The Hindu : Kerala News : Steps to check sales tax evasion

Online edition of India's National Newspaper
Wednesday, May 16, 2007
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Kerala

Kerala

Steps to check sales tax evasion

Staff Reporter

KOCHI: The Government has taken note of significant losses to the State exchequer through large-scale evasion of sales tax by operatives who are active in well-organised rackets using rail wagons and coastal service ships to bring goods into the State undetected by the Sales Tax Department.

In view of this, the Finance Department would soon have permanent facilities at the Cochin Port and at railway stations to detect tax evasion, said Finance Minister T.M. Thomas Isaac on Tuesday. He was addressing a press conference after a meeting of senior sales officials here.

Stricter vigil at check-posts coinciding with the new policy of the Railways to lease out wagon space to franchisees had resulted in large quantities of goods being moved into the State on rails.

Most of the franchisees had their headquarters outside the State and it was difficult to identify the destinations of these goods, said the Minister. These franchisees would now be asked to furnish information on the goods they transport and their destinations. Similarly, coastal shipping had become a conduit for brining in items like marble, tiles, cement, etc., into the State without being detected by the Tax Department, he said.

The port authorities were helpful in providing facilities for inspection and soon permanent arrangement would be in place at the port and at railway stations. In tandem, mobile squads would also be in operation to detect tax evasion, the Minister said.

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