Evasion of Value Added Tax (VAT) in Haryana will soon be history as the State Excise and Taxation Department has now started keeping an eye on the quarterly VAT returns and depositing of VAT in the state.
A team of Deputy Excise and Taxation Commissioner (East) Gurgaon, on Monday morning raided the premises of a firm of one Subodh Gupta, located in Udyog Vihar Phase-I of Gurgaon, after a complaint was received at the department’s headquarters in Chandigarh. Shyamal Mishra, Excise and Taxation Commissioner, had sent the complaint to the DETC (East) for inquiry and verification. The department has started tightening its noose on VAT defaulters and is now recovering not only the evaded VAT but also a considerable amount as fine from such defaulters.
According to DETC (East) Samir Yadav, the firm registered in the name of Subodh Gupta had raised a bill of a painting which was sold to Director, National Gallery of Modern Art, Delhi at a cost of Rs 2.25 crore on August 28,2015. The VAT amount of Rs 29,53,125 was also taken from the buyer, taking the total to Rs 2,00,53,125. He said that on checking the records at the Directorate General of Audits, it was found that the seller firm had neither shown the VAT amount in its Quarterly Returns nor deposited the VAT with the government. A notice was served to the firm in this regard but it did not respond. Therefore, the premise of the firm was raided on Monday. As per rules, if no deposition of VAT by a firm is proved, it will have to not only deposit the entire amount of VAT evaded but also the fine.