Delhi Department of Trade and Taxes will start its crackdown against those business owners who are unregistered for VAT to get their affairs in order. Businesses must currently register if their VAT taxable turnover for the previous 12 months is more than Rs 10 lakh. Staring from July 14th, the department will take action against those small IT companies who are running their businesses without obtaining a Taxpayer Identification Number (TIN) in Nehru Place.
In Nehru Place IT market, there are more than 60 unregistered IT companies in the complex without having TIN number. The action will be similar to previous campaigns where the department encouraged non-payers such as restaurateurs, plumbers and medical professionals to disclose what they owe before taking action against those who failed to come forward.
In this direction, Delhi based All Delhi Computers Traders Association conducted a meeting with the VAT department. The association assured the department to extend its full support to the department and also help in creating awareness to the small IT companies who are largely dealing in repairing and replacement work.
According to Mahinder Aggarwal, president, ADCTA and committee member of recently formed Zonal Advisory committee, "We welcome this department drive and also urge Nehru Place unregistered companies to cooperate with the department and furnish their details to avoid heavy penalties of Rs 1 lakh. We look forward to being even more open about the compliance activity undertaken to ensure that we reduce the tax gap and help customers pay what they owe."
Swarn Singh, joint secretary, ADCTA added, "This drive aims to rope in dealers who are evading taxes. The penalties and surcharges for failing to register for VAT are swinging so high, that anyone who lets things slide for a year or more will be facing a huge bill without registering. Under the drive, unregistered dealers must disclose income from cash in hand activities that haven't gone through the books."