Sales Tax Dept cracks down on defaulters

MUMBAI: In a major initiative against defaulting dealers, the Sales Tax Department in Maharashtra has launched a drive to prosecute the estimated 15,000 of five lakh registered dealers.

"The drive began with the lodging of police complaints against seven defaulters yesterday. Police have already begun investigating activities of these dealers and our department has assured all cooperation," a senior department official said.

As per procedure, dealers registered under VAT Act have to file periodical returns as per their annual tax liability. However, it was noticed that many dealers are not filing returns, the official told media.

To curb this trend and punish the defaulters, the department has launched the drive and lodged police complaints against seven defaulting dealers, the official said, adding that in some serious cases, arrests cannot be ruled out.

The drive against defaulters will continue for the next few months till action would be initiated against all the 15,000 registered dealers who are defaulters, the official said.

"All dealers who have not filed returns so far have been directed by the Department to file returns immediately to avoid police action," the official said.