E-Kantipur

KATHMANDU, OCT 30 - The government has made public names of some firms involved in the much-talked-about Value Added Tax (VAT) evasion scam. The Finance Ministry's decision to make public a report of its investigation into the multi-billion VAT Evasion scandal follows directives from the National Information Commission (NIC).

The ministry has handed over the report to Freedom Forum, a non-government organisation that had filed an appeal with the NIC in line with the Right to Information (RTI) Regulation.

Earlier, the ministry had been hesitating to make public the names of the firms. It had also told the parliament's Public Accounts Committee (PAC) that it was unable to furnish the details as the VAT and Income Tax Act required it to maintain secrecy and not disclose such details except to certain designated officials. The PAC had asked the ministry to submit the details of the tax evaders who used fake bills. The Acts allow only the finance minister, officials related to tax collection and courts to view such information.

The Freedom Forum had appealed to the NIC and said it was not satisfied with the Finance Ministry's decision to not disclose the information.

The NIC had asked the government to submit a photocopy of the VAT evasion study report-2067 BS, including its annexes 1, 4 and 7 by upholding the spirit of the RTI Act.

"We submitted the report as per the direction of the NIC," Finance Secretary Krishna Hari Baskota said.

The report reveals involvement of some of the country's leading business houses and firms under them in the VAT scam. The report forwarded to the Freedom Forum was prepared on March 4, 2011.

The report has listed names of 385 firms that issued fake VAT bills, their Permanent Account Numbers (PAN) and names of companies that used the bills issued by such firms.

The report has also disclosed 35 companies that used fake bills and their PAN numbers.

The report has included names of 10 companies that were referred to the authorities concerned for investigation. It, however, does not mention the amount of tax evaded as investigations were on when the report was prepared. However, it has included names of seven firms that received money from the state coffers under the tax return facility.

The Inland Revenue Department (IRD) had directed the Inland Revenue Offices concerned to probe 518 companies, including 52 mentioned in the report, terming their transactions suspicious as of mid-April 2011. Of them, probe on 365 firms has already been completed, according to the IRD. The department has slapped tax bills of Rs 3.45 billion on them.

As many as 65 taxpayers have applied to the administrative review committee headed by the IRD Director General for a review of the tax bills. As per existing provisions, firms that are not satisfied with the tax amount slapped on them can ask for an administrative review within 60 days of the determination of the fine.

They can apply for the review after putting up one third of the total amount that the tax office sought to recover from them. The taxpayers can further apply to the Revenue Tribunal by putting 50 percent bail amount of the total amount of the fine.

Firms that got tax returns from the state on the basis of fake VAT bills

Sarita Enterprises                Rs 5.04 million

Sarita International Business        Rs 5.31 million

Ashutos Impex                Rs 17.22 million

Shivashakti Impex                Rs 16.95 melons

Digambar Trade House            Rs 11.26 million

Digambar Trade International         Rs 45.60 million

Bhimeshwor Trade House            Rs 14.33 million

Taxpayers on whom probe was initiated

Morang Auto Works

BM Enterprises

United Distributors

Him Electronics

Associated Automobiles

Himalayan Enterprises Pvt Ltd

AIT Pvt Ltd

Arun Intercontinental Traders

Wheels Auto

Surya Automobiles

Jyoti Overseas

Shakti Commercial Enterprises

United Shayam Sundar and Danfe Construction JV

United

Lama Shyam Sundar JV

United Builders

Bishwokarma Cement

Bama Motors

CGGC Cameliya Project Department of Nepal

Jagadamba Steels

Barun Developers

Bhatbhateni Department Stores

Maruti Cement

CG Electronics

CG Impex

CG Foods

Rasuwa Construction Company

Rajesh Sanitary Ware

CTCE/Kalika JV

Shree Dugar Brothers and Sons

Shree Dugar Auto Clinic

Chandan Wala International

Guras Engineering

M Trade House

Usma Traders

Nistha Traders

Posted on: 2011-10-30 10:29

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