TN collects Rs 1.09 Cr fine for tax evasion on tobacco

Tamil Nadu Government has collected a fine of Rs 1.09 crore for tax evasion on tobacco products and urged retailers to retain the tax invoices for the goods.
"Sales tax on tobacco products is curently 30 per cent for the first point of sale in Tamil Nadu. 30 per cent sales tax should be paid at the first point of sale. All dealers should retain invoices for tobacco products and make them available for inspection", an official release said.
Noting that surprise checks were conducted in railway stations, omni buses, check posts and retail points, it said, "a fine of Rs 41.29 lakh was collected in Coimbatore alone for tax evasion from dealers who were selling tobaco products without proper invoices".

The enforcement division in Chennai recovered tax and pentaly from evading dealers of Rs 42 lakh. In another incident Rs 10 lakh was collected as tax and fine from a passenger who was carrying contraband cigarettes. In Vellore, surprise checks were conducted which led to collect fine of Rs 16 lakh from retail outlets.
"Checks have been intensified and dealers who indulge in tax evasion are warned of strict action", it said.