Delhi government announces reward scheme for informers on VAT
September, 11th 2015
In order to minimise the pilferage of tax revenue, Delhi government has decided to introduce a reward scheme for informers providing vital inputs in the national capital.
According to government, the scheme is being introduced to check and detect value added tax evasion in the capital. It is felt necessary to have participation of informers who can provide specific inputs in the area of tax evasion.
"Informers, whose identity will be kept totally confidential, will be suitably rewarded in case the information leads to realisation of additional tax revenue. In cases, where inspection is undertaken consequent to written information furnished by the informer
"And as a result additional demand of tax amounting to at least Rs 10 lakh is created and realised, the informer shall be eligible for reward up-to 7.5 per cent of the additional tax demand created and realised or Rs 10 lakh, whichever is less," said a senior government official.
The official said that the scheme also includes a provision of an advance reward upto a maximum limit of Rs 25,000 to the informer upon successful search and seizures, an interim reward of an amount proportionate to the deposit of additional admitted tax as a result of assessment proceedings which will be released after expiry of 3 months of such assessment order without any objection or appeal.
"The final reward will be the full and final amount after adjustment of interim and advance rewards already granted and will be paid when the assessed amount has been deposited by the dealer and the same is not contested in any departmental or legal proceedings," official said.
Government said that all cases for the eligibility for the reward as well as its quantum and release shall be decided by a Reward Evaluation Committee (REC) headed by the Commissioner VAT or his nominee.
"Where any information or evidence is furnished by any person in the expectation of a reward, the informer will be required to furnish a written statement along with an undertaking which will be signed by the informer in the presence of an officer of the department," official also said.
Original statement of all cases will be kept in the custody of the Joint Commissioner/ Additional Commissioner concerned. However, no reward will be admissible if the informer refuses to give the written statement and undertaking, the official added.