Guj Commercial tax dept detects VAT evasion of Rs 213.58 cr from 3 builders
May, 11th 2015
In one of the biggest detections, the state commercial tax department on Wednesday detected VAT evasions in 'work contracts' to the tune of Rs 213.58 crore from three Gujarat based builders. The department officials began raids at 38 premises of these three builders in Vadodara, Bharuch and Ahmedabad on Monday evening and are still going on.
According to primary estimates, Kalp Group was found with VAT evasion worth Rs 48 crore, Narayani Group with Rs 35.58 crore and Mayfair group was detected with evasion of whopping Rs 130 crore.
The raids were carried out in two premises in Ahmedabad, 30 in Vadodara and six in Bharuch.
In last one month, the officials have detected Rs 49.5 crore of VAT evasion by more than 40 builders in Ahmedabad, Bhavnagar, Surat and Rajkot taking the total evasion to Rs 264 crore.
Earlier in April the officials began conducting raids across the state at the premises of builders after the last date to pay VAT on 'work contracts' ended at April 11.
As per the state commercial department, following a Supreme Court order builders and developers had to pay VAT on work contracts undertaken by them since 2006-07. According to rules, builders are liable to pay 15% VAT on work contracts undertaken by them and 0.6% if it was a one-off deal.
The state government had launched a scheme last year allowing the builders and developers to pay their remainder VAT.
The officials also began attachment of the properties and bank accounts of the builders in VAT evasion case.
In Surat, officials detected evasion of Rs 20 crore by Rameshwaram (Rs 18 crore) and Hindva (Rs 2 crore) builders and Rs 6 crore by Skyz (Rs 2.5 crore) and Creative builders (Rs 3.5 crore) in Rajkot.
In Ahmedabad, five builders who failed to pay VAT on work contracts undertaken by them over last few years include Takshashila Realties Limited, Vishwanath Builders, Micro Builders, Sun Builders and Girivar Builders.