THE COMMERCIAL Tax department made a tax recovery to the tune of Rs 1.75 crore on Friday. The department has been conducting raids in commercial establishments in the City for the past two days under its tax recovery drive.
Conducting a daylong raid at an automobile dealer’s showroom on December 21, the department officials made the recovery. The said amount towards outstanding tax has been deposited through cheque by the dealer.
Speaking to the Hindustan Times, Deputy Commissioner, Commercial Tax, AK Shukla said tax officials’ team raided the dealership of Tata Motors – Mechmen Motors at Govindpura and after inspection and scrutiny found a tax outstanding of Rs 1.75 crore.
“There’re irregularities in payment of tax. After seizing records, it was found that quarterly tax returns weren’t duly filed,” remarked Shukla. A senior official said that after the introduction of VAT in the state, the department virtually stopped any kind of inspection and raid, which led to an increase in tax evasion. “The department has received orders for conducting recovery drives and we’re taking stringent action against tax evaders,” he added.
In another drive, the CT department has conducted a raid at Govindpura based KP Fragrance – a franchisee of Kanpur based tobacco-Gutka company. Acting on a tip-off, the department officials took a truck carrying a consignment of Gutka in its possession in Sagar on December 21.
“The truck carrying consignment evaded paying of entry tax and it led to the raid at the factory on Saturday, which is into repackaging at Govindpura,” said Shukla. The tobacco-based gutka and pan-masala, though exempted of commercial tax, attract entry tax on inter-district and inter-state movement of consignments.