Delhi govt to take stringent action against VAT evaders
Builder and ancillary units in the construction industry defaulting VAT on ‘contract work’ now have to be cautious as the tax department of the Delhi Government is taking stringent action against the defaulters.
Already, the special zone of the tax department has prepared the list of contractors and builders in consultation with the municipal body.
The total data was collected considering aggressive construction of builders in the posh areas and colonies of the Delhi city.
It is also been noticed that there are many contractors who have not even registered themselves with the special zone and are evading taxes.
According to the officials, around Rs.180 crore has been collected as tax against a target of Rs.282 crore under this segment. The major shortfall in the amount is forcing the department to crackdown defaulters.
Joint commissioner of trade and taxes, V.K. Tripathi, told that he had requested municipal agencies for sanctioned plans of buildings which have been recently constructed or where the construction was underway. Only after the details provided about the constructor or builder, the construction will take place. He also mentioned that 2,500 notices have been sent and a list of defaulters prepared.
Raids have been conducted on the premises of the contractors for the tax assessment under the provision of work contract. Properties of over a dozen defaulters were sealed by the government.
The VAT department officials said that they sealed the premises as there were no proper documentation present. In the same way, another manufacturer was raided in Pitampura and the property subsequently sealed for violations.
The special zone of the trade and tax departmnt deals with cases of dealers engaged in executing the work contract and transferring the right to use the goods in a specialised manner.
They keep a note of the builder, contractors, interior decorators and maintenance contractors providing services to private or government buildings, malls and other service providers come under the purview of the special zone and are needed to pay 5-12.5 percent under different slabs for different services.
The contractors should deduct four percent of the total payment as VAT at source and pay it to the department through the registered tax account number as said by joint commissioner, trade and taxes.
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