Trade and Taxes department of the Delhi government has raided the premises of a mobile phone dealer and found unaccounted cash to the tune of crores of rupees.
According to a senior official, enforcement team of Trade and Taxes department carried out search at Karol Bagh area and registers and cash memos of suspected transactions were seized.
"Nine firm suspected to be owned by the same set of people were identified. It had a combined gross turnover of around 235 crore and estimated tax liability of around 12 crores. But it was paying negligible or nil tax to the government," a senior officer said.
Government claims that complete activity of the survey was videographed.
Officials claim that while scrutinising some dealers' profiles, department observed some suspicious transactions indicating evasion of VAT.
Mobile phone sector has been marked where tax evasion is rampant in many grey markets. Dealers either do not issue proper bills to the customers with charging of VAT or if they charge VAT that is not deposited with the government.
"After further probe it was found that these firms were importing mobiles and their accessories, but to evade tax they were showing local purchase from bogus/suspicious dealers with the intention to claim Input Tax Credit.
"They were also showing maximum inter-state sale on C-forms to doubtful dealers with the intention to take the benefit of difference between local tax and inter-state tax," the official said.
According to official, during survey, the documents of 33 firms, such as cheque books, letterheads, cash memos etc. were found at the premise of one firm only, which is indicative that same set of people are suspected to be operating various firms.
Team also found unaccounted cash to the tune of Rs 1.64 crores from the premises, which prima facie appears to be the proceeds of one day sale of the dealer. While the overall turnover of the company as declared in last year's return was 14 lakhs only.
A cash counting machine was also found in the office of the firm, which is indicative of huge daily transaction.
The Enforcement teams of Trade & Taxes department sealed the premises. The department is taking up further action of assessment, recovery and initiating criminal action against the dealers.
