Registration Certificates of 45 traders cancelled

Cracking a whip on bogus companies, Delhi Government has cancelled the registration certificates of 45 traders who have evaded value-added tax (VAT) of several crores in the past one year.
The turnover of these bogus companies was shown to be Rs 868.10 crores in 2013-14 and during physical verification by the authorities, these companies were found to be non-existent.
"Value added tax inspectors visited such bogus dealers. 45 fraudulent dealers with bogus declared turnover of Rs 868.10 crores in 2013-14 were intensified and registration certificate of these dealers have been cancelled. Input Tax Credit (ITC) of Rs. 7.43 crores were also disallowed during this week," said Commissioner Sanjiv Khirwar (Trade and Taxes).

Enforcement Branch of the Department has conducted a number of raids in the city by constituting various inspection teams of the officers in the last couple of months.
Khirwar also informed that the practice of evading VAT by creation of bogus dealers has picked up since last few years.
Under VAT system, the bogus dealers (dealers who take registration on wrong credentials and then disappear) issue fake tax invoices on the strength of which genuine dealers claim Input Tax Credit and thereby reduce their liability to pay VAT, he said.
Raids will continue and the action against such bogus sales purchase would be further intensified by the Department, said Khirwar.

The Department not only expects to recover due tax with penalty but also follow it up to ensure that the fraudulent dealer are arrested, he added.