By Express press service

BHUBANESWAR: The government of Odisha has decided to carry out a careful examination of the declarations of property developers in order to prevent tax evasion and verify the authenticity of the turnover disclosed by them and the payment of tax. The decision was taken following allegations by a large number of apartment owners regarding the collection of the tax and the failure to deposit it in the government’s account during the VAT/GST period.

Acting on complaints, returns filed by a few large developers were reviewed by GST’s enforcement wing. Based on the market information and the results of the scrutiny, the search and inspection of the business premises of some of the property developers was also undertaken.

The inspection revealed that some of the property developers with turnover of over Rs 100 crore showed zero turnover in their VAT returns. Although they collected 2% VAT on the gross value of the apartment, the amount was not deposited in the government account.

While some of them turned out to have collected VAT on the strength of a receipt and not through an invoice with the intention of evading payment of tax, a few of them they filed a return showing all taxable turnover as tax-exempt turnover with a reason not to pay. any tax to the government. One of the developers introduced the intrastate transaction as an interstate transaction.

In order to cover all these taxpayers in this sector, necessary data from Odisha Real Estate Regulatory Authority (ORERA) has been obtained to review the tax compliance of property developers operating in different parts of Odisha.

Investigations regarding the authenticity of disclosed revenue, ITC availed of cash tax payment in respect of 12 developers (up to June 2017) have been completed by the wings of the application and reports have been submitted. Based on the report, adjudicators have already increased the claim worth Rs 38 crore till March 31 in eight cases.

TB and GST Commissioner Sushil Kumar Lohani called for review of returns, adjudication and collection of tax demanded from defaulters at the earliest and to ensure that no genuine taxpayers are harassed during the trip.

BHUBANESWAR: The government of Odisha has decided to carry out a careful examination of the declarations of property developers in order to prevent tax evasion and verify the authenticity of the turnover disclosed by them and the payment of tax. The decision was taken following allegations by a large number of apartment owners regarding the collection of the tax and the failure to deposit it in the government’s account during the VAT/GST period. Acting on complaints, returns filed by a few large developers were reviewed by GST’s enforcement wing. Based on the market information and the results of the scrutiny, the search and inspection of the business premises of some of the property developers was also undertaken. The inspection revealed that some of the property developers with turnover of over Rs 100 crore showed zero turnover in their VAT returns. Although they collected 2% VAT on the gross value of the apartment, the amount was not deposited in the government account. While some of them turned out to have collected VAT on the strength of a receipt and not through an invoice with the intention of evading payment of tax, a few of them they filed a return showing all taxable turnover as tax-exempt turnover with a reason not to pay. any tax to the government. One of the developers introduced the intrastate transaction as an interstate transaction. In order to cover all these taxpayers in this sector, necessary data from Odisha Real Estate Regulatory Authority (ORERA) has been obtained to review the tax compliance of property developers operating in different parts of Odisha. Investigations regarding the authenticity of disclosed revenue, ITC availed of cash tax payment in respect of 12 developers (up to June 2017) have been completed by the wings of the application and reports have been submitted. Based on the report, adjudicators have already increased the claim worth Rs 38 crore till March 31 in eight cases. TB and GST Commissioner Sushil Kumar Lohani called for review of returns, adjudication and collection of tax demanded from defaulters at the earliest and to ensure that no genuine taxpayers are harassed during the trip.

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