Chitwan Chamber of Commerce and Industry (CCCI) led the protest to exert pressure on the government to withdraw the decision taken by the Department of Revenue Investigation (DRI) to recover VAT and penalty worth Rs 45.8 million from Laxmi Narayan Bastralaya in Narayanghat.[break]
Agitating traders are saying that the DRI slapped such a huge amount as penalty with the motive of taking revenge against them.
Though existing law allows taxpayers to appeal to concerned bodies if they feel the decision is unfair, CCCI - the representative organization of local business people - took to the streets, challenging the rule of law.
The DRI had instructed the store on August 30 to clear the VAT and penalty as assessed by revenue investigation team within 15 days.
“As per existing laws, VAT and penalty assessed by the revenue investigation officials should be deposited in the government´s consolidated fund by the tax evaders. But, they can request the Director General of Inland Revenue Department (IRD) for administrative review if they think the verdict is unfair,” Prem Upadhayaya, chief of IRD office in Bharatpur, said.
Taxpayers can register their application at IRD seeking administrative review of the decision within 30 days from the date they received letter from DRI. After receiving applications, IRD should issue verdict within 60 days.
If taxpayers aren´t satisfied with the appeal decision, they can re-appeal to the Revenue Tribunal by depositing 33 percent of the penalty slapped by the DRI.
The traders, however, aren´t following due legal process, saying that the penalty slapped by the DRI is excessively high.
However, Narayanghat traders didn´t follow due legal process citing that the amount assessed as due was excessively high. “Even for appeal, we have to arrange at least Rs 12.5 million. So, we cannot go for administrative review,” Laxmi Narayan Shrestha, proprietor of Laxmi Narayan Bastralaya, said.
According to DRI officials, the clothing store had submitted two different financial statements to IRD office and Rastriya Banijya Bank, Narayanghat branch, while seeking loan. IRD had ascertained the dues on the basis of financial statement submitted to the bank.
Some 15 months ago, a team led by DRI director Bharat Raj Subedi had raided the clothing store. However, local traders had attacked the members of revenue investigation team and set their vehicle on fire.
“The DRI verdict is an act of revenge against the arson. The DRI officials have assesses tax and penalty in an unreasonable way,” Dr Til Chandra Bhattarai, president of CCCI, said. He also said it is a common practice among businesspeople to show better financial reports to banks for securing loans.
Meanwhile, a team of CCCI is in the capital to pile pressure on the government to withdraw the decision taken by the DRI.
´Decision will not be changed´
KATHMANDU (REPUBLICA): Officials at DRI have maintained that their decision to recover Rs 45.8 million from Narayanghat-based Laxmi Narayan Bastralaya would not be changed.
“After studying the firm´s financial transactions, we have already instructed the promoters of the firm to pay Rs 45.8 million to the government. We are not in a position to reconsider our decision,” Ananda Dhakal, deputy director general of DRI, told Republica on Friday. “The firm can appeal to the concerned bodies if it feels the decision is unfair.”
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