Hyderabad: In a major drive to mobilise revenues to meet the growing financial needs in the last quarter of the current financial year, Telangana state government has cracked the whip at tax defaulters. State Commercial Taxes department slapped notices on 7,000 traders for defaulting taxes on a single day on Thursday. The defaulters owed Rs 780 crore tax dues to the state government for the last three years.
Telangana Govt cracks whip on traders
A special official team headed by State Principal Secretary to Revenue (Commercial Taxes and Excise) has taken up the big task of recovering all tax dues from the defaulters. The team identified more than 7,000 traders registered with the state commercial taxes department did not return the tax balance which was shown in their tax filings.
All the defaulters were given a week’s time to respond to the notices. If anyone failed, the traders’ bank accounts will be attached and dues would be recovered directly from the financial institutions, officials said. They said that a separate software has been developed in coordination with IIT (Indian Institute of Technology) to prepare a detailed database on the traders and their tax payments history.
Post GST period, the government also identified tax defaulters under single tax regime resulting Rs 180 crore revenue loss to the Centre as well as state for the last six months. On an average, the government was losing Rs 30 crore per month due to non-filings by the traders under the GST.
The state government already identified the defaulters and is getting ready to serve notices on them also. Officials said that the total registered traders pre-GST in Telangana were 2.1 lakh and in the GST period the number has been increased to nearly 3 lakh. Only 10 per cent of the traders contributed 90 per cent revenue come as tax to the government. Officials said that the government will get nearly Rs 1,000 crore revenue if all the dues are collected before the end of this financial year on March 31 which will help to meet financial needs.