Govt to crack down on tax defaulters in DelhiUpdated: Aug 04, 2020 23:50 IST
New Delhi: Nearly 10,800 companies in Delhi have paid lesser or zero tax between January and March this year because of which the revenue dropped by over Rs 2,000 crore compared to the same period last year, deputy chief minister Manish Sisodia said on Tuesday.
To take stock of the situation, Sisodia, who is also Delhi’s finance minister, held a meeting with the state trade and taxes department on Tuesday. During the meeting, Sisodia directed officials to intensify the crackdown on companies evading taxes and evaluate as many as 700,000 companies registered under the goods and services taxes (GST).
Data showed that the department, so far, has analysed around 15,000 companies having a high turnover, of which 970 companies did not pay tax to the government despite charging from the consumers.
Of the 10,800 defaulting companies, 9.73% firms were those dealing in real estate, leasing and rentals. Around 8.83% companies belonged to the services sector and 5.46% are consulting firms.
The Delhi government received around Rs 2,015 crore lesser tax than last year during this period. In 2019, it collected around Rs 5,792 crore as tax returns, but this year the tax collection was only Rs 3,777 crore.
“The Delhi government has started issuing 3A notices to the defaulting 10,800 taxpayers and in case they fail to file their return within the prescribed time of 15 days, the department will proceed to make best judgment assessment of such taxpayers. The Delhi government has also issued notices against 111 liquor companies that did not pay VAT (value-added tax) from January to March,” Sisodia said.
The deputy chief minister appealed to the companies to immediately deposit the pending tax. “This is public money which the companies have collected from the people, but did not deposit it with the government. This will affect development works for the citizens, including the fight against the Covid pandemic. The Delhi government will take stringent action against the companies who will not deposit the full tax,” he said.
A senior official in the trade and taxes department said the government is also identifying general taxpayers who are evading tax. “The department has been able to recover Rs. 10 crore from two such defaulting companies in the last one week,” the official said.
Last week, three major search operations were conducted against the defaulters, including marble and granite companies and bulk taxpayers, the government said in a statement. “Rs 20.70 lakh was collected from them. In one case, the company’s office was sealed. In the second case, the company’s papers were confiscated. The Delhi government has also taken action against movement of goods without carrying e-way bills. With effect from June 23, around 140 vehicles have been detained and tax and penalty to the tune of around Rs. 1 crore were collected,” it said.
“Of the 15,000 high turnover taxpayers that were analysed, almost 970 taxpayers belonging to both Centre and state jurisdiction have not filed returns for Q4 2019-20 and Q1 2020-21. The extended time period granted for the filing of GST return for Q1 2020-21 had expired in July 2020,” the government said.