Commercial Tax Department, Indore has decided to take action against firms that have been issued Tax Identification Number (TIN) but are not paying any tax to the Government.
These firms take the TIN number with an assurance to the department that they will increase their turnover to more than `10 lakh yearly and will accordingly pay tax to the department. However, it has been found by the department that many such firms have not paid any tax so far.
Notably, with TIN number, the firms avail several facilities provided by the Government and public sector banks for their benefit but do not pay any tax to the Government.
Presently in Madhya Pradesh, more than 3.5 lakh firms have got TIN number. But out of this, more than one-third are filing zero tax return. The commercial tax department officers think that the fims whose tax returns are zero should be reexamined and the TIN number of such businessmen should be cancelled if necessary.
For purpose of ease in managing tax collection, the department has divided Indore in three sectors. Number of firms registered under VAT in sector 1 is 13587, sector 2 is 10290 and in sector 3 it is 12776. But under central sales tax (CST) the numbers of registrations in all these three sectors are different. There is a difference between TIN numbers and revenue due to this reason the commercial tax department is examining these TIN numbers. Commissioner commercial tax department Indore Amit Rathore told The Pioneer that an order has been issued to check such firms who have TIN numbers but they are filing zero tax return since two years and the case has been handed over to Additional Commissioner Swati Meena for further investigation.
It is to be noted that commercial tax department Madhya Pradesh has given `18000 crore revenue to the State fund in the financial year 2012-2013.