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 291.70 crores in 2013-14. During physical verification by the authorities, these companies were found non-existent.
‘Last week Value Added Tax (VAT) inspectors raided various premises where numerous high risk dealers were found with fake turnover of Rs 291.70 crores for the year 2013-14. Registration certificates of such dealers were cancelled,’ Sanjiv Khirwar, commissioner (Trade & Tax) said on Wednesday. Khirwar said that the practice of evading VAT by creating fake companies has picked up in the last few years.
The bogus 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.
The turnover of these bogus companies was shown to be Rs 291.70 crores in 2013-14. During physical verification by the authorities, these companies were found non-existent.
‘Last week Value Added Tax (VAT) inspectors raided various premises where numerous high risk dealers were found with fake turnover of Rs 291.70 crores for the year 2013-14. Registration certificates of such dealers were cancelled,’ Sanjiv Khirwar, commissioner (Trade & Tax) said on Wednesday. Khirwar said that the practice of evading VAT by creating fake companies has picked up in the last few years.
The bogus 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.