Bihar: 33 firms raided over suspected tax evasion

In a major crackdown against tax evasion, the state commercial taxes department on Wednesday hit upon a non-existent firm with a business turn over worth ₹900 crore in the past three years

In a major crackdown against tax evasion, the state commercial taxes department on Wednesday hit upon a non-existent firm with a business turn over worth ₹900 crore in the past three years. The firm used credit facility for tax payment, but was found non-existent on the address mentioned in the documents, officials said.

HT Image

Commercial taxes commissioner cum secretary Pratima said that the firm was engaged in sending recharge vouchers worth crores to other states. “Appropriate action will be taken against the proprietors of the dubious firm along with other business installations, that indulged in tax evasion,” she said.

The commercial taxes department officials on Wednesday carried out inspections at 33 business installations across the state to act against instances of tax evasion, based on comprehensive study of suspicious operations. Of the total, 13 are located in Patna district, 10 in Saran, one in Bhagalpur, three in Darbhanga, four in Magadh and two in Purnea. These firms were mainly related to iron and steel, coal, laptops, batteries, aluminium and copper scraps, bitumen etc.

In the course of inspection, 24 firms were found non-existent at their principal place of business as mentioned in their registrations. Transactions of about ₹379.48 crore were shown by these firms, officials said. In such cases, not only the evasion of tax by availment of fake ITC of about ₹54.90 crore is involved, but also provisions of GST were violated. Some of these bogus firms have also taken registration on the basis of fake documents, officials said.

During inspection, three firms were found existent at their declared principal place of business, but they were involved in bill trading. These three firms deal in coal and computers, said a senior officer.

A computer firm in Darbhanga showed purchase and sale of laptops worth crores by showing fake transportation, with the benefit of ITC given to businessmen of other states. Goods’ transportation worth lakhs has been shown to be done by cars and bikes. Officials seized goods worth ₹30 lakh in this case.

Out of these three firms, one firm registered in Aurangabad was found working in Dehri instead. Tax evasion of about ₹16 crore came to the fore in these three firms, officials said.