Rs 15-cr tax evasion by car dealer detected in Punjab

PATIALA: Punjab excise and taxation department has detected tax evasion to the tune of Rs 15 crore by a Bathinda-based car dealer, Commissioner Anurag Verma said here today.

It came to light that Bathinda-based Mehta Motors did not pay full tax on the cars sold by them, he added.

Verma said data was procured from car manufacturers and it was found that the car dealer during the period April 1, 2009 and September 30, 2012 had purchased cars worth Rs 175 crore from the car manufacturers.

However, in sale returns filed with the department, the dealer had shown purchases of only about Rs 57 crore, thus suppressing sale amounting to Rs 118 crore, Verma said.

Tax liability was worked out at Rs 15 crore, he added. "The dealer had collected the tax from the customers but instead of depositing it into the state treasury, he kept it with himself," Verma alleged.

Verma said Rs 12.5 crore has been recovered from the said dealer.

An inquiry into the event also has been ordered which will be conducted Bhawna Garg, Additional Excise & Taxation Commissioner.

Apart from suggesting action against the dealer, she would look into who were the officers who did not scrutinise the returns properly.

Verma did not rule out the possibility of lodging an FIR against the said dealer.

He further said that penalty of 200 per cent of the tax evaded could also be imposed on the dealer.
Verma informed that Excise & Taxation Department has asked for data from all the four-wheelers and two-wheeler dealers and their VAT returns would be compared with the data.