Delhi government cracks the whip on VAT evasion

The Delhi government’s Department of Trade & Taxes has aggressively targeted VAT evasion by dealers and transporters in the national capital.

During a recent search operation, jewellery and ornaments of gold and silver were recovered.  Roughly 16 Kg gold, 200 kg silver and currency worth Rs 33 lakh have been seized.  It is estimated that the catch was valued Rs 8 crores approximately.   

Market surveys (based on reports generated by Systems) and trade based surveys (in problematic areas) have been undertaken in the recent past to curb tax evasion.  Massive survey operations have been conducted in recent months trade-wise as well as market-wise.  

The trades which have been targeted during recent drives include caterers, hotels, banquet halls, farm houses, cold storages, marble markets, furniture, timber dealers, IT product dealers, automobile dealers, lubricants dealers and the dealers dealing in beverages.  

Similarly, market based surveys were also conducted at Gaffar market, Nehru place, Kirti Nagar timber market, Rajouri Garden marble market among the few prominent markets.  Massive evasions of tax were detected during such trade and market surveys and tax worth crores of rupees was realised during the month of February & mid March, 2014, by the enforcement branch.

More such market and trade surveys have been proposed to check tax evasion and promote the culture of tax compliance.  During such surveys, a large number of bogus dealers were also detected who were indulging in fake invoice trading with no involvement of actual sale/purchase of goods.  

FIRs have been registered against such bogus dealers and the department is planning to increase the frequency of conducting drives against such bogus dealers which include invoking criminal proceedings against them, as per the relevant provisions of Delhi VAT Act.