Tanka Mani Sharma, IRD director general told Republica that of the total 1,700 firms investigated, 560 firms have an annual turnover of over Rs 5 million each, whereas the remaining have a turnover of Rs 2 million. [break]
Out of the 560 enterprises with annual turnover of more than Rs 5 million each, 300 are based in the capital.
Sharma said over Rs 8 billion worth of transactions carried out by a total 1,700 companies didn´t fall under the VAT and other tax purview. “Of the total Rs 8 billion, it is estimated that 560 firms owe around Rs 5 billion,” Sharma added.
As per the existing rule, business enterprises with an annual turnover of more than Rs 2 million must register for VAT.
“We found that these firms have either not registered for VAT or have simply evaded VAT. Most of the companies under investigation have not registered for VAT making the state suffer a revenue loss of around Rs 4 billion in VAT, Income Tax, Excise Duty, among others,” Sharma said.
The companies being investigated only have Permanent Account Number (PAN).
Meanwhile, IRD has settled 468 cases of the total 518 cases so far for evading more than Rs 10 billion in VAT. “We have extracted Rs 4 billion in tax from the 468 companies,” said Sharma.
A couple of months ago, IRD had set a timeline to complete investigation of 49 cases by mid-Dec, 41 cases by mid-Jan and 15 cases by mid-Feb.
Meanwhile, the talks between agitating brick producers and IRD officials on Thursday ended inconclusively with both sides refusing to budge from their respective stances. Brick producers have refused to register for VAT.
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