16 dealers conceal inter-state purchase of Rs 77 cr evading tax of Rs 11.47 cr

16 dealers conceal inter-state purchase of  Rs 77 cr evading tax of Rs 11.47 cr

Kohima, September 22: Altogether 16 dealers concealed inter-state purchase of Rs 77.56 crore and evaded tax of Rs 11.47 crore for the period 2013-17.
According to the report of CAG of India, Government of Nagaland for the year ending March31, 2017, which was tabled in the just concluded session of the Assembly revealed that examination of assessment records (June 2017) of the three Superintendent of Taxes, (Assessing Authorities of Ward ‘A’, ‘C’ and ‘E’) under Deputy Commissioner of Taxes, Dimapur Zone revealed that 16 dealers declared a gross turnover (GTO) of Rs 222.79 crore (GTO includes taxable and non-taxable sales, warranty sales, but exclusive of closing stock, goods damaged/returned/expired etc.) during the period 2013-17.
The 16 dealers include M/s KG Store, M/s MS Store, M/s Ratan & Co., M/s Awomi Cements, M/s Yepthomi Speeds, M/s Kashliwal Enterprises Pvt. Limited, M/s Apex Motors, M/s Yepthomi Motors, M/s Power Cell, M/s Yepthomi Auto, M/s Nili Motors, M/s Prative Enterprises, M/s Synergy Systems, M/s Z.C. Traders, M/s Madan Sharma & Co. and M/s SM Enterprises.
They allegedly declared a consolidated gross purchases of Rs 153.92 crore (Gross Purchases includes non-taxable items, capital goods, goods damaged/ expired/ returned) by utilizing ‘C’ forms. The returns filed by these dealers were scrutinized and accepted by the STs under sections 32 of the NVAT Act, 2005.
The CAG stated that cross examination of utilization of ‘C’ forms submitted by the dealers with the trading account and tax returns of the dealers and commodity and tax rate applicable to each purchase declared by the dealers revealed that the dealers actually purchased goods of Rs 231.48 crore during the same period. The dealers thus concealed interstate purchases of Rs 77.56 crore taxable at different rates.
From this, the CAG stated that that due to concealment of purchase, the dealers evaded tax of Rs 11.47 crore consequent on which they were also liable to pay interest of Rs 6.16 crore (calculated up to February 2018) for such concealment under Section 49 of the Nagaland Value Added Tax (NVAT) Act.
The Assessing Authorities (AA) thus failed to exercise the necessary checks as required under Section 32 of the NVAT Act, 2005 while assessing the returns filed by the dealers, the report stated.
The CAG quoted the Department saying that in respect of two dealers M/S KG Store for the years 2014-15 and 2015-16 and M/S M.S. Store for year 2015-16, revision by the Commissioner of Taxes under Section 78 of NVAT Act, had been carried out during 2016, necessary orders passed and an additional revenue of Rs 0.12 crore realized from the dealers.
In respect of a third dealer – M/s. Ratan & Co. it was stated that the returns of the dealer for 2014-15 and 2015-16 were recommended for revision by the Commissioner of Taxes under Section 78 of the NVAT Act. Action by the Department in respect of the other thirteen dealers was awaited (February 2018). (Page News Service)