The State Government of Telengana is considering amendment to VAT law Act with a view to verify old records.
This is in the light of Rs 400 crore scam first detected in the commercial taxes department in Bodhan of Nizamabad district. The Government now wants to cross-check all old records in other districts to unearth any such scams.
Reports says that the amendment to VAT law Act will give officials the freedom to verify records over the past six years, and has issued an ordinance.
It will also empower any investigation, inquiry, verification including scrutiny and audit, assessment proceedings adjudication and any other legal proceedings for recovery of arrears.
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 state government has been continuing with the VAT law 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.
