Delhi Government's trade and taxes department has cancelled licences of 129 bogus companies (non existent) whose annual turn over estimated Rs5,055.55 crore. The department has cancelled licences of 289 bogus companies till date. The Pioneer on June 27, 2014 has earlier carried a report on how non-existed bogus companies are being operated in the Capital to evade taxes.
The department already cancelled the licences of 150 fictitious companies and has already started lodging criminal cases against them. The evasion of Rs2, 000-crore VAT during the past one year is just the beginning of a maelstrom and may in all probability spirals into a major scam in the national Capital once the investigations are over. VAT was introduced in the Capital in 2005.
According to a preliminary assessment by the VAT department, the amount of tax evasion may be estimated around Rs2,000-Rs5,000 crore in a year. Traders have been found to use bogus receipts to accept and make transactions thereby evading the taxes to the State exchequer.
Sources claim that if the tax evasion is estimated at Rs2,000 crore from just 160 bogus dealers during the past one year, the total evasion of tax since 2005 may be between Rs20,000 crore and Rs25,000 crore. Raids are constantly being conducted by the enforcement team to nab more of such evaders whose numbers could run in thousands.