To keep a check on evasion of Value Added Tax (VAT) in the State, Haryana Excise and Taxation Department has started keeping an eye on the quarterly VAT returns and depositing of VAT in the State.
The department has started tightening its noose on the VAT defaulters and is now recovering not only the VAT evaded but also a considerable amount as fine from such defaulters, said an official spokesman of Haryana Government.
A team of Deputy Excise and Taxation Commissioner (East) Gurgaon on Monday raided the premises of a firm namely Subodh Gupta, located in Udyog Vihar Phase-I of Gurgaon, after a complaint was received at the Department’s headquarters in Chandigarh. Shyamal Mishra, Excise and Taxation Commissioner sent that complaint to the DETC (East) for enquiry and verification.
According to DETC (East) Samir Yadav, the firm registered in the name of Subodh Gupta had raised a bill of a painting which was sold to Director, National Gallery of Modern Art, Delhi at a cost of `2.25 crore on August 28, 2015. The VAT amount of `29, 53, 125 was also taken from the buyer, taking the total to `2 crore 54 lakhs 53,125.
He said that on checking the records at Director General of Audits, it was found that the seller firm had neither shown the VAT amount in its Quarterly Returns nor deposited the VAT with the government.
A notice was served to the firm in this regard but it did not respond. Therefore, the premises of the firm was raided. As per rules, if non depositing of VAT by the firm is proved, it will have to not only deposit the entire amount of VAT evaded but also the fine, said the spokesman.
The Excise and Taxation Department has become more active following directions from its Minister Capt Abhimanyu who is said to be not so happy with the tax recovery of the department and has pulled up the officers to check evasion in VAT.
The Department hopes to catch more VAT defaulters in near future and the teams are on the job, added he.