The Tamil Nadu government on Monday asked retail traders to buy and sell tobacco products with valid invoices only and refrain from tax evasion. The Commercial Taxes department plans to implement this strictly from February 25, an official release stated.
Tobacco products such as pan masala, gutka, etc are taxable at 20 per cent with effect from July 12, 2011 on the point of first sale in the state.
In Tamil Nadu, the tax paid by the dealers on gutka and pan masala for 2011-2012 was Rs 14.49 crore and for 2012-2013 (up to December 2012), the revenue collected was Rs 27.63 crore. However, it is estimated that the state loses several crores of tax due to evasion by dealers in this trade.
Recently, the department conducted surprise inspections all over the state and also intensified the checking of vehicles at check posts, parcel offices, railway stations and bus station. Commodities valued at Rs 6.86 crore were detained and Rs 2 crore was collected as tax and penalty.
The government, therefore, intends to curtail the evasion by sensitising the distributors and retailers in this trade. The retail level traders should compulsorily possess valid invoices for the stocks of such commodities they are having. It is also planned to have combined action to verify the retail level traders with the help of various other departments such as health, police, local bodies, and revenue, the release stated.
