In the fourth major raid in the last two months, Delhi government has cancelled the registration certificates of numerous fraud 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 Rs 291.70 crores in 2013-14 and during physical verification by the authorities, these companies were found non-existent.
Input Tax Credit (ITC) of Rs 24.16 crores were also disallowed during this week.
"Last week Value Added Tax Inspectors (VATIs) visited the various premises and numerous high risk dealers were found with bogus declared turnover of Rs Rs 291.70 crores for the year 2013-14 and registration certificates of such dealers were cancelled," Commissioner (Trade & Tax) Sanjiv Khirwar said today.
Khirwar said that the practice of evading VAT by creation of bogus dealers has picked up since the 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.
Khirwar said that the department is committed to ensure recovery of tax and to take stringent action against the fraudulent dealers and tax evaders.
Commissioner has also directed the officials to detect the chain of sale of such dealers and issued instruction to take strict action as per the provision of DVAT Act 2004.
Khirwar said that raids will continue and the action against such bogus sales purchase would be further intensified by the Department. The Department not only expects to recover due tax with penalty but also follow it up to ensure that the fraudulent dealer are arrested.
The Department has made elaborate arrangements for updating tax period and tax type, in case, dealer had wrongly mentioned these entries in their tax challan.
