The Department of Sales Tax has issued 1 lakh notices to traders in the last two months for tax evasion. It has also filed 431 FIRs against them for not filing returns. Raids, surveys and business audits have been further intensified.
Sources said that hundred of crores of bogus bills and hawala transactions have been unearthed by the department while spreading its dragnet for tax evaders.
Raids on retailers
Every day two raids are being undertaken and tax inspectors are combing the whole city systematically for defaulters. Raids have also been carried out on large retailers, sources said.
Filing VAT returns is voluntary, however in October 2007, the department realised that 30 per cent of VAT assessees had not filed their returns and 40 per cent had filed delayed returns for financial year 2007-08.
After unearthing these facts, the department has intensified its recovery .
Depending on the tax liability, VAT filings are done every 30, 90, 180 and 365 days.
Two streets a week
The Department has also found 2,000 unregistered shops and dealers since the beginning of year.
It has gone about the task by comparing the data available with the Shops and Establishment Department of Municipal Corporation of Greater Mumbai with its own data. Per week two streets are being covered, sources said.
