus operandi is to announce prize money for a draw, but when there is no winner, the amount is rolled over to the next draw.Â They, however, pay tax for only one draw, resulting in loss to the state. It isÂ Â alleged that the companies are selling online lotteries through private cash cards, violating norms set by the Reserve Bank of India. âCrores of rupees worth of sales go unaccounted for,ââ the PIL said. The petition is scheduled to come up for hearing in June.