Delhi Government has netted over Rs 8,400 crore from value added tax (VAT) in the first six months of the current fiscal year — an increase of around Rs 420 crore compared to the corresponding period of the previous year.
Also Sanjiv Khirwar, Commissioner (Trade & Taxes), said that the department has collected Rs 8,469.90 crore in tax — an increase of Rs 420.73 crore compared to the previous year. According to the Trade & Taxes Department, the drive has been launched to increase the collection of taxes and it would ensure to achieve its target.
As per data, the weekly collection of taxes has increased to Rs 58.7 crore compared to last year during the same period. The weekly collection of VAT was Rs 928.10 crore in 2013-14 while the same was registered at Rs 186.80 crore in the current fiscal. Similarly, there is also an increase in the monthly collection to Rs 212.04 crore compared to the previous fiscal. The total monthly collection registered in the current fiscal is Rs 1,457.10 crore compared to Rs 1,245.06 crore last year. The total collection of VAT has been Rs 8,469.90 crore this year vis-à-vis Rs 8,049.17 crore last year.
The Commissioner also said that the date for submission of Form 9 has been extended till October 28. “Under the VAT system, bogus dealers (dealers who take registration on wrong credentials) issue fake tax invoices on the strength of which genuine dealers claim Input Tax Credit (ITC) and thereby reduce their liability to pay VAT. Now, the VAT Department has tightened the noose around bogus dealers,” Khirwar added.
Khirwar also added that to curb the menace of tax evasion, the department has taken action against the violators. “During the week ending September 26 this year, strict action against bogus dealers was intensified. Value Added Tax inspectors visited such bogus dealers.
38 bogus/high risk dealers with phony declared turnover of Rs 836.11 in 2013-14 were intensified and registration certificate of these dealers cancelled. Input Tax Credit of Rs 9.23 crore was also disallowed this week,” he added.
The Commissioner has also directed to detect the chain of sale of such dealers and issued instructions to take strict action as per provisions of Delhi Value Added Tax Act, 2004.