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VAT release- drive against unregistered dealers, 05th June 2016

Home/ VAT Release- Drive Against Unregistered Dealers, 05th June 2016

DIRECTORATE OF INFORMATION AND PUBLICITY
GOVERNMENT OF NCT OF DELHI

PRESS RELEASE

  • Special drive launched against unregistered dealers- Commissioner, VAT
  • Strict enforcement action taken including search of premises and seizure of documents related to VAT evasion,
  • Tax evasion of crores of rupees detected
  • Advisory issued to thousands of such dealers to get registered immediately
  • Unregistered dealers not entitled to collect VAT- Shri SS Yadav, Commissioner, VAT.
  • Registration under VAT compulsory if annual turnover is more than Rs 20 lakh or if any inter State sale is made

Dated : 05/6/2016

The Department of Trade and Taxes, Government of NCT of Delhi has initiated strict action against unregistered dealers functioning in Delhi. A door to door survey of all the markets was conducted by the Department last months in which thousands of such dealers were identified. Commissioner, VAT, Delhi Government, Shri S.S. Yadav informed that the department is also making use of other databases like data obtained from Geo Spatial Delhi Limited (GSDL) to identify such dealers. Many unregistered dealers making sale though ecommerce platforms have also been identified.

Mr. Yadav informed that in last one week, the department has sent enforcement teams to the premises of 10 such dealers for search and survey operations under the provisions of Section 60 of the Delhi Value Added Tax Act, 2004. The teams have unearthed tax evasion of crores of rupees by these dealers. Many more such dealers will be surveyed by the enforcement teams in the coming days.

Advisory has also been sent to the unregistered dealers identified so far to get registered immediately.

Shri Yadav further informed that as per Section 18 of the Delhi Value Added Tax Act, 2004, it is compulsory for a dealer to get registration and obtain TIN if his turnover is more than Rs 20 lakh in a year. Moreover, dealers who are involved in inter-state sale or purchase shall also compulsorily register with the Department irrespective of their turnover. As per Section 89(4) of the Act, if a dealer who is required to register fails to register is liable to imprisonment for a period of 6 months and also with fine. Moreover, tax collected by the dealer in last 6 years along with equal amount as penalty and interest is recovered from such dealer.

Shri Yadav said that the Department of Trade and Taxes has launched awareness drive to educate people about legal provisions regarding registration under the Delhi Value Added Tax Act 2004 and the Central Sales Tax Act through print, electronic media and hoardings. SMS have also been sent to the unregistered dealers urging them to register themselves forthwith. The people of Delhi have also been encouraged to insist on issue of valid bill having a TIN for each purchase. People are also encouraged to upload the bills through the DVATBILL app of the Department and win cash prize.

Shri Yadav informed that recently the Department of Trade and Taxes has simplified the process of obtaining registration under the Delhi Value Added Tax Act and Central Sales Tax Act. To facilitate registration, DVAT MSEWA mobile app was launched recently by the hon’ble Chief Minister, Delhi. Through this App, a dealer can obtain final TIN on the same day itself without the need of visit of VAT inspector to verify his premises. The department hopes that the dealers will make use of this App and will come forward in large number to get their registration.

Shri Yadav said that Presently 3.3 lakh dealers are registered with the Department. However, it is estimated that there are at least 2lakh more dealers who qualify for registration but have not registered themselves so far. The department is making sincere efforts to motivate such dealers to register themselves. This will increase the tax base, increase collection of VAT and prevent evasion.

Shri Yadav further informed that an unregistered dealer is not entitled to collect VAT from buyers. As the VAT is included in the MRP of the product, the people must ensure that they buy goods only from registered dealers so that the VAT paid by them reach the government for development of the city. The Department will continue strict action against unregistered dealers and will not spare any tax evaders.

We appeal to the people of Delhi to join hands in Delhi’s development by buying goods only from registered dealers and uploading bills of their purchase through DVATBILL App.

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