Hyderabad: In wake of the Rs 400 crore scam first detected in the commercial taxes department in Bodhan of Nizamabad district, the state government has decided to cross-check all old records in other districts to unearth any such scams.
For this, state government has decided to amend the VAT Act to give officials the freedom to verify records over the past six years, and has issued an ordinance
The ordinance says: “To overcome any limitations to help effective revenue realisation besides preventing leakages, it has been decided to amend the relevant provisions of the VAT Act.” At present, the VAT Act allowed officials to verify records up to four years.
The Bodhan commercial taxes scam took place in undivided AP. The state government has appointed a private charted accounting agency to verify old records in all districts. The finance department has suggested handing over this task to the Accountant General but the government opted for a private agency.
The state government has been continuing with the VAT Act though GST has come into existence.
Officials said that there is about Rs 18,000 crore in arrears from the traders and they have to continue with VAT Act to recover these arrears.
The Amended VAT Act will empower any investigation, inquiry, verification including scrutiny and audit, assessment proceedings adjudication and any other legal proceedings for recovery of arrears.
