Wedding planners and event management companies are often accused of inflated prices for services such as floral arrangements and catering.
Consumers are urged to be cautious and ensure transparency in matrimonial services. (Photo: Shutterstock)
In recent years, the trend of hiring wedding planners and event management companies has gained significant popularity among couples planning their big day. These agencies promise to take the stress out of event planning, taking care of everything from venue booking to catering. However, recent investigations have revealed that all is not as rosy as it seems. Consumers relying on these services may unknowingly fall victim to fraudulent practices, which can lead to massive financial losses.
A major operation led by the Income Tax Department in Jaipur, Rajasthan has raised the alarm over widespread tax evasion in the wedding industry. The department raided more than 24 places, targeting people involved in business and marriage services.
It includes top names like Talka Tent House, Gunjan Singhal Wedding Planners, Bhavana Charan, Indian Wedding Planners, J. Oberoi Caterers, My Baghia, Mapsur, and the luxury wedding destination, The Gulmohar in Kokas. The locations raided include various offices and residences in key areas like C Scheme, Bani Park, Shyam Nagar, Tonk Road, Civil Lines, Durgapura and Kukas.
The investigation revolves around suspected large-scale tax evasion, estimated to run into crores of rupees. The Income Tax Department was particularly concerned about the widespread practice of underreporting of earnings through manipulation of payment methods in marriage transactions. In many cases, the payments were split into two parts: about 40-50% of what was officially billed, while the remaining 50-60% was paid in cash. This cash component, which helped banquet halls and wedding venues avoid paying the 18% Goods and Services Tax (GST), was a deliberate attempt to evade taxes.
This illegal practice is not limited to tax evasion. Wedding planners and event management companies are often accused of inflated prices for services such as floral arrangements and catering. Although the quoted prices may appear high, the actual prices of these services are much lower. To make matters worse, some companies promise high-quality products but deliver subpar content, leaving customers dissatisfied and financially burdened.
In addition to overcharging, some planners use dishonest tactics, adding unexpected charges after the initial agreement. These hidden fees add significantly to the final bill, putting considerable financial pressure on unsuspecting consumers. Worse still, some unscrupulous planners collaborate with fake vendors, only to disappear from the advance payments made by clients, leaving them without the services they requested. was paid.
One of the most alarming revelations from the recent raids was the increase in rental prices at premium wedding venues. For example, The Gulmohar, a luxury wedding venue in Kukas, charges Rs 8 to 10 lakh for a one-day ceremony, further highlighting the scale of financial exploitation within the industry.
As wedding planning continues to turn into a multi-million dollar industry, it is important for consumers to remain vigilant. Ensuring that matrimonial service providers are legitimate, transparent and registered is essential to avoid falling prey to fraudulent schemes. Couples should also be wary of hidden costs and pressure tactics used to inflate prices, as these can lead to significant financial losses.
- Location:
Rajasthan, India