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Nearly 1000 units under tax scrutiny

Sujay Mehdudia

Investigations launched into suspected tax evasion under VAT regime

NEW DELHI: Buoyed by surging collections under the new Value Added Tax (VAT) regime, the Department of Trade and Taxation has launched investigations into suspected massive tax evasion by nearly 1,000 industrial units across the Capital. The Department has also detected a major multi-crore tax fraud in exports to Nepal by local traders and is targeting those dealing in oil, ghee, medicines and timber.

According to surveys carried out by the Department, cases of large-scale tax evasion have come to light in various industrial clusters of the Capital. Sources say that the most shocking part of the whole exercise is that while these units were paying for their electricity charges and had a massive sales turnover running into crores, they were not paying any sales tax or VAT to the Department for the business undertaken by them. Out of the 1,000 industrial units taken up for action by the Department, it was found that 600 units were not even registered with the Department and were carrying out their business running into crores without paying a single paisa in tax.

It has been decided that these units would now be served notices as all information on them has been gathered. They would be asked to not only furnish their business details but also to get registered with the Department or face stiff penal action. Similarly, big retail and wholesale units who have opened up their shop in Delhi but are not enrolled with the Department or are not paying their tax liability are also going to face the ire of the Department in the coming days.

The Department has also uncovered a major taxation fraud in exports to the neighbouring countries especially Nepal. Investigations have been launched into these cases and a list of all such exporters has been drawn up to not only make them fall in line but also dig up their past dealings in order to assess their tax liability. The fraud is not only limited to Nepal but also extends to Bangladesh. The Department has trained its guns on such evaders and will ensure that they discharge their liabilities. "We will ask them to come to us with all the records and pay up their taxes or we will be forced to reach out to them,'' Trade and Taxation Commissioner, Rajni Kant Verma, warned. Mr. Verma has been credited with being instrumental in ensuring a massive revenue growth in Delhi.

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