Taking a cue from Modi government’s ongoing clamp down on fictitious companies, the Yogi Adityanath dispensation is also targetting bogus firms in Uttar Pradesh.
In the ongoing drive, the enforcement wing of UP commercial tax department has so far identified 317 bogus companies/trading firms across the state.
According to UP additional chief secretary (commercial tax) Alok Sinha, the state government has cancelled registration of 131 firms and lodged FIRs against 45 others.
Besides, the commercial tax department has issued more than 2 million notices over default in filing goods and services tax (GST) return. The department has sent over 6 million SMS to traders, asking them to file GST return.
Chief Minister Yogi Adityanath has issued stern directives to the tax officials, asking them to ensure sustained monitoring of commercial activities.
During the first term of the Modi government, especially following the demonetisation exercise in November 2016, more than 300,000 firms, including shell companies, were deregistered in India. The action was taken after these entities failed to furnish any proof of business transactions, payment of taxes and filing of returns.
While reviewing the progress in commercial tax collection in Lucknow on Tuesday, CM Adityanath (exhorted) officials to ensure that the department achieved its revenue target in the current fiscal. For FY20, the government has fixed commercial tax revenue target at Rs 77,640 crore. Till May 2019, collections stood at 14 per cent of the target at Rs 10,711 crore.
Meanwhile, the government has introduced online verification for registration of firms, among other initiatives to increase transparency and speed of processing of applications.
Besides, the department has implemented technological interventions and processes for faster and accurate monitoring of trade related data and movement of goods, including mobile management system, vehicle tagging system, SIB Management System, etc.