Scrap dealers evading tax

Srikakulam: Scrap merchants are out rightly evading payment of tax to the government and causing loss to state exchequer with active connivance of commercial tax department officials.

In Srikakulam district, four commercial tax department circles are in existence at Palasa, Narasannapeta, Srikakulam and Amadalavalasa.

Number of scrap collection and storage points are in existence across Srikakulam district but most of the scrap merchants are doing their business without paying any tax to the government by allegedly managing officials concerned. But, to satisfy targeted figures commercial tax department officials conducted inspections on roads to check shifting of scrap through vehicles and started negotiations with the concerned traders to get something as bribe if they refused then only penalty imposed.

This is normal practice adopted by the department officials. Recently, commercial tax Srikakulam circle deputy assistant commissioner (DAC) A Ramesh Kumar noticed a scrap laden lorry and stopped the same at KottaRoad junction near Srikakulam city. While the DAC was verifying records the lorry driver fled from the spot to avoid liability. But the issue came to light and the DAC prepared a notice and affixed the same on the front glass of the lorry.

After two days the concerned scrap lorry owner reportedly paid tax amount with penalty.

It is learnt that only after failure of negotiations with the scrap merchants the commercial tax officials initiating further step otherwise evading of tax is a common practice for scrap traders. But this is the only case but every day number of scrap laden Lorries are moving on roads from the scrap storage points.