AHMEDABAD: The state commercial tax department has detected Rs 23.27 crore of VAT evasion on 'work-contracts' from 40 builders and developers across Ahmedabad, Surat and Bhavnagar in last one week. The raids which began last week saw over 100 premises searched by commercial tax department officials across these three cities.
Maximum evasion of Rs 19.77 crore was detected at the premises of around 19 builders in Ahmedabad. "The raids in Ahmedabad were conducted in two phases. In phase 1, we detected evasion of Rs 16.57 crore from 17 builders and rest of the amount in the second phase which ended on Monday," said a senior commercial tax department official.
In Bhavnagar, over 30 premises of 19 builders were raided and officials detected evasion to the tune of Rs 1.05 crore while in Surat evasion of Rs 2.45 crore was unearthed from two builders.
"We are also assessing premises of the Surat based builders in Dahej as the investigation is on. Based on our searches, we will prepare the amount these builders are liable to pay and subsequently issue notices," added senior official.
As per the state commercial department, following a Supreme Court order builders and developers had to pay VAT on work contracts undertaken by them since 2006-07. According to rules, builders are liable to pay 15% VAT on work contracts undertaken by them and 0.6% if it was a one-off deal.