VAT Dept asks govt depts' to plug evasion

Reverse tracking of sales by seeking inputs from purchasers in government institutions has been launched in a big way by thecity government’s VAT Department in its desperate bid to ramp up collections in the last quarter of the financial year.

As against a target of Rs 24,000 crore, the department has so far managed to collect only Rs 15,000 crore tax with just over two and a half months left in the financial year.

Following Chief Minister Arvind Kejriwal’s instruction to introduce smart surveillance without harassing traders, VAT Commissioner S S Yadav has made it mandatory for all government entities in the city to furnish an online quarterly return of purchases made by them for the purpose of consumption.

“The purpose is to ensure that no government entity is purchasing goods from a dealer who does not pay VAT,” said an official.

A senior official said the VAT Department was trying its best to achieve the collection target. “Out of the Rs 24,000 crore target, the department would get around Rs 2,400 crore from central poll. The remaining Rs 21,600 crore is achievable and we are very hopeful of doing so.”

This filing of purchase returns would help the VAT Department to plug loopholes in the system that allow VAT evasion, he said. “For filing of purchase returns all government entities shall have to enrol themselves by logging on to www.dvat.gov.in”

Non-compliance of the government entity of the notification issued by the VAT would be treated as violation of the provisions of the said Delhi Value Added Tax Act, 2004 and would be proceeded against accordingly, said Yadav. He said the government entities would also be encouraged to verify the TIN of the seller/supplier from www.dvat.gov.in before purchasing goods from them.