Rs 700 cr tax from defaulting firms

Orissa expects to mop up sales tax to the tune of Rs 700 crore form the errant companies that have defaulted on payment sales tax by camouflaging some of their taxable sales as non-tax operation.

“The Special Investigation Team of the State Vigilance is investigating into the issue of sales tax evasion by companies. The exact sales tax collection from these defaulters can be assessed after we get the complete report but it is estimated that the state government will get Rs 600-700 crore. As many as nine big companies and around 75 companies in the small and medium sector have defaulted on sales tax payment,” said minister for finance and public enterprises Prafulla Chandra Ghadai.

The minister on Tuesday conducted a review on the serious issue of sales tax evasion by companies based on the findings of the Special Investigation Team of the State Vigilance. Nine big companies are in the dock over sales tax evasion. They include Vedanta Aluminium Ltd (VAL), Bhushan Power & Steel Ltd, JSL Ltd (formerly Jindal Stainless Ltd), Visa Steel Ltd and Rathi Steel Ltd among others.

“After receipt of the complete report, we will issue notices to these errant companies. If these companies fail to offer adequate explanation, action will be taken,” said Ghadai. It may be noted that the Special Investigation Team of the State Vigilance was constituted as per the direction of the Orissa High Court.