Telangana Govt to invoke RR Act to fix defaulters

Telangana Govt to invoke RR Act to fix defaulters
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About 326 traders in the State have been identified as defaulters for not paying VAT for more than six years. 

The Act will be used against all the 326 VAT dealers who failed to pay the taxes to the tune of `322 crore even after serving repeated notices

Hyderabad: About 326 traders in the State have been identified as defaulters for not paying VAT for more than six years.

According to officials of the Commercial Taxes Department, it has now been decided to slap the Revenue Recovery (RR) Act against the defaulters.

Officials of the department said the RR Act would be used against all the 326 VAT dealers who failed to pay the taxes to the tune of Rs 322 crore even after serving repeated notices. Under the Act, the officials may seize the properties of defaulters and auction them to recover the taxes.

According to the information given by the department, the dues from Abids division alone is about Rs 40 crore from 29 traders and out of them a trader has a due of Rs 11 crore.

In Begumpet division, the dues are to the tune of Rs 20 crore from 56 traders. From Charminar division, Rs 15 crore is due to the department from 57 defaulters and the highest due amount is Rs 9 crore.

Hyderabad rural division has to collect a due of Rs 37 crore from 10 traders and out of them one has to pay as much as Rs 12 crore. Nalgonda division has to get taxes from 14 traders to the tune of Rs 42 crore and the highest due is Rs 15 crore. About 10 traders have dues up to Rs 24 crore in Nizamabad district and out of them one dealer owes Rs 19 crore.

The Punjagutta division has to collect a due of Rs 57 crore from 11 traders and this is the highest due of all the divisions. In this division, most of the dealers have a due of Rs 2 crore to Rs 4 crore.

The Saroornagar division has to collect Rs 47 crore from 12 traders and the highest due is Rs 18 crore. Similarly, the Secunderabad division has Rs 12 crore dues from 31 traders.

A senior official said the department has now decided to make use of the RR Act. The official said the process was in the beginning stage and it involved several steps to complete the recovery.

Each defaulter would again be served with the notices and they would be asked to give reply within a stipulated time. Cases of each dealer would be heard and reasons for default would be examined.

In some cases, the business might have changed hands, the property may have been mortgaged to banks and there would be other tricky issues. The officials would examine all these aspects before resorting to auctioning of the properties to recover the dues, said the department.

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