VAT dept imposes Rs 20 crore penalty on dry fruit trader

According to the officers, the Khari <g data-gr-id="38">Baoil</g>-based dealer had been showing central sales to various dealers of states of Rajasthan, Assam, Chhattisgarh and Maharashtra.

“After investigation the department of trade and taxes, Delhi government raised a tax demand along with penalty of Rs 19.89 crore. The total tax demand for 1013-14 is Rs 8.59 crore, 2014-15 is Rs 9.98 crore and Rs 1.31 crore for the first quarter of 2015-16,” said spokesperson of Delhi government adding the dealer was showing bogus Central Sales and massive VAT evasion. 

“The VAT officers who visited Rajasthan in this case have also unravelled a massive racket of Delhi registered dealers showing bogus Central Sales to non-existent, non-functional and cancelled dealers of Rajasthan amounting to approx Rs 1,168 crore through “C” forms, thus engaged in massive tax evasion which is being investigated,” he added. 

These raids are being conducted on the basis of specific inputs regarding VAT evasion and fudging of data on records.  

According to a senior officer involved in the raid on information obtained from Business Intelligence Unit, a team was constituted to examine the data filed by the dealer including his annual Gross Turn Over, Tax Returns, Central and Local Sales & Purchases from other dealers. 

The authorities further said that the Delhi dealer with an annual GTO of Rs 155 crore in 2014-15, had shown bogus central sales of approximately Rs 104 crore during a specific time period to dealers in Rajasthan.

“The alleged ‘C’ forms the Delhi dealer claimed to have been issued to the ones in Rajasthan were actually never issued, a revelation that invited the department’s action,” the department said.